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CPM better then CPL CampaignLongevity

Call Tracking for Campaign Longevity

If advertisers and agencies are only tracking the success of online campaigns through clickthrough rates or online conversions, they are missing out on the true value of advertising.

Numerous studies have shown that consumers increasingly use the internet to research upcoming purchases. But did you know that recent data reveals that the majority of consumers are going offline to complete these transactions?

In March of last year, comScore Networks issued a study showing that 63 percent of purchases completed as a direct result of a search query were offline purchases, with 37 percent online.

In fact, this trend is even more significant when consumers search for local information, as shown in a TMP Directional Marketing/comScore proprietary 2007 study measuring consumer usage of all online media sources when looking for localized information.

According to this study, 90 percent of consumers who went on to make a purchase after searching locally completed the transaction offline vs. 10 percent online.

The point is that if advertisers and agencies are only tracking the success of online campaigns through metrics such as an increase in website traffic, clickthrough rate or online conversions, they are missing out on the true value of advertising. Period.

So how does one start recognizing and tracking the offline benefit of online campaigns? One very simple and effective way is to set up a call-tracking line, whereby a unique phone number (local or toll-free) is placed on a website or search engine-sponsored ad. The number routes into the normal phone line allowing the total number of calls received from a specific advertisement to be tracked and reported daily, monthly or any other desired frequency.



In addition to the number of calls, basic call tracking lines can also provide other valuable performance information such as the following:

  1. Length of the call
  2. Date and time of the calls
  3. Basic caller ID data that can then be used to match consumers from initial contact through to purchase
  4. Area the call came from via area code or ZIP code

A sample of a basic call-tracking report is shown below:



Below is an example of one of TMPDM's advertisers who was able to see the true value and performance of its local online advertising through the use of call-tracking lines. Without the additional performance tracked via these lines, the campaign would have been discontinued as a result of the client's perception that the advertising had not met the desired cost per lead (CPL) and cost per sale (CPS) metrics. At the time, the campaign was measured solely by total online contacts and sales.

Case study
Situation analysis: A national pest control company was looking to generate additional lead volume at an efficient CPL and CPS rate. A desirable CPL target was set at $20 as well as a target CPS of $50.

TMPDM implemented competitive advertising placements across the top three local search/internet Yellow Pages sites. Although the client didn't typically set up call tracking as part of any of its other online buys, TMPDM was able to negotiate this tracking at no cost to the advertiser for the first year of the campaign.

The Results (January-December 2006):

  • Total Ad Investment: $160,230
    • Target CPL = $20
    • Target CPS = $50
  • Results if measured solely on online performance:

As a result of the added performance, the advertiser not only renewed the buy in 2007, but increased the overall campaign more than 200 percent. To date, the advertiser is still generating a large volume of leads and sales from the buy at 20-30 percent below its targeted lead/sales amount.

There are many call-tracking providers, and price points have decreased considerably thanks to some of the newer VoIP-based providers. Some leaders in the field include:

As the lines between online and offline conversion continue to blur, it is more important than ever for marketers to understand the real performance of their campaigns and how each complement and compete with each other. Without this understanding, the advertiser or agency will never really be able to recognize or convey the true performance or ROI of campaign strategies. This may result in missed opportunities or, worse yet, the abandonment of proven, highly performing ad placements.

Stuart McKelvey is CEO, TMP Directional Marketing, the world’s largest local search/yellow pages agency. Read full bio.

Source: http://www.imediaconnection.com/content/15939.asp


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