RE: Intelligent Advertising (was Re: Venting)

From: Kelley Mitchell <esc1krm_at_ups.com>
Date: Tue 24 Jul 2001 13:22:37 -0500

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. . . .

TO WHICH TOM CUTHBERT <tom_at_OptimaliQ.com> REPLIED:

> 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.

TO WHICH TOM CUTHBERT <tom_at_OptimaliQ.com> ALSO REPLIED:

> 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 is absolutely right in that the value of the customer
over time is critical in maintaining advertising success
(would Rob Frankel agree that a repeat customer has
become brand-loyal, or simply had a positive user
experience?) Initial acquisition is just the beginning
- I simply try to break even on cost with the initial
purchase - it's the repeat purchases that make us money :)

I further agree that agencies cannot have the same
level of insight into data as someone inside the company.
No company should provide agencies with the amount of
data that would be required to run this kind of tracking
system - too much of a security risk.

Also to clarify, it's not UPS using this system. I
guess I should have said my "former" company! This
site is http://www.KnowX.com. If only they had valued
my marketing knowledge...had to take it freelance!

Sincerely,
Kelley Mitchell



Received on Tue Jul 24 2001 - 13:22:37 CDT