Posts Tagged ‘beyond the click’

January 6th, 2010

Effects of online advertising beyond the click

So we’ve had more than a decade of measuring online advertising effects primarily through the generation of direct click traffic. But now many a marketer is asking ‘what effect does online advertising have beyond the click?’ Marketers want to know whether online display advertising can be justified on the basis of anything other than clicks.  The answer is yes it can - so let’s explore what some of these more difficult-to-measure beyond the click effects are. Here are seven effects of online display advertising that cannot be defined or measured by clicks alone.

  1. Online advertising drives offline sales: Online advertising drives purchase behaviour in offline channels - particularly retail and phone. This was shown by a Yahoo! and Comscore in a study (2007) that revealed 89 percent of consumers shop for information about products online, but less than 7 percent of retail sales actually take place online. These effects are not measurable in clicks, though one of our clients does undertake weekly in-store surveys to identify search terms that are driving retail traffic.
  2. Online display populates the search sales funnel: Search volumes are driven by consumer demand for information and this demand is accelerated by all forms of online and offline brand communication. Online display is one of the drivers of search term demand, but consumer response often takes place outside standard “cookie windows” or in forms that are not easy to track unless you have a form of universal tracking in place to analyse click paths. As a result this effect is not always fully understood and accounted for.
  3. Cross-media synergy: When two channels work together, engaging with the same person about the same product on the same day, there is likely to be a 2+2=5 effect. Of course it’s very difficult to quantify the precise effects of this especially on a micro level but the difficulties presented in measuring this type of cross-media synergy do not mean that the effect is not present. An ad exposure online may well stimulate a purchase elsewhere - an effect not measured by clicks.
  4. Attitudinal change: Ongoing online display is likely to drive attitudinal change over long periods of time. Over periods of weeks, months and even years, online advertising can positively re-enforce, modify and update brand perceptions. These changes are unlikely to be reflected in short-term click traffic, but are likely to be valuable to a brand from a positioning perspective.
  5. Pre and Post Purchase effects: Advertising has effects both before and after the purchase. Sometimes this is long before the purchase - when consumers are not consciously selecting products but subconsciously compiling their preferred sets. Sometimes it’s after the purchase and during ownership when consumers are reassured about their brand purchase decisions. This may result in increased future sales and increased brand loyalty, but this cannot be measured by real-time clicks.
  6. Accessibility signals: Because online is a distribution channel as well as an advertising medium, its use can send signals about accessibility to consumers. It says “we’re open for business in the digital space”. This was certainly the case with direct response advertising and direct brands where the presence of phone numbers in ads was viewed by consumers as making the company appear more accessible and ready to talk. These accessibility signals are not directly measurable by clicks.
  7. Relationship with technology: Advertising online helps to demonstrate how companies relate to digital technology and the internet. By ‘being there’ in the digital space a brand is saying that it values the digital channel as a means of communication and distribution and has the competencies required to participate. Again, a brand attribute which is not measurable by clicks alone.

June 9th, 2009

Online advertising works beyond the click

It’s an ongoing debate: just what influence does digital communication create beyond clicks? Well the short answer is a lot. It contributes the following:  subsequent search visits (product and brand terms),  subsequent direct site visits (over the short and long term), visits to retail premises in the case of retailers, visits to attractions in the case of leisure destinations and shifts in brand and product reputation in the case of branding messages and content.

Recent research from iProspect / Forrester (May 2009) supports this view. It reveals that of those who viewed online ads on an ad funded web site,  only 31% actually clicked, but a further 48% either searched for the product in a search engine or subsequently visited the site via a direct browser visit. A further 9% reported that they investigated further through social media or message boards.

forrester-click-behaviour-june09

Readers who run online campaigns will observe that few online campaigns generate click through rates as high as 31%, in fact, most display campaigns generate click rates of about 1% of that, i.e  0.31% or less.  If we factor down the other responses by a similar level, then we get to 0.27% performing a direct search and 0.21% visiting the advertising site directly through their browser.  Whilst these numbers may appear low, it does indicate that responses are many and varied and exceed the response counted as clicks alone.

I’d argue that when it comes to branding effects, such as awareness, attribution and considerations scores,  the numbers may be higher than the figures above suggest.  The problem is that we have not fully understood how to quantify these additional branding effects. There are products able to isolate groups people who are exposed to online communications and, via online surveys, compare their advertising and brand awareness to non-exposed groups, and these can reveal interesting short term results. See some of those here.

But often the changes in awareness and consideration build slowly over time, particularly in products which have to be advertised almost constantly in order to reach comparatively small groups of active buyers. Mobile network O2 springs to mind here.  Whilst much of its online display activity is designed to attract potential buyers to its online shop, there is no doubt that the constant presence of O2’s blue and white imagery on the UK’s top 250 or so web sites helps to maintain and reaffirm its credentials as a player with a big interest in the digital space.  Would we still see O2 that way of we had never seen its distinctive blue online display presence?