The Three Essential Ingredients for Successful TV Advertising

Stew Birbrower is interviewed by George Alger on the the basics of advertising and successful TV commercials. This brief excerpt from the interview highlights some of the most fundamental points, including:

1) Catch their eye
2) Penetrate their mind
3) Warm their heart

He also notes that music is a big part of the effectiveness of television commercials.

Stew is a former Madison Avenue Creative Director. From the 1960’s and into the 1990’s, Stew was behind some of the most notable TV commercials of that era.

Here is a partial list of clients that has Stew has worked with:

  • Avis
  • Band Aids
  • Boy Scouts of America
  • Bristol-Myers
  • Chrysler
  • Coca-Cola
  • Colgate Palmolive
  • Delta Airlines
  • Ford
  • General Foods
  • Goodyear Tires
  • Kentucky Fried Chicken
  • New York State Lottery
  • Proctor & Gamble

Pay-for-Performance Marketing & Advertising

Skyworks Marketing Sales Funnel

Is there anything better for your business than Pay-for-Performance leads and sales?

Pay-for-Performance means you’re getting the highest return on your marketing and advertising dollars.

We’ve helped one business grow from nothing to over 100 million dollars in three years through online marketing, direct mail and national TV advertising.

How far can your business expand?

We are an exceptional and uncommon marketing agency that develops customized sales funnels for businesses and then fills those funnels with prospects via marketing and advertising campaigns to drive you more leads and sales.

If you’re a cost-conscious, savvy business leader looking to take your revenue to the next level, then you should visit SkyworksMarketing.com

We offer brief advertising trials for qualifying businesses to assess the potential for a future win-win partnership.

You get real-time prospects and/or sales that are exclusively for your business and no one else.

You get a partner that is simultaneously testing, optimizing and managing all the advertising to keep your funnel full, while constantly seeking new ways to get more prospects into the funnel.

You get an award-winning video production team to get your message out to the world, whether online, on TV, or both.

You get advertising on Google, Facebook, Amazon, YouTube, LinkedIn and other platforms, depending upon what’s best for your products or services.

Furthermore, as the partnership matures and proves itself, you’ll benefit from our offline marketing as well, such as direct mail, print ads, radio and TV. You’ll even receive ongoing content development, including graphics, articles, videos, TV commercials, along with auto email sequences and website development.

You’ll also benefit from artificial intelligence and data science expertise to help tune your product or service offerings, and to inform new upsells, cross-sells and future product suggestions. In other words, we use artificial intelligence to help your business grow much faster and more effectively.

And of course starting from Day 1, you’ll get continuous development of new ads to drive new leads and new sales.

Visit SkyworksMarketing.com for more information.

Should You Create an Infomercial for Your Product?

eCommerce

After 1984, when the Federal Communications Commission (FCC) eliminated regulations to govern the commercial content of television, infomercials began to proliferate the late-night airwaves because they were cheap to make and proved to be a highly profitable media, selling anything that could be easily shipped.

In fact, infomercials became so profitable that more and more money poured into the industry and by the dawn of the 21st century, big brands started pumping money into the infomercial profit party in a much bigger way. This raised the profile of the infomercial industry as a whole, and furthered the acceleration of rising rates.

Having been involved with some of the most successful infomercials, I have observed that infomercials, as an advertising media, have matured in a way somewhat analogous (although not nearly as fast), as what has happened in the Pay Per Click advertising channel. As PPC became a successful advertising model, over the years advertisers have driven up PPC costs.

Further, the level of sophistication in PPC strategies to stay profitable has also increased.

In a similar way, the costs and risks associated with creating and testing infomercials have skyrocketed since their humble beginnings.

And yet, the investment to test for sales potential via PPC is less than TV.

So, when someone asks me if they should produce an infomercial, rather than delve into the relative merits of their product or service and how broad the demographics are for the market that buys it, I simply ask how much testing has been done through less expensive media?

When that has been refined and scaled up to maximize the demand and profits, enough marketing data will be gained to determine what are the best keywords and messages that underlie this product’s success. And all that data will be very important as a research basis for scripting and producing an infomercial TV “test,” to see how it would do on a limited trial basis as a TV advertisement.

There is much more to know about creating infomercials, but the simple answer about whether you should create an infomercial for your product would be based upon how well it’s selling on the Internet and using the supporting data to help evaluate a translation to TV.

Stated another way, for most business persons, the question about whether a product would be successful as a national infomercial shouldn’t even be considered until it’s been tested online and then tested in smaller geographical regions on TV.

The #1 Error in Commercial Video Production

Video Production

OK, yes, it’s true: there are in fact numerous errors that can be made when planning or hiring professionals for a video production. So how can only one be prioritized?

In my years of producing over 1000 videos for TV, web and social media, the #1 error that I encounter boils down to this: Someone with good intentions and influence — usually an executive or business owner — initiates a project by saying, “I’ve got a great idea for a commercial. Let’s get it made.”

Indeed, this is a source of good business for video production professionals. And having a clear vision can make the process of creating a video more efficient. But it’s usually ‘not’ the best way to represent a company’s economic and/or marketing interests — particularly for commercials.

Does this mean it’s always bad? No. But the odds are stacked against any gut instincts when such may lack the experience to embrace all the factors that make a successful video — whether that be a brief commercial or something more substantial.

A better approach would be “We should consider video. Let’s explore this.”

Don’t get me wrong, I’m not suggesting that one’s gut instincts or inspired ideas should be ignored. The idea could be valuable to informing the general concept. But it would be wiser to consider such within the context of what you’re trying to achieve in parallel with budgetary factors.

To put this in perspective let’s explore a few key points.

VIDEO BUDGET

First of all, it’s common that an inspired video idea might be beyond one’s budget, which would immediately curtail the project.

Secondly, is the budget just to produce the video? Or does it also include money for broadcasting, distributing or in some way getting the video seen?

Sure, you could post it on Facebook and YouTube for free. But if you spent any meaningful resources on the video, the likelihood that it will generate enough exposure to make the project a success is low. (Viral videos are an exception to the rule, in the same way that winning the lottery is an exception to sound financial planning).

By the way, using Facebook and YouTube as part of a strategy to get your video seen is quite relevant. But getting it viewed is only reliable if you are “paying” to put it in front of the right viewers on YouTube and Facebook, not just posting it online.

Thirdly, if the video is intended to be used as part of a sales strategy, the idea of “return on investment” becomes a factor, and here the variables can become capricious. (Good news follows below in this article regarding how to make the ROI more predictable).

VIDEO STRATEGY

It could be argued that this next point should also be under the heading of “budget,” since the lack of a strategic vision, all in addition to a video vision, could contribute to inefficiency and waste. Nevertheless, its singular importance deserves its own heading.

You can ignore this if you are a marketing professional, since it’s so obvious you would not overlook it. But I’ve observed this to be true even with business executives who achieved a certain level of success in the past through their inherent marketing savvy. You could say they allowed their own enthusiasm for a video project to eclipse the fundamental context of their existing marketing strategy.

Stated another way, does one’s “inspired idea” or “gut instinct” for a video actually align with any existing company messaging?

If you want to get the most bang for your buck, your video should align with your current marketing materials so that all your messaging presents a unified presentation.

Unless, of course, a whole new campaign is envisioned, which would then include new messaging for your website, newsletter, printed materials and other advertising. Specifically, if you decide you want to go after a younger demographic by making a commercial or promotional video series targeted to the younger generation, but your website and messaging is written for a different demographic, then the dissonance in your strategic implementation will reduce the effectiveness of your video.

“OK,” you may say, “That’s too obvious.” And so right you are. But let’s get a little more nuanced.

Let’s say you’re a tech company and your website and existing promotional materials all emphasize your cool hardware. But you are inspired to explore a “more human approach” to your company’s presentation by emphasizing the benefits of your products or services over and above the technology, by conveying a touching story. Such is fine and opportune as a vision. But it should also be represented on your company website in pictures and words as well as any other marketing channels in use. Not just in the video.

Video is such a potent way to convey messaging that a one-off production that does not fit into a broader strategic plan is rarely going to be as effective as one that fits into a holistic strategy for your entire business or nonprofit.

MESSAGE AND VIDEO TESTING

OK, this next point is not without controversy to smaller businesses, even though its merits are inarguable. It’s just that its value becomes even more important as your budget becomes more meaningful.

A core problem that many small and medium-sized businesses have is related to strategic implementation — or more specifically, lack of strategy to begin with. In my experience, a number of businesses view marketing and advertising as “let’s try this and see if it works.” Given that as a starting point, always bet that it won’t work and you’ll be living a lavish life versus anyone who would bet against you.

Of course, it could be argued that such an approach is the result of business owners or execs being too busy to understand that every marketing channel, whether that be email marketing, display advertising, search marketing, commercials or any type of video promotion, has its own factors that should be respected for optimum results.

The good news is that your marketing/advertising ROI can be optimized. As well, your strategy can be informed and refined by data. That data needs to be derived by message testing, which is a disciplined comparative analysis of how to represent your own products or services.

In practice, there is much that can be known about this topic. But to keep this brief for any reader unfamiliar with the subject, the idea of testing is to present multiple ads or messages at a time (to different viewers) for comparison. Always present at least two. Online, it’s relatively simple to test many different ads at one time, which are swapped out in real time to different viewers. In other words, viewer “A” sees one ad or message and in the same instant viewer “B” can be shown a different version of the same ad. The marketer then analyzes the data to determine which ad or message generated the most desirable response. The ad with the best response becomes the “control” ad and then new ones are compared against that to find an even better performing control message.

Not only can this be done with video itself, but it can be done before you produce the video. By testing messaging via simple online text ads, you are then better informed to approve video scripts that you already know will perform better. (Read “better return on investment”).

And then after you get to to the video production, you can create inexpensive variations of your video messaging to further refine performance. For example, sometimes you’ll find that a woman spokesperson will perform better than a man. Other times, it’s the opposite. Sometimes an older actor will engender more response, sometimes younger. Sometimes it’s obvious. For example if you are selling to a mature or young demographic it’s best to feature those kinds of people in your video. Other times it may not be so intuitive. For example, you may be targeting grandparents by featuring young children who would represent the viewers’ own grandchildren for the purpose of selling childrens toys or clothes to the grandparents.

Although testing is an ironclad path towards greater video performance, as well as more effective marketing, advertising and messaging in general, the argument against it, typically for small businesses, is that it takes longer and costs more. That can’t be ignored. It does take more time and resources. But when done well, the whole point is to generate a higher ROI on your marketing and video-messaging investment.

Testing is how you can build more predictability into your ROI. And by the way, in some cases, testing inexpensive online text ads before moving to video may demonstrate early on that your gut instinct for a great video doesn’t seem to generate the positive traction you were desiring and you may determine to “not” produce the very vision that initially inspired this exploration.

Testing is not only the path towards more effective video production. It’s the path towards marketing and advertising success.

FINAL WORDS

Of course none of the above deals with the details regarding pressing “record” on a video camera.  For those familiar with the overarching three phases of the video production process (pre-production, production and post-production), the above would be categorized as planning and pre-production.

A briefer statement regarding the #1 error in commercial video production would be neglecting that the more you invest in pre-production and planning, the better your ultimate results.

For more information visit VIDEO & TV.

How Much Does a TV Commercial Cost?

TV advertising costs can be surprising. Few things have such a cost variance as television ads. For most people, what’s not surprising is how expensive they can be. The main surprise is how inexpensive TV advertising can be. (Having said that, the least expensive options may not be the best opportunities, either).

Overall, the cost of producing a commercial can run from as little as $1,000 and upwards to hundreds of thousands of dollars. A more practical average could be from $3000 to $25,000.

Following are some fundamentals about TV advertising costs.

The Two Main Costs of TV Commercials

1) A TV commercial needs to be produced.
2) The TV ad needs to be broadcast.

If you have a fixed budget, you can spend less on the production and more on getting the message out on the airwaves. Conversely, you could spend a bigger chunk of the budget on the production of the commercial and spend less on the broadcasting. For most advertisers, the budget is dependent upon an evaluation of short and long-term business objectives.

Broadcasting costs can be as cheap as $25 for 30 seconds in a small market, or thousands of dollars in large markets.

National or Local TV?

National TV advertising is more expensive. Although some of the biggest brands may spend millions of dollars for a 30 second spot on the Superbowl, a more realistic number would be in the six figure range for 30 seconds on national TV.

Conversely, local TV can be surprisingly economical. If you are a local or regional company and you aren’t selling a product or service to a national market, then the decision is simple: buy local TV advertising.

A local commercial on a local station at 2:00 am can run as cheap at $25 per 30 seconds. However, 2:00 in the morning may not be the best time to advertise your product or service, although it can be inexpensive.

TV Cost Variables

There are a number of factors that determine the cost of broadcasting a TV ad. Such variables include the region it will be aired (some areas are more expensive than others); time of day; day of week; quantity of viewers; length of the commercial (15 sec, 30 sec, 60 sec or a 30 min infomercial); and how frequently the ads will run.

More fundamentally, the cost of broadcasting a 30-second spot varies according to the number of viewers expected to be watching it.

To throw out some ballpark numbers on the low side, which would pertain to many small- to mid-sized businesses, a 30-second time slot in a medium-sized market can be purchased for as little as $5 per 1,000 viewers.

Beyond the Money

Of course the costs of producing and airing a TV commercial are important to any business. However, the TV ad itself would be best if it contains The Three Essential Ingredients for Successful TV Advertising.

And bear in mind that a quantity of airings is vital to measuring effectiveness. If you run a commercial just once, it’s very unlikely you’ll see any increase in sales. Repetitive broadcasting generates the viewership familiarity that will make your message memorable.

YouTube Video Upload Specifications and a Bit of History

Uploading videos to YouTube is easier than ever, primarily because the platform accepts a great variety of video lengths, as well as the majority of video formats.

In brief, any YouTube user can upload videos up to 15 minutes long. However, users who have a good track record of complying with YouTube’s Community Guidelines may be offered the ability to upload videos up to 12 hours in length (or 128GB, whichever is less), as well as live streams, which requires verifying the account, normally through a mobile phone. This even includes high-quality video formats, such as 4K.

But it wasn’t always that way. Back in the earlier days of YouTube, only low-quality formats and shorter videos were acceptable. For more info on some of the history of YouTube video upload specification, scroll down further. For now, let’s get to the current specs.

Supported YouTube File Formats

A video file format normally consists of a container that holds video data, separate audio data, subtitles and additional information such as the type of video compression used. Technically, the last items on the list, DNxHR, ProRes, Cineform, HEVC (h265), are compression technologies (codecs) and not video container formats themselves. Nevertheless, YouTube includes them in the following list anyway, likely for simplicity’s sake, so we’re including them as well.

  • .MOV
  • .MPEG4
  • .MP4
  • .AVI
  • .WMV
  • .MPEGPS
  • .FLV
  • 3GPP
  • WebM
  • DNxHR
  • ProRes
  • CineForm
  • HEVC (h265)

YouTube Recommended Resolution & Aspect Ratios

‘Aspect ratio’ describes the proportional relationship between the width and height of video screens and video picture elements.

YouTube states that “The standard aspect ratio for YouTube on desktop is 16:9. If your video has a different aspect ratio, the player will automatically change to the ideal size to match your video and the viewer’s device.”

Hence, the following aspect ratios are all the same (16:9), which represents the shape of a high-definition TV. But the actual size (resolution) of the images are different, as depicted by their pixel lengths horizontally and vertically. A bigger image size is associated with higher quality video.

  • 2160p: 3840×2160
  • 1440p: 2560×1440
  • 1080p: 1920×1080
  • 720p: 1280×720
  • 480p: 854×480
  • 360p: 640×360
  • 240p: 426×240

The ‘p’ in the name, such as ‘1080p’ refers to ‘progressive scanning‘ to differentiate from ‘i’ (not recommended by YouTube) which means ‘interlaced video,’ usually associated with TV.

Following are how three of the above resolutions and aspect ratios relate to each other.

A Word on Video Length

How long should your video be? Just because you can upload a video to YouTube that is longer than 15 minutes in length, should you? The short answer is “it depends.” For more info, visit What’s the Best Length for an Internet Video?

Video Quality

Video quality means different things. For this paragraph, we’re not talking about the quality of the content or the quality of the lighting or audio or camera placement or how well focused the camera was or was not. We are simply referring to the technical quality of the video file itself. In brief, the higher video quality you upload to YouTube, the better quality available to viewers. But viewers will not necessarily see the same quality that you uploaded. YouTube will provide a level of quality appropriate to the internet speed of the viewer in addition to the size of the viewer’s screen. In other words, just because you upload a 4K video does not mean viewers will see a 4K video. For example, instead they may see a 240p video if that is most appropriate to their internet speed and/or size of their viewing device.

A Bit of YouTube History

YouTube was founded in 2005 by Steve Chen, Chad Hurley, and Jawed Karim, who were early employees of PayPal. The platform originally offered videos at only one quality level, displayed at a resolution of 320×240 pixels.

In March, 2006, a ten-minute limit was introduced after YouTube found that the majority of videos exceeding this length were unauthorized uploads of television shows and films.

On October 9, 2006, Google acquired YouTube for $1.65 billion in Google stock, and the deal was finalized on November 13, 2006.

In March 2008, a ‘high-quality’ mode was added, which increased the resolution to 480×360 pixels.

In December 2008, 720p high-definition (HD) support was added. Also, the YouTube player was changed from a 4:3 (standard TV) aspect ratio to a widescreen 16:9, which reflected the future of high-definition video and TV viewing.

In November 2009, 1080p HD support was added

In March 2010, YouTube began offering online streaming video.

In July 2010 the 10-minute video upload limit was increased to 15 minutes.

In Dec 2010, YouTube began allowing users to upload videos of unlimited length.

In October 2014, YouTube introduced videos playing at 60 frames per second, in order to reproduce video games with a frame rate comparable to high-end graphics cards

In March 2015, support for 4K resolution was added, with the videos playing at 3840 × 2160 pixels.

In 2016, YouTube discontinued the ability to upload ‘unlimited’ videos and instead limited the ability to upload videos up to 12 hours in length (or 128GB, whichever is less).

In January 2019, YouTube said that it introduced a new policy intended to stop recommending videos containing ‘content that could misinform users in harmful ways.’ This invoked controversy since is necessitates censorship in terms of what represents misinformation.

Will Pay-for-Performance (P4P) Marketing Work With a Low Price Product or Service?

I receive regular inquiries from businesses seeking to partner with Skyworks Marketing on a 100% Pay-for-Performance (P4P) basis.

However, one aspect, in particular, can work against a business seeking such a partnership: Having a low priced product or service. You see, even with a high margin, particularly in a competitive market, such as weight loss, health, finance and insurance (as well as many others), there is not enough mutual opportunity.

Now, don’t get me wrong, competitive markets, per se, are not unattractive. In fact, the reason they’re competitive is because a lot of money is being made in that space. It simply takes more time and/or resources to compete in such an environment.

For example, a product that costs less than $50.00, even if it has a 90% profit margin, is not going to make enough profit, after the media buying, to make an attractive partnership from our perspective.

Of course, this could be profitable in the long-term with selective advertising and some very diligent (and lucky) social media strategies. But in my experience, to rise above the noise in a competitive market in a reasonable amount of time, ongoing media buying is what’s going to make it happen more predictably. (And even so — it’s still not guaranteed!)

A low-cost product or service means that advertising will eat up most or all of the profit, especially in the early phases. In fact, it will likely not be profitable until/unless a critical mass is reached whereby enough sales are being made on a big enough scale, which drives the media costs down and/or consumers are referring others en mass.

One effective solution is to offer more expensive services that would also be purchased by the buyers of the low-cost service afterwards. That’s a tried and true model to sustain the business via advertising. In such a case, it becomes important to calculate the value of a new customer or client to determine the workability. For example, if 30% of your buyers purchase an additional product or service within a certain amount of time (say 90 days), then that additional 30% could potentially become the actual profit stream.

In fact, it’s not unusual for some companies (particularly in the infomercial world) to lose money on their upfront sales (the sales that directly result from the infomercial). They simply make their profit on the upsells and follow-up sales.

Regardless, there’s still a testing evolution involved to establish proof of concept. And whose going to do the testing?

If you present the idea to a Venture Capital firm, or a Pay-For-Performance partner, like our company, the merits of your idea will be weighed against a number of variables, which boil down to risk vs. reward. The better a case can be made that your business is a low-risk, high-reward opportunity, the more likely you would be funded by a Venture Capitalist or that you might be deemed a desirable Pay-for-Performance partner, in which we would invest resources.

The reality is that in many cases, the great idea that you are proposing to gain support and resources for your business, is probably not as low-risk, high-reward, or even as unique, as you might envision.

Even if you are interested in a “partial” Pay-for-Performance partnership, whereby you are putting up media money and paying a reduced fee for marketing services, it may still not be worth investing our resources to prove the validity of your entrepreneurial vision.

Please do not interpret these words as a suggestion that such a product or service cannot be driven to a big success in any other way than buying media. There are definitely other ways to achieve success. It will simply take longer.

Wishing you much success!

What’s the Best Length for an Internet Video?

Question: Since videos can be published online of any length (even if broken into a series of segments), what would be the best length for a self-created video?

Answer: It depends on the purpose of the video and who it’s for. The following are guidelines and you will find exceptions for each.

1) “Introductory Videos” are short: 15 seconds to 2 minutes, and no more than 4 minutes. If you want to expose a brief message to as many potential viewers as possible, who do not otherwise know you, the shorter the better. Anytime someone clicks on a video they are making a small commitment or time and a shorter video just makes it easier for someone to make that decision. If they like what they see, then they may be more inclined to watch a longer video from the same creator.

2) “Content Videos” or marketing videos should be less than 10 min. These are videos that have good info and can even be condensed highlights from longer videos. They have the potential for being passed along to others if the content is valuable, interesting and/or entertaining.

3) “Training Videos” can be any length. Training, or educational videos could include how to use a specific software, or how to perform maintenance on an engine, or how to use a specific camera, or anything you can imagine. These could even be complete seminars. However, the longer a video is, the less likely it would gain traction as a property that gets passed along broadly (although anything can happen on the Internet). In other words, if a 3 hour presentation could be edited down to less than 30 min, it would generate more views. However, given a valuable enough seminar, there would still be a smaller amount of viewers who would watch the entire 3 hours.

Using Transitions in Video Editing

In video and filmmaking terminology, a “transition” could be defined as the way in which any two video shots are joined together.

The first point to understand about transitions is that misuse or overuse of transitions is a sign of an amateur, in the same way that overuse of slide transitions in a PowerPoint presentation are unprofessional. Especially if too many different types of transitions are utilized. In short, any way that transitions call attention to themselves and distract from the video continuity would be poor utilization.

Conversely, when used professionally (“not” to the point of overuse), effective transitions bridge different video shots together to produce a better message or story flow.

There are significantly more transitions than depicted in this article, but the following are among the most widely used.

Video Transition: The “Cut”

The most common transition is the “cut.” This is simply one video clip changing instantly to the next shot.

Cuts are the best way to keep the action or momentum moving along at a good pace.

Straight cuts are not only simple, but they create smaller overall file sizes, which are an advantage for web videos. (In other words, adding transitions create larger video files, and on the Internet, smaller files are desirable).

Video Transition: The “Crossfade” or “Dissolve”

The next most common transition is the crossfade, or dissolve. This is simply one video shot gradually changing to the next.

The timing of crossfades can be made shorter or longer and they generally provide a more relaxed feel than a cut and slow the pace of the video. Dissolves can better convey a sense of passing time than a cut.

Video Transition: The “Wipe”

A wipe is a more complex transition, and includes a number of variations.

One way to think of a simple wipe would be imagining a single sweep of a slow windshield wiper as a transition from one shot to the next while it moves across the screen.

Variations include an iris wipe, a heart wipe, a clock wipe, and a star wipe, in which the name approximates the geometric manner in which the wiping motion occurs.

Examples: an “iris wipe” is like an expanding or contracting circle. A “heart wipe” or “star wipe” is like an expanding or contracting heart or star. And a “clock wipe” moves around in a circle.

Video Transition: The “Fade”

Two key transitions are fade-up from black and fade to black. Fading in from a single color, such as black, conveys a sense of “beginning.” And nothing says “the end” like a fade to black. (Fades can be used with other colors, too).

Keep it Simple

Effective integration of transitions should always be inspired by some aspect of the story that is being conveyed in your video. For example, a transition may signify a change in location, or a change in the pace of the action, or simply the passage of time. If there’s no specific reason to use a transition, keep it simple and use a cut.

Another application of transitions is to smooth out minor video (or even audio) errors, which could appear more prominent with a cut, but which may be less apparent by a well-placed dissolve.

As a concluding note: Transitions should not call attention to themselves. Their job is to subtly support the video story or message.

P4P Partnership Process

Need a Pay-for-Performance (P4P) advertising partner to accelerate your business growth?

We’re looking for win-win partnerships.

Synopsis: Pay-for-Performance (P4P) Partnership Process

  • P4P Risks/Rewards
  • What We Don’t Do
  • What We Do
  • Data Science & AI
  • The Catch

  • P4P Trial Selection Process
  • Qualification Examples
  • 2-Week P4P Trial
  • 90-Day P4P Trial
  • P4P Remuneration

Pay-for-Performance Risk/Rewards

The basic appeal of a Pay-for-Performance partnership is that instead of paying for marketing and advertising services that may or may not generate enough leads and sales to justify the cost, you pay for marketing and advertising performance: usually leads or sales.

As ideal as a Pay-for-Performance business partnership can be — when you can find such an arrangement that provides significant leads and sales — there are two operative words: “business” and “partnership.”

In other words, the risk/reward needs to make business sense for each partner.

What We Don’t Do

Because there are a number of different Pay-for-Performance opportunities in the world, one way to describe what we do at Skyworks Marketing is by first highlighting what we are not:

  • We’re not providing names and addresses from an existing database so that you can cold call them.
  • We’re not an affiliate agency.
  • We’re not advertising a generic service and sending the leads to multiple lead buyers.

Those types of services are fine for certain businesses. But alas, it’s not what we offer.

What We Do

We create custom sales funnels and provide the ongoing advertising to generate real-time leads and/or sales exclusively for your business and no one else (and later, we may use content marketing).

Visit the following link to view how we drive optimal results: Marketing Strategy.

Stated in more detail, we provide full-service, customized sales funnels, developed specifically for your business, while simultaneously testing, optimizing and managing all the advertising to keep the funnel full, and at the same time seeking new ways to get more prospects into the funnel.

This means not only taking advantage of online advertising media, such as:

  • Google
  • Facebook
  • Amazon
  • YouTube
  • LinkedIn
  • and more

We also use offline media as well, such as:

  • Direct mail
  • Print ads
  • Radio
  • TV

Furthermore, we generate ongoing content, including:

  • Graphics
  • Ongoing advertisements
  • Articles
  • Videos
  • TV commercials (when pertinent)
  • Creating/managing auto email sequences

All this to drive and nurture leads and sales for your business.

Data Science and Artificial Intelligence

Through data science and artificial intelligence, we provide metrics and expertise to help tune your product or service to generate even more impactful results.

With this data, we provide insights into potential upsells, cross-sells and new products that can help your business grow faster and more effectively.

Primarily, we use data science and artificial intelligence to lower ad costs and increase ad performance.

The longer we run the ads through the sales funnel, the more data we generate, and the more effective the advertising becomes.

The Catch

This type of marketing and advertising requires labor, experience and expertise.

Whether we establish a partial or 100% pay-for-performance partnership, we want to be confident that the business we are promoting has a high closing ratio to turn leads into sales and provides good products and services.

A 2-week trial is our primary test to determine a good fit for our potential Pay-for-Performance partners.

However, this trial isn’t automated, nor is it a system where the labor is executed on your end. There is real human effort executed on our end to launch and manage a trial.

Hence, here’s the catch: We can’t offer a P4P partnership, or even a trial, to everyone who desires such. We need to determine the potential for a longer-term opportunity first. That means you’ll need to fill out our (free) P4P application to provide some preliminary information. Your part is easy.

On our end, your application will be manually reviewed and often research will be conducted to assess the opportunity.

P4P Trial Selection Process and Qualifications

There are two general categories of information we assess when evaluating whether we will offer a trial to a potential partner.

  • THE BUSINESS ITSELF (including competition)
  • THE KEY TEAM BEHIND IT

Our ideal partner represents a highly experienced team (or leader), is well-capitalized and has a truly unique and outstanding business.

But that’s not so common: especially the “unique” part.

As a result, we also seek partners that may not meet our ideal requirements but show enough promise that we’ll invest resources into a 2-week trial.

QUALIFICATIONS:

  • Your product/service needs enough margin relative to advertising costs
  • There needs to be an opportunity for adequate sales volume
  • You need a higher-than-average quality product or service
  • You need a good reputation
  • You need a good sales team
  • You need effective operations
  • Ideally, you have existing upsell and cross-sell products/services

On the other hand, if you have a very strong model and margin (along with a high-quality product or service), that combination, by itself, can sometimes be the basis for a win-win partnership.

Qualification Examples

It all boils down to mutual opportunity.

A business that represents a strong opportunity for a win-win partnership will qualify for a 2-week P4P trial. A business with low opportunity for a win-win partnership will not qualify.

Following are some examples.

  • An average business model or idea without experienced leadership will probably not qualify for a trial.
  • However, a truly outstanding and unique business without an experienced team ‘may’ qualify.
  • An inexperienced leader with little money and a brand-new business will not qualify (unless the idea or model is truly exceptional).
  • A mature and experienced team with a good (average) business model may qualify.
  • A mature and experienced team with a low-opportunity business model will not qualify.
  • A great team and a great business opportunity will qualify.
  • And to make things interesting, we may sometimes provide a trial for an opportunity that doesn’t look as promising, because we would like to see the trial metrics. So, anything can happen. The only way to find out for sure is if you submit a (free) application.

Again, it primarily boils down to mutual opportunity. The 2-week trial is where we gain some fundamental data.

2-Week P4P Trial

As part of the above qualifications and selection process, we’ll ask what you want to pay for a P4P lead or sale.

That number will be re-evaluated based upon real-world performance data after the 2-week trial.

Although we try to filter out trials that we don’t believe will show promise after a 2-week trial, the reality is such does occur.

So, after a 2-week trial, the performance data will inform three options:

  1. No go. We cut our losses and part ways as friends.
  2. The numbers show that the opportunity is so good that we can provide a 100% P4P Partnership, which means you pay only for completed leads or sales.
  3. The numbers are promising enough to continue a Partial P4P Partnership. A partial P4P partnership means you will pay at least media costs in addition to performance incentives.

By the way, it’s worth noting that a trial that yields unfavorable results is not an indication of the success potential of your business. This trial merely provides preliminary data regarding the speed of a longer-term P4P opportunity.

90-Day P4P Trial

A successful 2-Week P4P Trial means we can move on to a 90-Day P4P Trial.

A 90-Day P4P Trial provides more meaningful sales metrics. A 2-week trial can produce the minimum data necessary to evaluate the potential for a P4P partnership. But a 90-day trial gives us firmer ground to build a more robust sales funnel since we only implement a fraction of the sales funnel and advertising resources in the shorter trial.

Message optimization, landing page optimization, conversion optimization and other factors can begin to impact the metrics in the 90-day trial, which all serve to increase performance and lower cost.

P4P remuneration will be re-evaluated based upon the real-world performance data after the 90-day trial.

P4P Remuneration

We’re seeking win-win partnerships. As such, the P4P remuneration needs to work well for both sides of the partnership.

The most basic metrics we evaluate include how many sales (and profit) are generated in a given time period. You may be pleased with the leads and sales, but what if the volume does not support our continued effort?

Once again, we’re looking for win-win P4P partnerships.

If this sounds like something you’d like to explore, the next step is to request and instantly receive your free P4P Application.

We can’t guarantee that you’ll qualify, but no matter what, you will receive a professional, timely and courteous response.