Back to the October 2005 issue.

Interactive Delivers Metrics for Success

(by Craig Cooke, CEO)

Interactive marketing is hot, and this time it’s not a bubble waiting to burst. It is here to stay. Finally, marketers are realizing that interactive works. Not only does it work, but it is also more cost effective and offers more levels of control compared to traditional media. For the purpose of this article, we’ll focus on the metrics available to marketers through interactive media.

An easy rule of thumb to remember is advertising delivered via a computer will provide a level of performance measurement. Thanks to the network structure of the Internet, computers are able to communicate back and forth-allowing for the recording of user behavior and the subsequent compilation and reporting of data. This accommodating feature of the Internet allows for a plethora of interactive tools to report performance metrics in real-time. No other media format in existence allows for this immediate feedback mechanism. For this reason alone, interactive media is superior as an advertising method to reach consumers in a cost-effective manner.

Interactive tools that are in common use today include websites, banner ads, rich media, search marketing and email marketing. All of these tools allow marketers to view metrics through an online reporting system. For example, Yahoo! Search Marketing and Google report on the number of impressions and click-throughs for all search terms being advertised. Advertising dollars spent are tracked down to the penny with every user click-through. With some additional tools, marketers can track the user behavior from click-through to conversion on their website. In other words, imagine if a retail store front was able to measure every single person that looked at a window display, how many of these prospects actually entered the store due to that display, tracked their visit down every aisle and every product interaction, and finally to the point of purchase. Wouldn’t that be amazing? In the virtual world it is commonplace. With advanced site-analytic tools, users can be tracked from the source of entry, to complete viewing behavior, to the point of conversion.

So what do you do with all this data? You perform an analysis, optimize your marketing campaigns and attract more sales. You have access to all the data you need when conducting interactive campaigns, possibly more than you are even aware of. If it is overwhelming, seek expert assistance. Instant metrics provided by interactive tools is one of the best features of interactive marketing. Learn how to maximize the potential of this data. The race has just started, so if you act now, you can still get ahead of your competition.





Statistics Corner

Online advertising revenue for the first six months of 2005 hit $5.8 billion, a new record, and resulting in a 26 percent increase over the same period in 2004.

The paid local search advertising market is predicted to triple in 2006 to $907 million.

Ecommerce is predicted to experience a 14 percent compound annual growth rate over the next 5 years.

Online sales are predicted to top $100 billion for the first time by the end of 2005.

31 percent of online adults paid for content over the Internet. This is an increase of 5 percentage points from last year and is predicted to be a growing trend.

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