Do You Still Live In The World of CTR?
If so, your world is long gone.
Now think for a minute – would you pay for traffic acquisition if the people visiting your site want to find information about Loake shoes, whereas you are a huge household goods manufacturer? That is why paying for CTR is to simply throwing your money down the drain. Here’s another example – recently, I’ve read about some huge marketing campaign in which the main goal was user engagement. The problem is in how we define engagement. In this particular case, engagement was measured the number of unique users who visited the website. Now, if I had seen a banner with an advert about a free movie on VOD (being a part of some bigger marketing campaign) and then left the website after 3 seconds because the movie was free only for the customers of some particular telecom, would it have been worth paying money just to make me visit the website?
Perhaps you can see now where I’m leading to – we live in a world which can be boldly described as ‘user-centric’. We can assign a unique ID to every user and monitor their behavior in order to develop customer segments which later on can be utilised in many different ways to cover various expectations. For example, from one group we may need contact details, or from another group we may want them to use a FAQ section instead of calling customer service, while some people may be just expected to bond with our brand. Of course, measuring the effectiveness of a particular campaign or traffic source is not a problem. In a few steps, it’s possible to find out if spending 500,000 Euro on traffic acquisition to a website containing a new contest (with a necessity to leave personal data in order to participate) was a profitable investment or not.
Click to Tweet: The problem is that living in a user-centric world, many companies have mentally stayed in the reality of a volume-centric, where the main objective was to gain as many impressions, clicks and hits etc. as possible. And they use these useless metrics (CTR, impressions) in any way to gratuitously give legitimacy to huge spending on traffic acquisition.
But if I was spending several million Euro on traffic acquisition annually, I would really like to know if the money I was spending was bringing about a positive ROI – or was simply a bad investment which was not paying for itself. I know that some goals are not easy to measure. Branding is a good example, but it is enough to create a simple branding evaluation model, according to which it can be assessed if a particular campaign was doing alright or if there was a need to rethink through the traffic acquisition strategy.
Of course I’m not saying there are needs to an abrupt conversion from volume-centric to user-centric – I know it is not that easy! At the beginning at least, it is enough just to start measuring if the users acquired are achieving the objectives that have been set, and to evaluate the actions taken by the users through the use of media and interactive agencies to check if the particular goals are being achieved. As an example, imagine that you run an online shop and your one and only goal is sales (let’s presume there is no LTV or branding). Would you prefer to have 1000 impressions and one on-the-banner-click which could lead to one order – or would you rather have 1000 impressions, 50 on-the-banner-clicks and no orders (including 10 users who left your website after 2 seconds)?
Click to Tweet: In fact, it doesn’t matter how many people clicked on the banner – it could even be 500 out of 1000 users. It makes no difference if you don’t earn a penny! In that situation a CTR of 0,001% is still better than one which amounts to 0,05%.
Since it is now possible to check what users coming from particular traffic sources or campaigns are doing on your website (this is possible even with free Google Analytics Standard), operating only on the level of CTR metrics or on the level of impressions is pure laziness. Data integration between traffic acquisition and user behavior on a website does not require any investment expenditure, therefore there is no excuse not to do it.Many media agencies declare that the aim of a particular campaign is to bond with single users, but the bottom line is that they do absolutely nothing to measure these bonds.
Click to Tweet: Many media agencies declare that the aim of a particular campaign is to bond with single users, but the bottom line is that they do absolutely nothing to measure these bonds.
So the next time you obtain from a media/interactive agency a report containing only information about impressions and CTR, ask them how they are supposed to optimize your media-mix and particular channels if their metrics are completely separated from the essential matter of generating profits for your business.
When you buy a car, you don’t measure how economical it is by how many litres of fuel can fit into the tank, but rather by the number of kilometres you can drive on one litre of it. So why You do such a ridiculous thing in the world of advertising?
If you want to gain a competitive advantage by increasing your conversion rate and grow your revenue and profits without spending an additional dime on advertising, contact Mavenec today to learn more about our approach toconversion rate optimization. You can also learn more about conversion rate optimization by downloading our Ultimate Conversion Rate Optimization Toolkit.