SDNN Report: Impact Of Display And Search Advertising

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San Diego News Network summarized several large reports on the impact that display advertising has on search marketing.

San Diego News Network summarized several large reports on the impact that display advertising has on search marketing.

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  • 1. SDNN Report: Impact of Display and Search Advertising By Jeff Creps
  • 2. SDNN Report: Impact of Display and Search Advertising | Jeff Creps Display and Search Online advertising is a crucial component for product and service driven companies. It is estimated that 86% of internet users shop and browse online for purchase options and research that may end up in an offline purchase. In a recent study by Morgan Stanley 36% of advertisers said they favor using online media for their campaigns, a number significantly higher than any other form of media. In online media mber the two main formats available are search and display advertisements, both can be incredibly valuable but the most success comes from the integration of the two. Impact of Both Display and Search Advertisements 300% 250% 200% 150% 100% 50% 0% Source: Specific M Media as cited in press release, December 3, 2008 As seen in the chart above the average gain in search activity for the above categories was 144% when paired with display advertisements; compared to not advertising at all. In addition to more search ; activity, display ads have been shown to increase the click through rate on search ads by 25-35% click-through 25 according to Steve Kerho, VP of analytics at Organic. In a study by comScore Brand Metrix it was shown that when comparing to no ad exposure at all there was a 42% increase in purchase after seeing the display ad, 121% increase in purchase after seeing the % search advertisement, and a 173% increase in purchase when combining display and search ads. In a January 27, 2009, interview with eMarketer, Beverly Thorne, senior vice president of marketing at Century 21 Real Estate LLC, explained the search/display connection for her brand as follows: “Our own empirical results showed us that our online investments were performing substantively better at generating leads. From December 2007 to December 2008, we improved the efficiency of our lead generation by reducing our cost per lead over 60%. At the same time, we multiplied our number of leads by over 235%.” Beverly Thorne 235%.”- San Diego News Network | www.sdnn.com
  • 3. SDNN Report: Impact of Display and Search Advertising | Jeff Creps Brand Management Another purpose for display ads is brand management and the effects that it can have on the audience splay down the road. According to comScore Brand Metrix, when exposed to display ads there is an upfront 65% increase in site visitation from those exposed compared to those not. Also, there is an almost 50% Also, increase still visible up to a month after exposure compared to those not exposed to the ad. In a similar study done by comScore, it was found that display ads have a strong increase in driving traffic compared to the control. The study saw a 65% lift in site traffic, compared to the control, in just . , the first week of exposure, and after a month there was still a 46% lift. Also in the study by comScore . brand search saw a significant lift of 52% in the first week after exposure to the display ad. Both of re ad these areas would have been overlooked by the traditional statistics that only look at immediate actions, like clicks. As expressed by Carrie Frolich, Managing Director Digital at Mediaedge: cia, “Remember why you’re advertising. You are not advertising for clicks. What you’re advertising. advertising for is to sell me stuff or change perception, and that’s what we need to be measuring against.”- Carrie Frolich The source where the advertisement is positioned can also have an effect on the consumers’ willingness to listen. When studying the effectiveness of advertisements from different sources, comScore studied the top 50 news sites. They found that of the different categories in the study news site advertisements different performed the best. These sites saw a 26% increase in minutes on the advertiser’s site, a 41% increase in page views, and a 42% increase in dollars spent by the consumers who were exposed to the disp display ads. $400 $350 $300 $250 $200 Unexposed $150 Exposed $100 $50 $0 + 42% Top 50 News Sites San Diego News Network | www.sdnn.com
  • 4. SDNN Report: Impact of Display and Search Advertising | Jeff Creps Reaching Online Customers The internet has become an unmatched research tool for potential customers. Now more than ever internet users are researching online products with a high involvement or cost. Products and Services that Online Shoppers Research Significantly 100% 80% 60% 40% 20% 0% Source: Penn, Schoen, & Berland Associates, Inc. (PSB), “LinkShare TrendWatch Research: New Info Shoppers, Recession Buyersm and the 2009 Online Shopping Outlook,” January 30, 2009 As seen in the above graphic consumers are constantly searching for information on their purchase information decisions, but they will never know about a product unless they are exposed to it. comScore found in a found, study published in February 2009, that of the usual visitors to a site, 18% of those who were exposed to advertising searched the advertised brands and 29% went on to visit the advertiser’s site. The same study also found that these visitors were more engaged than the normal viewers as there was a 55% increase in minutes spent on the site and an incredible 51% increase in pages viewed by those exposed to the display ads. A reoccurring problem that many marketing executives have is not being able to measure the effect that online marketing can have on offline purchases. More than ever consumers are spending more time looking at content online rather than just using it for the communication methods as seen in the past. t McKinsey had a June 2008 study that estimated only 30% of executives even considered this impact. Along with a sharp increase in online sales, the combination of display and search advertisements has of been shown, in a study by comScore, to increase offline sales by 119% per thousand customers exposed. Also, comScore has done research that showed for companies with both online and offline sales approximately 68% if the impact from display advertisement was seen offline. f About San Diego News Network At San Diego News Network, we’ve created a local site that covers our region and engages our viewers. We are curious, optimistic and independent, not something you see every day from a news source. We like to help businesses. We hope you enjoyed this r report. Go to www.sdnn.com/bizsoup to follow our blog for more reports and helpful business advice. We’d love to help you with your marketing strategy. Please contact advertising@sdnn.com to learn more about how to reach your customer with ertising@sdnn.com our suite of products. Jeff Creps can be reached at jeff.creps@sdnn.com. San Diego News Network | www.sdnn.com