Running display campaigns and trying to understand their effectiveness? I’m betting there are two key performance indicators (KPIs) at the top of your list: click-through conversions and view-through conversions. Today’s post quickly defines the two and then offers some insights on understanding/valuing each.
Click-through conversions are king! They represent customers who actually clicked your display ad and then converted on your website. This is the exact same way most savvy marketers manager their pay per click campaigns on AdWords and Bing Ads. If your display ads perform from a click-through conversion standpoint (at or below your target CPA), you are golden. This is the way you should be measuring things because the ads inspired immediate action.
View-through conversions, by contrast, are a bit more fuzzy. These “conversions” mark customers who saw your display ad and did not click it directly, but navigated back to your site via another channel and ended up converting. One could argue that the display ad impression(s) helped inspire the eventual conversion. However, since there was no direct interaction with the ad unit, one could also argue that the conversions would have happened anyways.
So, how do you place a value on view-through conversions? First and foremost, try to drive click-through conversions and leverage that data as the primary reason to run your display campaign. However, let’s say you’re above your CPA target on a click-through perspective or simply want to help add more context around the value of your campaigns? I have two tips…
Tip one involves a little work. You will want to run two display ads 50/50. The first one is your normal ad. The second one should be a random public service announcement unrelated to your business. From a view-through perspective, which one performs better? If you can prove the first one (the ad for your business) drives more view-throughs, you have proven the power of view-through conversions for your business.
Tip two is a little easier. Sophisticated display advertising platforms allow you to look at view-through conversions by time elapsed since the display ad impression. Did the conversion happen one hour after the customer saw your ad? Or, did it happen seven days later? If you see that most view-throughs happen quickly after the customer sees your ad (versus after more time has elapsed), this helps prove the power of the view-through in assisting conversions.
Hope these quick tips help out and best of luck with your display advertising campaigns!
Image of Full Potential © iStockPhoto – iqoncept