“Half the money I spend on advertising is wasted,” goes a popular advertising-industry maxim. “The trouble is, I don’t know which half.” Some media companies are toying with a plan they hope will get people to stop using that phrase.
A host of top TV companies are slated to convene Friday to discuss whether they can move forward with a nascent effort to offer advertisers a new measure of success or failure. Rather than pay for ads based on how many people see them – the current standard – these companies want to see if Madison Avenue might consider paying based on how many people were prompted to make a purchase after they watched a specific ad. Tying a commercial to an actual sale has long been a sort of Holy Grail on Madison Avenue.