#2 Search and Performance Display: Better Together 10/02/2012
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How to take advantage of the synergies from combining Search and Performance Display. After years of sustained growth, business driven by Search Engine Marketing (SEM) is slowing down. This Criteo research paper analyzes the convergence of Search Marketing and Performance Display. It demonstrates that advertisers can achieve significant synergies by using both these channels simultaneously, generating increased conversions and improved ROI.
Today, businesses face a wide array of digital marketing options in the quest for improved return on investment and greater sales volumes. Historically, Search Marketing has been the most reliable, cost-effective way for marketers to generate new customers and sales, but fifteen years of growth has created significant market saturation, where additional investment often doesn’t create enough additional return. Though Search Marketing can be extraordinarily effective, it still faces the limitation that users spend only 5% of their time searching and only 13% of people perform a shopping-related query on any given day.
Fortunately, the emergence of Performance Display advertising – infusing online banner advertising with real-time data and optimization capabilities – has given a real shot in the arm to the online advertising ecosystem. It has provided marketers with a way to engage users the 95% of the time they are not using search engines, reaching TV-like audiences, this time with one-to-one messages. By borrowing many of the strengths Search Marketing is famous for – measurement, scale, transparency, and driven by user intent – Performance Display has provided marketers with a dramatic new way to generate new customers and sales. But what is even more compelling is recent data suggesting that the convergence of Performance Display with Search has created a powerful, combined approach.
Criteo, in conjunction with The Nielsen Company, recently conducted research to investigate the impact that performance display advertisements have on users’ search habits. The research demonstrated that marketers who successfully combine Search Marketing with Performance Display enjoy substantial business benefit. That combination, in fact, drives 4 tangible benefits :
1 — Extending Performance Display to the entire funnel. By leveraging interest, intent and engagement data, the combined performance of Search and Display allows marketers to address the entire funnel.
2 — Increased search Activity: According to Nielsen studies, when Performance Display is combined with Search, organic searches (SEO) increase by 28%.
3 — Lower paid search for advertisers: users exposed to performance display ads click on paid search results 5% less often than do non-exposed visitors.
4 — Enhanced branding effect. Exposed users make 50% more branded queries, and have a 25% higher brand awareness.