Media buying is an essential aspect of advertising. It encompasses traditional media as well as digital channels. This key strategy helps brands connect with potential customers by buying and securing ideal ad placements.
When an ad is strategically placed at the right time and location, a brand can ensure the right audience views its ads. It can also maximize the views it receives from its target audience. Successful media buying requires specialized knowledge and is usually handled by a media buying agency, making it easier and more effective for businesses. Without strategic placement, your best media buying efforts may fall short.
How can you measure whether your media buying efforts are effective? Below are the top metrics used to measure the success of your media buying efforts.
What Is Media Buying?
Effective media buying requires understanding what media buying is and how it works. Even if your company plans to hire a media buying agency for result-driven media placement, it’s still important to understand media buying so your brand can partner with the right agency to get the results you want.
Media buying consists of purchasing ad space on various traditional and digital media channels. Traditional media includes television, print and radio, while digital includes websites, social media, apps, streaming services, and so on. Strategic media buying means purchasing placements that will reach the largest portion of your target audience.
How Does Media Buying Work?
Correct placement is vital to reaching your target audience and maximizing effectiveness. It requires a measured understanding of your audience and their behavior so that you can determine factors such as the best time to run the ad, how frequently it should run and what the best media platform is.
For instance, an ad for sports equipment works best when placed on a relevant platform, such as an article about the same sport or activity being advertised or when a live event is streaming. Timing your media buying can be just as important. Your game-day ad is unlikely to perform as well the next day.
Strategically placing ads at the right time and on channels relevant to your target audience can maximize your marketing efforts, keep a low cost per action and yield a better return on investment (ROI). Reach key audiences with strategic placement and generate more leads. The easier it is for a potential customer to discover your product or service, the more likely they are to make a sale and increase revenue.
Which Metrics Measure the Success of Media Buying Strategies?
How do you know if your media buying is effective? Which metrics best measure whether your media buying efforts are optimal? Let’s look at the key metrics that can be used to evaluate how well your media placement is performing. Use these tools to measure efficacy and adjust for optimal performance to improve ROI.
Click-Through Rate (CTR) and Conversion Rate (CR)
CTR measures the percentage of people who click on your ads after seeing them, while CR measures the percentage of people who complete a call to action. These metrics measure how well your ads deliver results.
Is your target audience following through with your call to action? First, are they clicking on your ads? Then, are they signing up for emails, texts or newsletters, filling out forms or making purchases?
Use analytic tools like Google Analytics to track codes and website data to determine CTR and CR metrics. If these percentages are lower than you would like, it may be time to reevaluate the relevance of your ads or the quality of your landing page. Working with a digital advertising agency can improve your ad quality and placement and increase website optimization to keep your audience engaged.
Cost Per Thousand (CPM) and Cost Per Point (CPP)
CPM measures how much it costs for your ads to reach 1,000 people, while CPP measures the cost of a single rating point. In other words, CPP calculates how much it costs to reach one percent of your target audience. These metrics determine how cost-efficient your advertising campaign is compared to other forms of advertising, such as television versus radio. Compare the effectiveness of different media platforms and formats. To calculate your CPM and CPP, divide the gross media cost by your ads’ gross reach (CPM) or rating points (CPP).
Return on Advertising Spend (ROAS) and Return on Investment (ROI)
ROAS and ROI measure how profitable your media buying is and whether these strategies generate measurable profits for your business. ROAS measures how much revenue your ads generate compared to advertising costs, while ROI measures how much net profit is made from money spent on media buying. These metrics are calculated from analytic tools, accounting systems and media provider data.
Use these tools to evaluate the effectiveness of your media buying strategies, which media channels and campaigns are most profitable, and how to best distribute your budget across these platforms.
Effective Frequency
How often do potential customers within your target market have to be exposed to your ads before they become effective? Frequency determines the minimum number of engagements to get a consumer to complete your call to action. It also measures how often customers can see an ad before the onset of ad fatigue. Use surveys, third-party tools and data from media providers, and consult with a media buying agency to calculate frequency.
Can a Media Buying Agency Improve Efficacy?
When you work with a media buying company, they are able to leverage their experience and knowledge in marketing to optimize your media buying strategies. Not only can they determine the most strategic placement for your ads, but they can also do most of the work, freeing up your time to focus on other important aspects of your brand. Simply, using an agency is easier and more effective for businesses.
Use a media buying agency to buy and place your ads strategically so you get the results you want and a better return on investment. At InnoVision, we take the guesswork out of media buying with compelling advertisements that reach your audiences and make a lasting impact. Contact us for comprehensive and customizable media buying solutions.
