We test Direct Response Radio creative on large Arbitron-rated AM radio stations, a few Sirius XM channels, or a 30-50 station streaming network.  We track results closely, and then set Target Media Cost, Response & Conversion rates for rollouts in terrestrial or satellite network radio.

This page summarizes how we select test stations, the metrics we track, and the way we gross up local results to roll out buys.

Click the sidebar links for explanations of the math.

SELECT STATIONS

We test on at least two Arbitron-rated stations that each deliver high percentages of Target Audience and Qualified Audience listeners in their weekly cumes.

If you are certain you will end up in network destination programming (Rush, Sean, ESPN Sports, etc.) we can run only on two or three of those programs, replicating a sparse national buy over two or three weeks.

TA & QA Demos

Cume Rankers

TEST FOR TWO TO FIVE WEEKS

A good response-tracking test runs for at least 3 and at most 10 consecutive days, spanning at least one weekend.  We use two or three different models that each achieve an Effective Frequency range of 1.0 to 2.5+.

In a destination program test we replicate a future national buy: Intro Blitz (one or two :60 on a show), followed by an OEF Flight that matches the presumed Steam Speed of your Target Audience.

Optimum Effective
Frequency

OEF Flighting

TRACK RESPONSE RATES

We track G = Response in 000's of TA Gross Impressions per call or click.  You should establish a 30-60 day average daily response baseline prior to the test.  That's the only way to measure the incremental impact of the radio.

Since we know that future network buys will come in at much lower CPMs, we are only interested in the C and G portions of the GM/C=X equation. 

GM/C = X

TRACK CONVERSION RATES

We also track your own C, i.e. your single- or multi-step phone or web conversion.  You should also establish a 30-60 day average conversion baseline prior to the test.

Unless your home page has an established conversion rate of 8.5% or more, I strongly urge you to consider a separate Radio URL devoted entirely to making the first sale.

See Direct Response Radio Conversion and Streaming Radio Landing Pages for details.

Direct Response
Radio Conversion

Streaming Radio
Landing Pages

TRACK OEF RANGE

The Optimum Effective Frequency Range for most established or unique brands is 1.5 to about 2.5.  In some cluttered categories new advertisers may take a little longer to get up to speed.

Tracking single-station OEF and Quotas is very simple and requires only AQH and Cume data from a station. For multiple-station tests in a single market we'll often ask a station rep to plot progressive average frequency using Arbitron software.

Cume Response &
 Sales Quotas

Optimum Effective
Frequency

SET TARGET CPM

Local radio sells at two to three times the CPM of satellite and network.  Given a target or reasonable MCPS, and known values of G & C, target M can be easily derived  (M = CX/G).

High response and conversion rates can make the pricier network destination programs affordable, even at a modest Media Cost per Sale.

Set Target CPM

GROSS UP TEST RESULTS

Local response rates, conversion rates, OEF Ranges and quotas translate readily into network buys at lower CPMs.  For a sample local-to-network chart, click here.

The general idea is to buy just enough presence up front on any network vehicle to achieve Entry EF, but not so much as to exceed Exit EF unless results warrant.  It is better to under-buy, and leave sales on the table, than to over-buy and waste money. 

Network Rollouts

SET OEF FLIGHTING

How often a flight of commercials runs on a network vehicle depends on how quickly the Cume Quota responds and how fast or slowly it refreshes itself.  Drag response is an excellent indicator of Steam Speed and refreshment rate.

OEF Flighting
Drag

DOUBLE CHECK CONVERSION

The vast majority of successful local and network Direct Response Radio tests occur when the in-bound TMs are well trained and prepared for the traffic, or when a home page (or Radio URL) is set up to feed Impulse Shoppers quickly to a Shopping Cart.

Conversely, B-Team TMs with too few in-coming lines and cluttered web pages with too many links and options tend to result in low conversion rates and unnecessarily high MCPS.  I have blown out web servers in the past.  Be ready.

Streaming Radio
Landing Pages