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Web Metrics

by: Frederick Notetaker

Web Metrics MKTG 5721

Frederick Notetaker
GPA 4.0
Digital Marketing Strategies and Measurement
Ho Kim, Ph.D.

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About this Document

how to calculate web metrics, cases are only need for ems now as we are moving to google Online advertising instead of doing case presentations, I'll post the cases covered by the teacher later
Digital Marketing Strategies and Measurement
Ho Kim, Ph.D.
Class Notes
Web Metrics
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This 0 page Class Notes was uploaded by Frederick Notetaker on Thursday January 28, 2016. The Class Notes belongs to MKTG 5721 at University of Missouri - St. Louis taught by Ho Kim, Ph.D. in Spring 2016. Since its upload, it has received 88 views. For similar materials see Digital Marketing Strategies and Measurement in Marketing at University of Missouri - St. Louis.


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Date Created: 01/28/16
Web Metrics You can t manage what you don t measure Impression Pageviews Hits Rich Media Display Time Rich Media Interaction Rate Clickthrough Rates Cost per Impression Cost per Click Cost per Order Visits Visitors Abandonment Clickstream Bounce Rate Pageviews Hits Impressions Purpose To assess the traffic a website generates Pageviews The number of times a page on a website is accessed It is the number of times a page is displayed to a user Hits Hits measures file requests Because a webpage is generally composed of numerous texts graphics and multimedia files the hits a webpage receives is a function not only of pageviews but also of the way the page was composed by its web designer Impressions Page impression is the number of times that a page is displayed to visitors Ad impression is the number of times that an ad is served to visitors giving them opportunities to see it Hits measures file requests to a webpage This webpage consists of rich media files a lot of text files still image files etc As such hits is a function of the waythis webpage is designed As hits can be influenced by webpage design this measure is unhelpful and old fashioned Cautions Ad impressions quantify opportunities to see they do not take into account the number of ads actually seen or how much the visitors are engaged with the ad In particular impression based metrics do not account the following Whether the message appeared to a specific relevant defined audience Whether the people to whom the pages and ads appeared actually looked at them Whether the advertisement was clearly and easily visible below the fold ads Generally if visitors must scroll to see the ad they are less likely to be influenced by it Whether those who looked at the page had any recall of the page s content or of any advertising messages contained on it after the event Often pageview results will consist of data that include duplicate showings to the same visitor ads are easy to be seen ad below the fold and not easy to be seen Rich Media Examples httpswwwyoutubecomwatchv80ygSfXVT7Q Rich Media Display Time and Interaction Rate Definition of Rich Media Rich media is a term used for interactive media that allow consumers to be more actively engaged than they might be with a billboard a TV ad or even a static display web ad Rich media ads beat standard banners for clickthroughs and engagement DDDDDDD DDDh DDDh DDDh EDEN DDDDDDDDDDD The rich media display time It measures how long on average people spend engaged with the rich media DDDDDDD DDDh I II II II II I I II II II II II II II II II II I I II II II I o numb numb III DDDh II I Cautions Problem of averaging Ex if five people see the rich media display for one second each and one person sees it for 55 seconds the average rich media display time is ten seconds 51 5516 There is no way to distinguish this average display time from the average time generated by six moderately interested viewers each viewing the ad for ten seconds What counts as an interaction One important decision that has to be made in generating rich media interaction rate is what counts as an interaction For example how many seconds a visitor need to spend with the rick media to count it as interaction Interaction is not an end in itself Clickthrough rate Purpose To capture customers initial response to websitesads Advantage Clickthrough rate is easy to acquire Under current technology it is nearly impossible to fully quantify the emotional reaction to the websitead and the effect of that sitead One piece of information that is easy to acquire is the clickthrough rate Formulae CTR is the number of times a click is made on the ad divided by the total impressions of the ad lhl lh ohlhl Ex There are 1000 clicks on a website that serves 100000 impressions The CTR is 1 DDDDDDhDDDDh DEID o15000100000 Cautions CTR is expressed as a percentage Although high CTR might in themselves desirable and help validate your ads appeal companies will also be interested in the total number of people who clicked through Ex a website with a CTR of 80 This site seem highly successful until management uncovers that only 20 people visited the site A click is a very weak signal of interest especially for display ads Individuals who click on an ad might move on to something else even before the new page is loaded This could be because the person clicked on the ad by accident or because the page tool too long to load An analysis of how CTR changes as visitors navigate through various pages can help identify dead end pages that visitors rarely move beyond Clicks are the number of times the ad was interacted with not the number of customers who clicked An individual visitor can click on an ad several times The CTR should be interpreted relative to an appropriate baseline CTR for banner ads are very low and continue to fall In contrast CTR for rich media banners are relatively high Also CTR varies by industry Standard banners have low CTR CTR varies by industry Cost per lmpression Cost per Click Cost per Order Purpose To access the cost effectiveness of Internet marketing Cost per Impression The cost to offer potential customers one opportunity to see an ad CPM Cost per Thousand Impression is more commonly used M is mille the Latin for thousand DDDI ll Dhl Cost per Click CPC The average cost spent to get an ad clicked If the main purpose of an ad is to generate a click then CPC is a preferred metric DDDI I II Cost per Order CPO The average cost to acquire an order If the main purpose of the ad is to generate sales then CPO is the preferred metric DDDI I II Example Hypothetical Brooks Brothers spent 24000 for banner advertising on rottentomatoescom s main page which generated 12 million impressions l2400012002000 Example Not all impressions generate clicks Suppose only 20000 clicks were generated from the 12 million impressions ljlj2400020000120 Example Finally 1 in 10 of the clicks resulted in a purchase 24000 20001200 Caution Low CPM but high CPC An ad may look inexpensive in that it has a relatively low CPM But if the ad isn t relevant it will end up with few clicks and so a high CPC Badly targeted ads can be very expensive as measured by CPC The quality and placement of an ad affects both CTR and the resulting CPC Visits Visitors and Abandonment Purpose To understand website user behavior Visit Visits captures the number of times individuals request a page from a website for the first time ie the first request triggers the visit Subsequent requests from the same individual do not count as visits unless they occur after a specified timeout period which is the period of inactivity from the time of entering the site to the time of requesting a new page Timeout period is usually set at 30 minutes Known as session in Google Analytics httpswwwgooglecomanalytics A visit can consist of a single pageview or multiple pageviews One individual can make multiple visits to a website Unique Visitors Visitors captures the number of individuals requesting pages from the firm s website service during a given period Google Analytics refers to these as users A visitor is sometime referred to as a unique visitor or unique user to clearly convey the idea that each visitor is only counted once Because a visitor can make multiple visits in a specific period the number of visits will be greater than the number of visitors Relationship Among Hits Pageviews Visits and Visitors The number of hits is greater than or equal to the number of pageviews because a webpage may consist of multiple files The number of pageviews is greater than or equal to the number of visits because multiple pages may be requested during one session The number of visits is greater than or equal to the number of visitors because a user can make multiple visits to a website Example Relationship Among Hits Pageviews Visits and Visitors Suppose that a visitor enters an online newspaper website on Monday Tuesday and Friday In her visits she looks at a total of 20 pageviews Those pages are made up of a number of different graphic files word files and banner ads The rick media interaction rate It tracks how actively involved potential customers are with an advertisement Advantage of Rich Media The ability to viewers to interact with it Marketers using rich media can have a much better idea of potential customers reactions to an ad because these interactions are counted They can monitor whether potential customers are simply passively viewing the media or actively engaged by taking some action A user who interacts is showing evidence of being more actively engaged and is thus probably more likely to move toward conversion adform digital advertisingbenchmark report2015 1hypdf RTBTrendReport022015pdf The Forrester Wave Web Analytics 02 2014pdf Chapter 1 Learning Objectives After reading this chapter students should be able to Describe how computers and servers communicate to enable people to interact with webpages on the internet Name the three objectives of a website Evaluate a website s performance on its three general objectives and identify specific areas for improvement If you have any role in running a website whether the website is large or small whether the website is the whole business or only part of a larger business whether your role is central or peripheral to the website then understanding of the various principles of internet marketing will help you do your job better The goal of this book is to provide you with an understanding of internet marketing that is up to date thorough and succinct Because this book is hosted online content is periodically updated so that everything in it reflects the most recent best practices in digital marketing Though no single book could possibly cover every valuable topic in internet marketing the topics covered in this book represent the vast majority of internet marketing expenditures meaning that they also represent the skills used by the vast majority of people who work in internet marketing jobs Each chapter is short and to the point providing you with the requisite knowledge and understanding without excess verbiage In keeping with this goal of succinctness this introductory chapter provides a wealth of important background knowledge about the internet and about various types of websites To avoid future confusion this book does not assume you have any prior knowledge about the internet or internet marketing As a result some of this chapter may seem basic but you will gain valuable knowledge by reading it irrespective of your current knowledge The first section of this chapter Technical Terms discusses technical aspects of the internet and provides an understanding of many terms that will be used throughout the book The second section Successful Websites provides a broad framework for evaluating the success of a website of any kind Consider an internet user we ll call him John who goes online to purchase a Blu RayDVD combo pack for a recently released movie He goes to amazoncom searches for the movie puts the movie in his shopping cart checks out and two days later the combo pack arrives in the mail This entire set of actions would have seemed miraculous only 20 years ago but today this is typical behavior It is so typical in fact that many do not recognize the complexity that underlies each step of this procedure For example for Amazon s homepage to show up on John s browser all of the following things occurred John typed in amazoncom or httpamazoncom or httpwwwamazoncom or wwwamazoncom This is the URL Uniform Resource Locator for Amazon s homepage indicating which webpage John wants to display Amazoncom is also a domain name the name of a website Each of the thousands of pages within the Amazon websitedomain has a unique URL The URL is converted to an IP address Internet Protocol address the Internet Protocol is a standardized set of procedures for locating computers connected to the internet and for transferring information from one computer to another The information request for Amazon s homepage is sent to Amazon s server a computer connected to the internet that fulfills information requests to the website Along with this information request John s browser also sends any data from any Amazon cookie stored on John s computer A cookie is a unique identifier that Amazon placed on John s computer during one of his previous visits to amazoncom so Amazon could remember him Though some privacy advocates attribute sinister intentions to these cookies cookies are typically used to tailor the website experience to each user Amazon can better recommend products John might like based on his browsing and purchase history Amazon s server receives the request for the homepage along with the cookie data and processes this request using a dynamic server side programming language Java C Perl and PHP are examples The server will also retrieve information about John s past behavior on the site from a database This process creates HTML hyper text markup language and Javascript code that will be sent to John s computer Both HTML and Javascript are client side coding languages that web browsers software that displays webpages lnternet Explorer Firefox Chrome Safari Opera process to display webpages Amazon s server sends this code to John s computer which has its own IP address John s browser processes this code to display the homepage on his computer These steps are illustrated in Figure 111 below Figure 111 Note that this entire procedure had to take place just for John to see Amazon s homepage Once the homepage is displayed John searches for the movie alternately he could have navigated through Amazon s category links until he found the movie and finds the product he seeks Note that every action John takes on amazoncom uses the same procedure just illustrated of making a request to Amazon s server and a response from the server sent back to John s computer When John finds the movie he clicks the Add to Cart button which places the movie in John s shopping cart software that stores shoppers product requests When John checks out his credit card and other personal information is sent using transport layer security TLS an encryption method to prevent eavesdropping from third parties its predecessor was called secure sockets layer SSL Because of Amazon s size it owns thousands of its own servers to respond to all of the internet users wishing to browse its site and make purchases But servers are expensive and it is not cost effective for every person who wants to start a small website to own hisher own server Instead most people start a website using a web hosting company like GoDaddy or Dreamhost Web hosting means providing server space for others to run a website 80 instead of buying a server someone starting a small website will rent part of a server from GoDaddy for a fraction of the cost of the dedicated server Chapter 1 Section 2 Successful Websites Regardless of the type of website one runs that website39s success is measured according to how well it meets the following objectives 1 generate traffic visitors to the site 2 drive conversions entice visitors to engage in some type of desired behavior and if the owner wants to earn money from the website 3 generate revenue This framework for evaluating websites is a useful tool for determining actions that will be most beneficial for the success of a website Traffic Websites get three types of traffic visitors 1 direct traffic eg an internet user types the website s URL directly into the browser 2 referral traffic eg an internet user clicks on a link to the site from another site and 3 search traffic an internet user clicks on a link to the site from a search engine results page though this can technically be considered referral traffic search traffic and referral traffic differ from one another in many ways and so are considered separately Direct Traffic Most websites earn little direct traffic Direct traffic comes either from offline advertising activities someone sees a billboard or television commercial featuring the website s URL and later visits the site directly or from habit a sports enthusiast goes to espncom for his daily sports news fix Most websites cannot afford to advertise offline and so don t earn direct traffic this way And because most websites do not have enough content to merit repeat visits they typically do not generate habitual visits Referral Traffic Referral traffic can be further categorized into two subcategories paid and unpaid Paid referral traffic comes from banner text or rich media ads that a website has paid to display on other websites such as the ad for Belkin39s WeMo line of home automation products on the right side of cnncom s homepage shown below Figure 121 Chapter 6 of this textbook Online Advertising provides training on generating paid referral traffic Figure 121 Unpaid referral traffic refers to any visitors that come to the website from any links that are not paid for as in Figure 122 below which shows an article on gizmodocom about the WeMo line of products Within the first paragraph the author of the article included three links to the WeMo section of Belkin39s website the blue text links Figure 122 Chapter 4 of this textbook Off Site Search Engine Optimization will discuss tactics to earn links from external websites for purposes of ranking well on search engines but an additional benefit of such links is that they can generate traffic for a website Search Traffic Search traffic can also be further categorized as unpaid and paid Unpaid search traffic is any traffic that comes to a site from clicks on the organic search results on the search engine results page or SERP whereas paid search traffic comes from ads on the search engine results page that accompany the organic results Below is a screenshot of the search engine results page for the search internet marketing The results highlighted in blue are paid ads a user who clicked one of these links would be categorized as paid search traffic for that website The results highlighted in yellow are organic results a user who clicked one of these links would be categorized as unpaid search traffic Chapters 2 through 4 of this textbook provide guidance for generating unpaid search traffic Chapter 5 Paid Search Marketing provides training for generating paid search traffic Figure 123 Conversion A conversion is a target action you wish visitors to take It is most easily understood in the context of online retail or eCommerce ln eCommerce a visitor has converted when heshe makes a purchase from the site The percentage of visitors who convert called the conversion rate is one of the most important indicators of a retail website s success Not all websites are retail websites however so a conversion can be defined in many different ways depending on the type of website In addition for some websites a conversion cannot be clearly defined The following table 1 21 provides the primary conversion for various types of websites along with several alternate conversions for these websites Table 121 Website Type Primary Conversion Secondary Conversions Retail eCommerce Purchase Create account Sign up for emails Pay for premium account Lead generation Lead Phone call or form submission Sign up for emails Search engine Booking eg hotel reservation Click on ad Sign up for emails Media Engagement Page views Video views Create account Social Media Create account Content creation tweet post Content interaction like favorite re post Affiliate marketing Click affiliate link Purchase Marketplace Posting item for saleMaking a purchase Create account Retail eCommerce A conversion for a retail website is straightforward the visitor makes a purchase This type of conversion is the primary one for which all retail sites strive But many retail sites also attempt to entice visitors to engage in other profitable behaviors A visitor who creates an account on the site is more likely to come back and make purchases later thus many retail sites try to get visitors to create an account with them as can be seen below neweggcom allows new users to register from the homepage and it also allows new customers to register during the checkout process A profitable way to entice customers to make more frequent purchases is to send them emails about products so many retail websites try to entice customers to sign up for their email list as neweggcom does from the EMAIL DEALS tab A few online retailers like amazoncom and neweggcom have premium memberships that cost an extra annual fee for additional benefits such as free shipping as the top banner which advertises Newegg Premier shows Figure 125 Lead generation As the name clearly states a lead generation website s goal is to generate a lead A lead is an inquiry from a potential customer into a business s products or services For example a plumber would not be interested in selling anything on his website but he would like potential customers to call to hire him for a job Any call that comes from his website would be a lead Alternately he could provide a lead form on his website where potential customers could fill out their contact information for him to contact them later In some industries the sales cycle can take a long time so businesses need to nurture leads by providing them periodic information about their company and services Thus some companies may also want to entice potential customers to sign up for their email list Search engine A search engine like Expedia makes money when a user books a hotel or flight on its site thus a booking is the conversion Expedia wants Because Expedia can often achieve additional bookings by sending emails out to users with special deals on flights hotels or vacation packages a secondary conversion is to get users to sign up for these regular emails Google and Bing make money when a user clicks on an ad thus an ad click through is a conversion for those search engines Media Of all the different types of websites media websites have a conversion that is most difficult to define Media websites make money by exposing users to advertisements and they can expose users to more ads and thus make more money if they can keep users engaged For many media sites engagement means getting more pageviews typically by encouraging visitors to view more pages within a visit For other media sites this means enticing users to watch more videos For some media sites especially those with content that resides behind a paywall such as Hulu Plus and Netflix a conversion is more straightforward entice users to sign up for a paying account Social Media Before a person can use a social media site heshe must create an account so a new account creation is a conversion for a social media platform Once the platform has reached a large number of users it still wants to continue getting new accounts but it also wants its current account holders to remain engaged which happens when they interact with content Like a status retweet something or pin something or create content post pictures create a pin etc Affiliate Marketing Affiliate marketers make money when a visitor clicks on one of their affiliate links and buys something on the destination website Because the affiliate marketer can only directly influence the click a click through is its main conversion But by attracting the right kind of traffic an affiliate marketer may also be able to exert indirect influence on the amount of purchase that occurs after the click so a purchase is a secondary conversion Marketplace Ebay and Craigslist don t sell anything themselves but they provide a platform for buyers and sellers to come together for these exchanges Nothing can be purchased if sellers do not post something for sale but buyers are equally important so both actions are primary conversions As a secondary focus account creation is also an important behavior marketplaces need from users Revenue Revenue comes as a result of generating conversions An eCommerce site does not usually sell things for free so revenue automatically accompanies every purchase If a company can close a percentage of the leads its website generates it will earn money from those leads If a media site can create user engagement it can earn money by allowing advertisers to reach those users If revenue occurs automatically with these conversions why do we measure the success of a website through revenue and not simply through traffic and conversions First because the goal of a website is typically but not always to make money the amount of revenue generated is the primary measure of success Second a website with a high level of traffic and a good conversion rate can often improve performance by focusing on increasing the average order value or the amount of money each conversion yields so it deserves its own area of focus Retail A retailer can increase average order value by encouraging customers to purchase higher priced items or by encouraging add on purchases Both routes can be successful A software company that offers a standard software package for 99 and a deluxe version for 149 should do everything in its power to encourage visitors to buy the deluxe version Retailers like Amazon invest lots of money into research on product recommendations in the hopes of encouraging more add on items to go with every purchase Lead generation Maximizing revenue is best accomplished by closing a more lucrative deal which occurs outside the functioning of a website Thus the manager of a lead generation website should focus on traffic and conversion Search engine A search engine such as Expedia often earns a larger fee for some hotel bookings than others so it might order hotel results in a way that encourages these more lucrative bookings Meanwhile Google and Bing place the most lucrative ads in the best positions to maximize their revenue Media In general advertisers are willing to pay more to advertise to targeted audiences so if a media company can learn more about its users and more specifically learn what kinds of advertisements are effective with its users it can charge its advertisers more Also certain advertising formats might be more effective than others so learning which ad formats generate more clicks can increase media websites revenue Social media Social media platforms know a lot about each user because users divulge a lot of personal information If advertisers can use this information to more effectively target likely customers the platform will earn more from advertisers Affiliate marketing Providing links to higher priced items will generate more revenue if those products generate the same click through and conversion rates Determining the right product to link to can increase an affiliate marketer s revenues Marketplace Ebay charges a standard fee structure to every seller but it has Figured out a way to earn extra revenue by charging sellers to upgrade their listings or for supplemental services Other marketplaces can and do develop similar add on fees


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