Digital advertising offers advertisers a way to measure results and ROI on sales-related and performance-oriented objectives. It also allows easy adjustments and optimization during the campaign based on results. However, relying solely on “clicks” and “CTR” as a measurement is misleading, especially dealing with branding and awareness campaigns.
Think about when you create a television, print or even radio campaign – any campaign using traditional mediums. Are you able to track accurately and precisely the ROI? Generally, advertisers buy into these based on reach, frequency and exposure. Consider this for online advertising. However, online advertising can take it to the next level.
With behavior targeting, geo-targeting, remarketing and other useful tools, advertisers are able to effectively and efficiently target their preferred audience with their message at a much lower cost than television advertising. Online digital advertising also allows for rich media and video formats, which result in higher a higher rate of engagement.
Digital advertising effects the entire purchasing funnel. Whether clicked or not, online display advertising has significant impact on brand awareness, brand perception, and sales both online and off. Here are a few statistics based on recent studies in how online display advertising contributes to various stages in the purchase funnel:
- A study by Eyeblaster in 2010, concluded that 72% of conversions arrived as a direct result of display campaign(1).
- comScore reported that advertiser’s web site visits were lifted by 46% and search for brand increased by over 38%(2).
- comScore found that online display ad led to an average rise of 27% for online sales(3).
- Nielsen conducted a study that found a 32% average increase in offline sales(4).
- Brand awareness increased by 3% with one contact, while six or more contacts led to 31% increase in awareness(5).
Adding emphasis on digital within advertising campaigns and into the media mix has shown significant impact on branding and sales. Multi-media campaigns can achieve a high lift because of multiple contacts with identical advertising messages. By using multiple avenues, you are able to provide consistency across multiple channels that will complement and reinforce your message.
- Search & Display: Reach Beyond Keyword, 2010 (Eyeblaster)
- How Online Advertising Works Wither the Click, 2008 (comScore)
- Wither the Click? 2008 (comScore)
- Net Effect US, 2009 (Nielsen)
- Get Smart Case Study, 2009 (Microsoft)