Display Advertising - Squashing Misconceptions for a Higher Return on Investment
If the basic goal of advertising is to reach the largest network of in-market customers, don’t you want to achieve advertising’s ultimate goal: to guide your in-market customers all the way through the decision making process? Of course you do.
What if you could guide them through their purchase for a fraction of the cost of traditional media? Now that would be a coup.
There is no more powerful a way to stay in front of your in-market customer – in this case a shopper with the intention to purchase an automobile - while maximizing your advertising dollars and your brand than through display advertising. The problem is that several misconceptions exist about display advertising and those misconceptions may be keeping you from seeing higher results in your own showroom. Let’s address those fallacies:
1. There is no room in my budget for online display advertising.
Reaching a targeted digital audience costs a fraction of what it costs to reach a broad audience through traditional media. Because digital is the only tactic that offers accountability back to the ad, it is the most cost-effective advertising medium. Further, the impact display advertising has on an in-market digital user is much greater than that of traditional “reach and frequency” campaigns because the ad being viewed addresses a specific need of the user. A properly managed digital campaign, used in tandem with a powerful offline branding campaign, is the most effective way to gain market share.
2. It is impossible to measure the effects of display advertising.
Measuring the absolute impact of any advertising is challenging, but digital display allows the ability to measure the vast majority of its impact. There are two types of impact from display: offline and online. Consider the offline response of a display ad to be walk-in floor traffic or phone calls not directed from your website. Measuring these types of offline response is nearly impossible due to the anonymity of the online user. However, using coded offer redemptions can provide some measure of offline response. The online value of display is very measurable and can present insights into the impact of your message, as well as the users’ intentions. The most basic of measurements is “Click Through Rate” but the digital world is constantly evolving with new ways to measure success including “Key Site Activities,” and other touch points that lead to a conversion. Let’s not forget, if a certain message or creative isn’t performing well, digital also gives you the opportunity to practice real time optimization and messaging updates, unlike traditional. Once you determine first the objective of your display campaign, quantifiable measurements will follow.
3. Clicks = Leads
This is a common misconception; the truth is that clicks on an ad do not necessarily equal leads. While clicks are great indicators of the effectiveness of the message you are presenting to the user, time on site and key site activities are better indicators of potential leads. Remember, while a user may click on your ad, until they call your company or send an email they are anonymous to you. As discussed earlier, offline traffic may be the direct result of the user’s exposure to your display advertising. Consider also the lift you see in your search campaign as a results of the display advertising.
4. Display advertising is unnecessary because my search campaign is enough.
A recent study conducted by comScore shows that a well-optimized display advertising campaign, can significantly lift your search activity; specifically in the automotive category, there was a 144 percent lift. Through display your audience is learning what to search for; therefore, they have your brand top of mind when they go to make a search. In addition, display reaches people when they are researching or when they are on a lifestyle page. Search ads are purely direct response; the person has to already know what they are looking for. You are reaching those at the top, the middle and the bottom of the research funnel when they search for your store and make the call for an appointment.
5. Display advertising placement is too random to be effective.
Display advertising is very targeted. Your audience isn’t a mystery anymore. We now know where the in-market, engaged shoppers are. Shoppers engage in various behaviors while in-market for an automobile. Using banner advertisements allows you to engage your audience while they perform in-market behaviors. Studies show that in-market shoppers spend about 5 percent of their online time visiting research-related websites. Advertisers display ads on these research sites to build awareness, relevance and conversion. The other 95 percent of a shopper’s online time is spent on lifestyle sites where the user views news, weather, sports, or email. Behavioral targeting allows you to serve ads to those in-market shoppers during the other 95 percent of their time online. Behaviorally-targeted ads find users when they are not as task-focused and generally produce greater conversions as a result.
If “every communication from a client to a potential customer is an investment in the brand” then communicating with an in-market digital user throughout the process should yield a much higher return for your brand investment. Getting a higher return for a much lower cost only makes sense. Display advertising has the ability to provide that return and help you achieve your goals. And, honestly, don’t you want to achieve advertising’s ultimate goal?
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