[E-marketing] Case4 MedNet.com -- Question 2

2.   What does an advertiser want? Sales leads, brand awareness? What are the best metrics for measuring these?

Ans: 

First of all, we will limit the boundary as products that use on-line advertising as a marketing strategy. For a brand new product, pursuing brand awareness in the marketplace would be regarded as the most important task. On the other hand, for a product that lasted long in the market, how to increase the sales leads outweigh all other attributes. Here we use various metrics to measure the two different kinds of product life cycles. The following chart concludes our measurement for the performance of an advertiser want based on different object.

a.)   Newly-Entry Product

As a new member in the marketplace, a newly-entry product shall attract magnificent consumer attention to distinguish itself from other existing competitors. Therefore, the first priority is to make a strong brand awareness base. On-line advertising is regarded as an efficient way to broad the brand awareness with the expansion of Internet.

 

However, we shall have some indicators and figures to evaluate whether the on-line advertisement works. We use four indicators to measure the performance of on-line advertisement:

 

01.)CPM(Cost-per-thousand impression)

CPM is used for measuring the number of people who actually saw an online advertisement.  One advertising impression meant that one visitor requested from a Web server a page that has a specific advertisement on it.  For new product’s awareness, CPM is the best metric for a advertiser.

 

02.)CTR (Click-Through-Rate)

   CTR is a way of measuring the success of an online-advertising campaign. CTR is obtained by dividing the number of users who clicked on an ad on a web page by the number of times the ad was delivered (impressions). For example, if the banner ad was delivered 100 times (impressions delivered) and one person clicked on it (clicks recorded), then the resulting CTR would be 1%.

 

03.)PageView

PageView means a request to load a single page of an Internet site. If there are any advertisements on the page, the advertisers would be interested in the number of page views to determine their expected revenue from the advertisements. The higher PageView that page is, the more on-line traffic it has.

 

04.)PageRank

PageRank is a link analysis algorithm that assigns a numerical weighting to each element of a hyperlinked set of documents. High PageRank means that the page has a brilliant network with other web pages, which would attract more on-line browsing.

 

b.)   Mature Product

A mature product lasted long in the marketplace. Therefore, it has a fundamental base of brand awareness and consumers. The on-line marketing strategy of a mature product is to outperform other competitors by cutting their sales leads. When advertisers want to make on-line publicity for that kind of product, we think that two indicators should be utilized:

 

01.)CTR (Click-Through-Rate)

CTR can prove the consumers being led to the product by clicking the ad, which may stimulate the consumption behavior.

 

02.)PageRank

As we mentioned before, high PageRank represents the page has a great network with the other web pages, which would attract more on-line browsing.