.jpg)
Groundworks developed the Effective TV CPM metric, a groundbreaking measurement approach that revolutionized their linear TV advertising strategy.
In the realm of home repair services, innovation often focuses on products and business models. However, at Groundworks, we’ve discovered that analytics innovation can be just as transformative. Our collaboration with Net Conversion led to the development of the Effective TV CPM metric, an innovative measurement approach that unlocked significant business value. This metric revolutionized how we approached linear TV advertising, a channel traditionally associated with broad reach rather than granular measurement. By combining localized data points like service area penetration and demographic nuances with Nielsen TV and household data, we gained a more accurate understanding of the true reach and cost-efficiency of TV ads within specific geographic markets.
This innovative measurement approach defied expectations often associated with video advertising and performance-driven channels. For Groundworks, success in lead generation is typically measured by Cost-Per-Qualified Lead (CPQL), with performance aligning with benchmarks observed in lead campaigns. Although we could not use this metric for linear TV, by ensuring we understood the real cost of buying linear placements, we were able to drive incrementality where available between DMAs, causing a trickle-down effect on more efficient performance and overall business impact.
Groundworks’ business model supports over 20 brands, further broken down to 70 markets hyper-locally targeted, each with a dedicated budget. Given the precise targeting and aggressive performance goals, optimizing media channels and maximizing efficiency is crucial. The Effective TV CPM metric provided the insights needed to achieve this, enabling us to allocate media budgets more effectively and ensure our media mix was optimized in real time. This approach not only improved the efficiency of our linear TV campaigns but also drove better results. By understanding the true value and reach of TV ads in specific markets, the Effective TV CPM metric provided a baseline for ongoing optimizations and recommendations. By analyzing performance data at a granular level, we could identify areas for improvement and make data-driven decisions to continually enhance our linear TV placements and buys.
Strategic Goals
- Sustained Revenue Growth Through Optimized Linear TV Advertising: Continue leveraging the Effective TV CPM metric to guide linear TV media buying decisions, aiming for a further 10-15% increase in overall sales within the next fiscal year while maintaining or improving lead conversion rates.
- Market Expansion with Controlled CPM Increase: Expand linear TV advertising into new, high-potential markets identified through the Effective TV CPM analysis. Aim for a 15-20% increase in market reach within the next 12 months while keeping the CPM increase under 3% to ensure continued profitability.
Implementation
We recognized that the industry’s existing linear TV media buying strategy was not optimized for Groundwork’s unique business model, which prioritized localized marketing efforts. Traditional CPM calculations failed to consider critical factors such as service area penetration and demographic nuances within specific geographic markets, leading to suboptimal media allocation and diminished campaign effectiveness. To solve this challenge, Net Conversion leveraged its data-driven insights, infused POV, and developed the Effective TV CPM metric to revolutionize Groundworks’ approach to linear TV advertising. This innovative metric incorporates a comprehensive range of factors that impact the actual reach and cost-efficiency of TV ads within specific geographic markets, including:
- Number of television households within Groundworks’ service area
- Total households in each market
- Average cost per thousand impressions
- Detailed demographic data
- Service Area Penetration % (the percentage of households within Groundworks’ service area that can be reached through TV buys)
By incorporating these critical data points, the Effective TV CPM metric provides a more accurate and actionable assessment of the true value and reach of linear TV advertising, enabling a highly targeted and efficient approach to media buying. This innovation was applied to our insights and data to strategize linear TV incremental opportunities further within our media mix. Once all data was imported into our Excel and the formula was created, this became an automated solution for our media analytics team.
Results
The results of our innovative approach speak for themselves. A pre-and post-analysis, using our effective TV CPM metric as a buying tool, reveals a significant improvement in business performance. Despite a slight increase in overall CPM (+5.05%) due to increased investment, we achieved substantial growth in both leads and sales. The +40.6% increase in impression volume, driven by our expanded market reach, directly contributed to a +6.44% rise in qualified leads in the targeted branches. More importantly, this lead generation translated into a remarkable +14.04% increase in overall sales. This data underscores the effectiveness of our strategy, demonstrating that the initial increase in CPM is outweighed by the substantial gains in revenue generation. By focusing on maximizing opportunities rather than minimizing costs, we have achieved a more efficient and profitable allocation of resources, driving significant business growth.
.png)
.png)
.png)
.png)
