Display advertising makes it possible for advertisers to directly measure clicks and conversions from these clicks, so most marketers assume the effects end there, and if the ad isn’t producing the same ROI as search, it must not be working.
Many advertisers primarily use conversion percentage to measure the success of their display ads and search keywords. For example, if a display ad converts poorly (it has a low conversion percentage) then the advertiser typically lowers the budget for the ad, shifts the budget to another channel like search, or pulls the budget entirely.
The problem with only using the conversion metric method is that it is a “last click” metric. “Last click” means that the ad only gets credit for the last click the visitor made before they converted.
For display ad and search keyword purposes, a last-click model doesn’t reveal the true value of the ad. For example, a display or search ad wouldn’t get the credit for driving conversions to other campaigns. This can be a major issue, as advertisers might end up cutting the budget on an effective display campaign that is driving additional conversions, brand awareness and increased visitor traffic to your web site
Understanding the lift created in all channels is important to calculating display advertising ROI, and all marketers should consider adding display to their online budgets
Tags: display advertising, Market Research, media, Online Advertising, Search Marketing
