Ad Trade Associations to Set Digital Measurement Guidelines

The following is also my column in this week's AdAge.

Every conversation about digital marketing invariably raises the "M word" -- measurement. Everyone knows the Internet is the most addressable medium. However, there is no single standard that clients and agencies can use to benchmark their programs against each other.

The industry is crying out for a standard, but don't wait around for a single number. It's not coming anytime soon. The current alternative is chaos as every agency and marketer scrambles to concoct its own recipe. Some of those -- like page views and uniques -- are based on outdated models.

The lack of a standard is a big problem. It's creating confusion and an aversion to spending. According to Booz Allen Hamilton, 98% of media executives say this deficiency is inhibiting marketers from spending more on digital.

The American Association of Advertising Agencies (e.g. the 4 A's) and the Interactive Advertising Bureau (IAB) are about to try to change that. The leaders of the two trade organizations announced at last week's Forbes Online Brand Forum in St. Maarten that they are working together on an initiative to identify the "metrics that matter." Four A's President-CEO Nancy Hill said their intent is "to develop a common language" for digital-marketing metrics.

"We are further than nowhere, less than somewhere (on measurement)," said Randall Rothenberg, president-CEO of the IAB. "Everyone is hoping for a magic metric -- a [gross-rating point] equivalent. That's not going to happen."

During a panel that also included ANA CEO Bob Liodice, all three execs stressed the need for uniformity. Rothenberg and Hill said they have convened a small working group that will take the first step in establishing a set of metrics that aims to be relevant 80% of the time for 80% of marketers. The ANA has not joined the initiative yet but may at some point.

The Four A's and IAB plan to open up the process to a larger group for input as the plans progress. Ultimately, however, for this initiative to be successful, it's entirely up to the agencies to embrace their recommendations. Hopefully they will, because standards that span both reach and engagement are the quickest path to getting clients more comfortable in investing more.

Comments

[Dan...]

Steve: is this merging measurement for direct and brand advertising goals -- or separate measures for separate goals? or are they just tackling one subset of the various goals marketers may have?

[Alexander Zoltai]

Good article. I'm new to your blog but find the information very pertinent to my needs. This article helped remind me that I should remain detached as I learn and employ Internet tools--they can change in the blink of an eye...

I've heard it said that we're still in the "Pony-Express" stage of this global nervous system.

Down the electronic road is pure fidelity of response, no push marketing, and true virtuality.

~ Alex

[Jim Fitz]

"...Forbes Online Brand Forum in St. Maarten" I need a job that takes me to brand forums in St. Maarten. Maybe there'd be standard measurement in place more quickly if such events were held in Pittsburgh or Cleveland.