> The primary business objective of advertising for companies such as mine is to build brand awareness, product benefit awareness and brand identity (eg. are you partial to Coke or Pepsi? Nike or Addidas? etc). Doing this will influence your purchase when you next shop for our categories (eg. your next shopping trip to Walmart or Amazon). Note that we are looking to influence a future shopping trip, any "digital conversion" we may get (eg. click thorough to our product page or an online retailer) really is pure gravy from our point of view.
How do you calculate ROI for the ad spend? How do you figure out if you targeted correctly? For instance, I'm highly unlikely to buy either nike or Adidas, so I'd be a poor target.
For absolute spend ROIs and the like, we typically prefer building market mix models these days though we keep experimenting with others.
On our scale, quality of targeting is something we trade off vs reach. The relationship is often non linear - say you get 10 million reach at an expensive CPM but very high accuracy vs. a 100 million reach that is cheap CPM but has half the accuracy, we'd might be better off putting money in the second bucket.
How do you calculate ROI for the ad spend? How do you figure out if you targeted correctly? For instance, I'm highly unlikely to buy either nike or Adidas, so I'd be a poor target.