Notes and Thoughts on Grocery 2.0

As online advertising becomes more measurable, marketers continue to focus on conversion rates as metrics for effectiveness. Conversion rates, while important metrics to consider in a campaign’s overall evaluation, often credit the user’s final action with the completed goal (purchase, registration, etc.). The problem occurs when a user takes a longer path to purchase: going online, clicking on a recipe display ad, searching for a different recipe, clicking on a sponsored result, and buying the necessary ingredients, for example.

The question becomes, how do you know which action caused the sale? Was it the display ad that initially sparked the user’s interest in finding a recipe? Or was it the search result that influenced which recipe was ultimately selected?

Most likely, the answer is both.

In a new study based on 12 months of proprietary Specific Media Ad Effectiveness research, backed by comScore, consumers exposed to display advertising were more likely to search for brand terms (i.e. product manufacturer) and segment terms (i.e. product category) than unexposed consumers.

“There is a connection between display and search ads. Marketers know this intuitively. Often it’s not the search ad alone that gets consumers to act, but the context of all the marketing that preceded it,” said eMarketer analyst David Hallerman.

The study proves what has long been theorized; display advertising significantly impacts both paid and organic searches and clicks, and, ultimately, search-driven sales.

“As advertisers look to control their media spend, measure impact and validate the effectiveness of their marketing efforts, strategies that lift organic traffic are invaluable,” said Chris Vanderhook, COO, Specific Media.

Advertisers looking to plan effective online media buys should incorporate both display and search advertising. Increase the frequency and variety of ways in which users are exposed to campaign messaging and improved brand favorability and greater ROI will follow.

Rachel

In a new report commissioned by the Online Publishing Association to determine how ad placements affect viewers, advertisements on premium content sites proved significantly more effective than those on general websites.

Out of the 47 different metrics the OPA used to compare effectiveness, niche content site placements performed stronger than average industry placements in every category.

“The results show that ads on what the OPA considers to be higher-quality ad environments are more effective with consumers”, said OPA President Pam Horan.

Independent analysis performed by Dynamic Logic MarketNorms found that brand awareness scores on OPA sites have increased 38% since July, while scores on ad networks decreased 19%. Brand favorability scores also increased to 27%, with ad network, portal and MarketNorms scores showing a 29%, 17% and 6% decrease.

“It’s an absolute fact with online advertising: environment matters”, said Horan. “In nearly every category measured, ad effectiveness scores on branded content sites were numerically higher than on the Web in general, on portals or on ad networks. Whether it’s the trust they engender or the audiences they attract, branded content sites deliver better advertising results.”

The study, the second in a series of OPA reports on ad effectiveness, proves the value of advertising on unique publisher sites with relevant content. With consumers favoring advertisements on niche sites like MyWebGrocer over advertisements on ad networks, advertisers can boost brand loyalty simply by re-thinking their online media buy.

Rachel