Advertising and Digital Metrics Flashcards
Advertising Media Metrics
- Impressions/ exposure/ OTS
- Reach and frequency
- GRPs
- CPMs
Share of Voice
Digital metrics
Digital advertising - Click through rate - Conversion rate Web analytics - Visits and unique visitors Abandonment and bounce rate
Media buying
the process of purchasing a share of media from a TV channel, a publication, a radio spot, an outdoor site or a website, for the purpose of advertising.
Advertising forms
- Print ads in newspapers and magazines
- Video ads on TV, in cinemas and online
- Mupis and posters in side malls and stores
- Audio ads on radio
- Banners and text ads on the internet
- Billboards on outdoor sites
- Branding on mobile outdoor sites
Awareness
- Unaided ad awareness (first mention: “top of mind”)(When thinking about the category do they mention this brand advertising without prompting?)
- Aided ad awareness: do they remember advertising for this brand list?
- Advertising recognition: have they seen this specific ad? Show stimulus.
- Advertising branding: which brand is this advertising for?
- Note that awareness can’t be collected in a copy test
Attitudes
- Message takeaway (unaided/aided): what strategic message do they think the ad conveys?
- Standout: is it salient in the clutter of other ads?
- Likeability: do they like this advertising?
- Knowledge: is it persuasive?
- Diagnostics: is it humorous, boring, exciting
- Brand impact: does it influence brand perceptions, purchase intentions, WOM?
Impression/ Exposure/ Opportunity-to-see purpose
One opportunity for one individual to see an advertisement.
- Applies to any media
- Opportunity is the key term - there is no guarantee a viewer, reader or listener will actually be exposed to the ad
To measure the “tuned in” audience for and advertisement - what is the baseline likelihood that the message will enter consumer memory
- Every Ad has a fixed number of planned exposures, depending on the number of individuals in its audience
- An ad is said to “reach” a certain number of people on a number of occasions; or to provide a certain number of “impressions” or “opportunities” to see by each person.
Impression considerations
- An impression does not mean that the audience member really noticed the ad, only that he/she had the opportunity to see it (because he/she was nearby, had the TV, radio on or owns a copy of the magazine)
- Methodologies for estimating “impressions” or “opportunities to see” vary by type of media
- Impressions measure the media exposure not advertising exposure (with the exception of digital)
Impression Construction process
- Estimate and then measure the delivered audience for the ad-carrying medium
- Plan/check which issues/editions/TV programs/channels the advertisements were placed in
- Audience measurement firms (Nielsen) conduct surveys, observations/ ”metered” studies on who watches/ sees/ hears a media type (TV, radio) and a media vehicle (particular show, magazine title, etc.)
Audience measurement in print
Circulation and survey.
- The circulation (copies sold among subscribers and newstand buyers) is known from sales records/distributors
- “Pass-along” readership is estimated by surveys
Audience measurement in TV
People meters and diaries.
- Peoplemeters are automated set-top-boxes in panel member homes recording which channel is being watched 24/7
- As an alternative, self-report diaries can be kept
Audience measurement in radio
Diaries. Panel members are asked to keep a daily diary (by dayparts) which radio station they listened to
Audience measurement in out-of-home
Observations. Researchers observe in person near boards how many consumers/drivers pass by in an hour/daypart/day
Audience measurement of digital media
Ad server data. Companies that “serve up” digital ads record the number of times an ad appears on person’s computer while viewing a website.
Reach/ Net Reach
Unduplicated audience of individuals who have received at least one exposure to a given advertisement or campaign
Average Frequency
Is theaveragenumber of exposures made to each individual who has received at least one exposure to a given advertisement or campaign
Rating points
The reach of a specific media vehicle delivering an Ad or Impression is expressed in Rating Points
- Calculated as individuals reached by a specific vehicle, divided by the total number of individuals in a defined population.
- This reach or impression expressed as percentage of the population (%) is called “ratings” - Comes from television
- A rating of 2 means, of the total TV population, 2% watched the particular program
Gross Rating Points
- GRP is the sum of all rating points that delivered by the media vehicles carrying an Ad or campaign
- A high GRP It means more people are seeing your Ad
- Describes the amount of media weight
- Takes into account duplication and can exceed 100
- GRPS are a cumulative measure of the impressions an ad campaign can achieve
- GRPs is also identical with impressions - only expressed as a % of a defined population
Target Rating Points (TRPs)
- Quantify the GRP’s achieved by an Ad or campaign among targeted individuals/group within a larger population
- Adjusts the GRP calculation through reflecting on specific target audience, thus reducing waste coverage
Cost per thousand (CPM) purpose
to compare media costs of advertisement campaigns across and within different media/vehicles to secure productive media investments.
Cost per thousand construction
Calculated by dividing the cost of an advertisement placement by the number of impressions that it generates. Expressed in thousand impressions is an industry standard
Effective frequency
The number of times a certain advertisement must be exposed to a particular individual in a given period to produce a desired response. Ad messages requires repetition to “sink in”. Repetition must be monitored for effectiveness.
Traditional rule of thumb: S-shaped curve and 3+
- 1st exposure: Curiosity (“What is it?”)
- 2nd exposure: Recognition (“What of it?”)
- 3rd exposure: Decision (Reminder)
Recency planning
- One exposure may be enough
- Advertising messages work most directly with the few consumers who are in the market at the time
Effective reach
the number of people or % of audience that receives an ad message with a frequency equal or greater than the effective frequency
Share of voice
measures how much % of the advertisement with target consumers your brand owns vs. your competitors.
Share of voice purpose
- To compare levels of advertising expenditure for competitors within an industry/market
- Gives you the % of where you stand against your competitors, when it comes to gaining maximum visibility for your brand.
Challenges of share of voice
- A high share does not mean effective advertising (cf. media vs creative metrics)
- Problems around defining market boundaries
- Market research estimates of competitive spending may not accurately represent the price waterfall in media rates (large discounts are common for large advertisers)
- You need to evaluate SOV numbers in a strategic context
Page Views
Represent the number of opportunities-to-see for a given web page
- To quantify web site traffic, marketers monitor page views
- Any single web page can have multiple Ad’s
- Taking it a step ahead, advertisers want to know the number of times the specific ads was displayed to visitors
Page Hits
count the number of files (from each web page) served to visitors on web. More relevant to technicians for planning server capacity rather then for marketers interested in measuring visitor activity
Click through and conversion rates purpose
- To measure the success of digital advertising campaigns in terms of: awareness/interest (click through) and purchase behaviour (conversion)
- For both display/video and search advertising
Click through Rate
- Percentage of impressions that lead a user to click on Ad that redirect to another page where the user might purchase an item or learn more about a product or service.
- Useful metric and typically measures only one step along the path toward a final sale (unless user clicks on “Buy Now”)
Conversion rate
- Refers to the % of your online visitors who are likely to buy something from you online.
- Click-Through Rates target people before they land on your site. Conversion Rates target people that are already on your site. Both require different strategies.
Optimising any part of the funnel translates to?
improvements in sales
- Double your impressions to get more click throughs
- More click throughs more likely to get more conversions and sales.
Challenges with click through and conversion rates
- Do the measures measure what they supposed to measure? (Is a “click through” really about interest? Is a conversion really a purchase?)
- Implicitly using a direct marketing model: objectives may be different, especially for display and video ads
- Benchmarks: overall average for click throughs 0.1-0.2% but what benchmark to use for conversion?
- Cookie deletion
Visitors and unique visitors purpose
to understand consumer/ prospect traffic to your site
Sources of visits to a website
- Paid search: as a result of click on a search ad
- Display/rich/ video: as a result of click on a banner/ overlay ad
- Organic: as a result of general browsing, after a google search but no ad click
Visitors and unique visitors construction
- Visits can be traced by the marketers’ internal IT teams (looking at “log files”) or by specialist “site-side analytics” firms
- For unique visitors, cookies are used or IP addresses are recorded
Abandonment and bounce rate purpose
- To assess level of disengagement among “landed” consumers - to assess the hurdles to conversion
- Abandonment rate is specific to shopping carts, bounce rate is general to all sites
Abandonment rate
- Refers to the percentage of people who abandon their intended purchases that have already been saved to their shopping cart without proceeding to the final checkout.
- Presented as a percentage in contrast to those who bought and checked out, successfully completing a sale.
Bounce Rate
- refers to the number of visits (expressed as a percentage) on a website page that end up with the website user leavingimmediatelywithout continuing on to visit another page on the site.
- a measure of visit quality and a high bounce rate indicates that site landing pages aren’t relevant to your visitors. You will end up having low conversion rates.
Challenges for all website analytics
- PCs does not equate to humans – (unless registered users)
- Much diagnostic data is available for site-optimisation (what is the “golden-path” through the site, which areas are difficult to find) – analysis is time-consuming and expensive
- Move away from banner –> landing environment logic (“fish where the fish are”)
