Improving the ROI of Direct Response Advertising

With direct response advertising, the RPI of ad investments can be instantly indicated by the number of consumer reactions, such as from telephone calls or online Website visits. By efficiently accumulating flight patterns from the past and analyzing them, ROI can be improved. It is important to actually reflect these analyses into future strategies. And if done, this will lead to an improvement in ROI by constantly repeating this process in both the short-term and long-term.

 

At SPI, we offer a consulting service to improve the ROI for direct response advertising for clients covering the entire process outlined in the chart above. Now to introduce this service:

Area of SPI's consulting

The consulting service SPI offers to direct response advertisers mainly focuses on the area of media, more specifically media planning. Taking television as an example, SPI offers suggestions as to the distribution of costs by month, or by area, and the selection of television programs. These suggestions are provided in detail, including cost distributions by product, or by brand, and the timing of the exposures (by station, by day of the week, by time slot, etc). Also, from this analysis, SPI offers suggestions on creative strategies.

Construction of a marketing database system called 'Spirit'

The key to improving efficiency of direct response advertising is in organizing massive amounts of data and analyzing the data effectively. At SPI, we can provide clients with a custom-designed marketing database we call 'Spirit'. These systems can contain all the detailed data for each and every commercial, separated by month, by area, by day, and by product. And this data is conveniently retrieved and analyzed online.

Data analysis for forecasting and strategic feedback

At SPI, we use the data within 'Spirit' systems to conduct scientific analyses to forecast results and suggest modifications to strategies to try ensure better actual results. Here are some examples of those analyses:

CPR (Cost Per Response = Cost per unit reaction of the audience (purchase action, request for brochure, etc.)) - monitoring changing factors
CPR changes every day, along with the causes of those changes and their impact. By identifying these, this is knowledge that can be reflected in strategies. And this knowledge is multidimensional. For example, it can be reflected in media buying strategy, cost distributions, and exposure timing for the following week by product or brand.

Analysis of creative factors contributing to response
As mentioned above, the efficiency of each TV commercial can be revealed from a 'Sprit' system. From the creative factors that urge strong response, such as tone & manner, celebrities, when to display the telephone number within the commercial, etc., SPI can provide suggestions on how to improve the creative strategy.

Implementing marketing tests
For new ideas or strategies, marketing tests based on hypotheses should be conducted in order to minimize time and costs, and the results should be carefully examined. SPI offers marketing tests that gives clear results with minimum costs. And the examination of results can be done within one day using a 'Spirit' system. Once a positive result occurs, the change can be reflected into strategies within a week.

Author: Mr. Kenji Aoyagi, Analyst

Please contact us with questions or for more detailed information.
spiindex@spi-consultants.net