Monday, July 30, 2007
Advertising 2.0 Tracking and ROI
ROI for advertising 2.0 requires a holistic approach to tracking and measuring all channels and vehicles. The original holy grail of online advertising was its ability to track and provide results. As the early results came in, advertisers generally wanted to track down to the sale, but did not have that ability or did not provide an eCommerce option. The result was tracking that either did not show the whole picture or delivered bad results. Thus came the pre-bubble, advertising 1.0 mantra of online branding. With branding, there is no direct measurement expectation by the advertiser.
Post-bubble, Google established the market for performance-based keywords. Google solved the primary need for advertisers to place a performance measure against payment, and positive ROIs again were measured. But Google's market did not help the display banner nor did it, until recently, show the entire ROI picture of cost per conversion.
Now, the Advertising 2.0 methods are designed to measure down to cost per conversion. This often requires additional work by the advertiser to make sure tracking is measured through the point of conversion. That is the spirit of Advertising 2.0--more advertiser involvement. With Advertising 2.0, ROI does not depend solely on soft statistics of open rates, click-throughs or cost per click (CPC), but rather at the actual cost per acquisition (CPA), cost per lead (CPL) or cost per conversion.
Post-bubble, Google established the market for performance-based keywords. Google solved the primary need for advertisers to place a performance measure against payment, and positive ROIs again were measured. But Google's market did not help the display banner nor did it, until recently, show the entire ROI picture of cost per conversion.
Now, the Advertising 2.0 methods are designed to measure down to cost per conversion. This often requires additional work by the advertiser to make sure tracking is measured through the point of conversion. That is the spirit of Advertising 2.0--more advertiser involvement. With Advertising 2.0, ROI does not depend solely on soft statistics of open rates, click-throughs or cost per click (CPC), but rather at the actual cost per acquisition (CPA), cost per lead (CPL) or cost per conversion.
Labels: advertising 2.0, Internet Secured Application Technology, ISAT, online advertising, Online Marketing, Performance Communications Group
