Consumers are bombarded with thousands of marketing messages every day across various channels. According to some estimatesOpens a new window , a consumer is exposed to about 6,000 to 10,000 ads per day. This has led to many consumers blocking digital ads. Consumers have also become increasingly selective about the ads they engage with and take action on. As such, marketers are in fierce competition to ensure their messages are in the right place at the right time for consumers to take action.
How can advertisers cut through all the noise and optimize their media mix in local advertising to improve conversions? What are the effects of omnichannel media on conversion rates and cost per conversion in local advertising? FrequenceOpens a new window recently conducted a study to find the answers. The company also used the study to determine the best media combinations for advertisers to reach a local audience.Â
A significant finding was that consumers are more likely to take action if they receive the same message across multiple channels. The following are the insights in detail.
Adding Videos to Display Campaigns Boosts Conversions
Analyzing the ads and impressions, the study found that advertisers who combined display and pre-roll video vastly outperformed ads that ran on pre-roll video, display, or connected TV alone. In fact, ads that combined any two of these channels had better conversion rates than any single channel on its own.Â
Conversion rates when combining media channels
Combining pre-roll video with a display campaign increased the conversion rate by 3x. Combining CTV with a display campaign increased the conversion rate by 14% while combining CTV with a pre-roll video campaign increased conversion rates by 28%. Consumers who saw a display ad and a pre-roll video ad had a 2.8x increase in conversion rates than those who saw multiple video ads only and a 2.6x increase in conversion rates than consumers who saw multiple display ads only.
The same-day conversion rates of users who saw more than one impression on multiple channels were also considerable. Consumers who saw a pre-roll video and a display ad had a 0.43% conversion rate. On the other hand, consumers who saw only a display ad had a 0.16% conversion rate, and consumers who saw a pre-roll video had a 0.15% conversion rate.
Combining Channels Improves Cost per Conversion
Combining pre-roll video and video ads or CTV and pre-roll video ads also significantly improves cost per conversion. Adding channels to campaigns brings down the cost per conversion drastically. Just adding a video to a display campaign can reduce the cost per conversion by almost 50%. The cost per conversion for CTV is lowest when combined with other channels. This suggests that CTV is best used in an omnichannel approach.
Cost of conversion by media channel
Conversion Rates Improve Across Industries When Channels Are Combined
The study examined conversion rates across key local industries, including education, auto, entertainment, media, and retail. When used alone, the conversion rates were comparable across pre-roll video and display ads (except entertainment and media). When both pre-roll and display ads were combined, there was a significant improvement in conversion rates across the verticals. The biggest improvements were in the education and services verticals, which saw over 3x improvement with an omnichannel media approach.
Have an Optimal Split Across the Media
Now that we know an omnichannel approach to improving local advertising conversion rates and cost per conversion, how can local advertisers best allocate impressions for multi-channel campaigns to maximize conversions?Â
The study found that the optimal split would be 70-75% display ads and 25-30% videos to boost the conversions by up to 25% compared to display ads alone. Further, users viewing a video ad before a display ad from a single advertiser showed an increased conversion rate of 16%.
Optimal distribution across media
A Few Strategies You Can Follow
Based on the findings, here are a few strategies you can follow to achieve better results from your local advertising efforts.
Combine media channels to boost conversions
As it can be seen, combining channels lead to better conversions â€” even up to 3x in some cases â€” than using them alone. Consumers are more likely to engage, take action, and convert if they receive the same message across multiple channels. Hence, use a combination of channels to boost conversions.
Go omnichannel to reduce cost per conversion
It is also seen that combining channels reduces the cost per conversion. In fact, combining video and display reduces it by almost 50%. Hence, combine channels to reduce the cost per conversion.
Have the right media split
The optimal split between media channels is found to be 70-75% for display and 25-30% for video ads, which boosts conversions by about 25%. Hence, find your own optimal split of media channels and use it.
Consider a video-first strategy
People who watch videos before a display ad from an advertiser showed an increased conversion rate of 16%. Hence, consider a video-first strategy when targeting customers.
One thing that can be concluded from the study is that an omnichannel strategy and the right media mix improve conversion rates and cost per conversion irrespective of the industry in local advertising. Hence, go omnichannel to enhance your ad performance.
Have you used a combination of channels for your local advertising efforts? How has it affected your conversion rates? Let us know on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .