Tuesday, October 30, 2012

Important Digital Marketing Metrics


            As times change and content on the web becomes ever more participatory, the collection and importance of various metrics is likely to change as well.  According to Marc Poirier, Chief Marketing Officer of Acquisio, a company that specializes in assisting in media buying, the five most important metrics to follow presently include a website’s bounce rate, average page views per visit, average cost per page view, average time on site and rate of return visitors.  The reasons for which are many but include the following:
Bounce Rate
            A “bounce” from a website is equal to a visitor browsing over and then leaving without exploring other sections of the same domain.  This can be a byproduct of both direct and organic or paid search traffic, but a high bounce rate is often times a signal that an organization’s online content is not nearly as engaging as it could be, and that it fails to entice users over to other parts of the website.  How this affects decisions related to online advertising is in deducing which ads or keywords result in higher bounce rates.  While a high bounce rate might often result in changes to in-page content, Poirier recommends letting low-converting and low bounce rate pages live on as they signify an interaction with a consumer that could be “…more important than you may have first anticipated” (2012, Poirer).
Average Page Views Per Visit
            A metric such as average page views per visit provides a true estimate of visitor engagement.  The common understanding is that the more interesting the content is, the more likely a visitor is to traipse on within the same domain, or possibly through a related sister website.  While these page views may not yet equal a true conversion, they do provide an indication of your work’s influence.  As Poirer states, “When people find content that means something to them, they keep going deeper, and we know that the trend leans towards them sharing content they enjoy with their friends. These are people who may actually end up influencing more sales, and knowing what keywords are successful in this endeavor will help you to build an even larger customer base” (Poirer).
Average Cost Per Page View
            When engaging in the purchase of media for online advertising purposes, it’s extremely important to understand how much it costs to attract a page’s visitor so that it can be directly tied to your eventual ROI.  Buying media should eventually result in a positive profit margin and assigning a level of profit can be done by knowing how much it cost to bring in visitors versus what of those visitors resulted in a conversion.
Average Time on Site
            As another important measure of engagement, average time on site provides qualitative data including the trust your brand instills in consumers, as well as an overall level of curiosity about your product offering.  As Poirer states, “Use this metric in combination with bounce rate and page views per visit for a complete picture” (2012).
Rate of Return Visitors
            If a website hosts an engaging level of content, it is more likely to not only attract new visitors, but garners visits from previous visitors.  In terms of ecommerce, Poirer equates these revisits to consumers “browsing the aisles” of a classic retail store.  To enhance the level of return visits, Poirer recommends engaging in a necessary level of two-way conversations with visitors in order to show them that you are willing to invest as much in the customer as you want them to invest in your business.  This establishes trust with the consumer and can result in a greater level of returns.

References

Poirer, M. (2012, July 27) 5 Digital Marketing Metrics That Matter. Retrieved October 30, 2012 from http://mashable.com/2012/07/27/marketing-metrics/

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