SVP & Managing Director at BrightTag
24 November 2009 12:09pm
This post was originally published to the LinkedIn Group Digital Ad Technology Innovation, but seeing that Econsultancy's forums are quite active, I thought I'd put it here, too. Here it is...
Relationships can be defined as:
- A thin "relationship" between a brand/advertiser and its
audience on a campaign consumption basis (simply, the audience has seen or has been
exposed to a digital marketing comms initiative).
- A slightly richer "relationship" between a brand/advertiser and
its audience where not only has the campaign been consumed i.e. seen by an audience, but there is
also interaction and campaign destination visitation (no transacting just yet).
- And, as a simple 3rd example, a customer "relationship" between defined by the fact these multiple events: ad campaign
consumption (seeing) and/or ad campaign interaction (clicking/viewing video/etc) and one or more subsequent customer transactions. In
this last instance, the customer reached by an online display ad campaign
could very well be a loyal, valuable, multi-year, multi-transaction
or just a 1st time customer.
It is the last segment of campaign audience that interests me greatest.
It is this last segment that, I'm learning, is accounting for a greater
share of online display ad campaign consumption today. Certainly when the advertiser is one of the UK's top 10 or 20.
But here's the kicker - what is the singluar messaging strategy for those online display campaigns?
Because, despite the rise and rise of behavioural targeting and
retargeting (via ad networks, exchanges, etc), it is simply NOT
possible for a brand to communicate via its online display advertising, in a truly meaningful way, to existing relationships.
Today's [crude] methods to retarget [customers/prospects] based on 1x1 pixel
data, which, at best, captures content consumption behaviour data, is still, at best,
So, back to the question:
What % of ad impressions are you seeing consumed by existing relationships? (outside of any retargeting programmes in place).
PS. Reach out to me for a POV re: how internet display
advertising is failing advertisers, their agencies, publishers and,
broadly, the industry [partly] due to fundamental/structural "3rd
party" ad management platform limitations plus the cottage industry of
ad networks, ad exchanges and "demand side" platforms, which are all
effectively built on top of the "3rd party" [data] construct, perpetuating the flow of valuable customer behaviour and other data out of
advertisers' enterprises and into "3rd parties", which create an
unnecessary cap on an extraordinary value opportunity.
Head of Ecommerce at Lovehoney
24 November 2009 12:16pm
Sorry James, trying to make sense of this.
Is the question, what percentage of ad clicks are in fact existing customers, not including retargets?
24 November 2009 22:33pm
worries Matthew. The title can also read "What % of ad impressions are consumed by
existing relationships"? Impressions = display advertising (which I should
have also been clearer about as well).
That said, I’m actually quite keen to hear
related paid search stories. The question [for you?] being “What % of paid
search clicks [cost and/or business events] are mapped to existing
The last detailed analysis I did for a
[global] brand’s UK paid search programmes unveiled just over 50% of its paid
search clicks, cost and subsequent transaction revenue were mapped to existing
customers. We knew this because the client kindly passed to us, via a
DoubleClick tracking tag, at the moment of each transaction, a TRUE or FALSE
statement: if the customer transaction was new then TRUE, if the transaction
was from existing customer then FALSE. Simple, but quite enlightening.
It’s not so simple with display advertising,
hence my question.
25 November 2009 18:58pm
Indeed, it's a very good question. One thing I'm doing at the moment is passing the CustomerID back to GA using Custom Variables. I can then find out exactly which regular customers are still coming in via paid search, and target them with a "add us to your favourites" campaign. It's early days yet so I don't know the figures, but I'll let you know.
The Online Advertising Survey Report, produced in association with the Rubicon Project, is a useful overview of the online display advertising environment. It contains information about spending trends, the use of ad networks, types of targeting and use of data. The research also examines the impact of real-time bidding and the increasingly important role played by online advertising exchanges, demand-side platforms (DSPs) and trading desks.
Econsultancy's Global Internet Advertising Statistics document is one of 11 individual downloads that make up Econsultancy’s Global Internet Statistics Compendium, a comprehensive compilation of worldwide statistics and online market research with data, facts, charts and figures that are essential to understanding the marketplace as a whole.
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