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Tag: metrics

Unit of cognitive effort

We should come up with a unit for cognitive effort. Like in information science you have a “bit” (binary digit that stores information). That concept was made famous by Claude Shannon who is considered as “the father of information theory”. Here, I’m arguing a metric like “bit” should be developed for measuring cognitive effort of work tasks and individuals. Let’s…

Platform metrics: Some ideas

I was chatting with Lauri [1] about platform research. I claimed that the research has not that many implications for real-world companies apart from the basic constructs of network effects, two-sidedness, tipping, marquee users, strategies such as envelopment, and of course many challenges, including chicken-and-egg problems, monetization dilemma, and remora’s curse (see my dissertation on startup dilemmas for more insights…

Basic formulas for digital media planning

Planning makes happy people. Introduction Media planning, or campaign planning in general, requires you to set goal metrics, so that you are able to communicate the expected results to a client. In digital marketing, these are metrics like clicks, impressions, costs, etc. The actual planning process usually involves using estimates — that is, sophisticated guesses of some sorts. These estimates…

On digital marketing ROI

Introduction There are many sub-types of ROI calculations in digital marketing. This post aims at making an argument that digital marketers should measure digital marketing returns as a sum of sub-returns from different channels/actions. Through that, they are able to capture the ROI impact on a wider scale than just looking at overall sales. Some metrics which inevitably have (some,…

The correct way to calculate ROI for online marketing

Introduction This is a short post explaining the correct way to calculate ROI¬†for online marketing. I got the idea earlier today while renewing my Google AdWords certificate and seeing this question in the exam: Now, here’s the trap – I’m arguing most advertisers would choose the option C, although the correct one is option A. Let me elaborate on this.…

Chasing the “true” CPA in digital marketing (for Pro’s only!)

This is a follow-up post on my earlier post about “fake” conversions — the post is in Finnish but, briefly, it’s about the problem of irreversibility of conversions in the ad platforms’ reporting. In reality, some conversions are cancelled (e.g., product returns), but the current platforms don’t track that. So, my point was to include a ‘churn coefficient’ which would…