15 Apr Trending Now? The Questions asked the most by new clients.
SEO. CPM. GRP. Sometimes explaining a media buy to a new client feels more like going over a stock report than exploring options for advertising. The changing landscape of advertising has been dominated in recent years by expanded digital choices: social media, mobile, digital networks, display, retargeting and more. We never have to explain an outdoor billboard or a radio spot – it’s always questions about digital or complaints about the web site. And quite frankly, there’s gigabytes worth of experts out there right now that can provide a more molecular analysis of a digital media buy. The goal here is to provide an overview of a digital media buy so that the average business owner can help us make the right choice for their business needs.
Before we move along, let’s cover those abbreviations above. SEO is search engine optimization. Basically, what you can do to make your website more visible and searchable without buying ad space. CPM stands for “cost per thousand”. That is, what you pay per every thousand people to which your ad is delivered. CPM has been around in advertising since P.T. Barnum in one form or another. In most cases, it’s the apple that you can compare to all other apples in advertising. GRP, or gross rating point, quantifies the number of impressions as a percentage of the target audience. If we estimate that 20% of your target audience will watch the Super Bowl, then one ad placed there might achieve a GRP of 20. Running that same ad multiple times on ESPN over a week could then achieve a GRP that’s much higher, even over 100, based on a smaller rating, but multiplied by the number of placements within a given event – March Madness, for example.
Impression: When you’re ad is pulled from the bin and placed on a website, that’s an impression. It does not mean someone’s eye actually caught the ad, it just means it was there.
Interaction/Hover: This is a clever one. Even if you’re ad isn’t clicked, research shows that if the mouse literally hovers over the ad, then someone is probably reading it. They eye follows the mouse. I call this the I’m-thinking-about-clicking-you stage.
Hover Rate: The number of hovers vs. the number of impressions. In other words, a 5% Hover rate means that for every 100 times your ad appears on a page, 5 people at least “move across” that ad. And you hope they’re reading.
Click: Now we’re getting to the good stuff. The elusive “click” is what we are after. The user clicks your ad – which can take them anywhere you like. To your site, to a sign up page, to a particular area of your site like a menu, or to a Facebook page. Your choice.
Click Through Rate: This bit of data is similar to the hover rate, but obviously a more engaged interaction. A higher than average click through rate is at least an indicator that you have the right ad running in the right places.
Retargeting: Now for the sneaky part. When your ad is engaged online, “we” know the computer’s IP address that initiates that interaction. That’s the “aha!” moment. Now, via a retargeting pixel that helps track which computer showed interest in our ad, we can specifically send the same ad – or even follow-up ads – back to that computer. This explains why after searching for new boots online, you’ll suddenly start seeing lots of ads for that same kind of boot on your computer. Crazy, huh? We then use that information to better identify your customer, down to the area in which they surf for information.
There are other key terms and concepts and research that’s available but that’s it in at least one nutshell. Digital advertising is like any other, it’s a method by which we, as advertisers, lead the horse to water … but we still can’t make them drink. The content of your message, the compelling nature of your offer, and your general ability to close the deal, instore or online, still plays the most important role in any campaign.