Importance of Optimizing and Measuring Online Campaigns

by Jack Loechner, Mar 16, 2012, 6:15 AM

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

Importance of Factors Optimizing Brand Awareness Campaign (% of Respondents)
Factor	Extremely Important	Very Important	Important
Audience targeting	32%	33%	28%
Price	27	30	29
Conversion rate	26	42	19
Post-impression conversion	26	32	25
Brand engagement	23	36	29
Behavioral targeting	18	36	29
Click-through rate	15	38	24
Contextual targeting	11	34	39
Source: Maxifier, February 2012

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 optimized 10 times in the U.S. while for direct response campaigns it is slightly higher at 11 times.

The result of this optimization 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 marginalized.

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 optimization 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 ‘optimization’... “

The research also reveals that the U.S. American campaigns are typically longer (47% last three months or more, compared to 16% 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% of total ad budgets, and brand campaigns account for 41%. By contrast, in the UK, marketers invest more heavily in direct-response campaigns over branding campaigns.

Display Budget Percentage Allocated to Type of Advertising (% of Respondents by Group)
Type of Campaign	Total Allocation	UK	US
Direct Response	56%	67%	54%
Branding	41	31	43
Other	3	2	3
Source: Maxifier, February 2012

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.

Importance of Factors Evaluating Direct Response Campaign Website Effectiveness (% of Respondents)
Factor	Extremely Important	Very Important	Important
Conversion rate	39%	26%	11%
Post impression conversions	29	23	22
Price	28	26	22
Audience targeting	21	31	26
Behavioral targeting	20	26	24
Click through rate	14	34	24
Brand engagement	14	28	26
Contextual targeting	10	32	25
Source: Maxifier, February 2012

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% and 14%, respectively), as are exchanges (32% and 24%, 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... ”

For additional information, please visit Maxifier here.

 

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