Improving Multi-Channel Outcomes in Online Marketing

Companies don’t always exist exclusively in the real or virtual world and neither should their marketing campaigns. Some consumers prefer buying products through physical channels while others prefer online channels. Companies find themselves managing the complexity of both broad channels to improve sales. These sales may not be based in a single marketing channel and may be more associated with the use of multiple marketing channels working together.

An article in the Journal of Marketing Research offers greater insight into cross-channel effects on traditional, online display and paid search advertising. They found that a single marketing channel cannot account for the total purchase rate of products/services (Dinner, Van Heerde, & Neslin, 2014).

Consumers may have a particular on or off line preference for purchasing but regularly use the Internet to search out and research their chosen items. The totality of both online and offline purchases is a combination of using different marketing channels and should be measured as such.

Think about how a consumer processes information. They see or hear about a product that relates to their self-image and develop an internal need for that product. If the product has value they may search out its benefits and detractors online. When a decision has been made they will either purchase online or from a ground store.

In today’s marketing world it is important not to evaluate marketing effectiveness in a silo. Even though the success of each marketing channel should be considered like the success of each purchasing channel it is still important to consider the total marketing effectiveness.

Different forms of exposure from multiple events create the total impression and experience for the consumer. Sometimes it may take multiple exposures from varying channels to grab their selective attention and finally make a decision to purchase.

Marketing is more than simply having customers see images and impressions on a webpage. There is a lot of competition out there in the cyberspace and the physical world that leads to advertising overload. A single marketing channel is unlikely to draw significant interest and improve market position.

To improve upon exposure companies will often use paid search positions. As consumers search out information on a product the paid search engine sites come up first. Usually it is the home company that reaches the top based search algorithms. In many cases there are multiple companies competing for the top position.

Paid search positions have less effect than originally thought. No one is sure why this is the case other than the click-thru rates decrease over time making the marketing method less effective. Mitigating factors could include the search engines, competition within specific industries, and the sensitization to these ads.

As the different channels work together it was found that they push potential customers into certain purchasing behaviors. Using multiple channels to direct customers to successful purchasing channels may be beneficial for raising the overall conversion rate. Channels then become augmentation and support for preferred channels that work the best.

Dinner, I., Van Heerde, H. & Neslin, S. (2014). Driving online and offline sales: the cross-channel effects of traditional, online display, and paid search advertising. Journal of Marketing Research, 51 (5).

Improving Online Brands with Contextual Advertisement

All businesses must advertise to survive and those that do it effectively are likely to draw more business. Building a brand image and getting the biggest bang for your buck can be difficult in the online world where millions of companies are competing for similar markets. However, by engaging in contextual advertising it is possible to raise brand image and purchase rates through pre-selecting candidates that are already interested in your product or service (Chung, et. al. 2014). 

Contextual advertising uses content matched with an advertising display such as a banner ad, video, music, etc… to attract visitors. It is most commonly offered through companies like Google AdSense, Amazon, and others that provide contextual advertising on web pages. Those who are reading a page exposed to similar advertisements that are more likely to draw their interest.

The authors found that there are two factors in successful contextual advertising. The contextual prime and stimulus as well as the complexity of the advertisement have an impact on the ad’s success. In other words, the placement of the advertisement in a context of language and using appropriate display technology for the audience can improve consumer interest.  

Think of contextual prime and stimulus as something that prepares you to be aware of something later. For example, the contextual information primes the advertisements contain on the page. As a visitor reads about outdoor fishing (prime) and then offered advertising displays on fishing trips or fishing equipment they are more receptive to such information. They have been primed and selected based upon their interest. 

The complexity of the advertisement should also be considered. Complexity can be seen as the amount of pictures, video, sounds, etc… that attracts attention to an advertisement. Sometimes more is not necessarily better. There is a U type relationship where simplicity or complexity should be based on the target audience. Try not to stick too much into one advertisement. 

Creating brand image online is not easy. Some programs work well and others flop in our faces. Research helps us weed through all of the claims these advertisers make. Contextual ads appear to help online branding and overall sales. Advertisements should be placed well within the contextual information and have an appropriate use of technology that is not too high or too little for the target population. 

Chung, K., et. al. (2014). Are contextual advertisements effective? International Journal of Advertising, 33 (2).