Measureability of Internet advertising provides the ROI accountability necessary to support increasingly-scrutinized marketing budgets.
What makes the Internet advertising an attractive vehicle relative to other mediums? Is it because it’s “cool” and “everybody’s doing it” or is it viewed as a necessary evil with little expectations of results? Internet advertising and SEM (Search Engine Marketing) in particular, has continued to get a larger share of advertising funding even while the overall advertising industry has contracted. This is continued growth is enabled by the measurement and ROI (Return on Investment) accountability of Internet advertising necessary to justify continued advertising during a recessionary economy.
Once we have begun capturing the key Internet advertising performance metrics, we can analyze to establish metric baselines to test one or more Internet advertising strategies with high ROI such as SEM. SEM includes techniques such as SEO (Search Engine Optimization), PPC (Pay Per Click). By measuring, monitoring and analyzing traffic relative to SEM initiatives, we can begin to correlate marketing initiatives results. This correlation to results can be used to estimate Internet advertising ROI relative to individual marketing initiatives, providing creditable accountability for those individual investments. For SEO initiatives, the correlation is more difficult as these initiatives provide residual impact but tend to have impacts that lag.
A wise businessman told me early in my career that to be successful, that I would have to fail often and early. This principle is one that is grasped best through years of application. The beauty of Internet advertising, SEM and paid placement in particular, is that with measurement and analytic capabilities today, Internet Marketers can have strong indications if their online campaigns will succeed or fail within 24 hours. This knowledge, obtained through measurement and analysis, enables Internet advertisers to adjust campaigns early and test suggested campaign improvements often, reducing negative impacts of poor performing campaigns, while providing actionable data to tune campaigns and their results sooner.
As Internet advertising performance measurement and analysis tools become more mature and shift from a paradigm of providing raw data with summaries to automated analysis and recommendation solutions, the ability to test and tune Internet advertising campaigns will become even more widespread. This unique, near-real time accountability through measurably will continue to accelerate the growth of Internet advertising at the expense of traditional offline media.