Campaign India Team
Dec 06, 2012

Live Issue: Are multiple metrics slowing down Internet?

Rishi Vora wonders if a single metric might be the answer; industry begs to differ. So what will it take to grow?

Live Issue: Are multiple metrics slowing down Internet?

Internet was considered a nascent medium a decade or so ago. And, quite understandably so as ad spends were not comparable to traditional platforms. It still isn’t, but it is the fastest growing medium.

However, there are now questions on measurability which was seen as an advantage of the medium over others. Metrics exist, with different metrics used by stakeholders like publishers, marketers and agencies, with each looking to use it to their own advantage. Google, for example, launched new metrics such as Active View (percentage of ad that is viewed, and the duration of ad exposure) and Active GRP (similar to Gross Rating Point Metric used predominantly in the television industry) this year in a bid to entice marketers to adopt the medium.

Other widely used internet metrics are Clicks, impressions, cost per click, (CPC), cost per lead (CPL), cost per thousand impressions (CPM) and even qualitative measures such as brand recall, quality of interactions in the social space, and actual sales generated. However, despite the use of multiple metrics, stakeholders aren’t calling for a single metric, but a common approach to measuring campaign performance.

Srikant Sastri, country chair, Vivaki India, says, “It is not the absence of a single metric that’s held back the digital industry. The real factors have been different. Insufficient scale, especially for mass marketers, has been a big factor. Add to this the fact that many marketers have not been familiar with the nuances of this medium, while agencies have done a bad job of evangelising.”

“It’s not fair to blame the metrics. Not many people understand this medium and those who do are already using it effectively irrespective of the metrics followed,” adds Madan Sanglikar, chief executive officer, ad2c.

On whether the industry has moved beyond clicks and impressions, Sastri responds, “A few smart brands have worked with their agencies on creating more robust and meaningful strategic frameworks where paid media, owned media and earned media are meshed together in one integrated strategy that builds brands and delivers real performances. And, the fact is that visible instances of such smart thinking are few and far between; the perception remains that the industry has not moved beyond clicks and impressions.”

Ritesh Singh, national director, MEC India, observes, “One of the most dynamic things in the world is consumer and Internet has come closest to it. And, therefore, we see newness every day - both from product and usage standpoint. The metrics methodology has to be equally dynamic, which certainly isn’t easy. It is therefore advisable to marry the measurement need with the objective and define measurement parameters and if that happens, we may find light at the end of the tunnel.”

Anurag Mehotra, vice president, marketing, Ford India, explains: “Digital is front and center of our media mix and it has an impact on all elements of the sales funnel. At Ford, we measure our digital investments on two fronts – impact on brand and sales generated. We also measure how the consumers perceive us. The trending from these brand track studies helps shape our investments.”

Mehotra, however, notes that the challenge for the industry is not in measurement, but in analysing the vast amount of data that is being generated through the digital medium to drive a better business outcome.

Viraj Malik, chief executive officer, Percept Knorigin, offers his perspective on measuring internet campaigns: “Click and impressions are a starting point for any campaign but by no means the end game. Marketers tend to get stuck up about these two metrics because other metrics require a ‘relearning’ initiative.  On Facebook, instead of just likes we look at edge rank, engagement metrics, sales, leads, conversations, sentiments etc.  We in fact work closely with clients in tracking sales on day to day basis and evaluate campaign performance on all relevant parameters.”

 

  

Digital Agency

Srikant Sastri, country chair, Vivaki India

“It is not the absence of a single metric that’s held back the digital industry. The real factors have been different. Insufficient scale, especially for mass marketers, has been a big factor. Add to this the fact that many marketers have not been familiar with the nuances of this medium, while agencies have done a bad job of evangelising.”

  

Digital Agency

Madan Sanglikar, chief executive officer, a2dc

“It’s not fair to blame the metrics. Not many people understand this medium and those who do are already using it effectively irrespective of the metrics followed.”

 

 

  

Media Agency

Ritesh Singh, national director, MEC India

“One of the most dynamic things in the world is consumer and Internet has come closest to it. And, therefore, we see newness every day - both from product and usage standpoint. The metrics methodology has to be equally dynamic, which certainly isn’t easy. It is therefore advisable to marry the measurement need with the objective and define measurement parameters and if that happens, we may find light at the end of the tunnel.”

  

Marketer

Anurag Mehotra, vice-president, marketing, Ford India

“Digital is front and center of our media mix and it has an impact on all elements of the sales funnel. At Ford, we measure our digital investments on two fronts – impact on brand and sales generated. We also measure how the consumers perceive us. As for the industry, measurement is not the challenge, but it is in analysing the vast amount of data that is being generated through the digital medium to drive a better business outcome.”

 

  

Digital Agency

Viraj Malik, chief executive officer, Percept Knorigin

“Click and impressions are a starting point for any campaign but by no means the end game. Marketers tend to get stuck up about these two metrics because other metrics require a ‘relearning’ initiative. On Facebook, instead of just likes we look at edge rank, engagement metrics, sales, leads, conversations, sentiments etc.  We in fact work closely with clients in tracking sales on day to day basis and evaluate campaign performance on all relevant parameters.”

Source:
Campaign India
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