I recently read an article about Google developing a way to measure the value of advertising with mobile which includes social. The article discusses that it requires the advertisers to input data and that it is not perfect. Reading this I started thinking about the standard that digital marketing is being held to and how it seems to be different from that of television and radio and even print.
When a brand markets on television they show a 30 second commercial and has to hope that somebody is paying attention. There is not guarantee that when that commercial airs that anybody is even in the room. Nielsen provides data that shows them how many people were tuned in but again cannot give an exact account of those that watched.
This is also ignoring the fact that there is delayed watching. Shows are being recorded and watched later in the day or up to a week later. When watching those shows are people watching the commercials or are they skipping them so that they get to the program they wanted to watch?
If you are unfamiliar with television or radio advertising you purchase your spots based on past data with the hopes that the past will provide an indication of the future. You pay the station to broadcast your commercial, but unfortunately it is not guaranteed to run because if somebody else pays a higher price you can get pre-empted. Let’s assume you don’t get pre-empted and you paid $1,000 for the commercial. If Nielsen says that the show generated a 2.0 GRP then you paid a $500 CPP.