The Importance of Measurement in Advertising Strategy

In today’s advertising landscape, measurement has become a hot topic, with more marketers feeling pressure to justify their spending. However, relying solely on measurement can be a disservice to both advertisers and customers. Marketers must consider the cyclical nature of advertising strategy and use measurement as a starting point, not the finish line.

Setting Objectives and Budgets

Traditionally, ad campaign planning prioritized budget over objectives, but smart brands are now creating a more scientific approach by envisioning the ideal campaign outcome and allocating budget based on that plan. Before analyzing the effectiveness of advertising tactics, marketers should establish the primary goal of a campaign and the audiences they want to reach. They must also ensure there is adequate reporting in place to understand if they have achieved their desired results, as well as inform the next cycle of advertising strategy.

Balancing Performance and Brand Building

Marketers can fall into the trap of over-reliance on performance marketing, which focuses solely on sales and return on ad spend (ROAS). However, campaigns that combine brand and performance elements deliver higher ROAS than campaigns just centered on performance. When planning a campaign, marketers should focus on growing the size of the customer base, not just driving purchases. Marketers should make strategic investments to increase the pipeline of customers who reach the bottom of the marketing funnel and can then be measured by that last click.

Connecting Insights for Meaningful Decision-Making

Many brands struggle to tie insights back to campaign planning for future cycles due to working with multiple providers for different campaign elements. It’s on the advertiser or technology provider to connect the dots and make sense of the results. Amazon Ads is investing in connecting these disparate insights for their customers, as ad tech is at the heart of everything they do. Working with providers who can help make planning and measurement a more holistic experience is key.

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