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Is digital advertising performance all about click through rates?

Click through rate has long been hailed as the holy grail of digital advertising performance, when in reality, clicks only paint part of the picture.

The average CTR on display advertising campaigns currently sits at a seemingly low 0.1%. With over $273 billion spent annually on digital advertising and only a small percentage of ads being clicked on, there has to be more to ad performance than clicks alone if brands are continuing to pump such large budgets into the channel.

What is ad recall?

Ad recall is a measure of advertising effectiveness that involves understanding whether audiences are able to remember the content of an ad after viewing (post-view). If an ad is not clicked on, ad recall is hugely important in ensuring that the ad still has the desired effect of driving targeted traffic to your website and engaging them once they are there. Currently, digital advertising recall rates average only 6%, so there’s work to be done to ensure users remember your advertising messages the moment they land on site.

As the majority of digital ads are seen but not clicked on and to ensure you are delivering effective advertising (that your audience will remember), an increasing focus needs to be placed on optimising advertising for post-view, rather than simply vying for clicks.

90% of ads are post-view

Post-view digital advertising engagement

The benefit of a user clicking on your ad is that naturally they will land on your dedicated landing page, which could either be the product page for an item shown in the ad, or perhaps a carefully crafted landing page with the goal of converting users. When an ad is clicked on, you’ve certainly got more control over what happens next.

But not all advertising-driven visits to your website come from a click, and a high proportion of visitors will be post-view, meaning they saw your ad, didn’t click, but later having recalled the ad went on to organically search for your brand. So, what happens when they land?

Unfortunately, in almost all cases these visitors will land on a homepage, with content and messaging of no relation to the ad they saw. From there, they must take the time to navigate round a potentially unfamiliar website to search for the content that caught their eye. And that’s only if they stick around long enough.

68% of paid traffic to websites bounces

Tackling the digital advertising bounce rate challenge

To truly reap the rewards from paid advertising, more attention needs to be placed on what happens beyond the ad itself. The same principles should apply regardless of whether a user has clicked or organically searched for your brand post-view: deliver an onsite experience relevant to the ad that drove them there. It’s your onsite experience that will engage visitors with your brand and keep them coming back time and time again to deliver an ever-critical return on investment.

The most efficient way to achieve this is by connecting advertising and marketing technology to unify the customer experience across channels. Without this, not only is it near impossible to know whether someone has come to your website having viewed your ad and therefore personalise their experience, but in the case of clicks, it often requires you to build 100s of landing pages tailored to different ads and audiences. An arduous and inefficient resource heavy task.

There has long been a disconnect between advertising and marketing channels. By bridging the gap between the two, using smart solutions and automated technology, brands can target users with highly relevant content, messaging and products onsite, aligned with what they saw in an ad. In providing a more personalised and relevant onsite experience, brands can expect to see bounce rates reduce and time on site increase, leading to maximum efficiency of spend.

16% increase in time on site leads to 10% rise in sales

Connecting advertising to onsite experiences

Our industry-first, patent-pending solution connects digital advertising to the onsite experience, utilising Digital Assistant to display relevant content to the ad in an onsite overlay. This means you can target visitors with the most relevant and engaging content in real-time after every ad, whether they clicked or viewed, keeping them onsite for longer and engaging them with purchases.

Watch the video below to hear from David Marrinan-Hayes on the digital advertising challenges that exist today and how we’re helping brands to get more from their existing advertising spend. 

Ve's CEO discusses connecting advertising to onsite experiences from Ve Global on Vimeo.

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Posted by Emily Atkinson