The Media Buyer Summit
Welcome to today's blog post, where we will dive into actionable strategies for media buyers to optimize their performance. In this article, we'll explore the insights shared by Darlene, the Chief Revenue Officer at TubeScience, during her session at the DTCx Media Buyer Summit. With years of experience in the industry, Darlene is here to provide valuable tips to help media buyers improve their media buying decisions and creative testing.
So, let's get started!
One of the most critical factors for media buyers is understanding the Total Addressable Market (TAM) and its relation to creative metrics. It is essential to recognize the different personas and segments within the TAM and assess whether the platform can effectively reach them. Factors such as watchability, easy-to-watch content, and relatable talent all contribute to an ad's scalability. Identifying ads with mass-market potential and aligning incentives between media buyers and creative strategists are essential for success.
Media buyers and creative strategists should communicate effectively to understand ad sizes and the total addressable market. Align incentives between both teams to ensure that creative strategies and media buying decisions are in sync. Alternatively, adopt a gradual budget increase approach for testing ads, allowing time for the algorithm to normalize before making further decisions.
Traditionally, media buyers allocated a fixed percentage of their budget for creative testing, which may not align well with actual performance goals. Instead, it's better to calculate the cost of testing based on the actual performance metrics of the ads being tested. This approach enables media buyers to test more ads efficiently and avoid overspending on unsuccessful tests.
Calculate the true cost of testing by subtracting the actual CPA of failed tests from the target CPA, multiplied by the number of purchases driven by the failed tests. This will help media buyers determine the actual cost of testing per ad. Consider focusing on improving hit rates and reducing the miss rate to increase the 90-day spend per hit metric. Align creative strategists with these goals to achieve optimal creative testing.
By implementing these actionable strategies, media buyers can make more informed decisions and optimize their performance effectively. Understanding the total addressable market, creative metrics, and cost of testing allows media buyers to be strategic in their approach and achieve better results. Remember to align incentives and communication between media buyers and creative strategists to drive success in performance marketing.
Remember, media buying is an ever-evolving field, so continuous learning and experimentation are crucial. Keep an eye on industry trends and best practices to stay ahead and deliver exceptional results for your campaigns. Happy media buying!