Tag Archives: AOV

2013: Marketing to the Fiscal Cliff

As 2012 draws to a close and 2013 appears on the horizon, one big topic for 2013 will be the pending “Fiscal Cliff” of increased taxes. This is not necessarily a time of doom and gloom, but an opportunity. Many companies will remain on the same path, while smart marketers will adjust to the changes in the marketplace. Potential fallouts (if Congress is not able to fix the problem) are increased taxes and decreased spending. Discretionary spending probably will decline, and consumers will be tighter with their money. Online, consumers are probably more likely to take longer to make a purchase and will click on more links and ads before buying. Additionally, Average Order Value (AOV) could take a hit as consumers might purchase what is needed and not needed/ wanted. How do you make lemonade?

Despite the Internet being approximately 20 years old, it still works with the same premise of garbage in -> garbage out. From an end user perspective, relevancy is still the gold standard. In direct response marketing, providing a relevant advertisement will ensure that your company has a chance to service a potential client at the precise time of need. To achieve this, review how your Google and Yahoo! Bing accounts are structured and how customers search. Maybe your company needs another account to handle meta data searches (such as model numbers or SKUs). Additionally, a review of landing pages to ensure that all ads are using the most relevant landing page would also be a good exercise.

The 4P’s still apply and promotions are king. Consumers will be increasingly looking for and demand promotions. Free shipping is now standard. Can your company offer “no additional taxes” by offering a “rebate” on local taxes? What about a price match guarantee which covers any regular online and offline retailer? Price match is complicated, and many retailers have found that 3rd party verification services are useful. Promotions can also be differentiators: are there promotions which the competition is not using which your company can use?

If you had to go through a corn maze to get into the mall, would you bother even trying to shop there? Likewise, online stores should be scrutinized for stumbling blocks and pot holes which slow down consumers from completing their purchase. Simplicity and guideposts can set your website apart from the competition: show consumers where they are and cut the unnecessary fluff which might distract from the checkout process. The ultimate goal is to efficiently get the customer to the “Thank you for your order”. Many online stores do not pay attention to their checkout process, and this is reflected in their lower than anticipated sales.

2013 is an opportunity – grab it by the horns and run with it. If you are not constantly working to improve, then you are falling behind everyone else who is.

IgnitionOne Industry Digest

August 2012

This is the most recent issue of the IgnitionOne Industry Digest, created to keep you up-to-date on the latest industry insights and news. If there are any interesting and relevant articles that you would like to see featured in the next issue, please email Vanessa.Ralls@IgnitionOne.com

Company Highlights

US Paid Search Spend Growth Slows in Q2; Mobile Keeps Rolling
Marketing Charts
June 29, 2012

Marketing Charts uses IgnitionOne Q2 data to compile their report on paid search and mobile growth.

Marketers Continue Upward Trend in Paid Search Advertising says IgnitionOne Report
Mobile Marketing Magazine
June 29, 2012

Mobile Marketing Magazine highlights information provided by IgnitionOne that notes mobile growth and paid search statistics.

Fully Utilize Attribution in Search Marketing
July 1, 2012

Roger Barnette’s byline encourages marketers to measure their performance through cross-channel attribution and move away from inefficient last-click.

Will Facebook Crack Mobile? IgnitionOne’s Michael Stephanblome on the Future of Social
The Drum
July 2, 2012

Q&A with Stephanblome covering his opinion on Facebook’s IPO valuation, how the company will crack mobile platforms, what he thinks will be the next big thing in social media marketing and more.

The New Millennial: Generation FB
Digital Marketing Suite
July 3, 2012

Lisa Arsenault, Head of Client Solutions for IgnitionOne, discusses how Facebook is the epicenter of a generation and makes suggestions for how marketers can appropriately advertise using the platform.

Paid Search Drives Highest AOV for Travel Industry
July 10, 2012

Econsultancy uses IgnitionOne data to fuel their article on paid search and the travel industry, highlighting that paid search drives a 71% higher AOV than any other single channel.

Google Takes Mobile on Attribution Path
July 11, 2012

Information from IgnitionOne’s Travel and Retail Report is referenced to support this MediaPost article on attribution and analyzes the channel paths to conversions.

Paid Search Growth Slows, Mobile Spikes in Q2 2012
Search Engine Watch
July 13, 2012

IgnitionOne data is used to support claims in this article regarding paid search trends.

Seven Years In, It’s Time for Social to Grow Up
July 16, 2012

Will Margiloff’s byline questions how marketers value social and insists that social provides better advertising opportunities and an efficient method of measuring user engagement and interaction with brands.

Paid Search Drives the Highest Value for the Travel Industry
Fourth Source
July 17, 2012

Centers on IgnitionOne data that reveals paid search is the key driver in getting customers to spend more money.

Attribution Requires Marketers to Understand Display Ad Impact
July 17, 2012

The IgnitionOne Travel and Retail Report’s explanation of ways to reduce conversion times simply by rearranging media in the purchase funnel is mentioned.

Where Display Fits
July 18, 2012

In his byline, Eric Bamberger discusses the symbiosis of display and search in the end-result of a conversion and makes an argument against last-click attribution as it typically omits the importance of display in the path to conversion.

Still Buoyed by Search Business, Google Posts 21% Revenue Growth
July 19, 2012

Roger Barnette comments on the Google Q2 reported earnings.

Ollie Bath, Head of Client Solutions, EU for IgnitionOne, explains how understanding attribution can lead to faster conversations and higher order values
Travel Bulletin
July 20, 2012

Ollie Bath discusses how integrated campaigns are most powerful when you have a fully-attributed view of online advertising, providing insight into how digital channels work together.

PPC & SEO – How Well Do They Play Together
Digital Marketing Suite
July 26, 2012

Meghan McDonnell explores multiple studies on paid and organic search, concluding that paid media fuels overall search traffic.

James Yancey, VP of Global Strategy at IgnitionOne, on the Future of Facebook Sponsored Stories Combining Social Graph and Third-party Data
July 26, 2012

James Yancey discusses the future of Facebook Sponsored Stories combining social graph and third-party data.

What Do A BLT And Search Marketing Have In Common?
July 27, 2012

Roger Barnette’s byline focuses on search marketing strategies, and discusses how organic and paid search work in concert and when the two function together, CTR, conversions and profitability will increase. Search marketers must work closely with other digital media disciplines in order to garner results.

Industry Insights

Success through Testing: Don’t Forget the Scientific Method
Search Engine Watch
July 5, 2012

Similar to science, digital marketers can benefit from testing by using steps in the Scientific Method. Characterizations and experimentation show how to test and hypotheses and predictions show what to test.

Is Click-Through-Rate Still a Good Measure for Success?
July 10, 2012

DeShazer argues that in other digital channels, business objectives need to be clearly understood and made tangible through defined KPIs in order to gauge whether the advertising is effective or not. Can this be translated for Facebook as well?

The Ripple Effect of Following a Brand on Social Media
July 10, 2012

A study found that 22% of Internet users would buy a brand that a friend liked or followed on a social network. The impact of liking a brand continues to grow in significance for companies, who feel that catering to their fans on social media outlets is a method of cultivating brand advocates who will support and recommend the brand, as well as its products and services.

Search Marketing’s Influence on Mobile Commerce
July 12, 2012

A report was released on the influence from search engine marketing that puts US mobile commerce spending at $36 billion by 2015 and that global revenue from mobile advertising and content should reach $67 billion this year. The report indicates that search will increase advertising and commerce but that mobile marketing will also contribute. Search on mobile demonstrates immediate intent and because mobile is a personal device, recommendations and ads target the individual. Keywords in text messages, searches, photo tags, and area codes will all play a role in ad targeting and marketing, as well as the ability to push content and recommendations that will lead consumers to make more purchases on mobile devices.

The No. 1 Concern of Digital Marketers: ROI
July 17, 2012

In a survey by the Association of National Advertisers, 62% of marketers said the inability to prove ROI in new media platforms is their top concern. They expressed unease over having proper metrics to determine the right media mix of traditional and digital media and 53% said there’s a lack of understanding about digital media among key people within their organization. Further, 40% of marketers are not measuring social to business results at all.

Mobile Search to Hit $15B in 2017
July 18, 2012

Juniper Research issued a new forecast projecting that revenue from mobile search and discovery will nearly triple to $15 billion worldwide in five years.

How Blank Display Ads managed to Tot up Some Impressive Numbers
July 23, 2012

Ted McConnell created an ad that offered no message and then enabled the ad to ask anyone who clicked why they did so (whether it was mistake or if they were curious). The average CTR the 500,000 impressions received was .08%, leading McDonnell to question what a click is: “Is it just an indication of a person solving a little mystery along the route of his quest? Is it an experiment? Is it a nervous tick? Or all of the above?”

Balancing Dueling Goals: Quality and Scale
July 23, 2012

Netmining’s Chris Hansen discusses how to effectively run an audience targeting campaign. By balancing quality, where on the page the ad appears and how well it can viewed, and scale, a marketer will likely achieve his goals.

Consumers Willing to Offer Personal Info for Better Ads
July 20, 2012

A recent survey found that consumers are happy to give their personal interests to marketers if they see a positive return. The study also found that consumers are excited by the idea of getting rid of the noise and removing irrelevant marketing messages, even if that means that they have to take a little time to rate different brands, ads, and segments.

Email and Search are Most Popular Mobile Tasks: Infographic
July 24, 2012

An infographic by Deloitte that shows that more than half of the UK population (52%) now own a smartphone, while tablet penetration stands at 16%. It also indicates that tablet users spend an average of £2.50 per month on apps compared to just 80p for the average smartphone user.

Trusting the Brand Enough to click on the Search Link
July 24, 2012

About.com released a study, revealing that consumers must trust a brand before they click on its ads. 84% of survey participants said trustworthiness has become a requirement before interacting with a brand. About.com identifies ten elements of trust. Some 99% of survey participants consider accuracy the most important element to gain consumer trust. Relevance follows with 98%; and fairness, format, transparency, and expertise tie for third at 97%. Choice and reliability are next at 95%, and awareness at 93%.

Tablets to Lead Mobile Advertising in 2014
July 23, 2012

A Yankee Group study forecasts that tablets will account for 53% of mobile ad dollars in 2014 compared to 47% for mobile handsets. They also found that 24% of tablet owners clicked on ads while using apps and 29% purchased extra content and indicated that tablets outperform smartphones across advertising, direct payment and in-app commerce.

A Timeline of Recent Facebook Ad Changes
July 24, 2012

A summary of news announcements regarding Facebook’s new advertising opportunities in 2012.

Why Brands must combine Paid, Owned and Earned Media
Social Chorus
July 24, 2012

The Altimeter Group published a report that states that brands do not integrate and align paid, earned and owned media, putting them at a disadvantage. In ten years, most media will encompass elements of all three. Digital, social, and influencer marketing programs are commanding larger portions of brand’s overall marketing budgets.

Facebook Tests Sponsored Results in Search Bar
July 24, 2012

Ads will begin to appear among organic search results in Facebook when users conduct searches for pages or places.

Display’s Future Hinges on Integration with Other Digital Channels
Marketing Pilgrim
July 25, 2012

A study by eConsultancy shows that 59% of marketers say increased integration with social media is very significant, 56% say the same for search and 50% for the personalization of online advertising. 44% of respondents are now integrating on-site content management and 37% are integrating search engine marketing.

Google Presents Strong Case for Online Political Advertisements
Search Engine Journal
July 25, 2012

An infographic that highlights facts about television, mobile, tablets and personal computers that should encourage the presidential candidates to re-evaluate their online advertising methods and strategy.

Display Isn’t Dying – It’s Just Getting Started
July 27, 2012

The continuing discrepancy between consumer usage and ad spending in digital media, an online paradigm shift from direct response to brand advertising and the improving efficiency of online channels contribute to the argument that display advertising is only getting bigger.

Facebook is not Google
July 30, 2012

Google’s search revenue, a “once-in-a-generation business model” funded the company’s expansive efforts. But AdWords conveyed a message to VCs and entrepreneurs that the ad business was a basic engineering problem that could be solved with an algorithm. Facebook’s attempt at pioneering a new form of advertising based on social signals, in conjunction with its unproven advertising strategy, will take a long time to sort out.

Travel and Retail Report; Attribution and Conversion Path Insights

IgnitionOne released research today that shows the effect of media types and exposure paths on the speed of conversion and on the average order value (AOV). Using marketing data from US and European travel and retail firms over a two month period, IgnitionOne looked at the types and number of media exposures, latency (the amount of time between the first exposure and when the conversion occurred) and the exposure paths that led to conversions.

Download the 2012 Travel and Retail Report here.


Key findings in the report:

  • For travel, paid search is the key driver in getting customers to spend more money.  Outside of organic search, it drives a 71% higher average order value (AOV) than any other single-channel path. Within multi-channel paths, when paid search follows an organic search click, the AOV is 18% higher than the average multi-channel path.
  • Email campaigns are a drag on travel order values and increase the time to convert when part of conversion paths.  Across single-channel conversion paths, email drives a 56% lower AOV and takes over 250% longer to convert a user than on average. Across multi-channel conversion paths, when email is the last exposure, it results in a 36% lower AOV and 100% more time to convert than on average. When email is the first exposure, it results in a 39% lower AOV and takes a user almost 150% more time to convert than on average. This can be explained by email campaigns being traditionally very promotional in nature, which lowers the AOV. Email campaigns are also more heavily dominated by existing customers who may not be currently in the market for travel and/or are more discerning among promotional offers.
  • Display is an effective channel for retail, especially early in the conversion path, feeding the top of the funnel. Even on its own, display drives a 29% higher AOV than other single channel paths. Combined with search channels (both paid and organic), it drives a 16% higher AOV when it’s at the top of the path and converts users 43% faster than other multi-channel paths. At the end of the path, latency tends to be higher but AOV is 36% higher than other multi-channel paths.

“By better understanding how different media interact and assist along the path to making a purchase, marketers can more efficiently leverage advertising dollars,” said Roger Barnette, President of IgnitionOne. “These types of insights are possible when marketers take advantage of advanced attribution models and move away from last-click models.”

This report is the latest in a series of reports from IgnitionOne reviewing trends across the online advertising landscape. This and previous reports can be downloaded at bit.ly/ignitiononeresearch