Almost a century ago, American business legend John Wanamaker articulated what continues to be marketers’ biggest roadblocks. He said, “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” It is unfortunate that decades later, with all the technology at our disposal and the brilliant marketing minds in our generation, we haven’t been able to find an answer for marketing’s big ROI challenge. If anything, with the marketing ecosystem getting more complex and platforms increasing in number and complexity, we are further away from a solution than we were a hundred years ago.
CPC won’t tell you the whole story
One of the most common metrics for digital marketing success is cost per click (CPC). It says all the right things – our targeting is on point, our creatives are compelling, and we have a click to prove it. It is a great, feel-good metric. But does it mean business? Not always. At best, a click signals interest in a brand’s products and services, offers and discounts. It perhaps signals a slim chance of purchase in the future too. But does it strongly signal purchase intent in the near to mid term future? Not always, and definitely not if marketers don’t measure what happens after the click.
A physical visit to a store signals far more purchase intent in most retail categories than simply an ad click. For example, take an auto enthusiast clicking on digital ads of a newly launched car to find out more vs a potential auto buyer who visits a showroom following a digital ad. Who do you think has the potential to drive marketing ROI?
That’s why it’s time for Cost Per Visit
The industry needs a marketing measurement solution that does not limit itself to virtual, far-fetched signs like clicks and shares. Because we know the metrics that matter to result oriented marketers and brands. From our conversations with CMOs, we know what businesses really need is to shape purchase intent through marketing.
And nothing signals this purchase intent more strongly than a consumer who visits your store after being exposed to your digital ad.
This is why we are working with almost all marketing stakeholders to leverage location intelligence and make ‘Cost Per Visit’ the gold standard for retail brand marketing measurement. We use the powerful combination of brands’ digital advertising efforts and our deep analytics capabilities to provide usable insight into customers’ buying and pre-purchase behaviours. Eventually, our aim is to allow marketers to measure absolute ad effectiveness. This is by bringing real-world, granular level outcomes into the measurement equation, i.e. a store footfall as a result of a digital ad.
We can safely say that if John Wanamaker was around, he would have approved of a new age, location based metric like ‘Cost Per Visit’. And for once, he would have known for sure which half of his advertising budget is reaping benefits. He may have missed the bus but you don’t have to. Holler for a demo and let’s get this show on the road!