Hasta La Creative!

Denuo’s Rishad Tobbacowala compares TV buys with Google search ads: “It has actually become far more expensive to buy advertising on Google than on network television. Google has a product called AdWords, which marketers use to bid on a particular key word [that consumers might type in during an Internet search]. On average, across all categories, it tends to be about 50 cents. Let’s say on television you get a $20 cost-per-thousand rate. Fifty cents a click is equal to $500 cost per thousand. You can see how much more expensive it is, but the difference is there’s some sort of action.”

Media equivalency is a tough problem. If we compare CPM rates, yes, TV’s CPMs are cheaper than search CPMs {umm, that was stupid), but Rishad’s comparison is not entirely fair or accurate when viewed from at least two angles. First, you cannot call up a TV rep and say, “Hey, I’ve got 20 bucks here. Can I please have 1000 impressions today?” Second, Google impressions are free, at least to a certain point. It’s the action (click) that advertisers are being charged for. A more accurate comparison would be the cost-per-click for an AdWord vs cost-per-call for a TV ad with a 1-800 number.