In a marketer’s world today, click through rate (CTR) is one of most commonly used metrics to determine the success of an ad campaign. The dirty little secret though, is that the click means nothing. As recent as this month on Facebook’s Q1 Quarterly Earnings call, CMO Sheryl Sandberg commented on the need to look beyond clicks. "Our focus for Atlas is on impression-based ads. Historically, a lot of online ads have been based on the last click. As people have begun to look more holistically at all the ad spending they're doing, what they find is that it's all the impressions that lead up to the last click that matter.”
Savvy marketers are realizing that to get “real” results of their ad campaigns, they must identify other KPI’s that matter depending on their campaign goals – brand awareness, retargeting, direct response sales or website traffic. The standard for measurement has changed so dramatically now that marketers are able to leverage insights from all of their data, they have come to realize that all campaigns must be tied to the right KPI.
This concept requires marketers to look at the quality of the “measurement” they are doing, looking across the entire sales... Read more
How Science Started to Dominate Advertising
In 1926, President Calvin Coolidge pronounced a benediction on the business of advertising:
"Advertising ministers to the spiritual side of trade. It is a great power that has been intrusted to your keeping which charges you with the high responsibility of inspiring and ennobling the commercial world. It is all part of the greater work of regeneration and redemption of mankind."
Between 1926 and today, we proceeded dealing with advertising as if it was more science than art. Reach and frequency were introduced, new metrics like GRP and TRP started to dominate the language of the business and now we measure our reach in terms of impressions. Coolidge's idea of inspiration and spiritual redemption through advertising was replaced by spreadsheets, perspiration and a dominance of left-brain thinking.
Is Advertising Art Or Science?
If advertising is a matter of data and science, why do we remember an Apple commercial from 1984 that ran once? And why do I get so annoyed when I see the same, mediocre ad over and over again, behaviorally targeting the hell out of me and perfectly aligned with reach and frequency formulas? I would argue, there's an advertising world outside of science. It's called creative... Read more