Business Week Letter to the Editor - 1184134560
I read with interest Jon Fine’s column (“A Better Measure of Old Media?” MediaCentric, July 9) about the large, speculative investment Aribtron and some of its clients have made to try and determine return on investment (ROI) for television, radio and print advertising. Fine describes a complicated, costly approach that has yet to produce clear findings.
There is a much more cost-effective approach to assuring a stable, predictable ROI: per-inquiry advertising (PI). Also known variously as cost per lead (CPL), pay per lead (PPL) or cost per action (CPA), this is a form of direct response advertising in which the advertiser fills a media outlet’s unsold time or space and pays based upon the response. By necessity, the response must be tracked, so each ad offers a unique toll-free number or Web address for potential customers to reply. In the eight years I’ve been using PI, I’ve been 99.7 percent successful in tracking any particular client’s advertising campaign.
Best of all, the strategy is simple and relatively inexpensive. And as the Arbitron case study shows, the most expensive, high-tech solution isn’t always the best – particularly for businesses focused on the bottom line.
Higher Power Marketing
Fountain Hills, Ariz.