As marketers, we are often challenged to demonstrate value in every investment. With the proliferation of digital media channels, the myriad of metrics to measure success is hard to be defined as well as applied. From old school metrics like CPC and CPM that were an extension of reach and frequency from the TV era to view-through rates, dwell time, and click-to conversion ratio, the list is endless.
So how do you make sense of the jargon books when the media agency throws them at you?
It is important to take a step back and look at your campaign objective that could be to increase sales, generate leads, gain share, build a community, etc. The metrics should reflect the objectives and preferably be easy to understand, consistent, and have a clear link to sales/market share.
I will divide the digital metrics into the following three categories:
1. Brand awareness:
At my company, we do a lot of targeted email marketing to consumers who wear glasses and would like to try contact lenses. Due to the targeted nature of the medium, we get up to 30 to 35 percent open rates for these eDMs. From an open rate standpoint this is considered very high, but my next question is "so what?" What does it mean for our business? What is the optimal level of spend?
These questions become even more serious in businesses like ours where there is an intermediary between the consumers and us. Contact lenses being a medical device are dispensed by optometrists. If optometrists don't see new people walking into their door as a result of the campaign, the whole effort is a waste. Therefore, at times our customers and sales team do not see a direct correlation between our investment in eDMs and generating new leads.
There is a strong need for the development of a 'reliable' leading indicator to forecast the impact of the campaign on sales. Marketers need to work closely with media agencies to develop and validate a regression-based model for their respective categories. This metric will serve to convince key stakeholders about the value of the investment behind these channels.
The metric should reflect the following key elements:
Let me conclude by saying there is no silver bullet as far as digital/integrated metrics are concerned. It's not surprising that we still haven't cracked how to measure the effectiveness of TV advertising after so many years. We have always said that 50 percent of advertising works, hard to know which part. The clearer the link that we can establish between our digital marketing campaigns and sales, the closer we would be to taking marketing from unjustifiable operating expense to a measurable investment.
Meet Your Favorite ClickZ Contributors
Many of ClickZ's leading expert contributors will be at ClickZ Live, the new online and digital marketing event kicking off in New York (March 31-April 3). Hear from the likes of: Jeremy Hull, Lisa Raehsler, Andrew Goodman, Bryan Eisenberg, Mathew Sweezey, Aaron Kahlow, Stephanie Miller, Simms Jenkins, Jeanne S. Jennings, Dave Hendricks and more!
Mandeep has over 11 years experience of building brands with blue-chip organisations like Johnson & Johnson and Pfizer. He was recently promoted to head regional marketing for Acclarent, a division of Johnson & Johnson Medical manufacturer of cutting edge technology for minimally-invasive surgery. Mandeep is a recognised expert in integrating emerging media to drive business results. In 2007, he led the launch of one of the first branded apps on Facebook. The app was a finalist at Cannes and won the highest recognition for marketing excellence in J&J. In 2009, he pioneered the launch of the first iPhone app in J&J, which was featured in the Sydney Morning Herald as an example of innovation. Mandeep has spoken widely on social media, mobile marketing and multichannel marketing. He has authored for iMedia Connection and has been nominated to judge the AMI marketing awards for 2010 & 2011.
March 19, 2014