Risk-Free Advertising? It’s All About the Numbers

Many advertisers may look at per inquiry or cost-per-action (CPA) advertising as a marginal opportunity.  However, its power should not be underestimated.  Since advertisers pay a fixed cost for each inbound inquiry or sale, CPA advertising is essentially risk-free to the advertiser.  However, there is tremendous competition for such unsold inventory, so advertisers who want to make the most of it need to give themselves every possible advantage.  Simply put, the stations and networks who have unsold inventory and are willing to run ads on a CPA basis – and there are literally hundreds upon hundreds of them – are going to run the programs that have the best chance of making them real money.

One of the most basic things an advertiser can do is to ensure they have a memorable toll-free number (TFN).  The reason is fundamental: an easy-to-recall number will generate more inquiries and hence more sales.  First, the advertiser needs to employ an 800-prefix TFN because consumers are pre-conditioned to call 8-0-0 when they hear the term “toll-free.”  The proof?  A survey of Dial800’s bank of toll-free numbers, RapidRecall, shows as many as 12,000 misdials a month to the 800-prefix version of a TFN when the 888- 887- or 866-prefix version of that TFN is advertised!

The second key for success is to ensure that the TFN is easy to recall.  Some examples include repeater digits (e.g., 5555) or a one thousand series (e.g., 1000).  Native English speakers can recall a numerical sequence of about two seconds reports Professor Stainslas Dehaene, a research scientist who specializes in numerical cognition in his book “The Number Sense.”  In fact research shows that direct marketers can generate 20 to 70 percent more inbound inquiries from a numerically sequenced memorable number than a random one.

For cost per action advertisers what could be more critical?  It stands to reason: if you generate more quality inbound inquiries at a fixed cost, you’re going to produce more profitable sales.  And that means you’ll obtain more clearance than your competition for cost per action airtime because you are making your station or network partner more money.

As Joseph Gray, the Chairman and Founder of CPA advertising giant REVShare comments, “In the competitive landscape which faces all CPA advertisers, optimization in all categories is critical — from tracking airings in order to optimize CPA placements to use of only bona fide 800 numbers.   Repeating digits and a memorable website address are all ways of increasing response rates which on a CPA basis translates into better performance for the media and more volume for the advertiser.”