What Are the Benefits of Online Media Advertising?

Generally speaking, the effect of online advertising refers to the effects and effects of online advertising works after they are published through online media.

Online advertising performance

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However, advertisers will slowly discover that simple brochures cannot clearly describe the products, and such websites cannot reflect the superiority of the Internet. Advertisers have begun to bring all the information about products online, so that potential consumers can know as much information as possible through the Internet. At the same time, the main business of advertising has begun to make the website interesting and knowledgeable, which can attract more visitors. Of course, we can't put the cart before the horse. The corporate website must still be product-centric.

A report recently published by U.S. market research firm IDG states that social network advertising

On June 18, 2009,

The most compelling aspect of online advertising is its measurability, so it is possible to formulate accurate charging standards, such as CPM pricing based on the number of ads displayed, or CPC (cost-per-click) or CPA (per-action) Cost) pricing method. However, as the average click-through rate of Banner ads decreased from 30% to less than 0.5% in the initial glory period, if the online advertising is still evaluated based on measurable feedback information, it will obviously not fully reflect the true effect.

The evaluation of the effect of online advertising is related to the direct interests of online media and advertisers, and also affects the normal development of the entire industry. Advertisers always want to know what returns they can get after advertising, so this question arises, how exactly How to fully measure the effectiveness of online advertising? This article introduces three basic evaluation methods from qualitative and quantitative perspectives.

(1) Comparative analysis

Whether banner ads or email ads involve effects other than click-through rates or response rates, in addition to the technical indicators that can accurately track statistics, the use of more traditional comparative analysis methods is still of practical significance. Of course, different online advertising forms have different content and methods.

For Email advertising, in addition to generating a direct response, using Email can also have other functions. For example, Email relationship marketing helps us to keep in touch with customers and affect their impressions of our products or services. The fact that customers do not click Email does not mean that they will not increase the possibility of future purchases or increase brand loyalty. From a qualitative perspective, a better evaluation method is to focus on the thinking and feeling brought by Email marketing. This evaluation method is also a method of comparative research: comparing the attitudes of customers who have received emails with those who have not received emails. This is a typical empirical method to evaluate the impact of email marketing on customers. With this method, you can also compare the effects of different types of email on customers.

For standard logo ads or button ads, in addition to increasing direct clicks, surveys show that the effectiveness of ads is usually reflected in brand image, which is why many advertisers still choose logo ads regardless of the reality of low click-through rates. Of course, it is difficult to obtain quantifiable indicators at any time to improve the brand image, but it is also possible to use traditional comparative analysis methods to investigate and compare the brand image before and after online advertising.

(2) Weighted calculation method

The so-called weighted calculation method is to give weight to different aspects of the effect of online advertising within a certain period of time after the online advertisement is placed, to determine the difference between the effects of different advertisements. This method actually compares the effects of advertisements under different advertising forms, different delivery media, or different delivery cycles, and not just reflects the effects produced by a particular advertisement.

Obviously, the weighted calculation method should be based on the basic monitoring and statistical methods for advertising effectiveness.

Here is an example to illustrate:

In the first case, it is assumed that the effect of the banner advertisement placed on the A website in one month is: 100 product sales (times) and 5000 clicks;

In the second case, it is assumed that the effect of the banner advertisement placed on the B website within one month is: 120 product sales (times), and the number of clicks is 3000 times;

How to judge the difference between the two advertising results? You can give weight to product sales and clicks obtained. According to general statistics, every 100 clicks can form 2 actual purchases. Then you can set the actual purchase weight to 1.00, the weight of each click is 0.02, which can calculate the total value that advertisers can obtain in the above two cases.

In the first case, the total value is: 100x1.00 + 5000x0.02 = 200;

In the second case, the total value is: 120x1.00 + 3000x0.02 = 180

It can be seen that although the second case gets more direct sales than the first case, in the long run, the first case is more valuable. This example shows that the effect of online advertising is not only reflected in direct purchases, but also important to brand image or user perception.

The setting of the weight has a greater impact on the final result of the weighted calculation method. For example, if the weight of each click is increased to 0.05, the result will be different. How to determine the weight requires a large number of statistical data analysis to browse the user. The ratio between the quantity and the actual purchase has a relatively accurate statistical result.

(3) CTR and conversion rate

Click-through rate is the most basic evaluation indicator of online advertising, and it is also the most direct and persuasive quantitative indicator that reflects online advertising. However, as people learn more about online advertising, fewer people click it, unless specifically Creative or attractive advertisements can be caused by a variety of factors, such as too many advertisements on the webpage to take care of, and viewers have formed a certain impression after viewing the advertisements without having to click on the advertisements, or just Write down the URL of the link, visit the site at other times, etc. Therefore, the average click rate of less than 1% can no longer fully reflect the true effect of online advertising.

Therefore, it is important to evaluate the effects other than clicks. Another index related to click-through rate, conversion rate, is used to reflect the effects of those who watch without clicking the ads.

The "conversion rate" was first proposed by the US online advertising survey company AdKnowledge in the "Internet Advertising Survey Report for the Third Quarter of 2000". AdKnowledge defines "conversion" as the purchase, registration, or information needs affected by online advertising. As David Zinman, the company's senior vice president, said, "This study shows that browsing without clicking on ads is equally significant, and marketers should pay more attention to those who do not click on ads, which account for 99% of the total number of visitors."

AdKnowledge's survey shows that although there is no click on the ad, 32% of the total conversion rate is formed after watching the ad. The survey also revealed an interesting phenomenon: over time, the conversion rate formed by clicking on ads has decreased, while the conversion rate formed by watching online ads has increased. The conversion rate for clicks on ads has fallen from 61% in 30 minutes to 8% in 30 days, while the conversion rate for viewing ads has increased from 11% to 38%.

This set of numbers is of great significance to enhance the confidence of online advertising, but the problem is how to monitor the conversion rate, there is still a certain degree of difficulty in the operation, and it is still necessary to refer to the first comparative analysis method described above.