Internet Marketing Performance Measures
Friday, July 08, 2011
Marketing is getting so complex that sometimes it makes more sense to take a step back and get a clear idea of what really matters. I was reminded of this after reading a recent article (online) from eMarketer.com.
As marketers, we need to constantly think about and provide tangible metrics that prove our worth. It's not all bad though. By being forced to pay attention to metrics, we can do our jobs better - focusing on the tactics that work and moving away from those that don't.
As was noted in the article, "Marketers are desperate for a clear, comprehensive and effective set of metrics and measurement systems for driving marketing performance." I couldn't agree more. In fact, without an understanding of performance metrics, I wonder how you can tell if you're successful.
Measuring Performance
There are only a handful of key metrics you need to evaluate to determine the effectiveness of your digital marketing campaigns. There are tons of other distractions, but if you're not focused on these primary metrics, you're missing the boat.
Qualified Reach or Visits: Qualified reach captures two important dimensions of internet marketing that no other measurement does and that's quantity (number of individuals) and quality (the users have performed a desired interaction). When users take an action, their behavior suggests a true desire or interest. This type of quality is essential for identifying real prospects.
Clickthrough rates: One of the more popular metrics, clickthrough is the primary metric used by online advertisers. Click through rate, a.k.a. "CTR" should continue to be used to measure the effectiveness of direct response initiatives but shouldn't be the only metric used.
Brand perception lift: The actual metric of "lift" is calculated by determining the change in brand perception among a specific audience. Results can be compared to a control group or previous studies. This metric is a little more difficult to calculate without market research or a carefully designed survey. Even though it takes more work and can be costly, it's quite valuable.
Engagement Score: I love engagement. In fact, engagement score is one of the most valuable metrics you'll find. It's built upon a set of integrated metrics that captures the degree of interest with your content. Engagement score works across all digital media, from videos and mobile apps to landing pages and social media.
End Action Rate and efficiency metrics are also important. However, I tend to rely more on ROI as a key measure. When you walk into the CEO's office, that's what they want to hear. What is the return on our marketing investment? Tt's a critical financial metric that indicates the value created by your marketing initiatives.
Marketing Blog founder and top-selling author Michael Fleischner has been featured on The TODAY Show, ABC World News, and Bloomerg Radio. 
13 comments :
Great post thanks for sharing.
Hi Michael,
thanks for this succinct overview!
I was wondering how you think about new concepts, which try to measure an individual's or organisation's influence in social media - or a limited scope within social media networks like Twitter, facebook or Linkedin (e.g. klout).
Are they a part of the KPIs you think should be watched - or do you think they will be any time soon?
kind regards
Sven
It is great post lot of knowledge gaining post related to marketing and different key of metrics through which one can perform well in market. Thanks for haring it.
Marketing in this days really has become a complex process. It is essential to keep an eye on the campaign and one should measure it on regular basis so that it can be twiked according to the needs.
Its tough to achieve our goal without proper strategy in this competitive world. We need to keep an watch on results that we getting out of our campaign efforts.
Yes, it is right that you first take the complete review about all the actions and precaution that you would need to take in between or anytime. Today, people are more focusing online visibility but due to lack of knowledge they lose all in the end so its better to have idea before start because its a long run. You would get benefits but after a long long while so have more focused and more budget to deal.
This is a great article to open the eyes of people who are already established as well as those that are just getting their feet wet in this industry. Click rates are often over looked when trying to measure performance. I used to go straight to the page rank to measure performance but those numbers can be misleading.
Well said Michael, Internet marketing plays an vital role now a days. It is the practice of making your web site ideal for the search engines to find you and place you at the top of the search results. Thanks for sharing your view..
"Hey,
It's look like you cover every thing in this Article. This is great and finally got something to learn after roaming around the other blogs.
This should keep me busy for a while! Thank you so much.
Hope I will get some great stuff soon from you.
Great work."
I want to know about SEO and the techniques used in it to achieve the desired result.I have a website which requires a SEO.So please suggest me.
thank you so much for the article, cause marketing these days is getting verry complex :)
thanks for sharing!
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