Can You Prove The Value of Your Display Advertisement?
By Danielle Manley
2016 will be the year of digital display advertising, according to eMarketer. Approximately 47.9 percent of budgets will be spent on this category, equaling $32.17 billion. Within this category – including “video, sponsorships, rich media and ‘banners and other’” – the “banners and other” subcategory will receive the highest percentage of the budget.
However, if companies and advertisers cannot measure the value and success of a display ad, they will become obsolete. If an advertiser cannot bring physical proof of success to a CFO, budgets will be cut and display ads will be removed. So, how do you prove success of your display ad?
Since the banner advertisement made its debut in the 90’s, click-through rates have been the standard of measurement. However, there are many factors that make tracking the value almost impossible. In order for CTR statistics to be accurate, the person viewing the advertisement must view the ad, click on the ad (almost immediately) and then become engaged with the company. This is not the typical scenario, though.
Approximately 50 percent of clicks on banner advertisements are by accident, according to GoldSpot Media’s “Fat Finger Report” and Business Insider. So if you take this statistic into consideration, CTR statistics are off considerably – an accidental click is not engagement. In addition, just because the person doesn’t immediately click on the ad, it doesn’t mean they didn’t retain the information and the ad will not influence future decisions.
So, how can you prove the value of your display advertisement?
Google it – Seriously, Google provides unparalleled reporting features
Google has many ways to track, measure and report statistics from display advertisements. Google Analytics Multi-Channel Funnels reporting allows companies to measure the value of an ad with a more complete view than the standard CTR statistics of the past.
A new feature – Google’s Assisted Impression Reporting – provides the reporting system the ability to track when someone views an ad or video, and then correlates that when the same person visits the company’s website – even if it is hours or days later. Just because a click isn’t instant, it doesn’t mean the advertisement wasn’t effective. The abilities do not stop there; companies are able to filter and organize reports “based on how their users interacted with marketing efforts,” according to CPC Strategy.
The features of these Google programs allow companies to truly view the customer process over a period of time and doesn’t limit the statistics to simple ad clicks.
Tracking individual searches and website views provides generic – yet useful – results
With the purpose of an advertisement being increasing brand awareness and acquiring new – or former – customers, a company could determine success based on increased or new Web searches and website visitors.
If there is an increase in searches on Google for your company or the product/service advertised, the advertisement has proven successful. New, unique visitors to your website also proves advertisement success.
Calculate the cost of acquiring new customers
An increase in searches and website visitors proves the advertisement was successful, but you can also determine how successful – calculate the cost of acquiring each new customer from the advertising campaign. Divide the cost of the campaign by the number of new, unique visitors and clicks and you can determine if the cost of acquiring that customer is worthwhile.
For example, if you purchase an advertising campaign and the number of unique visitors to your website increases by one unique visitor, the cost of acquiring that one new customer is not worth it. However, if the unique visitors increased by 50 percent, the campaign would likely be worth the cost.
Could your advertisement be lacking in some way?
While using data and analytics to determine the value is important, it is just as important to go on the offense and make sure your advertisement is top notch with constant improvements and monitoring.
Here are a few key indicators of a successful display ad:
- An advertisement that is seen for five seconds or more is twice as likely to have brand recognition.
- Advertisements on “good” websites are more successful. Make sure the site has a good reputation and loads quickly.
- Advertisements should be above the fold – you shouldn’t have to scroll to see your ad.
With display advertisements receiving the majority of marketing budgets this year, you need to ensure your campaign is up to par. If you can’t prove the value, you will miss out on endless opportunities for success. It doesn’t have to be in-depth information, but proof of success is vital to continuing the marketing campaign.
So, do you know if your current display advertisement is increasing your website traffic? And, by what percentage? Maybe you should find out.