In my earlier posts, I have talked about optimizing the media in various forms like - Frequency, Creative Optimizer. There are more ways to optimize - Geographically, day parting, week of the day etc.
But the big question is WHY OPTIMIZE? A media buyer would say - I was given a budget of $10 MM and I bought the most effective media. Well, the buyer bought the media which he/she thought would be most effective but what happened in reality?
If the media is reaching out the consumers at a frequency of 15 and optimal is 10, then 5 impressions per unique user are wasted. Now, in terms of $ if the average cost per 5 impressions is $.01 (assuming $2 CPM) then we are wasting $.01 per consumer. If the campaign is reaching 50 MM unique individuals, then the loss is $500,000.
Yes, $500,000 in wasted impressions - money used to reach out to consumers who have already seen your ad 10 times.
So, as per my previous posts there are many advertisers who if not paying attention to frequency are wasting impressions and increasing their cost per acquisition. Personally, I believe this was/is the case with Vonage, Netflix, Zecco, Sarah Marshall (the movie which is about to be released).
In the online world, cookies should be used to identify if this is an existing customer or not and then try to up-sell or cross-sell their products.
Similar math can be done to estimate the wasted impressions based on day parting (what time of the day does your market segment most active), day of the week, Geographically etc.
Another example is engagement, move impressions out of placements which have a lower consumer engagement (click-through for online, phone call rate for DRTV etc). Move the impression to places where there is higher engagement. Make the most out of your marketing $, it is money which could be used for a new product launch or your next big campaign like holiday campaign in Q4.
It is very important to do a mix-media modeling if you are using various channels (Out of home - Cabs, Billboards, buses, trains, Online, Search, TV) to find out the overlap of consumers within each of these channels. This could be hard but hitting the same consumer again and again from all channels - NOT A VERY GOOD IDEA :). In simple terms - all the media buyers for various channels should talk before planning, estimate reach and frequency, if possible research the day parts and then launch the campaign.