Findings from Econsultancy and Google Analytics suggest the majority of marketers worldwide failed to use attribution models that properly describe the influence of each ad format and marketing channel on the consumer’s purchase path.
The last-click attribution model was the most common method used by marketers and agencies worldwide. Under this model, the last click receives full credit for any revenue generated.
Lesser used methods of attribution—including first-click, the direct counter to last-click; linear, a model that assigns equal weighting to all interactions; and customized by channel, a type of linear model in which marketers assign their own custom value to each touchpoint—were used by a greater number of agencies than marketers.
First-click and last-click attribution models are easiest to measure, but their use can over- or under-credit an ad format’s influence on conversion activity.
I encourage you to read the full article on eMarketer.
“3MS” short for “Making Measurement Make Sense” is a project of the IAB, ANA and 4A’s, along with a an impressive list of backers, including Google, AT&T, Coca-Cola, CBS, Group M, ESPN, Omnicom, Microsoft, Starcom MediaVest Group, New York Times and others.
Goal of 3MS project is to create new standards for how digital advertising is measured, bought, sold and easily comparable to other media.
Few changes to be tested:
Redefining an online ad impression from any ad served to a screen to counting only impressions where at least half the ad is visible for at least a second.
Developing a third-party online audience-measurement system that can be used as a currency in media deals, akin to what TV, radio and print long have had.
Defining a common set of online display and video ad formats to give buyers a better idea of they types of inventory that exist and what value they should command.
The Association of National Advertisers, the Interactive Advertising Bureau and the 4As released their Guiding Principles of Digital Measurement, five principles that the trade groups described as “the foundation of making measurement make sense.”
Five new principles:
1. Move to a viewable impressions standard and count real exposures online.
2. Online advertising must migrate to a currency based on audience impressions, not gross ad impressions.
3. Because all ad units are not created equal, we must create a transparent classification system.
4. Determine interactivity metrics that matter for brand marketers, so that marketers can better evaluate online’s contribution to brand building.
5. Digital media measurement must become increasingly comparable and integrated with other media.
A March 2010 survey by Chief Marketer showed that CTR is till the most used metric to measure effectiveness of online campaigns.
– 60% of US marketers reported they measure interactive marketing performance in click-throughs.
– Just 38.4% measured return on investment.
– Only one third measured brand awareness or reputation.
Amy Martin from Digital Royalty explains in 6 minutes, how to measure the impact of social media on a brand’s popularity.
There are two important things to do, when you are measuring your social media efforts: 1. establish your KPIs
2. measure these KPIs
Ad network called World Web Network launched technology that measures the amount of time that a banner is visible on the page and the web surfer is active. Time is only tallied when the script detects a regular mouse-keyboard activity. After ten seconds of idle time, the tool will pause until activity returns, ensuring a reliable metric.
French company called Alenty created this technology. You can see live demo of their technology here.
If I were to buy banner advertising on CPM basis, I would definitely appreciate dwell rate time discounter, or to be billed based on the time of exposure.