Ann: Times Group of India invest up to US$7m in TALi, page-95

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Pooslice

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08/12/20

19:29

Post #: 49432282
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Originally posted by CHARDS: ↑

Quick observation:

This advertising partnership will quickly establish cost per enquiry / cost per sale for TALi.
It's important that TALi models this against media cost to forecast future ROI.

$2m media budget is tiny for The Times Group. Based on a media CPM (cost per thousand) of $8 this would purchase 250 million ad impressions. The announcement says The Times Group reaches 550 million people every month. So this media package will last less than a month. It's Important that they frequency cap ad impressions and only target mums with kids 2-9 years to minimise wastage. If not, they'll chew through media $$ very quickly.

I'd hope to see The Times Group develop local creative that is culturally relevant to their audience. A big mistake of marketers is not understanding their customer.

ROI calculation:
If cost per sale = $50 (I've got no idea - guess only)
$2,000,000 / $50 = 40,000 sales

Aust TALi RRP = $399 (expect this to be reduced for India)

40,000 x $399 = $15,960,000

If a 50% discount is applied (to establish word of mouth) this equates to $7.98M.

This will then fund on going advertising & the advertising model becomes self funding. I'd hope TALi limits this agreement to $2M with The Times Group.

In my opinion there is no true cost for The Times Group - the media will be placed as unsold media space. There may be creative / production costs incurred.

I see this as mutually beneficial win : win for both parties (and share holders in time)

Just my opinion, DYOR

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surely management wouldn't have traded 10% of the company for 2 weeks of promo exposure...
6 Upvote

0 Great analysis

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