Conversion is King

Posted on

MCKAY ADVERTISING + ACTIVATION

Conversion is King

Digital media is a changing the way advertisers views results and success. It is still in its infancy, but the long-awaited ability to track the consumer’s path through the online sales funnel is finally available. This data gives marketers insights into what media is best working to deliver the consumer to sale.   The first step in this new structure is identifying the campaign’s KPI (Key Performance Indicator), or the end result. Are you looking for the campaign to deliver a ticket sale, lead a recruit to submit a resume, drive a patient to email a clinic, or generate a B2B lead by capturing a buyer’s email address with permission to market? Once this has been established, the different elements of the campaign can be structured.   The second step is establishing a budget that can compliment the scale of the goals. At MA+A we look at this in many ways, and one of the measurements we borrow from TV and Radio: the GRP.   When buying TV or radio, the GRP is a standard for calculation. One GRP is the measure of reaching one % of the target population. If you purchase both Jeopardy and the Price is Right in one day, each of which have one rating with a 50+ demographic, you will have achieved two rating points. Some of the people in the audience might have watched both programs, so it is not an unduplicated number. When running a TV campaign, the standard goal is to achieve 100 GRP’s a week. 100 GRP’s weekly is enough scale to achieve a good audience reach and frequency to deliver the best impact.   Our traditional buyer, Jen Leigh Crawford, uses the GRP to make sure TV or radio maximizes its reach and frequency. So, what is her magic number with traditional media? She prefers a minimum of 100GRP’s a week. There are subtle differences between the advantages of TV and radio. TV is best used to gain reach, while radio’s best ability is gaining frequency. Reach x Frequency = GRP’s.   MA+A believes digital campaigns should aim for 100 GRP’s per month. Since we can message the consumer through multiple screens to increase reach and use remarketing to gain frequency, this affords us some efficiency beyond those of 100GRP’s through TV and Radio. Due to the youth of digital, this is not an exact science, but this is the best way to calculate:

(Impressions delivered to target / Total Target Population) x 100 = Digital GRP

When evaluating Digital GRP, we take one additional step beyond the capabilities of traditional media. Instead of using a broad demographic number, like a 25-54, we pull the data for how many people desire a certain product, or fit a specific category. Instead of simply targeting adults 25-54, we target the person who intends to buy a car in the next 60 days or the person want to find a new job in the next 30 days. Since digital media is more precise, we can gain this information and target only these individuals. We measure digital GRP’s by how many precise consumers we reach and that brings a tremendous amount of efficiencies when getting to 100 GRP’s   Once the budget is established, the next step involves implementing the technologies. First, we apply a retargeting pixel. A pixel is a bit of code that businesses apply to different pages on their web site to “cookie” their site visitors (for a complete definition, reference this article). Once a potential consumer visits the site and the cookie is applied, it allows the business to retarget that consumer through display ads, video pre-roll ads, Facebook and twitter, among others. This practice can be very valuable, not only for B2C businesses, but also B2B.   Our next step is to apply the conversion pixel. This pixel is applied to the page that appears after the consumer has performed the desired act. So when the target buys a concert ticket, we pixel the “Thank you” page. When the consumer sets up an appointment through the website, we pixel the “We will be contacting you soon” page. Whatever the desired action, the conversion pixel is used to calculate performance and determine if the campaign investment matched the number of conversions achieved.   Through these elements of campaign planning, technology engagement, and real time monitoring, companies can begin to understand the best ways in which to achieve success! It is important to note that this process does not happen overnight. Once you or your agency begins to see where the conversions are (and are not) coming from, adjustments will need to be made. This takes scale into the digital space and takes time to analyze. Through our experience, we have found ways to expedite the process, but it still take time. Our goal at MA+A is to render John Wanamaker’s quote “so last century”.   “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”