Driving conversions not traffic

LinkedIn Twitter Facebook

 

Author: Dan Cohen, Regional Director, Tradedoubler

 

Consumer shopping behaviour is changing constantly, Forrester calls this new era the “Age of the Customer”, in which consumers are in control of their interactions with a brand and demand targeted and contextually relevant advertising. According to Tradedoubler’s Digital Connections study*, 65% of European consumers stated that they buy more online than they did a year ago, making it more important than ever to make sure that online advertising is optimised for conversion, not just focused on reach and branding objectives. As consumer behaviour changes so must advertisers’ approaches to targeting and optimisation.

 

 

Balance privacy and personalisation

Advertisers that focus on driving traffic, rather than serving personalised ads to highly targeted audiences are risking their relationships with prospective customers. With 49% of consumers rejecting brands that bombard them with too much or irrelevant advertising, it’s clear that advertisers need to get their strategy right and target the right people at the right time, to avoid potentially irritating their future customers.

 

 

Of course consumers will never love receiving advertising, but a balance needs to be achieved between privacy and personalisation. Serving contextually relevant ads helps achieve this equilibrium; Tradedoubler’s research concluded that consumers want to receive advertising that is relevant and 36% of the consumers surveyed said they are more likely to buy from a business that sends them tailored messages. It’s clear that there is also a willingness to share information, because 42% of European adults don’t mind giving their personal details in return for a relevant offer. Brands have a responsibility to manage and respect this relationship.

 

Effective targeting

For many advertisers, identifying consumers that are likely to convert when presented with an ad for their products or services is the first challenge and why so many turn to sociodemographic insights to purchase inventory on a CPM basis. But these data points alone can’t define a consumer’s interests, their likelihood of making an online purchase or their potential affinity to a brand.

 

To identify new customers brands must first invest in understanding their existing customers, this will allow them to find similar consumers who they can reach online and are likely to convert when presented with their ads. Using machine learning and artificial intelligence marketers can listen to their website traffic and identify patterns that they wouldn’t otherwise be able to. These insights can be plugged into a DMP (data management platform), which observes millions of customers’ online purchase journeys, to identify similar online users that are likely to convert when shown a brand’s ad. As a result, less users are targeted but conversion rates increase, resulting in higher ROI.

 

Using the right metrics

Online advertisers have been fixated on reach and have bought inventory on a CPM (cost per thousand impressions) basis as standard for years. This is a cost effective way to generate reach but it doesn’t necessarily drive sales. These days marketers are increasingly under pressure to demonstrate ROI and CPM can lack accountability as a measurement, because it doesn’t lend itself to evaluating the effectiveness of acquisition campaigns.

 

On the other hand, performance metrics such as cost per acquisition (CPA) — where a fee is only paid when a new customer is acquired — is a more accurate measure and encourages a more targeted approach. It is still appropriate in some cases to buy inventory on a CPM basis, if you require a large reach for example, but tracking conversions can provide a CPA metric and enhance the measurability of a campaign.

 

Omnichannel marketing is no longer optional, consumers don’t see boundaries between channels or screens and they expect relevant and targeted messages. This consumer expectation requires brands to understand how their existing customers engage with them, and the use of this insight to intelligently identify and connect with people just like them. It sounds simple, but many companies fail to effectively utilise their data or they don’t have the right partners to allow them to gain actionable insights that they can then use to drive their remarketing and acquisition campaigns. There is a real customer demand for contextually relevant marketing messages and more accurate targeting will improve both a brand’s ROI and its customers’ loyalty.

 

* The Digital Connections study was conducted for Tradedoubler by Arlington Research in March 2016. The research questioned 4493 consumers aged between 16 and 64, in the UK, France, Germany, Spain, Italy, Netherlands, Poland, Sweden and Switzerland. - www.tradedoubler.com/en/about/resources/route-to-your-next-consumer-digital-connections-whitepaper/

 

LinkedIn Twitter Facebook

Royal Mail Sponsor

Register today for unlimited article views, and unique insights

Register Now

Understanding the Current Global eCommerce Localisation Trends

Understanding the Current Global eCommerce Localisation Trends

Localisation has become key to success online and savvy brands and online retailers have adopted innovative approaches to localisation in order to provide the best experience for their target customers while retaining their brand identity and tone of voice in all of the markets that they operate. So how are retailers applying localisation strategies across the world and how are demands shifting?
How to ship with Fulfilled by Amazon

How to ship with Fulfilled by Amazon

If you shop on Amazon, you may often see the term ‘Fulfilled by Amazon’ meaning that you’re buying a good not from Amazon, but from a third party seller. Fulfilled by Amazon, or FBA, selling is where a third party stores their goods in Amazon warehouses, and Amazon then uses them to fulfil listings. But what does it take to sell your goods as Fulfilled by Amazon?
The legal landscape for online retail in Canada

The legal landscape for online retail in Canada

The legal situation around online retail in Canada is complicated by its general devolution from federal to province / territory level. In theory this means 13 different sets of terms and conditions needed. In practice, there is a very high degree of uniformity. This article looks into Canadas legal system from an online retailers position.
Online retail competition in Canada

Online retail competition in Canada

Canadians are amongst the most prolific cross-border eCommerce purchasers in the world - however, something to think about is that more and more local retailers, who previously were poor at eCommerce, are increasingly now getting better at it. This article looks at some of the top retailers in the Canadian eCommerce market to help you understand the competitive landscape there.
The Size of the Canada Retail Market

The Size of the Canada Retail Market

With the presence of US retailers in Canada unsurprising, some may find it hard to believe that not all northward ventures have ended in success. Therefore, you shouldn’t assume that the presence of a US giant means that other cross-border retail efforts would be hopeless. This article looks at the value of the total retail market in Canada and outlines the current competitive landscape there.
Online retail marketing in Canada

Online retail marketing in Canada

With internet and device penetration significant and online browsing behaviour fairly typical of a developed market, the landscape of online marketing looks very familiar to highly connected countries. However, retailers should be aware of the subtle but significant differences between the Canadian and the UK markets. This article looks at use of marketing methods for online retailers in Canada.
Connectivity and online behaviour in Canada

Connectivity and online behaviour in Canada

With typical online behaviour similar to other western counties, the Canadian eCommerce market can be seen as very appealing to cross-border retail. Exploring its sophisticated infrastructure, this article looks at the details of Canadian shoppers’ behaviour online, and examines some of the demographic nuances in internet access, online activity, and device preferences.
Online retail payment methods in Canada

Online retail payment methods in Canada

In different markets, shoppers can have varying preferences when it comes to making payments for orders on eCommerce sites. Canada is no exception but happily, there is more of an opportunity than a challenge when it comes to online retail payment in Canada. This article looks at the online retail payment methods within the Canadian eCommerce market.
Online shopping behaviour in Canada

Online shopping behaviour in Canada

When Canadian Shoppers buy online, how do they go about it, and what do they buy? With the use of mobile growing and the use of various devices for online shopping looking similar to trends in the UK, Canadian eCommerce has been a sleeping giant, but it’s waking up. And quickly. This article looks at the online shopping behaviour of the Canadian eCommerce market.
Online Retail Logistics in Canada

Online Retail Logistics in Canada

How should you go about planning your logistics strategy for servicing the Canadian eCommerce market and what are the options available? Canada is a spectacular 9,306 km from extreme east to extreme west so for any non-Canadian retailer looking for delivery partners to ship into the country, only large players with the scale to cover such a geography are particularly relevant. This article looks at the online retail logistics within Canada and how this impacts its eCommerce market.

Contact Us

eCommerce Worldwide
2 Ching Court
49-53 Monmouth St
London
WC2H 9EY

Tel: 0203 696 0980
2017© eCommerce Worldwide

Keep In Touch

powered by Affino

About eCommerce Worldwide

eCommerce Worldwide provides online retailers with all the information, and resources, they need to develop cross-border strategies for entering new markets around the world
Read More