As we mentioned in our previous blog, using OmniChannel digital advertising gives you a 360-degree view of your audiences’ engagement with your brand. This is critical for your brand. It will give you the analytical data you need to make the right decisions about how to increase your advertising results.
Each organization has differing reasons why they seek to advertise. While some of these reasons are straightforward (driving purchases on a website), others are complex (enticing individuals to message their lawmakers over an upcoming bill).
We work with vastly differing organizations, and the constant among them is the same – they are seeking to drive a result (however they’ve defined it) at the lowest cost and highest frequency.
As previously mentioned, the result can be any predefined action (i.e. website traffic, online purchases, followers, leads, letters from constituents, new members, webinar attendees, etc.). Ultimately, a smart marketer is measuring the exact cost of this action. We refer to this metric as the Cost per Result or CPR.
If the marketer is very smart, they are also measuring the rate at which this action occurs in relation to a series of important preceding steps. For example, if I want my users to provide me their email address in exchange of a whitepaper, I’m focused on the rate at which that happens in relation to the total visitors to the website where the form for the whitepaper exists. The rate at which they are providing me their contact information becomes my Result Rate or RR.
These two metrics are the north star for optimization. Every time we make a change (add new creatives, adjust the landing page or journey the user has to go through, etc.) we are measure the effect of the change(s) on the CPR and the RR.
OmniChannel advertising exponentially increases your ability to refine the two key optimization metrics, CPR and RR.
All digital advertising platforms organize into 3 major segments: Search, Social, and Display. The data we gather from each differs, but by aligning them (normalizing & harmonizing them), we gain a totally new dimension to the effectiveness of the overall advertising process.
The process of normalization is not easy. There are products/platforms in the market that help marketers connect to the individual platforms through API (Application Programming Interface) so you can draw down the data being produced by your ads. Once you have it, you’ll need to organize it, store it, apply calculations to it, and create visuals from it. You also need to make sure the way you place the ads on the platforms corresponds to a clean campaign organization structure, so your resulting data remains clean when you collect it.
The challenge with putting this environment together partially has to do with the structure of the digital advertising industry and the partners/agencies/vendors that are currently performing this work for many organizations.
The digital advertising industry is bloated with Social Media advertising firms, Display platforms, PR Agencies, “Pay Per Click” or “PPC” firms, and other siloed advertising mechanisms currently spending across these various segments.
Big organizations pay firms in each category and through a series of complex reports, piece together how their overall advertising strategy is progressing.
Here’s the problem with doing so:
- It’s expensive.
- It takes away from the total reach and/or frequency of your ads. If you are paying multiple vendors, that’s taking away from your advertising budget overall, which directly reduces the total impressions you are serving.
- It’s a lot of moving pieces. You need to manage all these people, agencies, project managers, and inbound reports to keep it on track and productive. You should be using that time to create great advertising.
- The data is NOT at your fingertips. With varying reports, weekly meetings, and lack of data normalization, there is a considerable lag before you can see how all the work being performed is affecting your CPR and RR.
You don’t need to follow this road. It’s dated and being replaced with much more innovative approaches.
Remember, this is a game of math. You want to give yourself the best possible opportunity to win, and doing so requires focusing the majority of your budget on actually serving your ads to your targeted audiences.
Also, software off the shelf (as much as it claims to) cannot solve this problem.
Technology coupled with a sophisticated operating process, smart marketers, and highly experienced optimization specialists solves this.
Some organizations are opting to build this environment entirely in-house. “The practice of in-housing has grown a whopping 70%” in the last 10 years. “The singular reason marketers are making this move is to deliver cost efficiencies”. (Albarda, 2018).
While that may make sense for a massive organization with a budget capable of absorbing data analysts, platform experts, and marketers, most organizations simply cannot justify this path because the cost of these employees outweighs the agency’s fees they otherwise would pay. Also, the fact that they have these necessary resources doesn’t mean they are creating the environment to steadily optimize their results.
We have a solution and it’s a powerful one.
The technology we have built allows us to get a snapshot of all your ads in near real-time (1-day lag). Because our technology tracks each ad and all it’s relevant attributes and relates that information to the results those ads are producing across the different channels, we can quickly identify the winners, the losers, and begin predicting what your likely future advertising results will look like.
Instead of paying multiple agency fees or building an expensive in-house team, you should be looking for an end-to-end agency with powerful technology that can perform exceptionally well on Search, Social, and Display in concert.
When you are thinking about your next campaign, focus on carefully defining your goal, set your CPR and RR, and expect your advertising partner to show their progress against your benchmark through an OmniChannel campaign, so you can get the most out of your advertising spend.
About Model B
Model B helps define, target, and measure the engagement of our clients’ great concepts in order to influence their marketplace (and, where applicable, grow their revenues) through an intricate process. Learn More.