Assess Marketing Measurement Methods PDF

Assess Introduction Clearly defined goals and KPIs are the foundation of any measurement approach. When you create a marketing strategy, your business goals should guide all of your strategic decisions. In addition, at the beginning of the measurement journey, it’s important to assess your data so...

Assess Introduction Clearly defined goals and KPIs are the foundation of any measurement approach. When you create a marketing strategy, your business goals should guide all of your strategic decisions. In addition, at the beginning of the measurement journey, it’s important to assess your data sources, the quality of the data that they enable and the methodologies available to you. Define business goals and KPIs. The best-defined business goals follow a rubric: they are specific, measurable, achievable, relevant and time-bound, or SMART. If you define a business goal that is non-measurable or lacks specificity, strategic decisions will become increasingly complex and less effective. Once you decide on a business goal, you’ll need to determine the KPIs that will measure the success of your campaign. KPIs make clear what outcome will be measured to evaluate your success. But KPIs are more than metrics— they tell a story about what is happening in a business at the time of measurement. To identify your KPIs, ask yourself: ● ● What does success look like? Are my current metrics proxies or do they correlate with business outcomes? Metrics such as likes, comments and followers are proxies and do not necessarily measure incremental impact, or the additional impact that results from running an ad. They can vary by channel. For example, TV metrics include gross rating point (GRP), cost per mille (CPM) and target rating point (TRP), while paid search metrics include impressions and click-through rate (CTR). Instead of using these proxy metrics for KPIs, use metrics such as: ASSESS Incremental reach Website visits Conversions Lift App events Ad recall 5 Examples of goals turned into KPIs Goal Increase sales by 10% in 2021 Increase app installs by 10% in Q4 Increase ad recall by 5 points in Q1 Generate new leads in Q1 KPI Number of sales units Number of mobile app installs Ad recall lift Number of submitted forms Primary and secondary KPIs Primary KPIs Secondary KPIs What is it? The overall business objective that ad spend is being measured against. It might be the primary question that the business is trying to answer. Support primary KPIs. They are important business objectives that ad spend can be measured against to better contextualize the primary KPI. Example Ad recall lift Ad recall lift in a specific target audience caused by video campaigns Evaluate limitations of KPIs. While KPIs are important, they have limitations. To evaluate the limitations of a KPI, identify: Measurable business objectives Which business objectives might not be measurable with available tools, such as non-traceable tender, and therefore cannot be valid KPIs. Primary and secondary KPIs Which KPIs are actually primary vs. secondary. Ensure focus on the primary and don’t switch between KPIs mid-campaign. Accurate measurement Whether the amount of available data for a specific metric is enough to provide an accurate measurement of a proposed KPI. If not, evaluate switching to a different KPI or moving to a different proxy metric. ASSESS 6 Inventory existing data sources. Once you have your business goals and KPIs defined, assess your existing data sources. Data sources can capture and report KPI data with accuracy and timeliness. A data source is a tool, connection, piece of code or other object that collects information that can later be measured and analyzed. A business can receive data from the following sources: Tests and experiments Examples: ● Brand Lift ● Conversion Lift ● A/B Test results Data about marketing performance Examples: ● Ads Reporting ● Marketing mix models Actions people take On websites, mobile apps or in stores using: ● Meta Pixel ● Facebook SDK ● Offline events ASSESS 7 Types of data First-party data refers to data generated from Meta, while third-party data refers to non-Meta data. Within these categories, there are four types of data you’ll use: Actions people take on your website, in your mobile app and in your stores Campaign performance Tests or experiments Marketing performance overall To assess your data source strategy, ask yourself: ● ● What data sources are fueling my success metrics? What data sources are in place and what data do you have access to? Validate data quality. Not all data and data sources are equal. They vary based on dimensions like granularity and scope. Consider all the tools available to you and use those that will generate data aligned with your business goal. Once you have access to a data source, identify abnormalities in data, such as missing data or outliers. ASSESS 8 Evaluate differences in measurement methodology. Understanding the types of data sources and data available is foundational to choosing an appropriate measurement methodology. Consider the different methodologies that can be used to measure impact. Below, we define the measurement methodologies and review the limitations of each. Method Description A/B test A test that allows you to conduct experiments that compare multiple ad sets by splitting audiences into randomized and mutually exclusive groups. ● Does not assess incremental impact. RCTs test a hypothesis by introducing a treatment, studying the effects and determining the impact of your ad. Ultimately, an RCT can help you decide how much to spend on each marketing channel to maximize your results. It can infer causality. ● Tests may not be set up with sufficient statistical power. Randomized control trial (RCT) Limitations ● Reliable only if the confidence level is at least 75%. ● The treatment variable may not always be isolated. ● Some tests will have effects beyond initial user interaction. ● They can’t account for the unknown, such as when people use cash or make other untraceable purchases. ● Test and control groups might have outliers. ● Outcomes might be difficult to replicate. Observational method A measurement method in marketing research that observes the effect of ads on people without changing who is exposed to the ads. ● Not experimental, so causal inferences cannot be made. ● Difficult to perform strategy comparisons in a controlled way. ● Might deliver biased outcomes. ● Does not take into consideration contextual variables that may affect the final outcome. ASSESS 9 State assumptions based on situation assessment. Each combination of data type and methodology requires a statement of assumptions in order to correctly assess the situation at hand. Identify whether business objectives are being measured in a way that is compatible with Meta’s measurement tools and whether there are any potential data blind spots. For example, if you are measuring online conversions, make sure you have the correct data source in place (Meta pixel) and it is implemented correctly. If you do not have a Meta pixel on your website, then you will not be able to use Attribution or Lift solutions ASSESS 10