Sunday, February 5, 2012

Week 5: Think Piece


            Online advertising is an excellent way to reach consumers of all demographics and psychographics. People of all ages, children, millennials and seniors use the Internet for several reasons. But, how do marketers measure Web activity such as exposure of a Web site, stickiness, relevance of messages to users, comarketing opportunities, and efficacy of user targeting? There is no perfect measurement, but some measurements offer more advantages than others.
            For measuring Web site exposure, advertisers use page impressions, top pages requested, hits, visits, unique visitors, ad impressions, clicks and click-through rate. A broad measurement for Web site exposure is the ad impression measurement. But, “It may not be a good indicator of user involvement with an ad because it does not track whether users interacted with the ad” (Bhat, Bevans & Sengupta, 2002, p. 103). An advertiser would use the click measurement to measure ad interactions.
            Stickiness “is the ability of a Web site to attract and hold visitors’ interest” (Bhat, Bevans & Sengupta, 2002, p. 103). To measure stickiness advertisers measure unique visitors, average time per visit, average time per unique visitor, repeat visitor percentage, frequency and regency. The first component for measuring stickiness is through unique visitors. With greater number of visitors, there is higher chance for user involvement in online ads.
            Measuring targeting efficiency is valuable to advertisers. By knowing whether or not advertisements are effectively reaching their consumers, marketers can create more reliable campaigns. Targeting efficiency is measured through composition, global geographic overview and observed profiling. Observed profiling analyzes users online behavior and places ads accordingly. If a user spends lots of time looking at cars, then the advertiser would place a car ad on another site such as Google or Yahoo!.

Source: 
Bhat, S., Bevans, M., & Sengupta, S. (2002). Measuring users' web activity to evaluate and enhance advertising effectiveness. Journal of Advertising, 31(3), 97-106

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