3 outdated metrics you're still using

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Recent conversations regarding the "Making Measurement Make Sense" (3MS) initiative indicate that advertisers recognize the shortcomings of campaigns focused on impressions or post-impression attribution, and with campaigns optimized for clicks. In explaining the genesis of the 3MS initiative, the Interactive Advertising Bureau's (IAB) website states that "while consumers have embraced digital media and continue to adopt new media behaviors, the marketing and media businesses have yet to create the tools necessary to keep up with consumers' behavioral changes."

Traditional measurement tools, such as impression, post-impression attribution, and click-through rate (CTR), handicap marketing managers and force upon them campaign measurment tactics that should have long been abandoned.

Impression targets

Optimizing a performance campaign to serve a specific number of impressions is the worst way to get substantial results from display media. While impressions are an important component of campaign strategy, companies that base campaign success on the number of ads served are solely focused on increasing ad volume, not conversions. Theoretically, more ads served mean more exposure, which should return more results. This is simply not reality.

RealVu, an advertising analytics company, recently published a report evaluating "ad impressions that appear within the viewable computer screen area" versus ads that appear in non-viewable areas. Their research exposed that "viewable impressions were never more than 56 percent and could be as low as a shocking 6 percent on an individual campaign basis." Another report from AdXpose shows that "more than 50 percent of the ad impressions delivered, and 95 percent of clicks, came from suspected fraudulent sources," and that "nearly all the fraudulent traffic was hidden behind numerous layers of nested I-Frames (ad units that pull ad content from other sources) that can purposely hide URLs and in-view data."

As is evidenced by these reports, networks or other vendors focused strictly on the volume of impression delivery may design campaigns to purchase inexpensive and often non-viewable ad inventory to maximize the number of impressions they can serve within their budget.

Serving ads to users is not the same as creating an "impression" or generating a "view," making both of these terms industry misnomers. Most ads do not show up in a viewable area. Even in cases when advertisers are fortunate enough to place an ad where users can be exposed to it, there is another barrier commonly recognized as "banner blindness." This phenomenon is a testament to the value of dynamic ad content and the need for evidence that ads are influencing consumer behavior. Even brand marketers can benefit from the added value of knowing which impressions were loaded and viewed. 

If as much as 94 percent of ad inventory is invisible to consumers, then we can easily explain why the remaining 6 percent of viewable ad space is so costly -- it's scarce. So, marketing managers are faced with a dilemma: sacrifice reach for inventory quality, or access a larger portion of the target audience and guess about campaign efficacy.

Post-impression (view-through) attribution

If advertisers have ever run display-ads with a performance goal, then they've likely paid for post-impression conversions, or at least attributed a portion of post-impression conversions to a campaign. In this case, advertisers were likely charged for consumer behavior that was not influenced by an ad, given that ads may not have been seen at all. All the same, too many advertisers allow partners to get away with attributing too many post-impression conversions to their banner ad campaigns.

Attributing post-impression activity is especially troublesome for retargeted banner buys. Retargeted audiences have already expressed interest in the advertiser's product/service/brand by visiting the website, and, as a result, have an existing propensity to return and convert. Serving ads to site visitors after they've already visited and abandoned (left without purchase or conversion) is a highly effective methodology, but care should be taken in attributing perceived subsequent success.



Lisa Tadje
Lisa Tadje January 27, 2012 at 12:44 AM

Thanks for your comment, Josh! I work with Tony at mediaFORGE. The primary reason we raise this issue is to clarify that marketers don't have to accept this as reality for their display media campaigns. There is a better option. Check out our full whitepaper at http://www.mediaforge.com/resources to read more about engagement and why we believe it's the best optimization metric for delivering strong and verifiable campaign performance. You can also read our follow up article that iMedia posted this evening.

Josh Sherwood
Josh Sherwood January 26, 2012 at 10:02 PM

I understand that retargeting view through can be somewhat misleading, but that same argument can be made for other top converting mediums. Paid Search top converters are typically branded keywords, meaning the consumer already has the brand in mind. Email sends are to someone that has already visited the website and signed up. Social is similar as well in that typically someone already uses the brand then likes them (not saying a lot of conversions come from Facebook).