A new KPI for effectiveness

Article Dr. Lisette Kruizinga – de Vries – Senior Methodologist

Summary

To address the shortcomings of traditional research on determining the effectiveness of media, we have developed RPS. RPS is a new KPI that represents the real number of contacts that brands have with consumers. With clients we use RPS to plan media better. By determining a minimum and maximum level of contacts we are able to successfully implement an always on strategy. But using RPS gives more opportunities. By correlating this with brand-related KPIs we have found a new KPI that represents effectiveness. It makes it possible to compare brands, markets, periods and campaigns. The intention of this article is to understand the KPIs that are most impacted by advertising. The results show that there are basically significant relations among all marketing KPIs and RPS. However, we do observe differences per marketing KPI as to how important RPS is (i.e., which percentage of brands show a significant relation between this marketing KPI and the RPS). In addition, we also observe differences in the strength of effect across marketing KPIs. Therefore, we calculate the ‘RPS impact’ measure that takes into account the average strength of effect as well as how important RPS is for how many brands. The RPS impact is something that brands can expect when checking the relation between different marketing KPIs and the RPS. In that sense, brands can use the RPS impact as a benchmark and examine whether during campaign periods the RPS impact is higher. So, because of its sophisticated measurement and the fact that RPS shows significant and positive relations with many marketing KPIs, it can definitely be considered the holy grail in media and a new view on effectiveness.

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