November 29, 2018 - By Ginna Hall, Senior Writer, Nielsen Visual IQ
This article originally appeared in Marketing Magazine
With the digitization of consumption, consumers leave traces of their journey and preferences for marketers to analyze. Every bit of data and information allows marketers to make more informed choices about their tactics and strategies.
However, many marketers don’t know whether or not they’re using the right metrics for the right measurement.
In an interview with Marketing Magazine, Andy Dubickas, VP of global solutions consulting at Nielsen Visual IQ, shared his insights on measuring consumer engagement.
Dubickas: Today, much of the industry still relies on metrics such as CPM and CPC. Yet, marketers are under more pressure than ever to prove the business impact of their efforts and the value of their team.
To be truly effective, marketers need to focus on metrics that impact their bottom line such as revenue, conversions or purchases.
If marketers are measuring branding marketing efforts, they should select a brand engagement metric such as landing page visits, content downloads, video views or other meaningful interactions a consumer has with a brand that will ultimately drive future bottom-funnel outcomes.
Dubickas: In a last-touch model, the last touchpoint in the consumer journey receives 100% of the credit for a conversion event such as a sale or lead. Due to its history as the default marketing measurement methodology, this model is often used as a baseline to compare other multi-touch attribution models. It’s also easy to implement and use.
The problem is that it ignores the contribution of all previous interactions with a brand that influenced a consumer to act. Last-touch may seem straightforward, but it’s deeply misleading.
Marketers who only look at the last interaction simply can’t plan or allocate budgets properly.
Dubickas: Each client’s concerns tend to vary based on their measurement goals, business requirements and level of marketing sophistication. However, there are some commonalities we see across our client base, particularly as it relates to speed, coverage and comprehensiveness.
Consumer behavior changes by the day, if not faster, so clients want access to the most up-to-date performance metrics so they can keep pace with their customers and make the most effective optimization decisions every day.
At the same time, new channels continue to emerge that clients want to jump on before the competition crowds in. So, they are also looking for performance visibility into these new and influential channels so they can broaden their advantage.
Finally, they worry about comprehensiveness. Today’s marketers are using more and more tools to plan, execute and measure the impact of their efforts, yet this vast number of technologies has created a paradox.
Marketers have access to more performance and audience data to inform their efforts than ever before, but the technologies they’re using produce different reports, use different metrics and taxonomies that make it difficult to see the whole picture.
So there’s a fundamental need in the marketplace for a more holistic view of performance, as well as the strategic and tactical guidance to optimize efficiency and effectiveness across all marketing and media investments.
Dubickas: Companies in which marketers have both clearly defined goals and executive-level support thrive. For this reason, it’s critical that marketing teams and management align on the business objectives and the KPIs that track progress toward achieving them.
Establishing agreement on KPIs not only facilitates a holistic and integrated view of marketing performance, but also consolidates the strength and expertise of the full team across shared objectives.
To learn more about marketing measurement models, download our ebook: Why a Unified Model of Measurement Is the Wrong Tool for the Job