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RSSI have long been convinced that standard online marketing metrics were not only ineffective and inefficient for marketers, but were also destroying the quality of content on the Internet. Over a year ago I wrote about "Advertising's Role In Crippling The Internet As A Medium" and again in "The Online Advertising Conundrum - More Metrics, Less Meaning." The basic gist was this: because marketers were demanding metrics (i.e. impressions, clicks) that did not necessarily equate to value for a marketer, and could be faked or gamed, traditional media metrics were creating a lose-lose-lose eco-system on the Internet for publishers, advertisers and people.
I have never met Avinash Kaushik, Google's new Analytics Evangelist. But after reading "Google's 'Analytics Evangelist' Explains Why Websites 'Suck,'" an article by Mya Frazier about a talk Kaushik gave to a group of marketers, I think he and I would get along very well. From the article by Frazier: "Mr. Kaushik employed the word 'sucks' frequently when he talked about the traditional metrics used for measuring online marketing. And as far as online marketing goes, it sucks too. He likened it to a 'faith-based initiative.'"
One issue: placing all emphasis on reach over quality. How many BILLIONS of impressions is your campaign getting? If you are a publisher or ad network, you've heard it before; if you are a marketer, you're probably guilty of it. Are you going on faith that you are actually affecting consumer opinions of your brand with those impressions? Media buyers are forced to compare CPM or CPC costs, because that is the only common metric that they have to compare across online media buys. But what does the number of impressions generated have to do with value generated for a brand? Maybe something, maybe nothing. And we are back to marketers relying on faith. No wonder only CPA campaigns and other direct marketers are putting a significant percentage of dollars against online.
What should Web sites and ad networks be delivering to brand marketers? I would argue that there is a metric that could accurately measure online campaign effectiveness. This metric would measure the affect on brand awareness, brand perception and intent to purchase the campaign had on people exposed to various campaign assets. How? Ask the people exposed to the campaign. Sounds a lot like focus group testing, I know, but imagine focus group testing with scale and real-time results. It is not impossible, given the two-way nature of social media, that we could achieve a statistically significant sampling to measure the effectiveness of a particular campaign. Of course the Web site or the ad network couldn't provide this type of survey; it would require a third party that could compare the results across various online advertising methods to provide comparative results. Also, this method would presuppose people's willingness to engage with marketers, or finding the right motivations.
Metrics that matter are closer than you think. Imagine if Web sites didn't have to compete for "trick clicks" or massive impressions, but could report how effective their media was for marketers. They could focus on being more influential over their readers, meaning creating better quality. And marketers could focus on the number of people their campaigns actually affected. Imagine a new era in Internet advertising by applying methods marketers have been using for decades to social media.
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thx, Varun Nayak
www.socialesque.com
I can't even count the number of conversations with industry insiders that have expressed frustration over the emphasis of impressions. We are an industry focused on reach over quality, because the only metrics we have are impressions, clicks and (maybe) acquisitions (if you even have a product that is sold online). All I am saying is that until we define new baselines, then publishers will deliver just what marketers ask for. If they are doing analysis of sales impact, they aren't doing it in a way that allows agencies to buy differently, or publishers to sell differently, so what the point?
Deirdre – I agree totally. I think I could dedicate a whole post to innovative companies looking to provide a solution to this issue. One that you didn’t mention, that SocialVibe works with, is Marketing Evolution.
I heard Avanish's talk last week and though incendiary, the big ideas are that measuring clicks is stupid. Most websites suck b/c of not enough experimentation and measurement. We have been using the wrong metrics for online marketing effectiveness. Online marketing has to have real world results (sales for example) or it isn't worth doing.
@David - you get more of what you measure - and if your focus is on clicks you will get more clicks.
@Keith - understanding the VOC is critical - and a huge shortcut to meaningful marketing communications
@Kevin - measuring real change in Brand Advocacy may be the place to focus - we are doing lots of work on this right now.
I think you are oversimplifying and overstating the case when you say that "...marketers were demanding metrics (i.e. impressions, clicks) that did not necessarily equate to value for a marketer...".
Regardless of the media pricing model used (CPM, CPC, CPA) I know of no serious online marketer who does not at least do detailed conversion tracking and analysis to see what the REAL impact of their media camapigns were on sales (or some other quantifiable result). How to measure and attribute better is currently the subject of a massive debate around engagement measurement and exposure to conversion analysis.
This is definitely not an industry relying on impressions and clicks and emphasizing reach over quality!
Are you advertising to people who actually care about what it is your selling, or are you turning back the miles on your odometer??
Joe, well stated.
Drake Morton Drake Morton and Associates, Inc. http://www.drakemorton.com
One of the things I understand Kaushik noted in the presentation is that websites suck in part because of hippo (highest paid person's opinion) input. I get that. I've seen that. But I've seen it less lately because hippos are "getting it" in greater numbers than ever and online veterans understand how to interact with the hippos to design interactions with the consumer at the center.
Kaushik is "wicked smart" as we Red Sox fans like to say... but the whole hippo observation is kind of outdated.
Sadly, this comes from the top down with most companies that are advertising on the web. Until a CMO gives the digital team enough latitude and longitude to plan and implement real advertising strategies that have a chance to succeed or fail beyond a DART reporting spreadsheet, then we're doomed to live with the failure of digital ROI. This, my friend, is certainly not new. It's "sucked" for years.
Your proposed solution to this metrics issue sounds alot like a Dynamic Logic or Insight Express brand study. These have been quite helpful to publishers and agencies in convincing marketers to attribute branding value to thier online campaigns, however when a site becomes overstaurated with surveys, it quickly reaches a point of diminishing returns and user frustration. Because no site can run a brand study for every campaign, they use case studies to convince advertisers to make a "faith-based" decision on the value of online marketing, but unless a brand has results specifically linked to thier campaign, they cannot assign the value on the back end.
There is a great deal of duplication among the ad networks, portals and other mass reach solutions exisiting today. To some degree, a marketer needs to go on less tangible indicators of what they know about thier consumers. What are thier passion points, what trusted brands and sites do you want to align your message with to reach high gain consumers. There is a great deal of science and math we can use to determine effectiveness, but consumer insights can be hugely valuable in identifying what will have the most impact.
Being new to this and only having the site up for 6 months we have not established large traffic patterns and that has made it more difficult. I am looking forward to my first Adtech in Miami and hope to learn more! Great article I can only hope this time of metrics comes through.
JB Glossinger Founder www.morningcoach.com