Why the Click Is the Right Metric for Online Ads (On Adding Value and Thinking Beyond the Display Advertising Business Model)
“…many advertisers in the past gave most of the credit for a sale or conversion — which in the web world could include anything from visiting a website to printing an online coupon — to the last ad clicked on or seen by a consumer. But that means brand-focused sites such as NYTimes.com and MarthaStewart.com and even social-media sites such as Facebook and MySpace lose credit because they are often not where a consumer will see that last ad. And when they lose credit, they lose advertisers, and when they lose ad revenue, well, you’ve read that story.
“Publishers have a lot to gain,” said Steve Kerho, VP-analytics, media and marketing optimization at Organic. Mr. Kerho has been doing lots of analysis on how online-display ads affect search and conversions and found that in some cases, a display ad can increase a search ad’s click-through rate 25% to 30%. If he had simply measured the clicks from search, he would have missed the display ads’ influence.”
Source: Adage
So… If we’d translate the above model to, say, a real world situation; that’d mean that the sales guy in the local electronics store should get a piece of the provision pie, and maybe you’re neighbourhood whiz kid should be offered a small fee too, since they were the ones that influenced you before you decided to shell out on a new bleeding-edge desktop and order it directly by mail-order, no?
Of course, the conclusion presented above is preposterous to say the least. Not giving full credit to the last click shows a lack of common sense and of everyday reality:
If we’d were to apply this model to the offline advertising industry we’d might as well start charging less for TV ads during the Super Bowl or advertisements in general, since it has never been empirically proven that said ads actually sell significantly more cars, to name but an example.
(Actually I hereby challenge thee naysayers to tell me why the fledgling automotive industry in the US can’t be saved by throwing more money against Interruption Campaigns now that the going is though… Odds are it’s because it just doesn’t work that way nowadays…)
Publishers would of course love to use such a model, since suddenly those abysmally low Click Through Rates on social networks ´d become a license to print money, yet that’s not where the problem lies: it’s about engaging with the visitors of the Facebook’s of this world if and when they feel like it, adding value to the community, giving them something to talk about or a good reason to get rid of their friends. The engagement model is a far more viable one since it makes it very clear for all stakeholders what the true value of those brand interactions are for everyone.
Conjuring op schemes to charge more for a product -display banner- that, on it’s own, has failed to truly deliver on its promise up until this very moment, is not the way forward out of this recession. The research budget would be well better spent on innovation, adding value to the visitors, strategic alliances -you name it, just do not waste it on taking undercover pot-shots at “Go -Emperor CPC- Gle” et all.
There is one thing that does ring true about the statement that a conversion shouldn’t be attributed to just the Last Click alone; and that’s the reoccurring coincidence that carefully crafted, creative Crossmedia campaigns drive word-of-mouth & website traffic, allowing for a tighter control on conversion, ánd they also have the uncanny ability to tip the Attitude scale in your Brands’ favour. A little…
It’s common sense and it’s what marketing should be all about: influencing as many factors as you can to get the prospect to turn into a consumer, making her loyal, spurring her on to buy more and in the end becoming a brand-ambassador.
The communication mix as well as the quality of your product combined with the customer centricity level of your organization all contribute to that end.
As well as a million other tiny factors (does the sun shine, did THAT girl on the train give you a smile, do you have enough money to spare, etc., etc..)
Yet, if we’d follow the philosophy of Mr. Kerho to it’s conclusion, it’d mean we’d have to split the Cost-per-Click revenue and spread the wealth over all communication channels and creatives -and not just the display banner- in order to get a somewhat “fairer” representation of value/conversion for money.
[The Adage article starts with this quote: "The great paradox of the web is that it's an interactive medium and everything can be measured. And that's wonderful -- unless you're measuring the wrong thing."
I'd think what they should be stating is: The single greatest asset of the web is that it's an interactive medium, perpetuously capable of reinventing itself. And that's wonderful -- Unless you don't keep your feet firmly on the ground and try to look at opportunities with a positive mindset!]
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Blog Action Day 2008 follow-up: The Potential of Social Media
“We are currently facing some of the most difficult and life threatening challenges with severe climate changes, the absence of clean water and food in large parts of our world, financial issues. These are all very physical problems. You may wonder what Social Technology can do about them. I imagine it could do at least 3 things:
1. It can help us create awareness of the problem
2. It can help us discuss and find solutions that can actually work
3. It can help us create enough momentum to force ourselves and our governments to act”
Source: Alexander van Elsas’s Weblog on new media & technologies and their effect on social behavior
“The borders around our job truly change like they never have in the past. The borders of the country we live in don’t have the same power they once did because we are no longer held to them in the same way. With Social Technology everything changes – our world changes – we change.
But it is because of those very things – those changes – that I don’t believe we will see real Social Technology within our lifetimes. These types of changes are too radical and endanger too many positions of power. So the dream will probably remain a dream.”
Source: Steven Hodson: The impossible dream – Social Technology
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Branding The Obama Identity
Two short interviews with Sol Sender, the Design Strategist behind the excellent adaptable and strong brand identity of the US President-Elect Barack Obama, wherein he shares the history, strategic branding process and key take-aways thereof.
As stipulated by Karl Long in the original referring post over at FUTURELAB.net, this could become the most iconic brand identity of our time -even more so when we consider the various ways in which it was deployed: the ultimate contemporary case of product quality (the candidate AND his message) first and marketing perfection second in a sweet marriage with The Crowds if we ever saw one.
Bonus: For the nitpickers out there: In part 1, pause at 06:46 to see a screenshot of an Outdoor Dummy on a Dutch Public Transport Company bus stop , taken in the city of Amsterdam! [hometown of yours truly ;) ]
Sol Sender – Obama Logo Design Part 1 of 2
Sol Sender – Obama Logo Design Part 2 of 2
Here’s the teams blog post
Original Post: http://experiencecurve.com/archives/new-rules-implied-for-developing-brand-identity-for-social-media
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Thinking Big About Solutions to Worldwide Poverty (BLOG ACTION DAY 2008)
Coming up with One Big Idea to resolve the issues of Poverty, Child Starvation or any other (in)directly linked anthropocentric crisis such as Global Pollution, Global Warming or the Energy Crisis -Peak Oil- for that matter requires consensus: Is there a problem? And if so at what scale? Consensus.
Professor Hans Rosling‘s infamous presentations at TED back in 2006 and 2007 shook up our Western beliefs of developing and underdeveloped countries, if not challenge the very definition of what we should label as a developing country in the first place, based on the correct context of data. Consensus on the data upon which one can act.
Up until recently (2006) Pluto was known as a planet, nowadays its part of a different celestial class of its own, thousands of scientist worldwide went through several heated debates before consensus crystallized out of the fog of intellectual war.
Just as there had to be worldwide consensus to recognize the scale and possible implications of the root-rot in our global financial systems before tackling that challenge head-on, the same consensus and sense of urgency has to be developed towards Poverty and the other great issues of our time.
But where to start?
First of all I don’t believe that we’re ever going to have this global consensus -at least not with regards towards Poverty, for one simple reason: the very human nature of not acting unless the Danger is imminent and tangible. (The Global Financial Crisis forced our governments to act aptly and directly, because in light of the gargantuan consequences there simply was no other option.)
We shouldn’t attribute this to culture, greed or unwillingness, but to biology and more specifically our inner brain: A small genetic gift from our Prehistoric ancestors, which also seems to be the key to many addictions like drugs, smoking or drinking too much liquor. So, one might argue that we don’t have a software problem, but that ours is more akin to a hardware glitch so to speak.
Yet I do believe that in spite of all the above, we’re not excused of acting. Warren Buffet has once stated that we’ve all picked a lottery ticket at birth and so we should be happy and thankful to be born on the right side of the fence, in the right timeframe: Nothing should be taken for granted.
Whichever worldview you hold, you’re inherently part of an ecosystem and thus you profit -roughly speaking- from trade rights, education, infrastructure, communications, municipal services, place of birth, local history and the like. Not all of this stands on itself and not all of this can be accounted towards just paying taxes; If there’s anything the Financial Crisis has reaffirmed it’s that we’re part of a global village and what we’ve taken so far should be given back in some way or the other…
So in my humble attempt to join and contribute to the global poverty discussion on over 9.000 websites and blogs worldwide today, facilitated by BlogActionDay.org, here’s my part of the solution:
Free Education Through Free Internet Access.
Poverty has many, many causes, but if there’s one thing we can have consensus on, it’s that there’s a significant correlation between low education and poverty: I’m cutting some very rough, sharp corners here, but arguably one could state that education leads to knowledge, leads to opportunity. Not to say that access to education in and of itself is the full solution, but we should at least enable the poor regions in the world to gain access to the levering power of the web, now more than ever.
Just as the economy of the free web has proven to us that you can gain more by giving and sharing unconditionally, the same democratizing effect could apply to underdeveloped regions.
What can we do?
Google has partnered with HSBC to to deliver free internet access to the unconnected world by way of satellite already and they’re running their Project 10^100 contest, so if you happen to have an actionable idea waiting to get funded for a jumpstart, that would be a great start.
The BlogActionDay website has (links to) many more ideas aching to be implemented. Some are free, others are awaiting a micro-contribution; some idea’s are larger than life, whilst others take a more smaller approach. And while we’re at it: Let’s not forget to address poverty in the West too; we mustn’t assume that everyone living in the Developed World is living at acceptable standards and so here too there’s a lot to be done, starting with efforts to create worldwide consensus on Hidden Poverty as well.
Let’s create a Wiki of sorts where thought leaders from around the world can contribute and facilitate ideas to tackle poverty. And since all major social issues require an holistic approach to achieve sustainable results: Let’s give the underdeveloped those much needed 100 Dollar Laptops with free unlimited Wireless Internet access so they can learn, grow and contribute to the solutions themselves and then let’s use that community platform to tackle the Energy Crisis and Global Warming, together!
[This column is dedicated to the cause of Blog Action Day 2008: Poverty on the 15th of October 2008.]
No commentsWhat Every CEO Should Know About Online Reputation Management; an Interview with Andy Beal
Martijn Ros (Brandmerck) did an interview with Andy Beal for his Graduation Thesis on Online Reputation Management in The Netherlands, though the core message is universal.
Andy -a speaker and consultant specializing in Online Reputation Management (ORM), Search Engine Optimization (SEO) and Social Media Marketing- is considered one of the world’s most respected Reputation Management experts, and has worked with many brand-leaders, such as Motorola, NBC, GlaxoSmithKline and SAS.
Beal’s current projects include his new book Radically Transparent: Monitoring & Managing Reputations Online, his blog Marketing Pilgrim and Trackur -an online Reputation Monitoring tool.
Two interesting outtakes, highlighting the arguments that every CEO/Marketer should keep in mind when conjuring up a business plan or marketing strategy:
“Martijn Ros: I am convinced that companies that have a so-called ‘interactive online profile’, and are known for their online presence through blogs and social networks, have a head start when it comes to any unforeseen online reputation crisis. Could you tell something about the way you advise your clients when they want to create an interactive online profile?
Andy Beal: I absolutely agree with you. When a company creates an interactive online profile, it’s effectively telling its stakeholders -customers, investors, employees, etc- that it cares about the community and wants to be a part of the conversation. When an online reputation crisis hits, companies that have an social media profile are more likely to be given the benefit of the doubt and more likely to be able to respond quickly, within that channel.
I advise my clients to look for the “centres of influence.” Where are their stakeholders hanging-out online? When you understand the types of social media your stakeholders are using -maybe they prefer blogs over forums -you’ll increase your chances of successfully engaging them.
Martijn Ros: Do you advise organizations when they already have problems with their online reputation? Can you give an example of a case, and your approach in that matter (the name of the company can of course remain anonymous)?
Andy Beal: Right now, most companies only react to an online reputation crisis when they see it having an adverse effect on their Google reputation. When a negative blog post is on the first page of Google’s results, for your brand name, you tend to take notice. In these cases, I simply work with clients to help create and optimize positive web content. Our goal is to try and provide Google with positive web content that is more relevant, thus suppressing the negative pages.
The very smart companies are realizing that simply managing their Google reputation is akin to placing make-up over a cancerous mole. You have to treat the underlying cause -not just the symptoms. It’s with these companies that I work to help them address and fix the actual complaints their stakeholders have with their business.”
Read the whole interview over at Brandmerck.nl
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