thefunnel » Marketing metrics

Back to basics

Tomas Berghall — Mon, 24 Oct 2011 00:32:12 +0000

As an “outcome based” marketeer it can sometimes be hard to let go of the metrics, but quite often this is exactly what is required to be successful. Activity based marketing versus outcome based. We all like to only do the things that are measurable, but what if the organization doesn’t really care about the metrics or strategies? Impact versus content. Someone once said that you’re only as good as your last power point presentation. Well, it depends. Sometimes you need to step in /up and do the “right” things, even if they are not “perfect marketing things” or measurable, and make sure the fundamentals are covered. Things like does the sales people have the tools they need to be successful, never mind that you show up on google search or not.

About marketing metrics

Tomas Berghall — Thu, 03 Jun 2010 01:04:38 +0000

Most B-2-B marketing is all about the marketing contribution to achieve a business objective. Often there’s a high emphasis on easy to measure direct contributions such as collateral (brochures, catalogs, etc.) leads, visits, responses or new names, and not much weight is given to marketing “influencers” such as brand equity, awareness, loyalty, etc. (although these can be more valuable for the success of a business in the long run). The reason for this is simply because some things are easier to measure than others, and the short term focus of many companies leads to a very tactical approach. For many marketers, digital marketing has been great, with more measurable things, but the marketing contribution problem still remains, because yes there are more things to measure, but yes they are still very tactical or activity based rather than based on a real outcome. Why am I writing this? Here’s why. The bigger problem as I see it is that the business environment is changing and most of the “generic and measurable” marketing contributions are showing a diminishing return. For example: email marketing response rates are going down, trade show participation is down, most companies are catching on to search and web marketing, so the way in which marketing used to show its (tactical) business contribution is soon no longer being there, and yet, not much emphasis is being put onto measuring the indirect contribution of marketing. What can a marketer do, to avoid going back to be just a servant of sales and a production house for brochures and flyers?

How to measure on-line advertising?

Tomas Berghall — Mon, 30 Nov 2009 04:35:51 +0000

On-line advertising is a tactic in the promotional mix tool box, because it can be measured. It seems easy enough to look up the variables and costs from the publisher’s rate cards, but things can easily be misinterpreted, unless marketers understand some of the more in-depth details of the various on-line metrics and what they’re trying to achieve. Typical metrics include Impressions, Clicks, CPI, CPC and CTR.

What does an impression really mean? Technically speaking, one impression means that the ad was served up once through a browser. That’s all fine, but what if the ad was below the fold, or the user never looked at the ad? A similar challenge also exists for print advertising and here many marketers use something called OTS (opportunity to see), to estimate the number of real impressions. In its simplest form what OTS means is that a reader needs to be exposed a certain number of times to an ad, before it’s counted as one impression. For B-2-B print advertising this means that you have to run the ad 3 – 5 times to reach the reader. For on-line advertising you can estimate the impressions in more detail and with greater accuracy, but only if you know the number of unique visitors and the visitor return frequency for the duration of your campaign. In addition, all impressions are not equal. A web site have many different types of visitors, many of which aren’t in your target market, so unless you can determine exactly when your ad in running (through for example context sensitivity) or the persona your ad is served up for, you need to be more conservative with your calculation of the total number of impressions. From a cost perspective this means that to reach the intended number, the campaign will cost more, but you’re always better off knowing the true cost, than some artificial number.

A click is one step further in the funnel, and therefore easier to put a value on than an impression. The only problem here is that the CPC for an on-line ad tend to be way more expensive than for email marketing or for a PPC campaign. So why do marketers run on-line ads, although the ROI comparison doesn’t support it? The answer here is that on-line advertising, email marketing, or PPC marketing can’t and shouldn’t directly be compared, because they work in different stages of the funnel. Marketers need to know for their particular audience what promotional tactics work best in what part of the funnel?

Even when being fully aware of all these details it can be difficult to sometimes justify or to explain the return for an on-line ad campaign. Therefore, the campaign always needs to be looked at holistically, to understand the interaction between advertising and other promotional tactics, in particular PR is, and what other benefits it provides. It is also a good practice to run pre and post impact studies, and to do message and concept testing to minimize the risk of wasting any money.

From a global campaign perspective, you also need to measure each country you’re targeting on its own and not compare countries to each other, because the cost of reaching a particular population varies greatly, as does the general quality of for example a click through.

Finally, a few words about awareness, because it’s very common that a marketing plan calls out for increased awareness through the use of advertising. To start with awareness on its own is never a good measure, because it is seldom measurable in a way that you can contribute a change in awareness directly to a specific tactic. In addition it doesn’t tell you anything about perception or preference, or what action a customer might take.