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Boosting Digital Advertising's ROI

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Most companies are not maximizing their effectiveness in digital advertising. Through advanced targeting and engagement techniques, companies can deliver content that is relevant to consumers' interests, enabling brands to engage consumers at scale. Read the full report: http://on.bcg.com/138mzc3

Published in: Marketing, Business

Boosting Digital Advertising's ROI

  1. 1. But most advertisers are missing out on big gains in performance Compared with standard digital-display-advertising campaigns, campaigns that used advanced targeting techniques led to: $200 billion Money is pouring into online advertising Globally, digital-advertising revenues are forecast to surpass $200 billion in 2017 BOOSTING DIGITAL ADVERTISING’S ROI 200% 50% improvement in cost per action (CPA) 32% better CPA in some instances 70% reduced costs (per click and per view) All achieved with no loss of campaign reach or scale better action rates for clicks and view throughs Advanced targeting and engagement techniques represent a step change in digital advertising’s effectiveness The evolution of online advertising Advanced targeting helps identify groups of consumers that are more readily and deeply engaged One bank in the study used advanced techniques to target more engaged consumers during a five-week campaign A case study in advanced targeting Footnotes: • The study analyzed digital-display-advertising campaigns for five large North American and European advertisers. Each advertiser’s campaign was split into control and test groups.Campaigns that targeted the test group included advanced techniques; campaigns that targeted the control group did not. • Source for online advertising revenues:Magnaglobal June 2014,Global Forecast Model. • This infographic is based on the BCG report Adding Data,Boosting Impact:Improving Engagement and Performance in Digital Advertising, which was commissioned by Google. You need all 3 to get the best performance Site-based targeting: Displays ads based on the content of the website (good for scale); e.g.,categories and keywords,site-specific buys Standard behavioral targeting: Displays ads based on consumers’ previous online behavior (good for specificity); e.g., remarketing from website, third-party lists Advanced behavioral techniques: Work across digital channels and are even more data driven (good for both specificity and scale); e.g., look-alike lists, video/search remarketing, behavioral analytics Spent an additional 30minutes browsing Done right, digital-display advertising delivers content that is relevant to consumers’ interests and intentions at that moment— enabling brands to engage consumers at scale Bottom Line Adopting unified technology tools Making full use of the capabilities of digital talent Learning from the wealth of data Addressing fragmentation and removing complexity Embracing advanced techniques For advertisers and their agencies, better performance can be achieved by Compared with consumers in the control group, who were targeted using only standard techniques, these consumers: Visited more pages 14 Made additional site visits 7 Had a lower bounce rate 10% Read BCG’s latest insights, analysis, and viewpoints at bcgperspectives.com © The Boston Consulting Group, Inc. 2014. All rights reserved. To find the latest BCG content and register to receive e-alerts on this topic or others, please visit bcgperspectives.com. Please direct questions to socialmedia@bcg.com.

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