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Partnering with GW, NC launched a data-driven DRTV strategy to unlock greater efficiencies & ensure media accountability in driving business outcomes.
In a strategic move to optimize television planning and buying, Groundworks (GW), in partnership with Net Conversion, embarked on a journey to explore the efficiencies available through the meticulous curation of Direct Response Television (DRTV) placements for Groundworks’ markets. Recognizing the limitations of traditional linear TV purchasing, particularly in reaching specific market segments with cost-effective programs and dayparts, the team implemented a data-driven test focused on DRTV. The underlying hypothesis was that DRTV, with its flexibility and access to remnant inventory, could unlock significant efficiencies in markets with programs and dayparts that are typically cost-prohibitive in our linear TV buy. This test aimed to validate DRTV as a complementary tactic to the existing media mix and to prove out the value of efficient media planning and buying, emphasizing the importance of real-time data to validate performance and ensure media accountability.
Phase 1 & 2: Initial Market Validation and Performance Analysis to Expand Market Rollout
The initial phase of the DRTV test was confined to three carefully selected markets, allowing for a focused analysis of performance. The objective was to validate the core premise of DRTV’s efficiency by comparing its performance against fixed inventory buys. Data points included station-level, market-level, and network-level performance metrics, with particular attention paid to CPM, reach penetration, and daypart allocation. The DRUM model was implemented to track call volume correlated with spot air times, providing valuable insights into lead generation efficacy.
The first readout revealed promising results. DRTV demonstrated a 15% lower average CPM compared to fixed inventory, translating to a substantial cost saving. However, reach penetration was observed to be 14% weaker across the test markets. Notably, daytime CPM in Greenville was significantly higher, highlighting the importance of market-specific analysis. This initial phase served as a crucial validation point, demonstrating the potential for DRTV to deliver cost efficiencies, albeit with considerations for reach optimization.
Building on the success of the initial test, Phase 2 involved a broader rollout of DRTV across a larger number of markets. This expansion allowed for a more comprehensive understanding of DRTV’s performance at scale. The analysis shifted towards a granular, shift-level examination of data, providing deeper insights into daypart performance and audience engagement.
In North Carolina, for example, the shift to DRTV inventory resulted in a 16% reduction in average CPM. Prime Time specifically saw a 31% decrease in CPM alongside a 16 percentage point increase in spend share compared to local TV. This phase validated the cost-effectiveness of DRTV and provided a clearer understanding of its performance across diverse market conditions.
The buying criteria were refined to include low unit rates, low CPMs, quality programming (brand safe), and a clearance rate of at least 80%. With 92% (84 out of 91) of GW's markets meeting these criteria, a significant budget was allocated to DRTV inventory in March and April. Creative consistency was maintained between fixed and DRTV stations, and DRTV schedules were implemented on a full-month basis to optimize clearance. The result was a -16% lower average CPM and an estimated $59.8K in total investment savings. This phase solidified DRTV as a valuable tool in GW’s media buying arsenal.
Phase 3: Real-Time Optimization and Data-Driven Media Curation
Moving forward, Net Conversion aims to elevate Groundworks’ DRTV strategy by implementing a signal-based optimization model. This approach leverages real-time data on website visits and phone calls to dynamically adjust media buys, maximizing performance and efficiency. This shift emphasizes the importance of media curation, moving beyond simply buying low-cost inventory to strategically selecting and optimizing placements for maximum impact. The goal is to drive market-level buy-in by demonstrating that DRTV is not solely about remnant inventory but about accessing high-performing dayparts and channel mixes with the added flexibility of short-term contracts. This flexibility enables real-time optimizations that are not possible with traditional linear TV buys.
To facilitate this transition, we’re proposing a station-level rollout based on market categorization:
- Primary Markets: Stations ranking in the bottom 30% percentile will be purchased via DRTV.
- Secondary Markets: Stations ranking in the bottom 50% percentile will be purchased via DRTV.
- Tertiary Markets: All purchases will be made exclusively through DRTV.
- New Markets: All new greenfield/PMI markets will be exclusively purchased through DRTV.
KPIs will focus on station CPM compared to market averages and SQAD benchmarks. Addressable TV, accounting for less than 2% of the budget, will remain unchanged due to its zip-targeted nature, and zoned cable will continue to be utilized for its affluent audience reach. Local TV, with its non-preemptible sponsorships and hyperlocal integrations, will also maintain its current role.
NC’s POV on buying Linear TV:
In conclusion, DRTV has proven its efficacy as an efficient method for linear TV buying. However, we firmly believe that an additional layer of strategic optimization is crucial to unlock maximum efficiencies and drive substantial growth for our partners. This is the core focus of Phase 3, where we will collaborate closely with our media investment team to leverage real-time data for dynamic, in-flight adjustments. The growth driver here is our ability to receive and act upon immediate performance insights, enabling us to fine-tune our media buys in real-time. By embracing this level of transparency, we, as marketers, gain the agility to pull the right levers, fostering meaningful connections through our meticulously curated strategy. Simultaneously, we maintain a sharp focus on media efficiencies, ensuring maximum profitable growth for our partners. This data-driven, responsive approach represents the future of DRTV, and we are confident it will deliver unparalleled results!
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