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I was reading a paper by a respected industry body that started by flagging head fake KPIs. I love that moniker, head fake.
Likes. Sentiment/Comments. Shares. Yada, yada, yada.
This is great. We can all use head fake metrics to calling out useless activity metrics.
[I would add other head fake KPIs to the list: Impressions. Reach. CPM. Cost Per View. Others of the same ilk. None of them are KPIs, most barely qualify to be a metric because of the profoundly questionable measurement behind them.]
The respected industry body quickly pivoted to lamenting their findings that demonstrate eight of the top 12 KPIs being used to measure media effectiveness are exposure-counting KPIs.
A very good lament.
But, then they then quickly pivot to making the case that the Most Important KPIs for Media are ROAS, Exposed ROAS, “Direct Online Sales Conversions from Site Visit” (what?!), Conversion Rate, IVT Rate (invalid traffic rate), etc.
Wait a minute.
Most important KPI?
No siree, Bob! No way.
Take IVT as an example. It is such a niche obsession.
Consider that Display advertising is a tiny part of your budget. A tiny part of that tiny part is likely invalid. It is not a leap to suggest that it is a big distraction from what’s important to anoint this barely-a-metric as a KPI. Oh, and if your display traffic was so stuffed with invalid traffic that it is a burning platform requiring executive attention… Any outcome KPI you are measuring (even something basic as Conversion Rate) would have told you that already!
Conversion Rate obviously is a fine metric. Occasionally, I might call it a KPI, but I have never anointed it as the Most Important KPI.
In my experience, Most Important