co$portunity
TRANSCRIPT
Co$portunityTM
An Advertising Cost Comparison Method
Presented by: Mark RodefferUpstate Town Planner
18-Dec -2009
Co$portunityTM
Advertising prices range widely, and everyone has to find what works for them and their market
But once you’ve decided on an advertising method, how do you fairly compare pricing across proposals?
An advertis
ing cost
comparison method
Co$portunityTM
Let’s go back to the two R’s of advertising:Reach - the size of your campaign
the circulation of a publicationa billboard’s traffic counta television program’s audience
Repetition - How many times your message is viewed by the audience
An advertis
ing cost
comparison method
Co$portunityTM
Where’s the balance between the two R’s?Is it better to send an ad to:
3000 people 1 time 1000 people 3 times500 people 6 times50 people 60 times1 person 3000 times
Notice that in each case R x R = 3000
Message not heard
Annoying
An advertis
ing cost
comparison method
Co$portunityTM
Multiplying Reach and Repetition can be used as a factor to compare campaign costs
Every time the audience (Reach) views your message (Repetition) it creates an opportunity for business
The only other input required is the cost of the campaign
An advertis
ing cost
comparison method
Co$portunityTM
With the cost, reach, and repetition defined:
Simply divide the cost by the opportunities to get the cost per opportunity, or cosportunity.
Cosportunity = Cost(Reach X Repetition)
An advertis
ing cost
comparison method
Example 1 - Billboard Advertising
Let’s say your monthly cost is $1000
and the traffic count is 8,000 vehicles
8000 x 30 days = 240,000 opportunities
Your cosportunity is $0.004
Co$portunityTM
An advertis
ing cost
comparison method
Co$portunityTM
Example 2 - Weekly Newspaper Ads
Let’s say the weekly cost is $125.00
and the circulation is 50,000
50,000 x 52 = 2,600,000 opportunites
$6500 / 2,600,000 = 0.0025 cosportunity
An advertis
ing cost
comparison method
Co$portunityTM
Example 3 - Radio Advertising
Let’s say the monthly cost is $3,000
and you reach 5000 listeners 5 times a day - 5 x 5000 x 30 days = 750,000
Your cosportunity is $0.004
An advertis
ing cost
comparison method
Co$portunityTM
Let’s also remember that not everyone in your campaign’s reach will view your ad
Direct mail gets thrown away
Viewers channel surf during commercials
Motorists may not read your billboard
Big sure to dig for accurate numbers and apply correction factors fairly!
An advertis
ing cost
comparison method
Co$portunityTM
Also make sure
You’re comparing the same time periods
You’re in the right media for your market
Lastly, it’s okay to be cosportunistic!
An advertis
ing cost
comparison method
Co$portunityTM?
What’s Your Advertising’s