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The ROI of display advertising

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In these leaner time, most marketers understand the importance of ROI and are keen to measure the impact of their activities to justify budgets. The result has been an obsession with promotions that result in clicks and other direct response metrics - all of which are extremely important. However, it can be quite easy (and tempting) to just focus on the direct response metrics which are easy to collect and easy to communicate.

The risks associated with this approach are that you ignore the impact that a combination of promotions have had on the overall result and place too much emphasis on direct response channels alone.  For instance,  an online display advertising campaign may not result in many clicks itself, but would have promoted a brand, built some awareness and over time will lead to a boost in sales.   Here's an interesting piece of research from the Online Publishers Association (OPA). It provides a bit more insight into the overall benefits of a branding campaign.

Display advertising ROI.pdf

The conclusions are:

• There are more relevant ways to measure the branding impact of online
ad campaigns beyond clicks 
• Search + Site Visitation + e-Commerce Spending [measured over time
to account for latency effects] = a smart formula for measuring display
advertising effectiveness
- One in 5 exposed to display advertising conduct related searches for the
advertised brands
- One in 3 exposed to display advertising visit the advertised brands' sites


3 Comments

Thank you for your help!

Videos are a HUGE source of traffic for me! Automating that was GREAT!

MT

Thanks for your comment

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