Data isn't a four-letter word
There are some people that love going down the data rabbit hole and reading countless performance dashboards. I’m not one of those people. Make no mistake, data analytics is critical to sharpening marketing programs and determining ROI. So, how can you look at this process objectively? Here are three tips that can help.
Before we start, let’s all agree that interpreting B2B digital performance data isn’t the same as B2C data. B2B marketing generally involves multiple decision-makers and a longer purchase cycle which can make data interpretation a bit murkier.
1. What are the important metrics?
Let’s define the most universal digital terms:
- CPM (Cost Per Thousand) – the cost for every 1,000 advertising impressions
- CTR (Click-Through Rate) – the ratio of clicks to impressions that determine ad engagement
- CPC (Cost Per Click) – the average cost for each click from an advertisement
- CPA (Cost Per Acquisition) – the cost for each desired end; sale, acquired email address, form-fill, content download
Ultimately, CPA is the most critical metric when evaluating the effectiveness of your digital programs. This should be compared to the value of each conversion to help fine tune your efforts. But, the other performance metrics cannot be discounted and should be looked at together. If you want to build awareness, low CPM can be a viable goal. If you need engagement to a piece of content, CTR is important. If you need to prioritize efficient website traffic, CPC is your aim. You’ve got to look at the big picture and not become fixated on one specific metric. Different digital tactics produce different benefits and can work together to create impact and engagement throughout the customer journey.
Here are some truths:
- Engagement and efficiency are best at the bottom of the marketing funnel (ex: SEM/Search)
- Data interpretation will help you optimize your digital campaigns by focusing on tactics that achieve your specific goals
- The frequency that you review campaign data can vary, but make sure it is done at a cadence where you can critically examine trends and enact positive change
2. What affects performance?
When you’re diving into your data performance reports, take a step back and recognize that there are numerous factors that can affect digital performance. Don’t expect one week’s worth of data to tell the whole story. Be sure that you have a significant sample size of impressions and time before setting benchmarks and considering the trends. Here is a quick list of factors that may influence the data:
Other components of your marketing eco-system: social media footprint, public relations efforts, direct marketing, sales team programs, association relationships, event participation, website structure
- Existing brand awareness and perception
- Creative strategy and execution
- Media tactic variety
- Budget and subsequent Share of Voice (SOV)
- Campaign timing
- Product/service purchase cycle
- Competition
- Content environment
- Click button incentive
- Unexpected world events
Free advice: at Good Media Ideas, we always preach responsible testing of new media tactics, creative executions, click buttons and content. Be mindful of what has worked in the past, but be open to catching lightning in a bottle.
3. How can AI help?
ChatGPT and other AI resources are improving the way we can visualize, interpret and optimize digital data and performance. Gone are the days of having to sift through past campaign data before making adjustment. Digital platforms are optimizing in real time, shifting budget to best-performing tactics, creative and audiences based on the designated success criteria (ex: reach, efficiency, engagement). AI is a powerful tool that cannot, and should not, be avoided. AI’s current benefits include:
- Reporting performance metrics
- In-platform optimization
- Trend insights and narrative
- Customer journey tracking
At this point in time, however, the human element is irreplaceable when looking at the big picture and making intra-channel media allocation decisions. AI still has some blind spots and efficiency alone should not drive your digital programs.
Note that AI was NOT used in the creation of this blog!
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The Good Media Ideas name underlines our commitment to blend the infinite possibilities of digital with the very best of traditional media. Since 1994, we have been regarded as one of the Southeast's preeminent advertising agencies, serving both B2C and B2B brands. Our team relentlessly pursues unique, often unconventional solutions, and then flawlessly implements them.
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