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December 20, 2006
For most companies, advertising is a diversified part of their business. Most businesses don't just advertise in one place or in one medium. A combination of online, offline, print, television, radio, and other forms of advertising usually make up the entire marketing portfolio for successful companies.
The study compared page views, time spent at advertiser's sites, and conversion rates of over 1 million U.S. web surfers who were either exposed to search and displays ads together or separately. The findings, which I'll highlight in a moment, overwhelmingly suggest that the best advertising approach for internet marketers is a combination of search and display ads. Although search advertising may be all the rage these days, the recommendation of comScore validates a continued investment in display ads in addition to search ads. Specifically, the study found:
The findings are pretty hard to argue with. Granted, it's only one study. But with a sample size of over 1 million people, those numbers are probably pretty close to accurate. So before you pull all of your online advertising dollars out of one format and stick it in the other, roll 244% increases in purchases around in your head. Think of it like a battlefield: a split-front with two avenues of attack is usually more successful than a single, direct confrontation.
Comments:
1 Comment posted on "Don’t Put All of Your Ad Dollar Eggs in One Basket"
Matt on February 23rd, 2007 at 9:22 am #
Dear Matt/Derrick, This article brought up something that I have been thinking about. I recently was asked a question that seems simple enough, and it is basically the ultimate axiom of internet marketing. Yet there has been very little research done on this. (That I can find). Do you know of any research that has been done? Would you be willing to point me in the right direction or pass this along to someone who can study it? How many units of impressions and/or clicks and/or conversions does it take to have enough data to say that the results are statistically significant so conclusions about performance can be drawn? In other words, what is the smallest sample size of impressions and/or clicks and/or conversions that can tell you whether the ad/keyword is a bust? There was no source that could answer this question precisely (or even at all). The answer to this question, apparently, is that there is no answer because no one has asked it yet. Some claim that the first impressions are the most important. Others claim that you cannot judge in one week’s time whether an ad should be pulled. It may sound obvious, but if the ultimate goal is simply an excellent initial conversion rate you should pull ads with extremely low conversion rate. If your goal is to create brand awareness and your product depends on that, then you must not judge immediate results and give it some time. This is the short answer, but surely there must be a more definitive one. What do you think? Thanks for your time, Matt Aronowitz Post a comment
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