Online Marketing is not an exact science - and far from what it potentially could be. One of the most important aspects on marketing online is to be able to measure your results and the effects of your marketing efforts. There is a plethora of marketing tools to quantify your marketing efforts for you - however there are a few large hurdles before there is a system available which can give you everything in one package.
- Standards are missing
- Internal or External Focus
- Touch points vs. last click
- Quantity, Quality, and Value
Enterprise-size vendors like Coremetrics, Omniture and Unica are trying (each from their own perspective), they have actually gotten a long way already, but their systems are huge, expensive and nearly require a rocket scientist to set up.
A lack of Marketing Metrics standards
For most companies using many online marketing channels, there is nearly one tool for each channel, plus one or two tools that consolidate the information. A lot of larger companies in Europe use a Marketing Relationship Management (MRM) tool for tracking paid marketing activities, and a Web Analytics (WA) tool for website analysis and direct or organic traffic.
Using these two types of tools divides online marketing into two parts, MRM and WA:

The MRM system provides the decision base for paid traffic, while the WA system collects everything else. Although there can be a lot of integration between the two (such as WA integrating with SEM and the ECommerce system), many companies feel that the paid/non-paid separation makes a lot of sense.
However, the missing industry standards for how to collect information, evaluate the information and display the results are apparent, just try for yourself by comparing any two tools. Yahoo’s newly acquired IndexTools is one if the tools in forefront by adhering to the WAA standards, but without the big players following the same standards, they will not be widely spread.
Internal and External focus on Metrics
The traditional WA tools provide plenty (hundreds) of reports that tell you anything from your top exit pages, to bounce rates and session length. The first tools parsed and analyzed the webserver’s log files, which hold loads of information, however not in a format you can easily derive any actionable conclusions from. MRM systems are marketing focused, traditionally, and primarily look at the marketing performance of online marketing channels, partners, ads and the like.
So why do we need to combine the two?
It’s not necessarily so that you need to. However, there are some benefits to using one (or fewer) tools.
- There are a lot of marketing insights to be made from studying user behavior on a website. If you have an ad campaign with a great offer - but no conversions to sales - you can get a lot out of looking at the user journey, bounce rates per ad or message, and so on.
- The same is true for the opposite - if you have a problem on your website, the cause may lie outside your website.
- Fewer tools mean fewer logins and administration interfaces you need to learn.

Touch points vs. Last Click
For some time, MRM systems have attributed ROI (Return-On-Investment) and commissions to the source of the last incoming click on a website. Payments went (and mostly still go to) the source of the last click - whether it be an affiliate, strategic partner, campaign or any other paid marketing activity. However, recently some tools vendors (like Coremetrics or ATLAS) have added functionality for making the entire marketing user journey visible - showing where each user clicked or was exposed to marketing before making a purchase (or any other conversion). These touch points can provide valuable information for marketers as to how to divide their budgets. SEM campaigns can have effect on organic search traffic, and ad campaigns plastered over strategic websites can effect which users enter your URL directly, without clicking on any ad.

All this sounds really smart - and is, for sure - but you cannot tell Google Adwords that they only get 74.1% of their click price, since they were only partly contributing to a sale. On the other hand, by using an MRM system for CPA (Cost-Per-Action) activities, and only giving commission for the last click, you limit your spenditure to the last touch point, regardless of previous (non-Pay-Per-Click) activity. It may give some marketers some peace of mind to not stretch their budgets further.
Quantity, Quality and Value
Where I work, we use this equation a lot - focusing on both Quantity, Quality and Value of the activities we engage in with our clients (don’t worry - this is NOT an ad).
- On the web, things are easily quantifiable. Quantity can refer to the number of clicks, sales, leads, ad views, pageviews, visitors, or any other metric that you want.
- The quality is many times harder to establish, and may mean different things in different contexts. The quality of traffic from an affiliate may be measured by the conversion rate (CR), while the quality of the website may be users’ opinions.
- The value is generally monetary, but can be any value that you attach to a measurable KPI (Key Performance Indicator).

How does this related to the Marketing Metric Divide?
Tracking technology aside (1×1 pixel vs. Javascript vs. other solutions), the MRM and WA tools have completely different focus. MRM systems are great at showing you the Quantity and Value of your marketing efforts - outside your own website. WA systems are great at showing the Quantity of anything measurable on your website and many are focusing on the Quality - visitor surveys and the like - but the monetary Value is not measured as well as MRM systems do, in integrating with ECommerce systems and online marketing channels.
What I see sorely needed is a top view - the “Web Marketing Dashboard” - showing the overall performance of each online marketing channel, related to the website performance, as well as the detailed drill-down into each channel and each web page performance, as related to external and internal details, respectively. My Web Marketing Dashboard would include the Quantity, Quality and Value of each of the above (top view, channels and web pages), and provide trends for each. With that information, the dashboard should easily be able to tell me what happened recently, why it happened and what I could do about it(!).
Tell me what you think
Do you have a complex setup for your online marketing? How do you work out your qualitative and quantitative information? And seriously, are the tools you use smart enough? Please add your comments!


