After learning about Advertising, Analytics and KPIs this
week, I came across this very interesting HBR article “Advertising Analytics
2.0” written by Wes Nichols. The article talks about the future of advertising.
Big companies use multiple channels of marketing to advertise their products
and services. The article talks about how traditionally marketers have been
analyzing advertisement performance of each source (such as TV, printing and
internet) independently and reallocating their advertising budget based on that
analysis.
Do you agree with this? Or do you think that the sales
numbers can not be broken down by each independent source of advertisement? The
article gives a very good example of how purchase could be a result of combination
of information provided by multiple sources of marketing. For example, now a
days customer may watch an advertisement on TV then see a bill board or printed
advertisement with a special offer and then check out user reviews on internet
before making decision. So one can not say that the conversion was attributed solely
to the internet marketing just because that’s the only place where consumer
activity can be effectively tracked.
It is true that online marketing through search engines and
social media can provide you more bang for buck because of better ability to target
customer but marketers should look at interactive effect of all advertising
sources in order to optimize their budget better. Cross effects between channels are very difficult to capture. Companies like Target, Walmart, Gap and Macy's have had some success optimizing their sales using multiple marketing channels but still there is a lot of research that is being done to create better model that can help companies find out the best combination of marketing channels for their products/services. This is the future of advertisement and analytics.
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