Financial Modeling

Determining Profitability: What is your Breakeven?

Financial modeling and DRTV economical analysis is a key Envision Response service and the first place a DRTV campaign starts. With our years of experience, we help clients determine their break-even Media Efficiency Ratio (M.E.R.) and profitability for the product they want to advertise.

DRTV marketing is not just producing a TV spot with an 800# and dedicated Microsite. It is a whole process that has substantial financial implications, especially when setting up multiple pipeline partners. What effect does each pipeline partner have on the bottom line? Where is break-even with so many players involved? If we change any variety of variables from our price, offer package, our upsells or even their order, what is the impact on the bottom line? What does the bottom line look like at various Response Levels?

Financial Proformas and MER’s Envision Response has developed a proprietary Breakeven Analysis Pro Forma, that walks clients step-by-step through all the possible variables and how they look at a given media budget. This tool is invaluable for making decisions and can even provide inventory levels that can be developed into short and long term forecasts. Ultimately, we can help you determine the feasibility of a DRTV campaign. We also provide criteria to enable the client to know if their product can become a profit center using DRTV alone or should be part of an overall retail advertising strategy.

DRTV is a cost-effective and powerful way to launch a new product or educate a customer about an existing product, but it is not for everyone. Our financial modeling enables clients to define their goals and objectives and determine if DRTV marketing is right for them.