Copenhagen : Traditional Internet advertising is based on registering impact according to the maxim ‘last click wins’. This method is still the most applicable, but a new and advanced way of measuring effect provides a far more accurate picture of consumer behaviour.
Path-to-Conversion, from the digital marketing company Adform, now makes it possible to see all the actions a user performs before he or she makes an online purchase. Before a person buys a product, they will usually click on a couple of banner ads, search for the product name by Googling it a few times and perhaps even compare prices. This is the sort of traffic which can now be revealed in all its detail using Adform’s online tool Path-to-Conversion. In addition to more insight into its customers’ daily lives, an advertiser can also allocate its advertising budget more effectively, with a higher ROI as a result.
“Path-to-Conversion makes it possible to see all the influences a user is exposed to prior to a sale. Thus, we now have a far more complete picture of ‘the consumer journey’, allowing us to service our clients more precisely and intelligently when allocating advertising budgets,” says Paw Saxgren, Digital Director at the Mindshare media agency.
Path-to-Conversion is one of the most advanced measurement solutions on the market, and for a period has been used as a test tool by Mindshare in Denmark. Mindshare’s statistical treatment of the data material has, among other things, documented that banner ads are 10-15 times more effective than what could previously be deciphered using the ‘last click wins’ method, as the banners’ effect is spread across the entire consumer journey towards making a purchase.
“After we started using Adform’s new measuring method, we have been able to get a much clearer picture of our customers’ online behaviour, and how a sale actually develops. We have been lacking this important knowledge until now,” explains Jesper Larsen, Traffic Project Manager for the mobile telephone company Hi3G.
Hi3G is one of the selected clients at Mindshare which has participated in data gathering, while the international advertising network Specific Media has also been involved as a sparring partner.