Measuring Results

In the past, few marketers were tracking conversions, much less return on investment (ROI) for marketing initiatives. In fact, many marketers thought search marketing campaigns were too hard to measure. A 2003 industry study reported that 3 in 10 marketers were not measuring search campaigns, while 4 in 10 were using outdated web metrics such as click-throughs.

A 2005 search metrics study reveals that nearly 1 out of 2 search marketers who outsource SEO and paid search services either do not elect to measure ROI, are unable to calculate ROI, or can’t distinguish between SEO and paid search ROI. This result was obtained despite the fact that most vendors provide access to web analytics tools. One would think that marketers would be interested in validating their vendor’s performance by quantifying results.

You’ve all heard the famous expression, "I know that half of my advertising is wasted – I just don’t know which half." It’s been attributed to retailer John Wanamaker and Unilever founder Lord Leverhulme. Marketing has come a long way since then, especially since the advent of online marketing and the current proliferation of web analytics tools.

While marketers are poised to take a quantum leap in marketing accountability with the availability of the new web analytics tools, few of them have these tools in place to measure their marketing performance. Top level company executives are demanding more accountability from their marketing departments and few CMOs can deliver.

An ANA survey of national marketers conducted this year revealed that the majority of respondents (61.5%) believe advertising accountability should be defined, measured and implemented. However, less than one-fifth (19%) are satisfied with their ability to do so. It sounds like very little progress has been made since 2002, when eMarketer reported that 56 percent of marketers did not have the tools in place for measuring marketing performance.

Even today, marketers do not have complete confidence in measuring web marketing results. Industry research reports that 43 percent of the marketing professionals surveyed indicated they were "fairly confident," while only 5 percent were "very confident." The rest were split, with 26 percent being "moderately confident" and 26 percent admitting to "flying blind."

Next: Focusing on Objectives, Four Commercial Website Archetypes and Website Process Activities

Different Conversion Rates, Conversion Metrics and Using Conversion Measurement Tools

A/B Testing and Continuous Improvement