Measuring Performance

Sections in Chapter 4:

Campaign Efficiency

How to use performance data to understand how well your campaign is performing.

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Consumer Engagement

How to use data to understand and predict consumer viewing and purchase behavior.

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Conversion Rates

How to use conversion data to evaluate the success of your advertising efforts and shape your business strategy.

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Campaign Efficiency

There are many different ways to gauge campaign efficiency, and the best way to evaluate advertising performance varies from advertiser to advertiser. Generally, however, it is important to understand how many consumers are being reached, how efficiently consumers are being engaged and how accurately data is being collected.

Consumer Engagement

The Consumer’s Click Process

When a consumer clicks on an ad, the network click tag that is attached to the ad will log the click with the ad network. The ad network redirects the user to the channel’s click-tracking URL to track the click and then to the final destination URL. If there are third-party click tracking tags configured, these will fire in between the initial redirection and the final destination.

Ad Engagement Metrics

Ad Engagement

There are a number of different metrics available in video advertising campaigns. It is important to understand where video metrics come from and what they mean to maximize campaign efficiency. Some metrics reveal overall campaign insights, other metrics reveal positive viewer engagement with your video content and other metrics reveal negative viewer engagement with your video content. The graphic and accompanying descriptions explain the various video metrics available and what they tell you about your video advertising campaign.

This image shows the origin of all of the major video engagement metrics.

Overall Insights

At the highest level, engagement metrics should reveal how widely your video advertisement is being seen, how receptive viewers are to your video content and how likely viewers are to progress from your video content to an actual conversion.

1. Reach

Calculated as the total number of views that a video receives, the reach — or view count — tells you how successfully your ads are being served to your audience.

2. Impression duration

Calculated as the total length of time that a video plays, the impression durations tells you how interested viewers are in your video.

3. Click-through rate

Calculated as the number of viewers who click to interact with a video divided by the total number of viewers, the click-through rate tells you how successfully your video generates interest.

4. Conversion rate

Calculated as the number of conversions divided by the total number of ad clicks, teh conversion rate tells you how efficiently yout viewers are moving through your checkout process. The conversion rate provides information that can be used to calculate your return on ad spend (ROAS) and your return on investment (ROI).

Negative Video Player Metrics

Different inventory sources provide a number of metrics that indicate consumers are responding negatively to video content. Some of the most common metrics that indicate negative engagement are:

14. Pause

Calculated as the total number of times viewers pause your video, the pause metric tells you how many viewers do not want to watch the entirety of your video.

15. Exit

Calculated as the total number of times viewers exit the video player, the exit metric tells you how many viewers left the video player in which your ad was served due to lack of interest.

16. Mute

Calculated as the total number of times people mute the audio on your video, the mute metric tells you how many viewers are not interested in hearing your audio and is a sign of decreased engagement. 

17. Fast forward

Calculated as the total number of times people mute the audio on your video, the mute metric tells you how many viewers are not interested in hearing your audio and is a sign of decreased engagement. 

Social Metrics

Social networks often have video engagement metrics that are indigenous to the social environment. Since the buttons that collect data from video advertisements are often the same buttons that exist across these social networks, social engagement metrics are often called ‘native metrics.’ Social engagement metrics vary by the social network in which the video is embedded, but some of the most common are:

5. Likes

Calculated as the total number of social media ‘like’ clicks that are associated with a certain video, the likes metric tells you that your video has engaged viewers.

6. Follows

Calculated as the total number of social media ‘follow’ clicks that are associated with a certain video, the follows metric tells you that your video has facilitated brand engagement.

7. Shares

Calculated as the total number of times a video is shared in a social network, the shares tell you that your video is resonating with your target audience and establishing brand authority.

8. Comments

Tabulated in the form of a comment thread, comments provide rich qualitave insight into consumer engagement.

9. Ratings

Calculated as an average based on a rating module embedded in the social ecosystem (usually along a scale of five stars), ratings metrics tell you whether viewers enjoyed your video.

Positive Video Player Metrics

Different inventory sources provide a number of metrics that indicate consumers are responding positively to video content. Some of the most common metrics that indicate positive engagement are:

10. Unmute

Calculated as the total number of times viewers mute your video, the unmute metric tells you that viewers are interested in hearing your audio and learning more. 

11. Replay

Calculated as the total number of times viewers replay your video, the replay metric tells you that your video is interesting enough to warrant a second look.

12. Full screen

Calculated as the number of times viewers expand your video to the whole screen, the full screen metric tells you that viewers are interested in seeing your video.

13. Mouse over

Calculated as the length of time that a viewer’s mouse hovers over your video, the mouse over metric tells you that your viewers are focusing on your content.

Click Quality Controls

Click Screening

A website click occurs when a consumer clicks on an ad that takes them to the client’s designated website. To screen out fraudulent clicks, click filters confirm that consumers who click on an ad stay on the client’s website for at least three seconds. Another recommended fraud prevention mechanism is to use pixel tracking to confirm that the number of page views corresponds to the number of website clicks.

‘Fat Finger’ Clicks

A fat finger click is any click that is unintentional. Some fat finger clicks are true to their name and are caused by inadvertent human error such as clicking the wrong part of the smartphone screen, while other unintentional clicks can be caused by accidental clicks, hidden click triggers or auto-clickers. Fat finger clicks can be screened out from data by applying filters such as the 3 second rule, whereby all inadvertent clicks can be removed based upon the immediacy of consumers’ realization of an incorrect or unanticipated click.

Conversion Rates

Conversion metrics are an essential component of advertising analysis. Conversation rates reveal the overall success of a video advertising campaign and whether or not it as a worthwhile investment. Conversion rates can also be used to evaluate the relative efficiency of all advertising channels and reallocate advertising budget accordingly. Understanding the conversion metrics belong will help you make informed advertsing budget allocation decisions and maximize campaign performance.

The Conversion Rate

The conversion rate is a metric that measures what percentage of website visitors actually convert. The conversation rate is calculated as the number of orders divided by the number of total visitors. The two factors that have the most impact on the conversion rate are quality of the website’s workflow and the conversion intention of website visitors.

pConversion

The conversion percentage (pConversion) is a campaign performance metric that is calculated as the total number of conversions driven by a single channel divided by the total number of visits driven by that same channel. Conversion percentage tells you how effiently a given channel is converting.

pConversion Analysis

The conversion percentage is an effective way to gauge prospecting success. The relationship between the click-through-rate percentage (PCTR) and the conversion percentage (pConversion) helps elucidate consumer purchasing behvior, which could lead to the recalibration of targeting parameters.

Conversion Rate and pConversion

The conversion percentage measures the conversion rate of all consumers who were driven to a website by a single channel. A conversion percentage that is higher than the average conversion rate reveals that that particular channel has driven higher quality customers — customers with a higher intention to convert — than the average marketing channel.