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Google Enhances Its Ad Measurement Tools

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Google and Facebook enhance ad measurement tools

When brands invests large sums of money to put up online advertisements on an internet platform, the most important thing to know is how the ads are faring. Are the ads being seen by real people? What’s the proportion of people who are actually taking action on the ads? For retailers, the most important thing is whether or not the ads are enabling users to visit their stores.

Until now, advertisers faced these measurement problems. However, the Internet industry made technological advances in the ad measurement tools. For example, Google (GOOG) (GOOGL) added the “estimated store visits” metric in December. The metric helps advertisers understand if their ads are effective.

Facebook (FB) also relaunched its Atlas ad server a few months ago. Atlas helps advertisers improve their online campaign measurement and achieve a better return on investments by providing relevant ads to users.

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Google’s enhancements are helping retailers

During the 4Q14 earnings conference call, Google’s management mentioned that ULTA Beauty, PetSmart (PETM), and Famous Footwear could all understand the effectiveness of their search ads on Google. The above chart shows the percentage of clicks on search ads that led users to visit each of the retailers’ stores.

The “estimated store visit” metric was an enhancement to Google’s viewability report. It helped advertisers understand the effectiveness of their ads. Through these insights, brands can increase their viewability. According to Google, Kellogg’s (K) used its DoubleClick Digital Marketing product to increase its ad viewability by 70%.

To gain diversified exposure to Google, you could invest in the iShares Dow Jones US Technology (IYW). IYW invests about 4.35% of its holdings in Google.

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