Tuesday, 23 April 2013

Solving the Search vs. Display Advertising Quandary Article

This was an interesting article.
Solving the Search vs. Display Advertising Quandary
You can see the entire article at
http://hbswk.hbs.edu/item/7230.html

What I learned

The advertiser was a bank.
THE GOAL WAS TO ACQUIRE NEW CUSTOMERS & OPEN CHEQUEING ACCOUNTS.

The article did not show the formulas or any raw data but there were a few conclusions.

The dirty little secret of advertising agencies is that much of their work is pure guesswork.

The return on advertising may not be quite so easy to calculate as not all online advertising is the same.

The results from search queries can be translated directly into clicks and purchases by placing a product before customers at the exact moment they are making a purchase decision.

Display ads, such as banner ads on websites, are much more visible but are less likely to translate into direct clicks.  However - display ads actually did affect the number of people who eventually clicked on search ads and became customers. An increase of 5 million display ad impressions resulted in an additional 20 checking account applications through search after about five weeks.

The researchers found that in the long run the cost for each bank account application for search ads was $38 and the cost per application for display ads was actually $57.

Now someone has to research the wording - if the same wording is used in a display and search ad - what are the conversion comparisons.

more later

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