Tags |
|
|
Links |
|
|
E-Folder - Are You Ready for Direct Response Radio Advertising?
These Six Questions Tell You How to Make the Answer “Yes”
Direct response radio advertising is an amazingly under recognized way to grow a business quickly and profitably. For one thing, it's fully accountable, so every dollar spent can be tracked to the revenue it generates and unprofitable spending can be eliminated. In addition, it's extremely scalable. Once you figure out what works, you can increase your revenues and profits simply by increasing your media spend. It's nearly as easy as stepping on the gas pedal. Direct response radio advertising is truly a powerful engine for pro
Direct response radio advertising is an amazingly under recognized way to grow a business quickly and profitably. For one thing, it's fully accountable, so every dollar spent can be tracked to the revenue it generates and unprofitable spending can be eliminated. In addition, it's extremely scalable. Once you figure out what works, you can increase your revenues and profits simply by increasing your media spend. It's nearly as easy as stepping on the gas pedal. Direct response radio advertising is truly a powerful engine for pro
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
fitable growth.
When it is done properly.
Most of the time, radio advertising is not done right. The first step in “doing radio right” is not to do it until you're ready. The questions in this article will help you determine whether you're ready to take advantage of direct response radio advertising. If you're not ready, this article will tell you the steps you need to take to get ready.
Do you know how you will define success?
How much, in profit, is each customer worth to your business over the course of that customer's relationship with your company? This is the customer lifetim
When it is done properly.
Most of the time, radio advertising is not done right. The first step in “doing radio right” is not to do it until you're ready. The questions in this article will help you determine whether you're ready to take advantage of direct response radio advertising. If you're not ready, this article will tell you the steps you need to take to get ready.
Do you know how you will define success?
How much, in profit, is each customer worth to your business over the course of that customer's relationship with your company? This is the customer lifetim
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
e value question and it is vital to know this before you go into direct response advertising. Why? Because the definition of success in direct response radio advertising is acquiring a new customer at a cost that allows for a profitable relationship with that new customer. If you don't know the lifetime value, you cannot know how much you are able to pay to acquire a customer.
Think about the day when you run your first ad schedule on a station. The results come in. How do you know whether they are good or bad? Are they good because there is revenue? Are they good because the phone is ringin
Think about the day when you run your first ad schedule on a station. The results come in. How do you know whether they are good or bad? Are they good because there is revenue? Are they good because the phone is ringin
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
g or because visits to the web site went up? These are not sufficient to understand and evaluate the performance of your advertising. You can only evaluate advertising performance within the context of your customer lifetime value.
But knowing your customer lifetime value is not enough. You have to break this down into the metrics that you'll use to evaluate and manage your campaign. These metrics are part of the formula for lifetime value, metrics like “cost per lead” (CPL), cost per order (CPO, also known as CPA or cost per acquisition), conversion rate, and average revenue per sale. Do no
But knowing your customer lifetime value is not enough. You have to break this down into the metrics that you'll use to evaluate and manage your campaign. These metrics are part of the formula for lifetime value, metrics like “cost per lead” (CPL), cost per order (CPO, also known as CPA or cost per acquisition), conversion rate, and average revenue per sale. Do no
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
t begin a direct response radio advertising campaign (or a business of any sort using any kind of demand generation tactics) until you know your business profitability metrics very well.
Are you prepared to test?
We have often heard people say “We tried radio advertising and it doesn't work for us”.
Here's the problem with that statement: Developing a profitable direct response radio advertising campaign isn't something that is accomplished with a “trial”. It is far too complicated an endeavor, with far too many variables, to assess its effectiveness for your business with a “trial
Are you prepared to test?
We have often heard people say “We tried radio advertising and it doesn't work for us”.
Here's the problem with that statement: Developing a profitable direct response radio advertising campaign isn't something that is accomplished with a “trial”. It is far too complicated an endeavor, with far too many variables, to assess its effectiveness for your business with a “trial
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
”. There are creative variables and media variables, and together they present a daunting number of possible combinations to achieve success.
To properly assess the potential for direct response radio advertising to generate profitable new customers for your business, you must approach direct response radio advertising with a testing mindset. That calls for a patient, methodical approach.
What does this mean for you? It means that you need around $20,000 to test multiple ads over a 4-8 week period before you'll know which approaches will (and won't) yield more profitable results. Don't go
To properly assess the potential for direct response radio advertising to generate profitable new customers for your business, you must approach direct response radio advertising with a testing mindset. That calls for a patient, methodical approach.
What does this mean for you? It means that you need around $20,000 to test multiple ads over a 4-8 week period before you'll know which approaches will (and won't) yield more profitable results. Don't go
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
into direct response radio advertising with a “dabble” mindset. Go into it with solid business goals: a) To assess the potential of direct response radio advertising to drive profitable new revenues, and b) to understand which approaches - both creative and media - produce the best results for your company. While you'll generate revenues and profits during the test, the real benefit of testing is in the learnings that can be applied to a larger campaign over a long period of time to drive significant sales and profits.
Do you have a compelling offer?
The offer in your direct respons
Do you have a compelling offer?
The offer in your direct respons
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
e radio ad is one of the most important elements for success. But why do you need to be thinking about that before you even approach radio advertising? Isn't that something your radio advertising agency should come up with? Well, yes, but… The “but” here hinges on the fact that any offer must be something that's possible given the business profitability structure, and possible given the systems and processes that run the business. These are constraints that only you know about. It will take time to alter existing systems or processes should that be necessary to support a compelling offer in y
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
our advertising. Your agency might recommend you give away a free DVD player with each order. That would drive a lot of orders, but would they be profitable? You need to define the playing field for the agency and then engage in the dialogue of getting the most out of what's possible given the constraints.
What is a compelling offer? It's different, it's relevant, and it's meaningful. A free complimentary product or service is a good example. For example, if you're marketing a skin care product that fights acne, you can give away a skin softener product as a bonus. Others use free trials wi
What is a compelling offer? It's different, it's relevant, and it's meaningful. A free complimentary product or service is a good example. For example, if you're marketing a skin care product that fights acne, you can give away a skin softener product as a bonus. Others use free trials wi
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
th conversion mechanisms. These can work well provided the product performs as promised. Still others employ the 'risk free trial' approach, which essentially positions the 30 day money back guarantee as an offer - a “risk free trial”. The possibilities are many.
Is your business infrastructure set up to support direct response advertising?
The most important aspect of preparing for direct response radio advertising is ensuring you're ready for the volume of leads and orders that can result. The easiest way to project this is to know your CPL and CPO projections (see above) and then
Is your business infrastructure set up to support direct response advertising?
The most important aspect of preparing for direct response radio advertising is ensuring you're ready for the volume of leads and orders that can result. The easiest way to project this is to know your CPL and CPO projections (see above) and then
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
ssume a specific weekly media spend. For example, say you're running $25,000 in media per week in direct response radio. This is considered a relatively small campaign. If your business model shows that you expect a CPL of $15, then you'll be driving 25,000/15 = 1667 calls per week. Can your sales call center and fulfillment center handle this volume? More importantly, can they handle more, because when you're profitable while running a $25,000 weekly radio campaign, chances are you'll soon want to grow to five to ten times that size as soon as you can.
There's another vital piece of infrast
There's another vital piece of infrast
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
ructure you absolutely must have in place before you begin direct response radio advertising. It is a firm requirement because without it you're wasting your money and ruining your reputation with the vendors you've hired to help you build the campaign. That requirement is excellent data collection and transmission to the radio media buying department at your radio agency. By this we mean that you absolutely must have a mechanism for capturing the lead, order, and revenue data by the unique identifier (such as the toll-free phone number) for the media buy that generated the call. If you're se
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
nding calls to a call center, this is no problem. They understand this need and are already set up to accommodate it. If you're trying to take calls in house, most of the time you've got work to do to ensure you can provide your media company with the information they need on a timely basis (usually first thing every morning). If you are sending leads to a web site, which is happening with increasing frequency, you must set up data capture and transmission mechanisms via a web tracking software program like Google Analytics before the campaign begins, preferably before you even contact a dire
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
ct response radio advertising agency to get started. It's amazing how many times we've been told that this tracking mechanism is in place and that we'll get daily data exports from the web tracking software, only to begin the test and find out we won't be receiving data for many days and what we do receive will not be complete.
Are you aware of your biases and assumptions?
This question probably sounds a little different than the rest but it's well worth spending some time on. What you must understand is that you, the client, lead the show. As the agency, we will tell you want we rec
Are you aware of your biases and assumptions?
This question probably sounds a little different than the rest but it's well worth spending some time on. What you must understand is that you, the client, lead the show. As the agency, we will tell you want we rec
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
ommend based on our expertise in the field of direct response radio advertising. It's up to you to make sure we're making those recommendations with all of the necessary information. Biases and assumptions can damage this important aspect of the client-agency relationship.
Biases and assumptions underlie beliefs you have about key campaign questions like why your customers buy from you, or what appeals in advertising will resonate with the target audience. If you inject these into the process as facts, your agency will likely take them as such. The agency is unlikely to argue strongly with y
Biases and assumptions underlie beliefs you have about key campaign questions like why your customers buy from you, or what appeals in advertising will resonate with the target audience. If you inject these into the process as facts, your agency will likely take them as such. The agency is unlikely to argue strongly with y
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
ou - - it's just the nature of the “the customer is always right” tendency in client-agency relationships (as well as many others).
Let's say you've been advertising online with banners and pay per click (or with TV or with print - the medium doesn't matter). You want to test radio. One common mistake is to do a survey of your existing customers and ask them why they buy. The results show that the reasons these people buy match up very well with the appeals in the advertisements that you've been running. You conclude that the exact same approach will work in radio and you require that approa
Let's say you've been advertising online with banners and pay per click (or with TV or with print - the medium doesn't matter). You want to test radio. One common mistake is to do a survey of your existing customers and ask them why they buy. The results show that the reasons these people buy match up very well with the appeals in the advertisements that you've been running. You conclude that the exact same approach will work in radio and you require that approa
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
ch be followed by the agency. But you've overlooked the fact that your survey was very biased. Why? Because the people you surveyed were prompted to become customers by the ads you ran. Of course you're going to find people who validate the ads you've run - they responded to them to become customers! The non-biased way to do a survey is to collect data from a random sample of people (not current customers) matching the target customer profile.
Notice the point is not to eradicate your biases or assumptions, but to become aware of them. It's nearly impossible to get rid of biases. However, if
Notice the point is not to eradicate your biases or assumptions, but to become aware of them. It's nearly impossible to get rid of biases. However, if
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
you're aware of them you can then test them methodically and you won't be in danger of leading your agency down the wrong path - one that often leads to the failure of radio campaigns.
Are you different?
Me-too products or services don't work, period. In direct response you find this out quickly. You must be different. One important twist to this is that you can be different in any one of a number of different ways. As a certain marketing professor liked to say “you can innovate anywhere in the value chain…the more places the better”. Did Dell Computer make innovative new computers
Are you different?
Me-too products or services don't work, period. In direct response you find this out quickly. You must be different. One important twist to this is that you can be different in any one of a number of different ways. As a certain marketing professor liked to say “you can innovate anywhere in the value chain…the more places the better”. Did Dell Computer make innovative new computers
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
? Not at all. Dell found a way to put computers together faster, with higher reliability and at a lower cost than any other PC maker. That, among other things, translated into a super low cost structure which meant Dell could beat competitors on price and still make more money than those competitors. There are other examples. Maybe you're marketing a product in the diet aid category. There are “support” food programs (Weight Watchers), pills (Trimspa) and informational/diet regimens (the Atkins diet).
Do you have to have the latest breakthrough pill to compete? That would be nice but there a
Do you have to have the latest breakthrough pill to compete? That would be nice but there a
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
re only so many of those to be discovered. So you can be different in another way. Your spokesperson could be a celebrity. Your marketing angle could be radically different. Your offer could be unique. Your cost structure or overall business model might allow for an incredible free gift or a very low price. Your customer retention program might be so strong that you can give away a free trial to acquire large numbers of customers. There are many, many ways to be different. How you're different - while important - is still second to the fact that if you're a me-too product you'll not last long
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.e-folder.org.ua/article/5820/e-folder-Are-You-Ready-for-Direct-Response-Radio-Advertising.html">Are You Ready for Direct Response Radio Advertising?</a>
BB link (for phorums):
[url=http://www.e-folder.org.ua/article/5820/e-folder-Are-You-Ready-for-Direct-Response-Radio-Advertising.html]Are You Ready for Direct Response Radio Advertising?[/url]
Related Articles:
How to Get Along with Your Boss
Time Management: The Overlooked Outline
Bookmark it:
|