At IAB Engage today ComScore founder Gian Fulgoni called for brands and agencies to stop using outdated methods for measuring digital.
The founder of respected research company comScore has warned that brands and agencies are using outdated methods of measuring the impact of digital campaigns.
Gian Fulgoni, co-founder and executive chairman, comScore told the audience at IAB Engage, one of the UK’s biggest annual digital conferences, that
“Four in ten industry professionals rely on click-through rates to measure display ad effectiveness,” said Fulgoni.
“Click-through rates were a simple, fast and inexpensive metric popular for search and display,” said Fulgoni, describing the industry’s historic reliance on the metric.
“Click rates today are abysmally low,” he said “0.14% in UK – meaning one in a thousand impressions clicked. I would suggest that if that is the effect of digital advertising I would suggest it doesn’t work.”
Fulgoni said that the industry needs to modernise its way of operating, especially with more brand building activity online rather than direct response.
Highlighting another industry issue – that of users not being able to see the ads that they’re meant to be served, Fulgoni said that work needs to be done to make ads more viewable. “Over half of all impressions not in view of consumer,” said Fulgoni.
Referencing specific digital activity with Kellogg’s, Fulgoni said that analysis of campaigns that the brand had run that had fewer than 50% of videos viewable to customers resulted, as you might expect, in a far poorer performance than campaigns with 70% viewability.
The difference, according to Fulgoni was that, the campaigns with more viewability resulted in a 75% sales increase.
“To gain confidence advertisers need accountability and transparency across targeting, viewability non- human traffic and brand safety,” concluded Fulgoni.
Above all, his message from his ‘Lessons Learned’ keynote was that the old way of working should be consigned to the past and every brand and agency should get smarter with metrics.