Received a self-congratulatory email from your colleagues informing either about their latest ad campaign that had 10,000 on-target impressions or about the six-second video they ran with a 60% completion rate? But wait, what do these numbers even mean? Are they suppose to be good or bad? Is it time to find out what went wrong or just throw a success party?
However, to understand it better, one must always provide context for its metrics. To accomplish this first measurement resolution, you can rely on multiple strategies. The easiest way is to use industry benchmarks.
“The six-second ad ran by us had a 60% completion rate; the industry benchmark was 81%.”
As you can see, this sentence gives us a lot more information than before when all that given was the completion rate. Now, you know you have to make more efforts, dig more deeply into your creativity and see what can be improved. Start by analyzing your strategy to find out what exactly went wrong and then start researching more good video ads to understand what they have in common. This will help you to improve your future performance, and all this just from a little bit of context. Much impressive?
Once you have attained more experience, you’ll be ready to start setting up your own goals. If the last campaign made by you had an average open rate of 20%, so now you aim for 23%. This time, when you’ll report performance, what you are going to say might even surprise you: “The average open rate for the month of February 2020 was 25% compared to our target of 23%.” Your next promotion credits go to- Data with context.
At this point, let’s talk about my favorite piece of context: Cost.
So, your lavish, contextually related, machine-cultured, vibrant landing pages produced 1.5 million engaged views in merely a month compared to just 1 million views for the old static landing pages. Hooray?
Now’s let try by adding context: After factoring in maintenance and development costs, the new vibrant pages made by you, have a cost per engaged view of $5 whereas, the old static pages have a cost per engaged view of $1.
This is the magic we were talking about- The Magic of the Context which helps us to make smarter decisions.