The term “Online Advertising” is often replaced with “interactive advertising”, in most cases this is the better term as it is more comprehensive and also implies the potential benefits from this advertising vehicle:
Interactive à Interaction:
- That allows Targeting based on user action.
- That also calls for interaction / action.
- That is measurable, accurately.
This interaction based advertising implies accountability and measurability and hence interactive advertising has the potential to solve one of the oldest advertising dilemmas:
Which half of my advertising budget is a waste? Or as exactly cited from John Wannamaker (1838-1922), the father of modern advertising: “I know that half my advertising budget is wasted, but I have never been able to discover which half”.
Let’s dive into all aspects of interactivity:
- Targeting – each user / computer surfing the internet has its own, unique characteristics that should be used for targeting – at the simplest level, from what geographic region and in what language this user surfs. Up to more sophisticated behavioral targeting and alike. So allowing user based targeting, matching the right message to the right audience almost on a 1to1 level.
- Interaction – online advertising is usually based on some sort of user action / engagement, immediate reaction to a call for action. This interactivity allows the advertiser, to know, relatively fast and after investing only limited budget, if they are on the right track to success.
- Accountability – and hence makes interactive advertising the most accountable mean of advertising. As one of the comments I live by says: “the best thing about internet advertising is that it is accountable!”
If you are not capitalizing on all three you are missing, follow these simple steps and you will not miss:
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- Set goals – what are you trying to achieve, who are you targeting and what sort of action are you trying to generate. (Targeting)
- For how much – set KPI’s for impressions, clicks and conversions, how many for how much will eventually lead you to your goal. (Interactive)
- Measure – your campaign performance against your goals and KPIs (accountability)
- Optimize – make changes on the fly to get closer to your goals – you should see change in trend and optimization results in almost no time!
Optimize all aspects of the value chain; make sure your KPIs are touching upon all of them:
- Promotional offer and message
- Media sources / placements
- Creative
- Landing pages and conversion funnels
- And post conversion values
This result based approach requires holistic view of the interactive advertising value chain. Not only each aspect needs to be optimized by itself, but also their interoperability needs to be taken into account. For example: Achieving higher ctr on the creative level usualy implies lower conversion rate on the landiong page.
Once mastered, this approach ensures reduction in the half that doesn’t work In paraphrase on John Wannamaker – Interactive advertising is basically focusing on the half that works!