Data Talks: Which Metrics Matter and Why?
September 17th, 2015
By Patrick Sipin, Manager, Reporting and Data Analytics, Kingstar Direct
Data-driven, e-commerce brands are capitalizing on the increased power of engaging TV and radio advertising and testing new mediums to drive web traffic and sales. Direct response has been a long time player in the data game and has evolved from traditional call capture campaigns to ones that are metric-driven for the responsive web. The question is, what actually matters when it comes to data? As the measurement floodgates burst open, the trick is to sift through the information with a brand's bottom-line top of mind: what is driving traffic and sales?
Brands measure campaigns on a variety metrics. The most common metric we use at Kingstar is MER – media-expense-ratio. MER is an expression of revenue divided by media cost; the higher MER the more successful the campaign. This allows us to effectively determine the true value and performance of a spot in a way that is easily digestible and directly measures ROI. In addition, cost-per-order (CPO), cost-per-lead (CPL) and cost-per-visit (CPV) are common metrics used to measure the performance of a DR spot.
Not All Data Is Valuable Data
One of the most valuable things a brand can do is test new mediums or stations. With this comes valuable data we can use to create highly curated advertising with long-term pay off. For instance, if a product launches in DR with a unique offer and after a developed media execution attains retail placement, the strategy will then be adapted based on audience demographics and other variables. In addition, response attribution to specific media events is paramount. As more of the response activity is generated on vanity websites, attribution becomes more complex yet more important than ever to calculate ROI.
Broadcast Drives Sales, So Use It
In a big data world, DRTV and radio-generated leads to web are captured to demonstrate the influence of broadcast placement. As web attribution models continue to evolve, we are increasingly able to show which stations and dayparts are generating the most leads/orders. With this information, we can tweak spots to create content that is highly relevant and memorable. Attribution models are complex and still involve educated interpretation by experienced media buyers and planners.
Ditch The Measurement Misconceptions
Is one front-end DRTV response all it takes to achieve ROI? Not quite. Most DR campaigns yield the highest profit through complex, multi-layered campaigns that are built through back-end strategies: monitoring spots and re-marketing products based on the data, up selling, retail integration, and long-term brand building.
Know What Winning Results Look Like
A winning spot delivers significant and meaningful volume – this means increased traffic in store and online. Brands can make big progress by adopting innovative approaches, testing new mediums, and measuring the data to grow their brand multi platform – and in a way that is measurable and scalable.