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28 Feb 09 Anomalies in Online Marketing Math

Hitwise data is absolutely fantastic for a whole host of applications, ranging from understanding competitor marketing behaviour, doing keyword research, finding decent affiliates and many other things.

One of those other things is understanding how competitors may be inflating their figures.

For many marketers still marching to the drumbeat of the TV Industrial Complex, “visits” and “reach” are the be all and end all of metrics, when, as I’ve argued before, these metrics are merely proxies for the one metric, Return on Investment. By focusing on this metric, you alleviate any kind of misnomers in calculating proxy metrics like visits.

How can visits be inflated?

Well, it comes down to definitions and representation of data. For all practical purposes, visits are intended to measure people accessing a website. The intent of the marketer measuring this is to understand how many times people came to look at the website. However, this can get confused in situations when people are providing hosted software as a service without rewriting URLs.

For example;

Briscoes in New Zealand host their catalogue on with Ceros Media. When people on the www.briscoes.co.nz  website click from http://briscoes.co.nz/catalogue.aspx to http://cde.cerosmedia.com/Briscoes-homeware-specials/1F499d62edbb8b0012.cde,  then all of those visits to Briscoes’s catalogue, on the Briscoes website would count as visits to Ceros Media.

Metaphor: If I visit a house and look at another house through the window, should I be counted as a visitor?

Metaphor: If I visit one house and see another house through the window, to which house should the visit count?

Now, for the most part this doesn’t really matter, somebody saw the brand, whether it is on your site or not is largely irrelevant. However, it does matter for reporting purposes because the definition of the metric is entirely counter to its intent – which is to see how many people came to visit your site. From Ceros’ point of view their traffic would consist of everybody who they are hosting catalogue for, when in reality, the only real visitors to www.ceros.com are B2B visitors looking for a flash based interactive magazine solution.

This type of a domain strategy would cause Ceros to inflate their statistics and report a significantly higher visit number, which would allow them to charge more for advertising to any TV Industrial Complex marketer – if they were running an aggregated magazine website.  This practice would even stack up when viewing it from third party competitive Intelligence tools like Hitwise.

The other disadvantages to a domain naming strategy like this is that for the customers that do notice the change in URL, they may question and feel uneasy about what is going on. Also, when people link into these pages, the all important “link juice” that Google relies on for relevance ranking, will not flow to your domain.

At the end of the day, it doesn’t matter how many visitors a particular website gets; yours or your advertising supplier - what matters is how many of the right visitors did your message get?

Viewing 5 Comments

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    I was just going to relax and read this morning then in the meantime I got your blog to read. Really good one.
    regards
    sears parts
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    Great post. I especially found it interesting. For this matter, once I discussed with one of my friends, not only about the content you talked about, but also to how to improve and develop, but no results. So I am deeply moved by what you said today.
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    You are so missing the point. Aside from content-owners looking to launch their content in Ceros format, the Ceros site exists solely to showcase the technology. It is nothing to do with generating traffic in its own right. Anyone using the Ceros platform chooses exactly where their content is published and how that content is distributed. In the case of catalogues, the traffic is clearly important - not for statistics in the auditing sense, but for conversions into sales. Thats it. Simple. This is why Sears - the biggest catalogue retailer on Planet Earth has adopted Ceros as the platform from which to publish catalogue content and integrate directly with the e-commerce systems. Why? because they work. They sell product. Simple. With regard to the magazines to which you refer, there are over 700 titles in Ceros format - some of which are indeed B2B - but fastest growth is bar far in magazines designed specifically for the format. They only exist online. Such magazines are subject to the same stringent audit techniques as used on 'traditional' websites. Their growth is based on the unparalleled power of the ad format to actually engage. With click-through rates on banner ads now around 0.2%, ads in the Ceros format typically achieve over 25% No contest.
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    whoa, thanks for the heads up.. you have clarified lots of things..
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    Thanks for the comment Dominic, I wasn't intending to have a dig at Ceros because I assumed Google Alerts would come to the rescue - my point isn't to say that Ceros is inflating traffic statistics for some nefarious purposes. I realise that the Ceros website exists as a technology showcase, which is why I say "if they were running an aggregated magazine website" which for all intensive purposes you are not.

    I was just trying to find a live example of domain naming strategies that inflate visitor statstics, which I'm sure you would agree, that by having client magazines hosted under your domain inflates your real visitor statistics and affects their SEO.

    You also say that "the traffic is clearly important - not for statistics in the auditing sense, but for conversions into sales" which reinforces my point that I close with "it doesn’t matter how many visitors a particular website gets; yours or your advertising supplier - what matters is how many of the right visitors did your message get?"

    The inflated visitor statistics are only relevant in a sales environment on "an aggregated magazine website".

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