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How To Measure TV Advertising ROI

TV might be the most important media channel to get right, yet remains one of the most difficult to accurately understand. Leavened has a unique approach to not only understand TV contribution to overall sales, but to also drill down into the tactical placements, dayparts, and channels. Optimize your TV ROI using some simple principles. 

When it comes to marketing strategies, advertising campaigns, and advertising investments, agencies want to achieve maximum return on their clients’ media spends. This requires, among other things, quantifying the impact of various media and optimizing ad spend across placements.

TV Advertising: Measurements

Knowing how to measure TV advertising ROI means examining how ad placements in linear television contribute to a campaign’s overall effectiveness. With this data and the knowledge acquired from its analysis, advertisers can pinpoint TV advertising ROI.

Next, it’s a relatively simple step forward to help clients optimize and scale future television ad spends as part of their broader media strategy. From there, one can then determine the highest potential budget level that consistently maintains profitable KPIs (key performance indicators).

These are the broad outlines related to measuring TV advertising ROI. The granular details of the data would further reveal where and when to optimize ad spend and how to craft messaging that resonates with one’s target audience (video/audio category, creative length, placement, reach, frequency, etc.).

Marketing Mix Models and TV Ad ROI

Leavened utilizes Marketing Mix Modeling (MMM), allowing for fine-tuning of strategic optimization decisions. MMM also allows for the creation of new recommendations based on the entire impact of a client’s marketing investment.

Beyond traditional MMM solutions, Leavened also deploys AdImpact. This is our unique way of getting to a granular channel, daypart, and placement level of TV campaigns. Our clients not only optimize their strategic mix but can also understand which individual spots are doing the best at driving sales. 

Effectively measuring TV ad spots and their ROI demands the accumulation of knowledge and subsequent insights into which television ad campaigns drive customers to respond — and which ones inspire customers to respond immediately.

This kind of detailed information was difficult and often possible to acquire in the not-too-distant past but with Leavened’s agile solution, marketers are optimizing campaigns in-market. 

Naturally, this can lead to greater brand awareness, an increase in sales, and a more robust and consistent return on your investment.


Analytical tools designed by Leavened leverage consumer activity to determine the incremental impact of individual television ad instances. The process includes a comparison of this activity to a baseline standard in which no ads are being aired.

Outputs from this data analysis include cost-per-acquisition (CPA), return on investment (ROI), and response volume accumulated spot-level performance reports. These can be further aggregated into daily reporting to guide agencies and their clients toward more fruitful stations, dayparts, creative, formats, and more.

Leavened’s MMM gets its power from the Leavened Iterative Hypothesis Testing Engine (LIHTE). It enables fast, rigorous, and thoroughly objective testing of variable marketing hypotheses.

When modeling finds relationships between your television advertising and business results, you can measure TV ROI with high confidence.

These advanced analytics rely on modeling that reveals statistically significant evidence of media that drives incremental lift to a real business KPI (e.g., sales or leads).

Advanced analytics help us learn how to gauge TV advertising ROI and explore TV marketing tactics that will optimize our clients’ future ad spends.