Digital advertising gives you more detailed, measurable results than any other type of advertising – but that doesn’t mean that every advertiser is focusing on the right measurements. In fact, having too many options can leave advertisers focusing on the wrong areas.
According to Vipin Mayar, global director of performance analytics for McCann Worldwide and co-author of Digital Impact: The Two Secrets to Online Marketing Success, marketers need to concentrate on three dimensions of metrics when evaluating the effectiveness of a campaign.
1. Short term metrics: Mayar calls these “exposure metrics.” They give you a quick idea of whether or not a video is working.
2. Marketing and brand: These longer term metrics show if the ad is having an impact on brand preference.
3. Financial: “At the end of the day, we’re all in this to make some money and sell some product,” says Mayar. This metric shows whether or not the ad drives sales.
Many brands focus on short term metrics, such as completion rates and pass-along rates, but avoid the potentially more complicated question of return on investment (ROI).
“I argue, and I’ve shown this over the years, that getting to ROI is not as complex as people believe it to be,” says Mayar.
Measuring ROI is a two-step process, he says. First, you need to question a sampling of viewers and see if they say they’re more likely to buy your product after seeing your ad. Second, link to the sales databases to see if purchases actually went up.
“What I find in the industry today is people are afraid to take the step to go to the financial measurements, so they stop at the tactical measures,” says Mayar.
To hear more from Mayar, including why there’s a trade-off between online video advertising cost and transparency, watch this video (used courtesy of Beet.tv).