THE FLAW OF AVERAGES & RISKS OF NON-TRANSPARENCY

By Collective October 23, 2015

AdExchanger recently published an article discussing the risks of averages and non-transparency within our space. The article uncovers the flaws of complacency within campaign results, where the average KPI of all tactics falls within goal, and yet individual tactics are outside the desired range of performance. The article also lends great advice for Media Planners on how to proactively structure campaigns to ensure transparency into the strategies they propose. While this advice is sound, digital marketing is still in need of a tool to help marketers easily determine where their dollars are being utilized correctly, and where they may be able to trim the fat.

In an industry where testing is common, it is reasonable to assume that at any point, a media plan could include tactics which bring down performance. This is accepted within our space, so long as the end result is a smarter, more efficient campaign. The risk however, is when a partner on a plan isn’t specific – to a delivery level – with the tactics they are running. In these cases, while the average performance of the partner could fall within the KPI goal for a campaign, complacency can lead to less than optimal tactics remaining on the plan for longer periods of time, and thus wasted media dollars.

VISTO™ holds a significant advantage for performance marketers, giving them a clear view into every piece of their campaign, not just an attractive top line stat.

Take for instance the following example:
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The KPI goal for this campaign is a .3% CTR. In aggregate, all tactics under this campaign strategy have hit the KPI, and the client is happy. More often than not, however, there are multiple tactics that a partner will run in order to test new strategies, segments, or utilize incremental budget. Below is the same media plan report, except with full tactic transparency provided by the VISTO™ platform.

Targeting Tactics

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Of the four tactics running, only two are hitting the client KPI goals. With this extra level of insight, it becomes clear why advertisers need a deeper, more transparent view into their media plan. Further, when offering managed services in running a campaign, we provide transparency into all changes made by the optimization team. See below example:

Campaign Optimizations

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The transparency level of VISTO™ makes monitoring of the “flaw of averages” a less tedious task. Allowing marketers to be more proactive across their plan holistically is invaluable, and can only lead to more efficiently spent marketing dollars.

To quote the article:

“Just like averages can hide the true picture, failing to have a full view of investment can damage the effectiveness of performance media.”

Read the full article here