New metrics and methods for measuring the success of a marketing campaigns performance are being tried and tested.
While a standard has never been established, besides conversions, CPM and CTR are considered “leading indicators” gauging the success of a performance marketing campaign. CPM and CTR often form the basis for initial optimizations on distribution as well as creative. However, this can be problematic since these metrics do not really capture the whole story in terms of the value that any aspect of given campaign can provide.
CPM and CTR can still provide valuable insight. But you just need to view them as a part of a bigger picture.
The concept of attribution modeling can shed some more light on this. Attribution modeling means that you must identify a set of advertising impressions that lead to a conversion. It’s an important facet of a campaign because it helps you figure out what led someone to engage in a behavior, which can lead to a conversion.
Our conversations and activities many times center on how can the PMA, it’s members and this particular committee provide better data and insight on our industry to allow advertisers, publishers, agencies and networks do their job better, but also represent the channel more effectively and defend the sales attributed to it. It’s conversations like these that I love.
Alternatives to the typical affiliate marketing relationship, such as referral programs, MLM (Multi-Level-Marketing), and sub-affiliate arrangements can be useful tools for brands to gain new customers. These systems often have lower barriers to entry than traditional affiliate networks, and can quickly introduce fresh traffic and incremental revenue.
However, because these systems are so open and flexible, they can also be manipulated by black hats, exposing brands to abuse.
Let’s create a scenario. You are an advertiser who pays your publishers a percentage of revenue for each sale a publisher drives through your Performance Marketing program. Let’s assume not all sales are equal since they rarely are. Chances are you are valuing each sale the same by paying your publishers the same percentage for every sale.
This isn’t necessarily a problem unless you, or more likely your boss, have a different objective other than maximizing the number of sales. Don’t get me wrong; maximizing the number of sales is extremely important, however, it is seldom an advertiser’s primary (or even secondary) objective.
The PMA is excited to announce that we will now be accepting guest posts on our blog, related to the performance marketing industry.
When you’re read at the PMA blog, you’re reaching the leading decision makers, thought-shapers and innovators in the industry. In addition, your post will also appear in our weekly newsletter and it will also be shared across our social network.