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

A recent study conducted by consumer web analytics provider iPerceptions Inc. revealed that consumers online are more likely to click on traditional display advertisements than other types of interactive advertising. The study found that 25% of respondents were likely to click on simple text ads, 20% were likely to click on right banners, and 12% were likely to click on top banners.

User-generated feedback from over 14,000 visitors indicated that despite the hype, marketers do not need to focus on video in lieu of traditional interactive formats such as text and banner advertising. Only 11% of consumers said they were likely to click on video ads. They were all under the age of 25.

“Retail groups are predicting the toughest holiday season since 1991, so marketers need to make sure every dollar spent on advertising delivers an end result,” said Jonathan Levitt, vice president of marketing at iPerceptions. “Our research shows that inexpensive banner and text ads are still preferred among web consumers. By having a direct dialog with consumers, we are able to know – with certainty – what consumers want and expect from their online experience.”

Marketers looking to re-distribute or tighten budgets don’t have to worry. With a traditional online display advertising campaign as part of their marketing mix, they’re sure to not only reach engaged consumers, but reach them when they are most interested. Add to this finding the ongoing proliferation of niche websites and the answer of where to go to reach your target seems simple.

Go to the targeted sites that deliver loyal, involved audiences and invest in display advertising.

Rachel