Posts Tagged ‘PPA’

May 6th, 2008

Does offline advertising drive online site visits?

Many advertisers are asking whether offline media drives their online traffic and to what degree. I recently had to review this for a major blue chip advertiser so I thought I’d share the sources and results I’ve found:

1. Jupiter/IPSOS Study
Jupiter and IPSOS got together in 2007 to survey 2,000 US web search users to analyse what drove them to make web searches. The Jupiter/IPSOS research found that 37% of respondents claimed they had searched in response to a TV ad, 30% had searched as a result of seeing a newspaper or magazine ad, 17% had searched after hearing a radio ad and 9% had searched after seeing an outdoor billboard ad. These results were higher amongst “daily searchers” i.e. people who say the use search engines at least on a daily basis. For example the percentage of daily searchers quoting TV and press/magazines as an influence climbed from 37% to 44% for TV and from 30% to 35% for a magazine ad.

2. PPA / BMRB Study
The PPA, a trade body representing UK press and magazine titles, undertook a survey of 3,045 online adults aged 16-64 during August 2007. The research found that 70% of those surveyed had visited a web site as a result of seeing offline communication and 58% of online adults have made a purchase online as a result of seeing offline messaging. When asked, “Which of the following have triggered you to go online when looking for information on products that you have considered purchasing?“ the responses were as follows:

TV - 50%
Magazines - 45%
Newspapers - 31%
Radio ads - 17%

3. Retail Advertising and Marketing Association / BIGresearch (US study)
The Retail Advertising and Marketing Association (RAMA) undertook research with BIGresearch in the US and surveyed over 15,000 consumers in its Simultaneous Media Survey. This project found the top 10 media that trigger an online search (Adults 18+) to be:

51.6% Magazine
47.7% Read an Article
44.2% TV / Broadcast
41.3% Newspaper
35.6% Cable TV
35.3% Face-to-Face Communication
33.8% Coupons
30.3% Email Advertising
29.3% Direct Mail
28.2% Radio

4. Hitwise Media Impact Report
This report contains good case studies from the AA, Orange and Sky. Key take outs are firstly that integrated campaigns drive greater levels of search volume and secondly that product specific advertising in offline channels e.g. press can have a positive uplift effect on the search terms that reflect the product being advertised in that offline channel.

Understanding your own traffic sources
All brands have their own DNA and industry and category level research will only give you an indication of how offline media might drive online traffic to your web site. Only a bespoke analysis using your own media data and search/web traffic logs will help you to understand how offline media drives traffic to your site.

There’s no need to get into intricate modelling to reveal these relationships. Most statisticians will begin even the most complex analysis by simply plotting media activity looking for patterns. Try plotting your media activity (e.g. spend, impacts or GRPs) and search traffic volume data (only relevant terms) into charts and observing the patterns. This may be sufficient to illustrate whether offline media is driving traffic to your site.

Your analysis will be much stronger if you are able to strip out all referred traffic and focus on direct traffic when looking for these relationships. If you use a reporting tool like Google Analytics, you can strip out all traffic source data that can be explained by other activity such as paid search, banner campaigns or link referrals. You are then able to isolate direct organic search traffic coming into your site and compare that with your media activity.

Larger brands with more complex and inter-related traffic drivers may have to undertake more sophisticated econometric modelling to isolate the effect of individual traffic-driving variables and remove the effects of underlying seasonality and brand awareness.

March 23rd, 2007

Google tests Pay per Action

Google is running a beta test to trial ‘Pay per Action’ advertising. To date, many advertisers will associate Google with the pay per click (PPC) model. Pay per click was in itself a big advancement on the traditional CPM (paying for audience eyeballs, rather than response), but paying for an advertiser-nominated action is a mighty breakthrough for direct selling advertisers.

The traditional advertising model run by TV, radio, press and outdoor, as well as direct mail is based around buying what is in effect a viewing by the target audience. But nothing more. The risk beyond that lies entirely with the advertiser. What’s amazing about pay per click this that you don’t pay simply for the privilege of being seen, you pay when people act upon your message and click through to your site. Google* shares the risk of getting a response with the advertiser. Google’s Pay per Action model takes this sentiment even further, you don’t pay to be seen and you don’t even pay to get a click through. You only pay when your visitor performs a nominated action like submitting their email address, signing up for a newsletter, becoming a lead, or even a customer. This is without doubt great news for all direct selling advertisers and to some degree a nail in the coffin of the traditional advertising model.

You may be asking, “How do the financials work, for Google and for me?”. Well you’ll still effectively have to bid (on the content network) for the action that delivers your sale. Of course other advertisers will also be bidding for their sales at the same time. Google will have estimated that the financial yield for getting people to bid for actions may well be higher than the yield from allowing them to bid for clicks. Of course, if they weren’t sure this beta test will allow them to find out.

Whether or not we see Google making Pay per Action a mainstream product may well depend on how this test works for Google as well as how it works for online advertisers.

*And of course, all the other pay per click suppliers