1920 words 8 pages
1. What does an advertiser want? Sales, leads, brand awareness? What are the best metrics for measuring these?
The primary role of an advertiser is to attract and increase a customer base so as to ultimately produce sales. Leads and brand awareness primarily serve as opportunities for product placement and/or services in front of potential consumer in an effort to influence their behavior. Generally, this influence sparks an interest in the product or service thus causing the consumer to view a webpage (awareness) or click on an advertisement (lead). A company will determine, based on its advertising budget, which method adds the most value to their business. Therefore, best metric for measuring sales would be to calculate the revenue
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For a search engine such as Marvel, the contribution from an advertisement is $45, while the contribution from an advertisement on a health care website like MedNet, is $150. The presentation of this data not only redirects Windham CMO’s attention from numbers-only game, but to the big picture of the promotion of brand-awareness as well. It also supports Yates’ argument that ads appearing on MedNet’s page, “with trusted medical information,” will add to Windham’s bottom line (page 24). This data further proves that charging for impressions, although yielding less click-throughs, results in more site visitors who will purchase from Windham. If MedNet changes their strategy and charges Windham $1 per click as proposed, MedNet may inevitably lower its budget in providing quality information on their website or even chagrining consumers for information which would result in less exposure and conversely go against their mission of providing free, valuable medical data. In addition, Yates has access to supplementary data that reinforces points making her case substantial. The following table is an analysis from Exhibit 2 that measures the cost Windham pays for each purchase from its online advertisement: | Click-Throughs | Purchase Rate* | Number of Purchases | Cost per Purchase** | MedNet | 516,000 |