Mastering the Metrics: Share of Voice
In this installment of our Mastering the Metrics series, we will define Share of Voice.
Share of voice is a metric that quantifies the presence of a campaign or company in the overall advertising context of a particular market. Ideally, share of voice is calculated using impressions or ratings, but when this data is not available, marketers often use spending figures as a proxy. This metric is used to gauge the relative strength of a campaign within its market.
Mastering the Metrics: Effective Reach
For this installment of our Mastering the Metrics series, we’ll define Effective Reach.
Effective reach measures an ad’s reach when it is exposed to an audience enough times to be effective, where the ad’s frequency of exposure must be equal to or greater than the effective frequency. We covered effective frequency in our last installment, but in short, it’s the optimal number of exposures needed for an ad to be effective. Therefore, effective frequency is a critical element in this calculation; in standard cases, it is often estimated to be 3.
Mastering the Metrics: Frequency Response
In this installment of our Mastering the Metrics series, we will cover Frequency Response.
Frequency response refers to the reaction of an audience when it is exposed to an ad. There are several ways of conceptualizing frequency response functions. The three most common models are described below:
- Linear – The linear model assumes that all impressions have an equal impact. This is a pretty sweeping assumption, so it’s not surprising that this model can be too simplistic for complex products.
- Threshold – The threshold model suggests that several impressions are required before an audience responds to an ad’s message. This is the most commonly used model because it offers the best combination of accuracy and simplicity.
- Learning Curve – The learning curve model argues that an ad starts out having little impact, but gains ground with repeated impressions, finally tapering off after saturation is reached. With so many moving parts, it is difficult to get this calculation exactly right, so this model is not always entirely accurate.
Mastering the Metrics: Effective Frequency
Continuing our Mastering the Metrics series, today we’ll cover Effective Frequency.
Effective frequency refers to the number of times a person must be exposed to an ad before the message sinks in. Underexposure risks being ineffective, while overexposure equals wastage. The standard figure that marketers use for planning purposes is an effective frequency of 3; however, for optimal accuracy, testing this assumption is probably a good idea.
Effective frequency helps you determine the ideal exposure level for a campaign, such that you’re balancing spending against the risk of ineffectiveness. In other words, you want to maximize the campaign’s impact while spending the least amount possible.
As Seen On TV: 6 Lessons For Marketing Automation
I came across a great article recently that invoked the spirit of the recently deceased pitchman-of-all-pitchmen, Billy Mays. Everybody’s familiar with this guy, especially those of us that watch a lot of late-night TV. While he might have been a tad abrasive, to quote the article, Billy Mays “sold the hell out of stuff.” He got right to the point: You’ve got a problem, I’ve got the solution. His enthusiasm was contagious. How many times did you scoff when you heard the grating intro for one of his commercials (“HI, BILLY MAYS HERE!”), only to find yourself longing for the quirky product by the end of the spot? Let’s face it: the guy was talented. And, as the article points out, his salesmanship all boiled down to five fundamental lessons about successful direct marketing:
Solve your audience’s problem(s). Identify and empathize with their pain points, and then convince them that you’ve got the solution.
Emphasize your product’s mass appeal. Don’t fall into the trap of trying to be all things to all people. Instead, show why you offer the ideal solution for many people. A large, satisfied user base speaks volumes about the quality of your product.
Explain why your product is unique. Why do you stand out from your competitors? Why should they choose you over the others?
Give ‘em instant gratification. As the article puts it, don’t sell them seeds–sell them a fully tended, flourishing garden. Make it easy to say yes. Throw in a little something extra for free if you can.
Prove it. Consumers are increasingly skeptical of grandiose claims; what really sells them is proof. If you can demonstrate the effectiveness of a product, chances are you’ll win them over.
The article also suggests that marketers who are not limited to a 30-second TV spot actually have an advantage over TV pitchmen like Billy Mays. I’m not so sure I agree. Consumer attention spans seem to get shorter by the day. While a TV commercial might be ignored or muted by some viewers, it still nets a large captive audience–people who, by default, do nothing and end up sitting through it anyway. Web ads and direct marketing emails are more likely to get just a few seconds of attention before they are navigated away from or deleted forever. If anything, there is one more lesson to be learned from the pitchman approach:
Keep it short and punchy to drive your message home. Hone your pitch to a few key points so you can get it across in an effective way before you lose your virtual platform. Leave them saying, “Hey, I want one of those!”
Imagine that your webpage or email was limited to 30 seconds of viewing time before it vanished. What would you want it to say? What would you most emphasize? Is there anything unnecessary you could cut out? Once you’ve made these decisions, ask yourself the most important question: Will the core of your message stay with your prospects after they start looking at something else?
Mastering the Metrics: Average Frequency
Continuing in our Mastering the Metrics series, today we’ll define Average Frequency.
Average Frequency estimates the average number of times an individual views your ad, with the assumption that the individual has actually seen the ad. Average frequency is useful for gauging an ad’s intensity — that is, how strongly it is focused on a target audience. To calculate average frequency, divide the total number of exposures by the total number of unique individuals who have viewed the ad.
Total Exposures / Audience Members = Average Frequency
Mastering the Metrics: Cost Per Thousand Impressions (CPM)
In the first installment of this series, we defined impressions and explained their usefulness. A related metric is Cost per Thousand Impressions (CPM), which helps you figure your cost per advertising expenditure. This measurement relates to web traffic and approximates the your cost per thousand ad views (total impressions).
Calculating this metric on a per-thousand basis (rather than expressing the figure as a cost-per-impression) makes more sense because you’re dealing with dollar figures, which are easier to conceptualize when they’re whole (not fractional) dollar amounts. For example, saying you have a CPM of $3 really means that each time the page loads and the ad is viewed, it costs you 0.3 cents ($0.003). It’s just easier to express this concept as CPM of $3.
Advertising Cost / # of Impressions (1000s) = CPM
Mastering the Metrics – Part 1: Impressions
It’s the perpetual marketer’s conundrum: How do you measure and quantify your activities and the results they produce? I’m reading a great book right now that has a whole chapter dedicated to advertising and web metrics. It breaks the metrics down one by one and describes their uses and significance. I thought it appropriate to share the relevant ones in a series called “Mastering the Metrics.”
METRIC 1: IMPRESSIONS
Impressions are the number of times any given ad is viewed, usually indicated by the number of times the webpage containing the ad has been viewed. These can also be referred to as exposures or opportunities-to-see (OTS). You can calculate total impressions by multiplying the ad’s reach (# of people viewing it) by its frequency (# of times it appears). Keep in mind that this number is not as valuable some other metrics like Cost-Per-Click (which we’ll discuss later); just because someone viewed the webpage doesn’t mean they saw your ad or paid attention to it. Still, calculating the total impressions is one way to measure ad exposure.
Reach * Frequency = Total Impressions
Stay tuned for the next post in our “Mastering the Metrics” series, Metric 2: Cost per Thousand Impressions (CPM). For more tips, check out the full book: Marketing Metrics: 50+ Metrics Every Executive Should Master by Paul W. Farris, Neil T. Bendle, Phillip E. Pfeifer, and David J. Reibstein.
Marketing Automation for the B2B Marathon
On the Buzz Marketing for Technology blog, Paul Dunay discusses the four traditional “P’s of marketing” (product, price, placement and promotion) and how they stack up against what he deems the four “C’s of B2B marketing.” The four C’s proposed are:
- Content
- Connection
- Communication
- Conversion
These fit in much better with the longer, more complex sales cycle many B2B marketers face. Selling B2B products requires relationship building and continuous engagement between the buyer and the seller. While some of the traditional elements, such as pricing, do play a part in the decision making, I think everyone would agree that buying a high-priced business product or service is a different process than grabbing that pack of gum that’s on sale in the checkout lane.
Dunay mentions B2B marketing can be seen as a marathon, not a sprint. Well, I don’t know about you, but I think running a marathon is pretty exhausting work! Not to mention that many reps are working multiple deals at the same time, trying to find time to give enough attention to each prospect while still pursuing new opportunities.
Think of a marketing automation system as the water stations along that marathon run. True, nothing can replace hard work and personal engagement, but with a good nurturing program and automated email rules, you can take a break once and a while. Custom email messaging can be personalized from each sales rep and sent out at predefined times or triggered based on prospect activity. This allows you to continue to build that connection and keep the communication frequent while freeing up time to work on other tasks. With alerts in place, you can easily see when a prospect converts or becomes active again so that you can follow up with a personal call.
Boosting your traditional sales techniques with a little bit of behind-the-scenes help from marketing automation will ensure you’ll cross the finish line in record time.
New Year’s Resolutions for Online Marketers
Eat less. Don’t be a prospect glutton! Focus on the quality of your leads and, like the satisfaction that comes from eating a fine meal made of gourmet ingredients, you will be pleased with the results. Your sales cycle will be leaner and healthier, and your team will be more productive when they “cut out the fat” of unqualified leads.
Exercise more. This translates to staying nimble and keeping on top of trends. Social networking came seemingly out of nowhere to become the game-changer of 2009. Marketers who didn’t adopt quickly are getting left behind in 2010. It’s like surfing: You want to ride the waves, not chase after them.
Give up bad habits. Pestering prospects with unwanted emails is a bad habit that marketers need to break. Try to change your ways by focusing on permission-based marketing that provides useful information that potential customers want and find useful. Don’t waste time sending superfluous junk that gets deleted instantly.
Save money. The best way for marketers to keep this resolution is to find and implement a robust marketing automation solution. Not only will you save money, but you’ll also maximize ROI and increase efficiency. You can’t lose!
Make friends. Yes, that’s right: Make friends with your customers. Customers are wary of salespeople and marketers, but they trust friends. Aside from the obvious benefit of reducing their skepticism and building trust, you’ll also learn their wants and needs, their likes and dislikes, and so on — very valuable information for marketers!
Work smarter. Don’t just vow to work harder this year — work smarter. Marketing automation tools are one of the simplest and quickest ways for you to make this happen. It’s not about how many hours you work and how many leads you amass; it’s about how many quality leads you generate, and the effectiveness of your follow-up with these leads. A good marketing automation solution is key to ensuring that you pass only the most qualified leads on to your Sales team, allowing you to focus on lead nurturing with coordinated, automated processes such as drip campaigns.
