Marketers in the digital space are constantly grappling with the issue of selling digital to advertisers and getting more monies into the digital media industry. The real challenge is the value promised and the price charged for such value. The value mostly has been numeric in nature i.e. clicks, impressions and leads and the cost per unit has constantly been falling for these metrics in the years gone by.
Maybe the answer lies in digging a bit deeper than just providing superfluous numbers that don’t mean much on the face of it. At a recent OMMA event John Burbank, CEO, Nielsen Online Division showcased a more evolved way of measuring Digital Media ROI. Here is what he proposed:
The above change in stance of selling digital media can’t be achieved over night. As an industry we need to collectively start adopting newer and better ways of selling our services. And as change takes time its important to start today so that change is effected tomorrow. Would love to know our readers thoughts on the above right or wrong chart.
Rajiv,
Very valid. Reach, frequency and efficiency are very important metrics but unfortunately none of the ad network measure these. Like we control cpc and cpm, we should be allowed to control max/min impressions per user.
I think Visit to Website is a valid way to measure as its like customer coming into your store and looking at your products.
The current digital impact is not so great that it can impact offline sales, but it would be valid to see how your marketing efforts impact the sale through organic or direct traffic.
Your clicks on the ads show awareness which leads to purchase.