Thursday, November 21, 2013

Measure Return On Investment For Television Advertising

The two matters you demand to halt are the funds fabricated from the investment and the bill per array of the investment.

Instructions

1.


Degree Reimburse on Investment for Television AdvertisingOne motive the give back metric ROI (transmit on investment) is so common is seeing of its simplicity. The formula for ROI, regardless of the Production, is always the magnitude you Income (or expect to Income) from an investment over the initial value of the investment. For television advertising, this way figuring elsewhere how even you profited from a television ad crusade.



Add up all costs associated with advertising. These costs can count elaborating, retainer fees, reward of media, Accoutrement, air time, actors, telemarketing, shipping and handling, testimonials, etc.


2. Review the CPO (Cost Per Order) model. This model looks at the direct profits that are associated with each product sold and the television media costs per order.


3. Subtract the expenses from the revenue of each item sold. This is your gross profit for that product. Let's say you have a product that sells for $150 and costs $50. Your gross profit is $100.


4. Determine media cost per order. Let's say you purchase media time for $10,000 and receive 1000 orders. The media cost per order is $10.


5. Subtract the media cost from the profit made. In this example the answer is $90 ($100 - $10).


6. Divide the profit by the cost. In our example this is $90 / $10 or 9. Multiply this by 100 for the ROI. The ROI on this is 900 percent.