DRTV Response Rate – Allowable Cost Per Order

DRTV response rate. $50 per DRTV. Based on my research, these two keywords appear in many searches. So let’s talk about that because if you’re looking for Latest 2012 DRTV Media Information, DRTV Media Blog is the place to get information. Please bookmark or subscribe.

For those who are just starting out, digital tv Direct Response Television is a form of television advertising that advertisers pay for on a national or local basis. Low, low preemptible rate, or in other words, remaining medium. Smart marketers and advertisers set an allowable cost per order to achieve the sales goals that should be set.

DRTV response rates are often tracked by a metric called the Media Efficiency Ratio or Media Ratio, or MER. Let’s define some of these terms:

Media Efficiency Ratio (MER): A total number that determines the overall success or failure of a TV ad. This ratio is calculated by dividing total sales by media costs. Sales/Media Cost = MER. This term is sometimes also called the media ratio or simply the ratio. You can track the efficiency of your TV ad media buy for a single airing, a group of airings by station, or by week, month, or quarter.

Advertising Allowable Amount: The advertising allowable amount tells you how much you can afford to spend on each order. The advertising allowable amount is a dollar amount that determines the maximum media cost you can pay for each item sold to generate a legal profit. To calculate your allowable amount, add up all revenue from each item (including postage and handling), then deduct all expenses (including cost of goods, telemarketing, etc.). Here is a tool to help you determine your advertising allowance.

Cost Per Order (CPO): The average cost of generating an order for a product through TV media, determined by dividing the cost of airing a particular TV ad by the total number of orders received as a result of the airing. Compare this number to your ad’s allowance and you’ll know if you’re hitting your target.

Media Rates It drops sharply in the first few weeks of the new year, then gradually recovers as winter thaws. In terms of rates, the first and third quarters are the best quarters for TV media buying, while the second and fourth quarters have the most demand from corporate and brand advertisers, who pay higher rates.

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