Wednesday, October 09, 2013

Are you engaged?

The advertising research foundation (ARF) has some very interesting ideas of what they define as engagement in the digital era. Engagement is a new term that sprung up when measuring interaction is now feasible by clicking on a link or expanding a flash display ad.

ARF as “running on a prospect to brand idea enhanced by surrounding context.” This definition is quite abstract. If marketing’s bottom line is to have impact on sales current and future. Then the three fundamental criteria for measurement makes more sense. The engagement metrics has to be reliable, valid, and predictive. The key here is predictive. The measures need to predict future purchase behaviors with good level of confidence.

It is easy to see how the many approaches documented in the ARF papers satisfy the reliable and valid criteria. Some has very good prediction model claimed. For example, Harris Interactive claims the generalized brand health model has 58% correlation with intent to purchase, intent to purchase has 37% correlation with sales. Synovate, another example, can actually use attitudinal equity and market forces to predict purchase probability.

It is always very easy to show correlation when you have lots of data points. However, correlation does not mean causation. Online media and the ease of collecting data means that advertisers have an easier time now to measure the correlation between the metrics they care about with sales. However, there are so many definitions of good metrics that will correlate with sales.

The concept of engagement is the gut feelings by advertisers. Advertisers believe that engagement is the missing secret sauce that would drive future purchase. Engagement is in addition to just brand exposure, attitude towards brand, and so forth. However, advertisers cannot agree on how exactly to measure engagement. More research needs to be done to find the underlying common factor that actually represents engagement and causes future sales. Proving correlation is not enough.

Inspiration:
http://www.thearf.org/research-arf-initiatives-defining-engagement.php

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