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Online Display - More Than Just for Clicks

Online Display - More Than Just for Clicks Leslie Van Zee
Are you using display ads today? Do you know some reasons why you should be? While some reports have highlighted a rather low click through rate (CTR) for banner ads, such as Google’s 2010 Double Benchmark report, 90 percent of marketers and ad agencies believe that display ads are good for branding, according to Forbes.com. There are many good reasons why so many believe that display ads really work.

Here is a look at five of them:

Brand awareness

With a 63% increase in brand awareness, marketers recognize the importance of the contributions that display advertising makes to a company’s unaided brand awareness. It is crucial to marketers as this contributes to future sales when viewers remember an ad they’ve seen while surfing – even if they’ve never clicked on it. They will also recognize it again after seeing it again and after seeing your display ad online, they will recognize your brand when they come across it elsewhere, even offline.

A study by the Jumpstart Automotive Group found that contextual and behavioral targeting in tandem prove more effective as far as impacting the purchase funnel from awareness to purchase intent. Despite a low click through rate, display ads do ultimately have a positive impact on sales. You are building familiarity with the consumer.

Display advertising is arguably the most cost-effective way to market your brand as well as to create brand awareness to people browsing and surfing the Internet. What makes it so effective is the booming targeted capabilities that are available to the advertiser, building brand awareness and generating leads which can ultimately increases sales – paying off big in the long run.

Basically what this means is that consumers will see your brand, become more familiar with it and as a result, have a higher chance of connecting and feeling loyal to your brand.

Greatly increased site visitation

In 2010, comScore, Inc., released a study that showed a 300% increase in site visitation through display advertising. The company is a leader in measuring the digital world and after analyzing 103 campaigns from 39 different advertisers covering seven industries, proved the effectiveness of display advertising.

Display advertising can generate increased site visitation, online and offline sales and trademark search. One reason for this is that people remember what they see, even if they never clicked on the ad. Display advertising does not require any action on the part of the user, so it is a preferred method of advertising for those who want to cultivate brand identification and name recognition. It’s not about simply making quick sales but instead about increasing awareness to your site and your brand.

An increase in offline sales

According to a report by Neustar, display enhances awareness and even drives search. Perhaps surprisingly, it can even boost offline sales as people often search for what they see in banners when they are shopping in retail stores. Their research found that in-store visits increase as much as 43% through use of display advertising. When you see some online (especially repeatedly), you are much more likely to recognize it when you see it again offline and in person. There is an automatic familiarity there that is very helpful.

“Brand advertising and digital,” an IAB Europe White Paper states that studies analyzing online and offline retailers found that the exposure to an online ad increased awareness by 16% and was able to average an increase of 27% for online sales. Could you benefit from 27% more increases sales?

An increase in brand recall

“Brand awareness and digital: An IAB Europe White Paper,” from June 2010 found that display advertising has a major impact on consumers’ awareness. Their study found a significant increase of aided brand recall of 26% due to online campaigns and across several different industries found a rather impressive increase in the recall of online ads in the health, retail and automotive sectors – as much as 63% in some cases.

Display ad repetition also increases the chances of brand recall and awareness in your customers. The more they see it, the more they will recognize it, even if they never click on the ads themselves.

Increased conversion rates

In a study by Media Mind on Financial Services Research produced in 2011, a .016 conversion rate was found which means that for every 100,000 impressions, there were 160 conversions. Media Mind found that display advertising is a strategic marketing channel after analyzing over 28 billion online ads to uncover best practices and what works for financial campaigns.

The company believes that as users are becoming accustomed to managing their financial affairs and buying insurance online, advertisers respond “in-kind, making online display advertising the most important marketing channel in terms of investment for the industry.”

It’s important to reach consumers where they are today and the Internet is one great place to do that. These are just some of the top reasons to use display advertising. If you have questions about how display ads can help you, contact Vantage Local today.

Leslie Van Zee is passionate about entrepreneurship and understanding what makes small businesses successful.  An avid fan of lean startups, she makes sure to get out of the building as much as possible in her role as manager of marketing...

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