Demystifying our ‘Performance Index’: Q&A with Anish Roy, Head of R&D at Media iQ
The hunt for deterministic variables driving superior performance which provides our clients & advertisers value at scale never ends at Media iQ…..
At Media iQ, we unlock insights to help drive business growth. With a clear vision of inspiring through insights, we are experts at ingesting large amounts of data, modelling data to convert into insights and then actioning these insights through a variety of products and services.
As leaders in programmatic advertising,we strive at optimizing campaigns and on delivering valuable insights. As companies in this area, face the challenge of enhancing performance, due to lack of transparency.
Anish Roy, Head of R&D at Media iQ throws more light on why we built the performance index.
What is Performance Index (PI)?
In the digital advertising environment, every ad campaign is unique in terms of its purpose, creative messaging, advertising medium and type of customers. An advertiser’s campaign targets vary, based on which part of the sales funnel they choose to influence. These targets or goals could vary between CPA, CTR, landing CPA, post click CPA, etc. As a programmatic partner, our goal is to then optimise advertiser campaigns and deliver against these targets.
However, simply optimising campaigns towards these targets might provide the performance, premium inventory and scale that is required. Moreover, secondary campaign targets such as clicks, in-view or parameters like brand safety, premium inventory etc, need to be considered.
So we questioned ourselves on what could be a deterministic variable for a good performance which can provide us value at scale.
Should campaigns only be optimised on advertiser provided targets, or is there merit in digging deeper? Can one metric help us provide a clear assessment of a value being “definitely” better than the others?
To answer these questions, we came came up with the idea of creating a ‘Performance Index’.
Media iQ’s, ‘Performance Index’ is a unified metric to determine performance through an amalgamation of multiple business indicators. It can be calculated for campaigns, geographic regions, publishers’, site domains, sellers, tag ids and more.
How does PI benefit our campaigns?
The objective of successful campaign management is to optimize campaigns towards multiple targets say CPA, CTR, CVR, CPM, or viewability. PI provides a single evaluation metric in comparison to looking at various KPI’s mentioned above. Several metrics are evaluated on volume, rate and consistency.
PI gives us the flexibility to adjust weights amongst multiple KPIs to solve different business problems.
For example, heavy weightage on just viewability might skew the inventory to viewable impressions, or weightage to consistency in CTR can help identify fraudulent inventory identification.
Performance index therefore, acts as an umbrella for all analysis done at every level of the campaign – be it pre-sales, sales, trading, or analysis. Performance index can be calculated for placements, domains, geos, sellers and publishers, thereby providing a holistic view, for campaign optimization.
What are the potential use cases of PI in the retail segment?
The PI methodology is not just restricted to the advertising world, the same philosophy can be applied to other industries as well. For example, the usage of PI can determine the performance of a retail chain store by analyzing the following Key Performance Indicators (KPI’s)-
- Footfall – Total, Seasonality
- Purchase – Total, Per person, Consistency
- Sales – Total, Sales per Square Foot, Sell Through Rate, Consistency
- Wage to Sales Ratio(WSR) and margin
- Time to purchase (to optimize floor design)
- Customer Satisfaction Score (CSS)
So if retail brands want to ensure a high customer satisfaction score along with a substantial footfall, PI can couple in both these objectives and help them accomplish this objective. It can even be extended to capture the sales component to give a full-fledged picture of a store’s performance.
Therefore, PI can not only automate the performance evaluation process, but also enhance the performance of a well performing campaign.
For more information or any queries on PI, contact us