AdAge published an article today discussing the shortcomings of measuring online advertising via clicks. Clearly a better attribution model is needed as web sites are increasingly not being given due credit for directing consumers to retailers. Sites ranging from brand-focused sites such as NYTimes.com to social media sites like Facebook are losing credit because these sites are not necessarily the last place consumers see and act upon an ad. If sites don't get the proper credit deserved, then advertisers take their dollars elsewhere.
Esco Strong, market research manager at the Atlas Institute comments:
“Virtually any seller that's not a search engine or affiliate network is not getting the proper credit for their ads. There's a disconnect in terms of the actual work that's delivering people through that sales funnel and the sale and there's a disconnect in how advertisers are measuring their ads and planning their campaigns.”
Randy Rothenber, CEO of the Internet Advertising Bureau suggests the onus is on the web sites to offer analytics and optimization solutions on better targeting consumers. Luckily, companies like Microsoft hope to develop products offering an alternative to "last-ad accounting." That's good news considering research released by Microsoft today found that "...in the final two days before a sale or conversion, consumers see an average of five and a half ads. In the 90 days leading up to a sale consumers see 18 ads for a product."
see http://adage.com/digital/article?article_id=134787 for AdAge article
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