Clifton asks, “Does anyone know how to calculate the media value for a post on Reddit?”
This question leads towards the metric that won’t die: ad value equivalency (or cost equivalence). AVE makes the assumption that if a post performs organically, then its performance should be benchmarked against what you would have paid for the same placement. AVE is bad for many, many reasons:
– Organic and paid user behaviors are different
– Organic and paid channels may occupy different parts of the customer journey
– Cost is not result
– Much better metrics exist
Can’t see anything? Watch it on YouTube here.
Listen to the audio here:
- Got a question for You Ask, I’ll Answer? Submit it here!
- Subscribe to my weekly newsletter for more useful marketing tips.
- Find older episodes of You Ask, I Answer on my YouTube channel.
- Need help with your company’s data and analytics? Let me know!
- Join my free Slack group for marketers interested in analytics!
What follows is an AI-generated transcript. The transcript may contain errors and is not a substitute for watching the video.
In today’s episode Clifton asks, Does anyone know how to calculate the media value for a post on Reddit? This question leads towards the metric that simply won’t die.
And that is add value equivalents are cost equivalents.
Cost equivalence functions have been around for a really long time.
And in the past, they kind of made sense.
They were originally intended to be used with newspapers.
And because newspapers charged advertising by the square inch.
And so if you had to pay for a square inch of an article, basically as an ad, and you got that square inch for free, you would say that you save that amount of money.
add value equivalence is not it’s not completely invalid, because there is some there is some opportunity cost, an opportunity cost is a real economic thing, right? If you don’t have to pay for something, you by default save that money.
But the reason cost equivalence is a bad choice for metrics is because it makes some very broad assumptions about the way customers behave.
Cost equivalents is based on the assumption that if if a post like on Reddit performs organically put it there organically, then its performance should be benchmarked against what you would have paid for the same placement.
That might have been true in an era when you only had like one newspaper, right.
But it’s now completely untrue for a variety of reasons.
Number one, you know, from your own behavior, that user behaviors are different for unpaid versus paid media, you are probably less likely to engage with a piece of paid media content, except under certain circumstances, right.
Most of the time, most people engage with organic content.
So the behaviors are different.
And you will see this if you do customer journey mapping with actual data, particularly digital customer journey mapping, which is something that I do a ton of, I will very often see the same channel, like Facebook, for example, or Reddit, in very different places in the customer journey, depending on whether it is paid or unpaid.
Typically, not always.
But typically, I will see paid be used to drive a lot of awareness, and then organic sort of help nurture and engage.
Other organizations see opposite behaviors.
They use organic produce I’ve awareness and paid to retargeting, but either way, the paid and the unpaid are different, right? They occupied different parts of the customer journey, they fulfilled different functions.
So you cannot do cost equivalents because the behaviors are different.
The third thing, the third reason why cost equivalents is bad, is because cost is not a result.
Yes, saving money is a result.
And if you have absolutely no other metric available to you, you can still use it just to say like we save this amount of money, but it is not a business result.
Right, it is not a this is what this campaign did for us.
It’s just this is what we didn’t spend on this, one of the bones I’ve had to pick with public relations professionals in the past is they would say, Well, you know, PR gets you placement that you would otherwise would have had to pay for it, yes, but you still had to do the PR, you still have to pay for it.
If you’re paying a public relations firm, you know, 10,000 a month you are still spending money, you’re just spending it differently, that’s all.
But cost is not a result.
Unless you are only measured on how much money you do or don’t spend.
If that’s the case, you might want to update your LinkedIn profile, because that’s not a particularly growth minded organization.
So cost is not a result.
And the corollary to that is that much better metrics exist.
Especially if we’re talking about a digital channel like Reddit, like Reddit, there is no other form of Reddit, right? You can’t use Reddit on on your telephone, like old school telephone, not a smartphone, you can’t use read in paper form, there is only the digital channel, which means that there’s a click stream, for the most part that is trackable.
And that you can see what did red traffic do on your website? Did it convert? Did you get goal completion out of it.
If your marketing automation, your CRM are well connected, then you should be able to trace trace trace and track that all the way down to read it gave us a customer or didn’t give us a customer or at least a sales opportunity.
And so you should be using, at the very least goal completions and Google Analytics as a benchmark for how did a post on Reddit to write if you get no goal completions.
And maybe you want a more advanced analysis to measure brand strength, and you get nothing, then there is no media value of Reddit, right? Just like there is no media value, if nobody clicks on your search result, or nobody engages with your social media posts, and goes to your site and fills out a form.
So you only use cost equivalence if there is nothing else at all right to measure.
And if there’s nothing else at all to measure, you have you have much bigger marketing problems.
The only other situation where costs equivalents is potentially usable, is if you have a non financial outcome to your marketing.
That means the most common case is a politician, right? A vote is a non financial outcome you to win the election or you don’t.
But there’s no metric of performance in that there’s no dollar amount to that maybe1 amount if you’re a corrupt politician take bribes later on.
But that’s another story.
But fundamentally, it’s a non financial outcome.
So you may have some cost equivalents there as a proxy, but at the at the end of the day.
The measure there really is you either want or didn’t win the election.
Other than that, there is for most businesses in most situations, there are business impact metrics that you should be focusing on instead.
So can you calculate a media value equivalents and add value equipments for a Reddit post? Yes, should you know absolutely should not instead focus on the results of drives.
If you have no results because there’s no tracking, make that the first thing you do is figure out how to do the tracking better, so that you can more easily determine the real value of the work that you’re doing.
As always, please leave your comments below.
Subscribe to the YouTube channel, the newsletter and if you’re already subscribed on YouTube hit the little bell icon to be notified when new video goes up.
New videos go up and I’ll talk to you soon take care what help solving your company’s data analytics and digital marketing problems.
Visit trusted insights.ai today and let us know how we can help you
You might also enjoy:
- Understand the Meaning of Metrics
- B2B Email Marketers: Stop Blocking Personal Emails
- How To Start Your Public Speaking Career
- Is Social Listening Useful?
- How I Think About NFTs
Want to read more like this from Christopher Penn? Get updates here:
Get your copy of AI For Marketers