THE USE OF MANAGEMENT DASHBOARD IN MONITORING THE EFFICIENCY OF THE INTERNET ADVERTISING CAMPAIGNS ILLUSTRATED ON THE EXAMPLE OF GOOGLE ANALYTICS

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ISSN 2083-8611 Nr 296 · 2016 Informatyka i Ekonometria 6

Artur Strzelecki

University of Economics in Katowice Faculty of Informatics and Communication Department of Informatics

artur.strzelecki@ue.katowice.pl

Piotr Ziuziański

University of Economics in Katowice piotrziuzianski@gmail.com

THE USE OF MANAGEMENT DASHBOARD IN MONITORING THE EFFICIENCY

OF THE INTERNET ADVERTISING CAMPAIGNS ILLUSTRATED ON THE EXAMPLE

OF GOOGLE ANALYTICS

Summary: The paper discusses the use of management dashboards in monitoring the efficiency of e-marketing campaigns. The authors outlined the role of e-marketing in a contemporary organization, provided a definition of management dashboard and the key performance indicators pertaining to e-marketing. The research section characterizes the Google Analytics information panels and presents a case study of an advertising campaign run with their use.

Keywords: dashboard, e-marketing, Google Analytics.

Introduction

The visual perception of the human mind facilitates broader assimilation of data in comparison to the same amount of information expressed verbally. The Egyptian alphabet dating back as far as ancient times was a hieroglyphic system which used symbols to inscribe information. Presently, there is also a dynamic movement towards the creation and transmission of information through the

Małgorzata Furmankiewicz University of Economics in Katowice malgorzata.furmankiewicz@gmail.com

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The use of management dashboard in monitoring the efficiency... 137

graphical illustrations in both, the professional illustrations, i.e. infographics, as well as the ones created for amateur purposes like memes and video memes.

E-marketing applies graphics equally successfully. The visualization of data facilitates an easy to read presentation of many metrics which typically pertain to the current status of a webpage.

The information panels in Google Analytics are a tool to review how a given webpage operates. They can be designed specifically to aid the thematic de- scription of various areas of web analytics measured on the webpage. The web analytics enables the study of users’ activity on the site and provides information on who the visitor is, which source of internet traffic they come from, what they did on the page and if they performed the tasks prepared by the web analytics administrator [1].

1. The role of e-marketing in a contemporary organization

Electronic marketing, called e-marketing, originated and advanced through the popularization of the internet. Making the internet widely accessible induced a shift in the understanding of marketing communication [2]. The organizations began to employ the new medium for the purpose of promotion, brand recogni- tion, and communication with the customers. The use of the internet in marketing enables organizations to expand the consumer market of their products and/or services, as well as to provide the customers with additional information about their offer. Among the main benefits of the internet are the global broad- casting capability and reach, multimedia content and interactive mode of communication, the speed of data transfer and retrieval, limitless accessibility, and also relatively low operating cost [3]. Nevertheless, it should also be noted that the internet as the marketing channel has certain disadvantages, i.e. the internet services are not entirely safe for the users, the access to the web can be costly, and there is a risk of technical problems [4].

What should be emphasized is the fact that the basic marketing principles did not change along with the popularization of the internet. The customer trusts a good brand or a proven and reliable product. The companies compete with one another by using various tactics of the marketing mix. The implementation of the modern information technologies, however, developed new guidelines for business activity.

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In the internet marketing the companies use the traditional tools of the marketing mix, i.e. the 4P. This concept was proposed by McCarthy and it consists of four elements:

• product,

• price,

• promotion,

• place.

In practice it is an attempt to answer four basic questions [5]:

• What does the organization want to offer to the client and how does it plan to make their offer stand out against the competitive ones?

• On what financial terms can a given product (and/or service) be purchased by the buyer?

• How does the organization plan to inform the customer about their offer and persuade him to buy their product?

• Where and when is the product going to be on offer and how will it be delivered there?

The internet permits to consolidate all the listed marketing mix elements. In an instant the customer can look at the product, learn about its properties, com- pare the prices, choose the most favorable offer, and, as it is in the case of e-products (e.g. eBooks, software) purchase them online [6].

Another marketing classification is the concept of 4C, which is more consumer-oriented. The 4Cs concept consists of the following elements:

• customer,

• cost,

• communication,

• convenience.

This concept shows the role of the consumer in the buying decision process, as it is his decision whether to purchase a product or service [7].

Figure 1 shows the changes that have been introduced in the organizations following the popularization of the internet and e-marketing.

To sum up, the organization which uses e-marketing tools in its business activity can derive considerable benefit. E-marketing is valuable in expanding the present and seeking the prospective outlets, lowering the costs of customer service, as well as facilitating prompt reactions to the emerging customer needs. An effective implementation of the internet marketing tools by an organization gen- erates profit and cuts operating costs [8].

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Figure 1. Comparison of 4P and 4C concepts

Source: [6].

2. The definition of management dashboard and key performance indicators

E-marketing is most useful when applied together with the monitoring of the effectiveness of the implemented activities supported by the web analytics and comprehensible visualization of data. Well visualized data enhance the organizations’ decision making [9]. What can be used in the decision making process in this area are the so-called management dashboards, sometimes referred to as management desktops [10]. Management dashboard thanks to an easy to read interface enables instantaneous and informed decisions and provides support for the decision makers on various management levels in the organization [11]. The term in itself refers to the desktops/cockpits/control panels/dashboards in cars/on the planes, housing instrumentation and controls for operation [12].

Management dashboard, according to Stephen Few, is a visualization of most valuable information consolidated on one page necessary to reach one or more goals [13]. It is worth mentioning that this solution is also applied to gen- erate and supply the right information to the right person and at the right time,

The organization tries to inquire what

the needs of the customers are,

rather than concentrate on the product it currently

has on offer.

Customer

Product

The organization takes into account profit but also the costs borne by the customer with regard

to his business environment.

Cost

Price

The organization tries to communicate

with the customer.

Communication is the best way to learn about the customer's

needs - it goes beyond promotion.

Communication

Promotion

The organization seeks such ways of

delivering their products to the target market that will guarantee the utmost convenience to buy, and does not limit itself to the currently used places

of distribution.

Convenience

Place

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which results in improved decision making [14]. The main feature of dashboards is the use of the simplified, easy to interpret graphical forms [15]. Dashboards adopt such techniques as: pie charts, line charts, column charts, controls, me- ters/speedometers, lighting controls, icons (e.g. pointers), conditional formatting, spark lines, bullet graphs, tables, diagrams [16], [17], [18]. Management dashboard allows to display data in a clear and intuitive manner, which, in turn, results in the measureable increase in the corporate value [19].

It needs to be emphasized that the purpose of management dashboard is to display the Key Performance Indicators, KPI [20]. In web analytics the KPI can be, for example [21]:

• average number of views per visit (the number of views/the number of visits) within a specified period of time,

• average number of visits per user (total number of visits/the total number of visitors),

• average income per user (generated income in total/ number of visitors),

• percentage of the new visitors (the number of visitors/the total number of visitors).

These indicators should have the following features [21]:

• comparability with regard to historical values with the use of the selector icons informing about a decrease or increase of a particular measure,

• application of the intuitive conditional formatting (red color – an alarming situa- tion, green color – everything works as scheduled, yellow color – a warning),

• application of the percentage changes of the indicator with reference to the previous period,

• presentation of the KPIs effectiveness in terms of achieving a set goal.

It is worth adding that dashboards found use not only in monitoring the effectiveness of e-marketing, but also in many other areas, i.e. sale, finance, pro- duction, technical support systems and IT, human resources, e-health [22]. The selection of the right KPIs depends on the field of application.

3. Internet traffic sources

Every user visiting a webpage that tracks the activity of the visitors views the site coming from a certain source [23]. The sources of traffic are divided into six main channels from which the visitors viewing a web site come. The internet traffic channels are presented in Figure 2.

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Figure 2. Internet channels acquisition

Typically, the largest volume of the internet traffic is delivered by the internet search engines. The web sites visitors use them in search of the desired web pages.

The web analytics services have a list of hosts which they recognize as the traffic sources equal to search engines. Such a source, apart from the name of the host, has a specific parameter whose value is the keyword entered into search engine.

After entering the query into search engine, the presented results pages contain hyperlinks to target pages, however, following such a hyperlink is not counted as coming from another web site, but it will be indexed as using search engine. The choice of the listing from the result pages will be counted as the organic traffic. This means that the listings are retrieved by search engine’s algo- rithm, in no way connected with the sponsored links. The choice of the link marked as sponsored or an advert link will be indexed as the sponsored/paid traffic. Thus, the source of network traffic from search engines is divided into two subcategories: organic and sponsored (paid) [24].

The traffic from the social networks describe the movement to an internet site from one of many popular social media sites. Similarly, like in the case of internet search engines, the web analytics services have integrated lists of host addresses which are categorized as the traffic from the social network source.

The users of social networks spend a relatively long time on these pages and explore many hyperlinks that other users send in. Passing through such a hyperlink is indexed as the social network traffic.

The traffic from referrals is the traffic redirection from a domain other than the analyzed web site, and, at the same time, this movement does not originate in popular search engine or popular social network. The measurement which pre- cisely defines the source of the traffic is the name of the internet domain.

The direct traffic means the movement on the web site which was initiated in a direct way, and was not proceeded by viewing any other site. The direct

Internet traffic.

1. Search engines.

2. Social networks.

3. Referrals. 4. Direct visits.

5. Display advertising.

6. E-mail

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impressions are delivered when the user enters a homepage address directly into the browser navigation bar, uses the bookmarks from the browser, uses the links from the history of web browsing, or uses an external software with an activated hyperlink and active browser toolbar. The external software may be the electronic mail clients like Microsoft Outlook or Thunderbird, text editors or spread- sheets, as well as software for viewing PDF files, e.g. Adobe Acrobat.

The traffic channel described as display advertising contains data on the volume of traffic on the site by selecting the advertisement banner presented in the graphic form. The display advertising is usually placed within the contents of the site, but it is not treated as the referral traffic because it is not technically a part of this site, as it is only viewed from the dedicated advertising server. The display advertising traffic is identified on the basis of the additional information about its source provided by the advertising servers. Display advertising can also be connected with remarketing, i.e. communicating the advertising content by means of the cookie files installed in the browser [25].

The e-mail traffic is a separate channel. When e-mails are sent via dedicated systems it is described as email marketing. Mails sent through such a system contain a header with the information on the basis of which the web analytics system is able to track the traffic down to reading the mail in the email client.

Indexing the traffic in this channel is automatic and it does not matter if the mail was read and the hyperlink was clicked in the dedicated email program like Mi- crosoft Outlook or Thunderbird, or in the email client like Gmail or Yahoo [26].

4. Google Analytics as a web analytics tool

The visualization of data in the form of management dashboards is offered by Google within their internet tool for the analysis of the WWW services statistics. It is called Google Analytics [27]. This tool has been available free of charge since 2005 and is one of the most popular tools of this kind. It is the On-site Web Analytics tool which uses cookies and collects information on how the visitors found the site an how they interacted with it. Additionally, Google Analytics offers a wide range of reports [23], [28].

The purpose of Google Analytics dashboards is the presentation of indicators for the internet users’ visits and their activity on the WWW site. The indicators can be analyzed separately, and the dashboard can also be customized to meet the specific needs of a particular organization [29].

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Table 1 cont.

1 2 3 4 5 6 7

4 Dashboard – brand monitoring

Presenting social media traffic and observing how recognizable a given brand is due to the organic traffic

Social media

Social media analyst

Yes, dedicated

Yes, indirectly

5 Dashboard – social media

Delivering collection of data about the number of impressions delivered by social networks and the activity in the social data hub.

Social media

Social media analyst

Yes Yes, indirectly

6 Dashboard – tech data

Showing information about the technical aspects of mobile devices and web browsers chosen by the internet site’s viewers

Users’

devices parameters

Developer No Not applicable

Apart from the dedicated dashboards that can be made ready in Google Ana- lytics, these kinds of dashboards are employed in other SaaS solutions for the assessment of web traffic and visibility in search engines like, for example, SearchMetrics or Semrush. Management dashboard provides essential data which allow to monitor the effectiveness of the undertaken promotional activities that engage various channels of the internet traffic.

References

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KOKPIT MENEDŻERSKI W MONITOROWANIU SKUTECZNOŚCI KAMPANII REKLAMOWYCH

NA PRZYKŁADZIE GOOGLE ANALYTICS

Streszczenie: Artykuł omawia temat użycia kokpitów menedżerskich w śledzeniu sku- teczności kampanii e-marketingowych. Autorzy przedstawili rolę e-marketingu we współ- czesnej organizacji, zdefiniowali kokpit menedżerski i kluczowe wskaźniki wydajności w kontekście e-marketingu. W części praktycznej zostały przedstawione panele informacyjne Google Analytics oraz zaprezentowano studium przypadku kampanii reklamowej z ich wykorzystaniem.

Słowa kluczowe: kokpit menedżerski, e-marketing, Google Analytics.