Showing posts with label ROI. Show all posts
Showing posts with label ROI. Show all posts

Monday, October 19, 2009

ROI for Online Display

Per AdAge.com, Google has developed a metric for branding/awareness of online display ads. The tool solves two problems:
  1. Click is an unreliable source of measurement because most of the clicks are performed by a small percentage of online users; and,
  2. Search gets the credit for the purchase/conversion, yet many other ads may have contributed to consumers behavior to search.
The product is new and certainly has limitations - it only works if the consumer has installed the Google toolbar, for example. It's a great start, however, and further research can determine if the users who install the toolbar are vastly different from those who don't.

The industry has relied heavily on click-thru rates and display has not gotten the credit it may (or may not) deserve.

I'm excited to see how this new tool quantifies the impact of display ads to transactions.

Wednesday, August 26, 2009

ROI for Traditional Media - Take Another Look

As budgets continue to shift to Internet advertising, clients are relieved that they can quantify their ad spend with more metrics. While measurable results are certainly import, the key is to make sure you don't forget about the original objectives of a campaign.

Yes, you can measure click-thrus and conversion rates, but brand awareness and imaging goals? Not easy to do without using primary research for the specific campaign. That's a luxury most advertisers cannot afford.

Measurement is extremely important, but it must be kept in perspective. For example, many small businesses are using Twitter successfully. How do they know? Because business has improved.

Another example from personal experience is buying spot TV and holding stations accountable to their ratings. Several years ago, I bought paid programming from a new small station in a top 100 market, as well as a spot buy. The station never posted above 30%. The results were horrible - or maybe it was my ability to project a rating? Regardless, the station always ran a fair under-delivery schedule. What's interesting is my $50 paid programming creative that ran at 1 a.m. made the phone ring off the hook. With the direct response type spot creative I was running (on several stations), I knew the :30 lengths were also generating calls. (With a vanity number, we did not have the luxury to run different numbers on different stations). So, according to the ratings, my buy was not efficient. Yet, I know it was effective.

Isn't that what really matters?