It’s no secret that ROI and Success Metrics are a “work in progress” in the mobile space. At NinthDecimal, we believe measurement is the biggest hesitation clients have when it comes to shifting more of their budgets into Mobile. All anyone wants to talk about is how much time consumers are spending on their mobile device, and how much mobile ad spending is lagging behind that. However, until true ROI and measurement metrics are created, that gap is going to stick around.
One change that is starting to take place is the decrease in focus we put on clicks, and Click Through Rates. For the past decade or so, CTR has been the be-all, end-all when it came to online measurement. However, in the mobile world, there are a few reasons why CTR has, and should, become less of a priority. First, due to the smaller size of mobile screens, there are a lot of accidental clicks that occur, causing an overstatement of CTR. Second, there has been no proven correlation between CTR and Purchase Intent, and in some cases, CTR can even have a negative affect. While consumers are spending more and more time on their mobile devices, 90% of purchases are still occurring in the brick and mortar store locations, and the goal should be driving them in store, where they are actually purchasing the products.
At NinthDecimal, we believe we’ve taken a big step in combating the ROI question with our Location Conversion Index. What this tool does is measures not only the increase in visits to a given store or location, but measures the incremental lift driven, compared to your same target audience that has not been exposed to the ad. There are also measurement tools from 3rdparty data providers such as Datalogix and Neustar. Both of these companies have released ROI reports, specifically for mobile, that measure the increase in purchases or dollars spent, of a given product. No matter the metric, we are at a point where we need to think smarter about how we’re measuring success on mobile campaigns, and the opportunities to do that are continuing to grow.