By Joe Mandese,
The most important KPIs, or key performance indicators, used by advertisers to assess the value and effectiveness of their advertising and media aren’t necessarily the ones they use most often, according to the findings of a new report from the Association of National Advertisers.
The report, “Media KPIs That Matter,” is based on a survey the ANA’s Media Leadership and Digital & Social Media committees fielded among their members in January and February, and found that while returns on advertising investment, followed by brand safety, lifetime customer value, and conversions and/or sales are the most important indicators, the most common ones used are by far ones that rely on the efficiency of advertising: CPMs (cost-per-thousand), CPC (cost-per-click), unique reach and site visits.
The report identifies and ranks 39 KPIs, only five which rank among the top dozen for both most important and most used: ROI/ROAS; conversions; unique reach; site visits, and viewable impressions.
The report represents an important benchmark for the ad industry’s often subjective and illusive valuation standards, and it also provides a valuable snapshot of newer and emerging performance indicators:
- Data Source Quality
- ROI/ROAS
- Customer Lifetime Value
- Conversion
- Targeting Information Quality
