San Diego News Network summarized several large reports on the impact that display advertising has on search marketing.

1. SDNN Report: Impact of Display and Search Advertising
By Jeff Creps

2. SDNN Report: Impact of Display and Search Advertising | Jeff Creps
Display and Search
Online advertising is a crucial component for product and service driven companies. It is estimated that
86% of internet users shop and browse online for purchase options and research that may end up in an
offline purchase. In a recent study by Morgan Stanley 36% of advertisers said they favor using online
media for their campaigns, a number significantly higher than any other form of media. In online media
mber
the two main formats available are search and display advertisements, both can be incredibly valuable
but the most success comes from the integration of the two.
Impact of Both Display and Search
Advertisements
300%
250%
200%
150%
100%
50%
0%
Source: Specific M
Media as cited in press release, December 3, 2008
As seen in the chart above the average gain in search activity for the above categories was 144% when
paired with display advertisements; compared to not advertising at all. In addition to more search
;
activity, display ads have been shown to increase the click through rate on search ads by 25-35%
click-through 25
according to Steve Kerho, VP of analytics at Organic.
In a study by comScore Brand Metrix it was shown that when comparing to no ad exposure at all there
was a 42% increase in purchase after seeing the display ad, 121% increase in purchase after seeing the
%
search advertisement, and a 173% increase in purchase when combining display and search ads.
In a January 27, 2009, interview with eMarketer, Beverly Thorne, senior vice president of marketing at
Century 21 Real Estate LLC, explained the search/display connection for her brand as follows:
“Our own empirical results showed us that our online investments were performing
substantively better at generating leads. From December 2007 to December 2008, we
improved the efficiency of our lead generation by reducing our cost per lead over 60%.
At the same time, we multiplied our number of leads by over 235%.” Beverly Thorne
235%.”-
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3. SDNN Report: Impact of Display and Search Advertising | Jeff Creps
Brand Management
Another purpose for display ads is brand management and the effects that it can have on the audience
splay
down the road. According to comScore Brand Metrix, when exposed to display ads there is an upfront
65% increase in site visitation from those exposed compared to those not. Also, there is an almost 50%
Also,
increase still visible up to a month after exposure compared to those not exposed to the ad.
In a similar study done by comScore, it was found that display ads have a strong increase in driving
traffic compared to the control. The study saw a 65% lift in site traffic, compared to the control, in just
. ,
the first week of exposure, and after a month there was still a 46% lift. Also in the study by comScore
.
brand search saw a significant lift of 52% in the first week after exposure to the display ad. Both of
re ad
these areas would have been overlooked by the traditional statistics that only look at immediate
actions, like clicks.
As expressed by Carrie Frolich, Managing Director Digital at Mediaedge: cia,
“Remember why you’re advertising. You are not advertising for clicks. What you’re
advertising.
advertising for is to sell me stuff or change perception, and that’s what we need to be
measuring against.”- Carrie Frolich
The source where the advertisement is positioned can also have an effect on the consumers’ willingness
to listen. When studying the effectiveness of advertisements from different sources, comScore studied
the top 50 news sites. They found that of the different categories in the study news site advertisements
different
performed the best. These sites saw a 26% increase in minutes on the advertiser’s site, a 41% increase
in page views, and a 42% increase in dollars spent by the consumers who were exposed to the disp
display
ads.
$400
$350
$300
$250
$200 Unexposed
$150
Exposed
$100
$50
$0
+ 42%
Top 50 News Sites
San Diego News Network | www.sdnn.com

4. SDNN Report: Impact of Display and Search Advertising | Jeff Creps
Reaching Online Customers
The internet has become an unmatched research tool for potential customers. Now more than ever
internet users are researching online products with a high involvement or cost.
Products and Services that Online
Shoppers Research Significantly
100%
80%
60%
40%
20%
0%
Source: Penn, Schoen, & Berland Associates, Inc. (PSB), “LinkShare TrendWatch Research:
New Info Shoppers, Recession Buyersm and the 2009 Online Shopping Outlook,” January 30, 2009
As seen in the above graphic consumers are constantly searching for information on their purchase
information
decisions, but they will never know about a product unless they are exposed to it. comScore found in a
found,
study published in February 2009, that of the usual visitors to a site, 18% of those who were exposed to
advertising searched the advertised brands and 29% went on to visit the advertiser’s site. The same
study also found that these visitors were more engaged than the normal viewers as there was a 55%
increase in minutes spent on the site and an incredible 51% increase in pages viewed by those exposed
to the display ads.
A reoccurring problem that many marketing executives have is not being able to measure the effect that
online marketing can have on offline purchases. More than ever consumers are spending more time
looking at content online rather than just using it for the communication methods as seen in the past.
t
McKinsey had a June 2008 study that estimated only 30% of executives even considered this impact.
Along with a sharp increase in online sales, the combination of display and search advertisements has
of
been shown, in a study by comScore, to increase offline sales by 119% per thousand customers exposed.
Also, comScore has done research that showed for companies with both online and offline sales
approximately 68% if the impact from display advertisement was seen offline.
f
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