Understanding Advertising Objectives & KPIs

[unrelated] Gorgeous blanket octopus
[unrelated] Gorgeous blanket octopus
Let’s look at 3 business objectives that apear regularly on advertising KPI dashboards: sales, awareness and community. There are many interdependences between them, however there is a stronger link between Community and Sales than between the two other combinations involving Awareness. Basically with digital, social media and technological ubiquity a potential consumer needs less and less direct awareness.

Consumers increasingly validate their value-based brand judgements though a simple Google search. Google: “best organic non-fat milk brand in New York City” and you’ll find what you are looking for.

Advertising campaigns can no longer simply focus on awareness building. The challenge is now to put the product as fast as possible in the hands of the consumer. This adds more pressure than ever to create exceptional and competitively priced products (recently Microsoft and Blackberry tablets made the mistake of setting non-competitive prices thus creating artificial adoption roadblocks).

On the other hand, building a strong and engaged community (see it as a social CRM), can greatly improve direct sales and keep consumers engaged.

The following basic analysis should always be done when setting up advertising objectives.

INCREASE SALES

This is usually the hardest and one of the most important business KPIs.

KPI: number of sales, in-store conversion rate, drive-to-store conversion rate
Message CTA: Drive to store, promotion, drive to store contest, rewards program, loyalty, etc.

INCREASE AWARENESS

Awareness of a specific product (knowledge of a specific product or brand);
Association with a specific product (e.g. Axe & nerds);

KPI: consumer brand awareness (aided, top of mind)
Message CTA: Emotional, content heavy, product presentation, open, no closure

BUILD COMMUNITY (CRM, Social Media, etc.)

1. Community building: opt-in consumer info (DM, email, Facebook, apps, etc.)

KPI: number of opt-ins, type of opt-ins
Message call-to-action: Join now, join promotion, participate, etc.

2. Community engagement: consumer participation in conversations (over social media, word of mouth, etc.)

KPI: consumer engagement (Likes, comments, etc)
Message CTA: Share, comment!, participate, engage, share contest, etc.

3. Community advocacy: consumer brand advocacy (positive brand support, message sharing)

KPI: consumer conversations, likes, recommends, shares, RT, etc.
Message CTA: Share if you love, Join VIP community, Brand Nation, etc.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s