RE: Intelligent Advertising (was Re: Venting)
KELLEY MITCHELL <esc1krm_at_ups.com> WROTE:
>My company has an in-house system that tracks each ad
>placement from click-through on, so I am able to
>determine return per placement, per ad. This is the
>most important measurement of performance, as it
>allows me to compute very accurately return on
>investment. . . .
I am so encouraged by this high level discussion. Now
we are on to something! UPS obviously has spent a
good deal of money developing a great system of tracking.
Additionally, it is clear that Kelley understands what
counts in online advertising. No one should spend money
on advertising without first being able to quantify the
results.
However, don't stop short. The true acquisition cost,
from creative element or site, is only half the story.
The real value of the information is in defining the
value of that customer over time. Essentially who are
my most profitable customers and where did they come
from. The online data and the customer data should be
blended into a business intelligence system. Add to
this the ability to drive ad serving rules from an
integrated business intelligence system and you have
now closed the loop. This is the optimal scenario for
advertisers.
CARMEN PAULINO <clpsf_at_mindspring.com> WROTE:
>Most agencies have the empirical data and resources to
>provide clients a series of hypothetical scenarios for
>predicted outcomes under certain assumptions. Ask for
>them.
On another note, I respectfully disagree with Carmen's
statement that agencies have "empirical data and
resources" that are relevant to optimizing a campaign
in the way the Kelley has described. My experience is
that they do not. Using information to develop
"hypothetical scenarios and predicted outcomes" is
useless. Information (data) should be used to drive
quantifiable results. The good news is that this
technology exists and the price point now makes it
available to companies far smaller than UPS. But
don't count on your agency to provide you with that
information.
Tom Cuthbert
tom_at_OptimaliQ.com
Received on Mon Jul 16 2001 - 12:00:53 CDT
