Search, Display and Retargeting: The Holy Trinity of Online Advertising
Key Takeaways
- Combining advertising channels such as search, display and retargeting can significantly increase overall response rates, as they cater to different stages of the customer journey: creating demand, capturing it, and re-engaging lost demand.
- Display advertising, which appears next to content on various sites, can drive consumers to paid search, both initially and over time, thus highlighting the symbiotic relationship between the two channels.
- Retargeting is a highly effective strategy to bring back visitors who have left a website without taking action, with studies showing it can result in a significant lift in site visitations and conversion rates.
It’s difficult to convince budget-conscious small business owners that they need to invest their marketing dollars into multiple channels. Many are hoping to find the one “silver bullet” that will release a floodgate of hungry buyers. But advertising and marketing work more like a team than a shotgun. It’s best to place your marketing eggs in many baskets, rather than just one.
Combining advertising channels can have an exponential effect on overall response rate. For instance, direct mail has a response rate of .5 to 1 percent, and telemarketing gets around 2 percent. But when a software company combined their direct mail and telemarketing campaigns, they saw an overall response rate of 13.5 percent, resulting in 10 new contracts.
These results are by no means unique.
Likewise, real-world ads like the Yellow Pages can extend the reach of other advertising. If a commuter sees your billboard or hears your radio commercial, they might use the Yellow Page directory to find your phone number once they get home. And if they don’t see your ad, they’ll choose a competitor instead.
This dynamic has extended to the online world because, although media may change, buying behavior doesn’t. While offline advertising continues to drive search, a combination of search, display and retargeting is a trio that’s hard to beat. Display advertising can help create demand, search can help capture that demand, and retargeting can re-engage lost demand.
First, a refresher course on the different kinds of online advertising:
Search Advertising
Search advertising allows you to place text ads above and to the right of the organic listings on a Search Engine Results Page (SERP), or elsewhere on the web when another site in the ad network displays relevant content. These ads appear whenever a search query matches the advertiser’s chosen keywords.
Search advertising uses the Pay-Per-Click (PPC) advertising model, where advertisers bid on the keywords they want and only pay when their ad is clicked.
Display Advertising
Unlike ads that appear as a direct result of a search, display advertising appears next to content on news sites, blogs and other niche sites across the Internet. Display (or banner) ads are graphical advertising that can include logos, images, and rich media.
Rather than targeting specific keywords, display advertising can zero in on your ideal audience based on geography, demographic, and/or behavior.
The primary difference between search and display advertising is user intent. Search advertising targets buyers who are looking for a seller. Display advertising targets people who are engaged in consuming content rather than actively searching for a product or service at the moment when the ad appears.
Retargeting
Retargeting brings back visitors who have left your website without taking action. As they visit sites within the display ad network, retargeting technology serves up customized display ads about your company or the product they just searched for, reminding them of their purchase intent.
Retargeting can be used as a stand-alone service, or it can be combined with search and/or display advertising.
The Symbiotic Relationship between Display and Search
Google says that television commercials are the largest driver of search. Likewise, repeated exposure to online display advertising drives consumers to paid search. According to the Harvard Business School paper, Do Display Ads Influence Search? Attribution and Dynamics in Online Advertising:
Initially, an increase in display impressions does not generate any search applications. However, after a period of two weeks, display impressions positively impact search applications.
The Search Engine Marketing and Online Display Advertising Integration Study found that nearly as many Internet users respond to a display ad by performing a search as those who click on the ad itself:
The survey reveals that 31% of Internet users INITIALLY respond to online display advertising by clicking on an ad, while 27% respond by searching for the product, brand, or company by launching a search on a search engine.
But it gets even more interesting. The percentage of users who eventually (rather than initially) searched for the product, brand or company featured in the display ad rose from 27 percent to 49 percent.
Clearly, exposure to display advertising drives consumers to paid search, both initially and over time.
How Retargeting Affects Search Conversions
Only two percent of consumers convert on the first visit. That means the remaining 98 percent leave without taking action. Retargeting has proven to be an effective strategy to bring these visitors back.
Does retargeting work? Judge for yourself. Without it, only 8 percent of the 72 percent of ecommerce shoppers who abandon a shopping cart return to make a purchase. But with retargeting, that percentage jumps to 26 percent.
Retargeting decreased Value City Furniture’s cost per acquisition from $168 to $29, and increased their conversion rate by more than 700 percent—in just one month.
In a comScore study, retargeting resulted in a 726 percent lift in site visitations within four weeks of the initial ad exposure.
Search and display are effective advertising channels in their own right. But they become even more powerful when retargeting is added into the mix. For a higher response rate and greater return on investment, consider implementing all three in your online advertising strategy.
Frequently Asked Questions (FAQs) about Search, Display, and Retargeting in Online Advertising
What is the difference between search, display, and retargeting advertising?
Search advertising refers to the ads that appear on search engine results pages (SERPs) when users type in specific keywords. These ads are highly targeted and are designed to match the user’s search intent. Display advertising, on the other hand, refers to the visual banner ads that you see on websites, apps, and social media. These ads are typically more general and are designed to raise brand awareness. Retargeting, also known as remarketing, is a type of online advertising that targets users who have previously visited your website or interacted with your brand online. It serves as a reminder to complete an action they had started but didn’t finish, like making a purchase or signing up for a newsletter.
How does retargeting work in online advertising?
Retargeting works by placing a small piece of code, often referred to as a pixel, on your website. When a new visitor comes to your site, the pixel drops an anonymous browser cookie. Later, when your cookied visitors browse the web, the cookie lets your retargeting provider know when to serve ads, ensuring that your ads are served to only those who have previously visited your site.
Why is retargeting considered effective in online advertising?
Retargeting is considered effective because it focuses your advertising spend on people who are already familiar with your brand and have recently demonstrated interest. That’s why most marketers who use it see a higher ROI than from most other digital channels.
What are the benefits of display advertising?
Display advertising can help increase brand awareness, generate leads, and re-engage previous visitors to your website. It allows you to reach a large audience and can be targeted to specific demographics, locations, and behaviors.
How can I combine search, display, and retargeting in my online advertising strategy?
Combining search, display, and retargeting in your online advertising strategy can help you reach a wider audience and increase conversions. You can use search advertising to reach users actively searching for your products or services, display advertising to raise brand awareness and reach a larger audience, and retargeting to re-engage users who have already shown interest in your brand.
What are some best practices for creating effective display ads?
Some best practices for creating effective display ads include using high-quality images, keeping your message clear and concise, including a strong call-to-action, and targeting your ads to the right audience.
How can I measure the success of my retargeting campaigns?
You can measure the success of your retargeting campaigns by tracking metrics like click-through rates, conversion rates, and return on ad spend. These metrics can give you insight into how well your retargeting ads are performing and whether they are driving the desired actions.
Can I use retargeting for mobile users?
Yes, retargeting can be used for mobile users. Mobile retargeting works similarly to desktop retargeting, but it tracks users across their mobile apps instead of their web browsers.
What are some common mistakes to avoid in display advertising?
Some common mistakes to avoid in display advertising include not targeting your ads properly, using low-quality images, having too much text on your ads, and not testing different ad variations.
How can I improve my search advertising strategy?
You can improve your search advertising strategy by conducting keyword research to understand what your target audience is searching for, optimizing your ad copy to improve click-through rates, and testing different bidding strategies to maximize your return on ad spend.
Former owner and partner of web firm Jenesis Technologies, John is currently Director of Digital Strategy at Haines Local Search, a company providing local search marketing solutions to SMBs, including print and Internet Yellow Pages, web design, and local SEO. When not working or spending time with his family, John offers great sales and marketing advice on his blog, Small Business Marketing Sucks. When not working or spending time with his family, John offers great sales and marketing advice on his blog, Small Business Marketing Sucks.
