“The holy grail” in media

Article Dr. Lisette Kruizinga – de Vries – Senior Methodologist

Summary

Because there are many shortcomings around using media expenditures in analyses, we developed a new KPI for determining media effectiveness; the Reality Performance Score (RPS). RPS represents the real number of contacts that brands have with consumers. The RPS takes into account the following: it weighs each media based upon the opportunity people have to get exposed to a medium and thus notice ads, it takes into account decay effects, and it contains the possibility to take into account the strength of the creative. A large-scale validation study proved there is a measure representing all media – the RPS or holy grail – that performs well for measuring marketing effectiveness. It performs better than traditional KPIs as expenditures and GRPs and offers multiple opportunities to plan campaigns more effectively. For example, RPS can be applied to determine the optimum amount of contacts to divide budgets most efficiently. It can also be used to compare brands, campaigns, and countries. The RPS and RPS analyses we conducted for several of our clients, yielded significant optimisation of budgets, which subsequently impacted their most important outcome KPIs.

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