Advertising Effectiveness - Marketing Management

Advertising Effectiveness

To measure the effectiveness of any online advertising, a set of performance indicators was developed (they overlap with the indicators considered in Chapter 3):

1. The share of refusals is the share of visitors who left the site faster than 5 seconds after the transition (often characterized by accidental clicks on obsessive and hard-to-close advertising).

2. The efficiency factor of the selling Internet advertising CTB (dsk-to-fly), measured as:

where B - the number of people who came by the advertising message and made a purchase in the online store; С - the number of visitors to the site or store that came by the advertisement.

3. Interest Ratio STI:

where S - the number of visitors who came to the site by an advertising message and spilled several of its pages.

4. Conversion rate for transactions TCR (transaction conversion rate) - indicates the number of purchases made in relation to the number of interested visitors. For online sales, conversion is most critical, because this is the main indicator of the effectiveness of any commercial site, a kind of efficiency (EFFICIENCY):

Conversion and clickability are two interrelated indicators (Figure 14.14).

For non-commercial sites, the conversion rate is defined as the number of people who successfully completed the task or used the opportunities for which the site was created. In this case, you can calculate the conversion rate:

• the total number of subscribers to newsletters;

• The number of comments on the site left by likes and reposting messages to other Internet sources by registered users;

Fig. 14.14. Methodology for optimizing a specific online advertising campaign based on the analysis of conversion rates and clickability

• the citation of company messages on other Web sites;

• the number of people who downloaded the files it offered;

• the number of users who tested all the services offered on the site or studied in detail the most part of the site's capabilities.

The following factors affect the conversion rate:

• The functionality of the site - its structure, navigation, interface availability, ease of use, download speed.

• Competitiveness, the creation of a unique trade offer (TSS): the level of prices, terms of delivery, forms of payment, uniqueness and relevance of the proposed product or service. In addition, the level of competition in the subject matter is important - the number of market participants who offer similar products.

• The quality of the audience of the site, their motivation and intentions.

• Probability of conversion. Sometimes an Internet user can himself become a reason for a decline in conversion. Marketers should study the psychological barriers that arise in front of each buyer. One such barrier is the sense of anxiety that arises before an inevitable event with an uncertain outcome. Purchase is exactly such an event. Neil Patel has developed an interesting equation that calculates the probability of buying:

where С - probability of conversion; M - motivation of the consumer; V - clarity of the value proposition; * - stimulation to take measures;/- presence of reasons for resistance to purchase; a - elements on the site that trigger the alarm.

Fig. 14.15. Technique for optimizing an advertising strategy based on the cost of a click and the response rate

6. Scale of advertising impact GRP (gross rating point) - method of summing the ratings of the entire advertising campaign for all media; it shows how many times the ad appears to users of the Internet for the period of the advertising campaign. Its peculiarity is that all contacts, both primary and repeated, are taken into account in the calculation.

So, if on the first day of the advertising campaign 20% of the audience saw the ad, then the rating is 20. On the second day, 45% of the audience - the rating is 45. The third day is 47%, the rating is 47. Therefore,

If the goal - to determine how many people saw the ad, then here it is no longer a matter of the scale of the advertising impact, but of coverage.

To calculate the scale of the advertising impact, you need to know all the ratings collected by individual outputs of advertising messages. This rating is the percentage of the audience that saw the advertising message, in relation to the whole audience, who could see it. Sometimes a similar term is used - Rating in the target audience (target rating points).

7. Return on Add Dollar Spent - the efficiency of creating net profit from all directions

investment in marketing communications (in the event that the final step is the purchase of a product or service):

Usually, the evaluation of the effectiveness of an advertising campaign is carried out simultaneously in several directions: draw conclusions about how effective an advertisement and its individual elements are, how useful it is to use certain advertising tools and tools, how much money is spent on advertising, and how much prolonged advertising effect, etc.

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