Media Buys are an Insurance Policy for Creative Agencies
May 17th, 2010 by Tim WintleEverybody likes to think their viral creatives are going to go viral without any kind of push – but here’s the bottom line:
| No Media Spend | Media Spend | |
|---|---|---|
| Asset Production | -£20K | -£20K |
| Media Spend | -£0.00 | -£7.5K |
| Total Cost | -£20K | -£27.5K |
| Organic Views(Worst case) | 1000 | 1000 |
| Organic Views(Best case) | 500,000 | 500,000 |
| Bought Views | 0 | 50,000 |
| Total Views (Best case) | 500,000 | 550,000 |
| Total Views (Worst case) | 1000 | 51,000 |
| Cost Per View (Best case) | -£0.04 | -£0.05 |
| Cost Per View (Worst case) | -£20 | -£0.539 |
Summary:
How much would you enjoy reporting to your client to tell them their average cost per view was £20? (even if you don’t phrase it like that, they will be calculating it).
Including a bought spend reduces their (and your) risk – in very worst case above you’d be entering that meeting reporting an average cost per view of around 1/40th of that price – that’s 40 times more ROI for them, and a more economically viable campaign.
What’s missing from the above?
Quite a bit – for a start, the more that your content is seen, the more likely it is to get organic views – so a bought media buy makes it far less likely that you’ll be hitting anywhere close to the worst case. For simplicity I’ve left this at the most basic calculation I could.
(Disclaimer: these numbers are estimated and may not necessarily reflect real-life results, which will depend on individual campaigns)




