Measurement

Measurement

Digital advertising has a distinct advantage over traditional forms of advertising in that it can monitor the ads to which customers respond, as well as draw direct connections between specific ads and actual purchases. Digital marketing seduces the advertiser who believes in data driven decision making. While digital inherently has a data advantage over other forms of advertising, one of the major problems faced by advertisers today “is the inability to measure data and media across channels to effectively measure ROI and optimize their media mix.”[i] The proliferation of mobile devices and the movement away from the desktop has only made it harder for marketers to accurately attribute purchases (or downloads) to certain ads across multiple screens. Marketers have to now deal with eyeballs shifting from countless devices/mediums (mobile phones, tablets, desktop, TV, radio, print, billboards, etc.) as well as channels (display, email campaigns, paid search, social media, etc.).

Last click attribution, once the norm in digital advertising, appears to be a dying attribution model fraught with weaknesses. In the words of Aggregate Knowledge’s Pascal Bensoussan, “it’s like having a sales guy at the Macy’s store entrance with a big sales display in front of him and attributing every sale in the store to that guy, so that everything you have done up to that point is completely ignored.” Forrester Research shares Bensoussan’s concern: “Traditional one-to-one, last-touch methods of allocating demand to marketing efforts are outdated and lead to a suboptimal marketing mix. Customer Intelligence professionals must adopt a cross-channel attribution model in order to optimize marketing budgets, accurately calculate customer value and acquisition costs, and develop a holistic view of the marketing ecosystem. Failure to embrace this new standard is expensive — firms will be plagued with continued channel conflict and an inefficient marketing budget.”[ii]

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Source: blog.hbs.edu

The world demands accountability, so marketers feel compelled to measure everything. But measurement technology is dramatically imperfect. The result is that, more often than not, we measure what’s easy to measure instead of what’s right to measure.

Digital appears to be the “promised land” because its count-ability gives us the accountability we crave. The truth, however, is that digital leads many marketers to reverse-engineer their goals to fit their metrics. Goals are determined by what we can put a tracking pixel on, rather than by asking what needs to be done to move our businesses forward.

Putting the customer journey at the center of your planning can change this dynamic. It can help you be confident that the results you drive are results that are actually meaningful to your business.

Here are some best practices to help you do this:

1. Map the journey. Effective strategic planning connects the dots between what you’re going to do and why you’re going to do it. It’s the plumbing that sits between goals and tactics.

Your planning should start with mapping out the customer journey in relation to what you are selling. Do customers know you exist? Do you have unique obstacles to overcome? How much of a role does word-of-mouth play? Once you understand the path your customer takes, you will have a clear understanding of the business objectives that will drive long-term revenue growth, brand health and customer advocacy. Once you determine the right business goals, then you can make sure your tactical KPIs (key performance indicators) ladder up to them.

2. The funnel is not dead. There are 38,900 results for “funnel is dead” on Google. It’s not. The purchase funnel has evolved because of the proliferation of media channels, the ability to research anything at any time, and the increased weight of social endorsement, but it’s not dead by any means. You just need to customize it to meet the needs of your business. To continue reading, please click the below link;

Source: adage.com

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