Digital Advertising Measurability

One major difference between established and emerging markets is the availability of advanced tools to quantify consumer response. Advertisers have long used data to determine where to place ads and to glean insight into consumer response. Nielsen measures television viewership through consumer panels and electronic devices. Arbitron Inc. is a leader in radio audience measurement. The Audit Bureau of Circulations measures sales of newspapers. Companies may supplement these audience measurements with other qualitative research on consumer demographics and behavior, as well as separate surveys designed to measure return on investment.

In the digital world, advertisers have access to faster, more granular measurements. Digital advertisers can count the number of people who click on an ad, forward an email, or view a video. “One of the primary benefits of digital advertising is that it lends itself to quantitative analysis. Companies can easily track ad impressions, click-throughs, unique visits and time spent on each page,” according to a case study published by Dartmouth’s Tuck School of Business.