Several factors have combined to put pressure on the billions of dollars spend on traditional brand advertising — TV above all — to demonstrate “engagement” (i.e. what’s the ROI of all that money we’re spending?):
1. Mass advertising of mass brands is dying
2. Audiences are fragmenting at an exponential rate
3. The share of media time spend online is rapidly growing
4. Online video has arrived
5. Google has made billions on direct response advertising, finally realizing the promise of the Web to revolutionize advertising ROI measurement
So the problem I have with the working definition of “engagement” — “turning on a prospect to a brand idea enhanced by the surrounding context” — is that it obfuscates the real issue:
How much so companies profit in the short term and/or the long term from the billions they spend on brand advertising? In other words, show it to me on the P&L statement!