• http://www.rimmkaufman.com George Michie

    Great analysis as always, Sid. It’s a shame your columns run on Friday as I don’t have as many functioning neurons available for use by that late in the week!

    The “diminishing marginal returns” are very clear here, as well. From your data, the last $ 1 million/day in TV advertising only added an incremental 16% of impression volume to the SEM program, where the first million/day added ~45%.

    Interesting stuff!

  • http://www.tcampbell.net T Campbell

    It’s a shame the article’s not really equipped to answer the question it poses in a scientific way. The only answer here is “it varies by client.” I know it’d be dishonest to claim otherwise, but a bigger data set could provide more of an idea of the mean and the standard deviation.

  • http://www.efrontier.com sidshah

    George: Thanks for the feedback. Yes, its clearly diminishing returns. I could have done more analysis on click through and conversion rates but this data tends to be murkier. The connection to impressions is the most obvious one.

    T Campbell: At this point all I can say is yes there is a connection. Its hard to give this statistics because the level of the effect depends on the TV budget and the overall strategy. If you are a direct marketer and use online only as a way to fill the final form to order the product the TV effect is huge. 80-90% of impressions in this case are attributable to TV. Its a poor strategy IMHO because you can do a lot better with building good content on search and using search/SEO as a way of getting earlier stage customers. The other thing to consider is the strength of the brand itself. For a strong brand like iphone TV should have a far greater impact than a weaker brand like redfin. Again, one can only say this for sure with concrete data. The key point is that commonly held view that you really cant measure the connection between online and offline is not really true. With the right infrastructure and analytics in place, you can learn a lot about the connection that can help inform media-mix decisions.