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Optimising and Measuring Online Campaigns

04 Apr 2012

According to recent research among senior decision makers in digital marketing agencies, 68 per cent viewed conversion rates as either extremely or very important when optimising online display campaigns focused on brand awareness, compared with 59 per cent who cited brand engagement.

The report demonstrated the growing importance of optimization, for both brand and direct response campaigns, in order to ensure campaigns deliver to their advertiser's objectives. On average, brand campaigns are optimised 10 times in the U.S. while for direct response campaigns it is slightly higher at 11 times.

The result of this optimisation is that across brand and direct response campaigns one in 10 websites on average are dropped from campaigns, equating to seven sites for brand campaigns and eight for direct response. This highlights the necessity of publishers to demonstrate performance to ensure they are not marginalised.

Jonathon Shaevitz, CEO at Maxifier, says that "... the research highlights the importance agencies still place on performance for online advertising campaigns, whether... brand awareness or direct response... (and) that optimisation is now... a very important element of every campaign..." Shaevitz continued by noting that "...there seemed to be a lot of confusion about the meaning of the word ‘optimisation'... "

The research also reveals that the U.S. American campaigns are typically longer (47 per cent last three months or more, compared to 16 per cent in the U.K.), and advertisers invest larger budgets into display, video and mobile campaigns than their U.K. counterparts. In the US, direct-response campaigns account for 54 per cent of total ad budgets, and brand campaigns account for 41 per cent. By contrast, in the UK, marketers invest more heavily in direct-response campaigns over branding campaigns.

U.S. advertisers indicated uncertainty as to the most effective type of metric, with cost per conversion, conversion rates and a measured increase in brand awareness garnering equal weight in gauging campaign success. In the U.K., cost per conversion was cited as paramount, followed by new business signups and conversation rate.

The study also shows the more mature online advertising landscape in the U.S. compared to the U.K. in terms of technologies for the buying and selling of online advertising. Demand Side Platforms are used more widely in the U.S. than in the U.K. (22 per cent and 14 per cent, respectively), as are exchanges (32 per cent and 24 per cent, respectively).

Shaevitx concludes by noting that "... the growing complexities and challenges around online advertising means publishers today need to... manage their inventory, increase performance and... demonstrate ROI to retain and... increase business... "

Source: Mediapost

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