I Really Hate Vanity Metrics
Let’s face it, vanity metrics are like the fancy sports car that looks impressive but doesn’t really take you anywhere. They may make you feel good in the moment, but ultimately they are not providing real value for your business. As I have made clear over and over again -- I absolutely hate Vanity Metrics, and think it's almost a type of fraud for idiots. it’s time for marketers to move beyond these superficial metrics and focus on what really matters: actionable metrics that drive tangible business outcomes and long-term success. The problem with vanity metrics is that they are often based on arbitrary indicators that do not
align with overall business goals. Click-through rates, impressions, and views may look impressive on a report, but they do not necessarily translate into sales or brand growth. Instead, marketers need to focus on metrics that provide real insights into customer behavior and contribute to the bottom line. What are actionable metrics, you ask? These are metrics that directly tie into business outcomes and provide valuable insights that can
inform future marketing strategies . For example, conversions, high value site actions, and incremental ROAS can all provide valuable insights into how your marketing efforts are contributing to business growth. Incrementality testing is another effective way to understand which audiences, tactics, and channels are
driving incremental business growth. But it’s not enough to just focus on actionable metrics. Marketers need to also redefine what success looks like. We don't have the same folks wasting money anymore. Legacy attribution models and short-term metrics like ROAS are no longer sufficient in a world where marketing is constantly evolving. Instead, marketers need to prioritize long-term, sustainable growth and performance. This means taking
a more holistic view of the customer journey and measuring success based on metrics like brand lift and customer lifetime value. By redefining success and focusing on actionable metrics, marketers can create a strategic measurement plan that aligns with overall business goals. This plan should be flexible and dynamic, allowing for adjustments as marketing strategies evolve. It should also prioritize customer acquisition with an eye toward lifetime value, ensuring that short-term gains do not sacrifice long-term growth. Ultimately, the key to success is to move beyond the superficial metrics that may look impressive but do not provide real value for your business. By focusing on actionable metrics that align with overall business goals
and redefining success to prioritize long-term growth and performance, marketers can drive real results and achieve sustainable success. So, let’s leave vanity metrics in the past where they belong and focus on what really matters: delivering real value for our businesses and customers. |
All the news you need today, in a format that isn't TL:DR, summarized for the busy executive.
AppLovin is introducing performance-based buying to connected TV (CTV) through its mobile user acquisition platform, AppDiscovery, allowing app marketers to access a vast audience with targeted, relevant ads and only pay for installs. With CTV projected to be the fastest-growing medium this year, AppLovin
aims to bridge the gap between mobile marketing and CTV through a performance buying model. AppDiscovery also allows advertisers to automate and optimize campaigns across mobile and CTV inventory, and manage campaigns from a single access source while utilizing custom, top-performing creatives optimized for CTV. Since launching AppLovin’s performance CTV campaigns last year, leading credit-building app Kikoff has seen a 3X increase in install rates.
The third day of the
Interactive Advertising Bureau's four-day NewFronts focused on connected TV measurement, identity tracking, and the future of artificial intelligence. Diverse media companies, such as Spanish-language and bilingual media firms, were showcased, and companies like Samba TV, Innovid, and LG Ad Solutions promoted their data and measurement tools to address CTV ad targeting. Addressability was also emphasized, and there were a few newly launched or rebranded businesses announced. The fourth
and final day of the event will feature presentations from Condé Nast, Vevo, Meta, and TikTok..
E-commerce platforms Shopify and Etsy are raking in the cash with revenues beating expectations, but Shopify still plans to downsize by 20% and sell its logistics branch to focus on its core mission. Meanwhile, while Etsy's net revenue is up, gross merchandise sales are down. Despite this, it seems people are still shopping online, and marketers can rejoice in the continued demand for
online shopping and brand visibility.
The Federal Trade Commission (FTC) has proposed changes to the 2020 privacy order with Facebook after alleging that the company has failed to fully comply with the order and misled parents about their ability to control who their children communicated with through its Messenger Kids app. As part of the proposed changes, Meta, which changed its name from Facebook in October 2021, would be
prohibited from profiting from data it collects from users under the age of 18. It would also be subject to other expanded limitations, including in its use of facial recognition technology, and required to provide additional protections for users. This is the third time the FTC has taken action against Facebook for allegedly failing to protect users’ privacy.
The Federal Trade
Commission (FTC) has urged companies deploying AI tools to retain personnel responsible for ethics and responsibility for AI and engineering. This comes as concerns grow around the impact of AI and generative AI tools on consumers, particularly their ability to influence beliefs, emotions and behaviours. The FTC has previously focused on AI deception and the use of generative AI for fraud, as well as tools that can be biased or discriminatory. Now, the FTC has warned about the potential
for generative AI to steer people unfairly into harmful decisions related to areas such as finances, health, education, housing and employment.
FTC Chairwoman Lina Khan is keeping a watchful eye on the deployment of artificial intelligence (AI) to ensure that the hard-learned lessons from the rise of Web 2.0 are not repeated. She warns against the steep cost paid for the mainstream tech giants' hoarding and sale of personal data. With the explosive rise of
generative AI tools, concerns about misinformation, scams, and data collection are on the rise. Khan vows that the FTC will vigorously enforce existing laws to protect Americans from unfair or deceptive practices in this new market, even if the tools are novel and not exempt from existing rules.
There's been a lot of buzz about whether AI will take over digital marketing jobs, but the reality is that AI is a
powerful tool that can save time and money while providing many benefits for digital marketers. With its ability to analyze large amounts of data, identify patterns, and make predictions, AI can optimize ad campaigns, provide personalized marketing messages, and even detect fraudulent activity. However, it's important to remember that AI can't replace human creativity and strategic thinking, and marketers should use AI in combination with human insights and perspectives. By finding the
right balance between human and AI, digital marketers can create campaigns that resonate with diverse audiences and achieve their goals.
Roku has announced AI-powered contextual advertising capabilities for its free ad-supported streaming TV service, The Roku Channel -- creating it's own version of "Kerv". The AI implementation will enable brands to run ads alongside relevant moments in movies and shows on The Roku Channel by searching Roku's library for plot moments that
align with a brand's message and placing an ad in real-time. The Roku Channel has a large ad-supported audience, reaching 100 million people in the US and is among the top five apps on the Roku platform. Other streaming services, such as Vevo, are also employing contextual advertising by curating genre or theme-specific CTV programming blocks using AI.
According to a report by the Interactive Advertising Bureau
(IAB), digital video advertising spending increased 21% to $47.1bn in 2022 and is expected to rise by another 17% to $55.2bn in 2023. However, the report showed that there is still a lack of consensus on key issues surrounding how the TV/video advertising marketplace is transacted, measured and defined. Almost two-thirds (64%) of TV/video buyers agreed that creator-driven video can be considered premium, while 81% of TV/video buyers want two or more unified currencies for impression
measurement. Addressable media channels such as social video and connected TV were also prioritised.
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INSIDE AMAZON ADS' CASH COW Amazon is one of
the world’s largest companies, with operations spanning across various industries. One of its most promising business segments is advertising. The company’s advertising services division generated $9.51 billion in revenue in the first quarter of 2023, up from $7.87 billion in the same period in the previous year. This represents a 23% gain, excluding foreign currency. The growth in Amazon’s
advertising business can be attributed to its ongoing machine-learning investments, which help customers see relevant information when they engage with the company. This delivers unusually strong results for brands, as CEO Andy Jassy noted in the company’s announcement. . READ ENTIRE STORY
THE CZAR OF TCPA DEFENSE: ERIC TROUTMAN’S REIGN OF LITIGATION STRATEGY Eric Troutman, commonly known as “the Czar” in certain legal circles, is one of the country’s top class action defense lawyers and a nationally recognized expert in Telephone Consumer Protection Act (TCPA) litigation and compliance. His deep experience and encyclopedic knowledge of the TCPA landscape make him an invaluable resource to institutional compliance teams struggling to comply with the shifting regulatory landscape. Eric Troutman is well known for finding
creative solutions to complex legal problems and has earned numerous first-in-the-nation results and precedent-setting cases for his clients. READ ENTIRE STORY
KPIS THAT ACTUALLY MATTER: A GUIDE TO PROGRAMMATIC ADVERTISING SUCCESS The world of programmatic advertising can be overwhelming, with a seemingly endless array of metrics to choose from. It’s easy to fall into the trap of measuring vanity metrics that don’t provide any real insight into the success of your campaign. But fear not, my dear reader, for I am here to guide you through the world of programmatic KPIs and show you which metrics to focus on to ensure your campaign’s success. . READ MORE OF THIS STORY
LIES, DAMN LIES, AND ADVERTISEMENTS: FTC SENDS
WARNING TO GWYNETH PALTROWThe Federal Trade Commission (FTC) has issued a warning to advertisers, urging them to back up their product claims or face steep civil penalties. In notices sent to 670 companies, the FTC stated that companies are required to provide “reliable evidence” to back up their product claims, a requirement that has been in place for some time. However, many advertisers continue to make
unsupported statements and false claims about the evidence they have.. READ THE FULL ARTICLE
COLLABORATION IS KEY: UNLOCKING THE POTENTIAL OF FIRST- AND SECOND-PARTY DATA
STRATEGIES The age of relying on third-party data for media buying may be coming to a close, but don't count out the power of collaboration just yet. Data clean rooms (DCRs) have emerged as a popular avenue for brands to uncover valuable insights, but they're not the end-all-be-all solution to marketing strategies in the face of a looming recession. While a DCR can help match audiences and allow brands to... READ MORE
DAVE MORGAN’S CRYSTAL BALL: HOW NETFLIX’S AD TIER WILL SHAPE THE VIDEO AD
LANDSCAPE As Netflix dives into the realm of ad-supported streaming, it’s clear that the video advertising landscape is about to experience a seismic shift. With the streaming giant making its move, we sat down with Dave Morgan, CEO of Simulmedia, to discuss how Netflix’s new tier will impact the industry and what it means for advertisers,
long-form video content, and the advertising world at large. In light of the tough ad economy in 2023, Morgan believes that Netflix’s ad-supported tier is well-positioned to succeed. “It still has limited inventory as the ad tier just begins to scale. Thus, it doesn’t need huge
commitments from advertisers, just modest commitments from a number of the top brand advertisers, and it doesn’t need to trade piercing for volume like fully scaled players need to when budgets are under pressure,” he says. READ MORE
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