Brand Ad Spending to Pass Search in 2012

Digiday and Vizu Report: Online Brand Advertising 2012 Outlook

Consumers are migrating online at a rapid pace, and this year brand marketers are predicted to follow their lead. While online marketing budgets have traditionally been devoted to direct response advertising, a recent report from DigiDay shows that 2012 may be a year of change — brand advertising is positioned to take the lead in digital spending in 2012.

The report, which surveyed more than 450 digital marketing and media professionals, predicts that nearly 60% of digital advertising dollars will be devoted to brand advertising this year. For the first time in history, marketers could potentially spend more on brand advertising than on direct response advertising.

Brands: Projected spending increase over 2011 and allocation of 2012 budgets

Source: Digiday; Online Brand Advertising 2012 Outlook

According to Forbes contributor, Robert Hof, “the findings also come as some analysts, such as J.P. Morgan’s Doug Anmuth, also sees a shift in growth prospects from search and other direct response ads to branding or image ads.” A recent report from Forrester mirrors these predictions and expects the search market share in interactive ad spend to drop significantly in the coming years.

Search Retargeting and Brand Marketing

Despite these predictions, brand marketers and agencies are skeptical that media sellers can even reach their narrowly defined target audiences. According to Digiday’s report, “only 6 percent of brands and 16 percent of agencies surveyed said they “strongly believe” media sellers’ claims that they can reach the custom or niche audiences that brands seek.” As brand marketers explore channels for display advertising, search retargeting’s ability to target in-market ‘hand raisers’ could prove to be a useful tactic to successfully reach those ‘niche’ audiences through online advertising.

Download the full report here >>

 



Understanding Keywords In Search Retargeting

Its one thing to know what search retargeting is, but it’s another to understand how to make search retargeting work. At the heart of search retargeting are keywords (AKA – search data). In a new article on Search Engine Land, Magnetic’s Aaron Doades, Director of Product Management, analyzes keyword level targeting and how it differs from search engine marketing to display advertising.

When launching a search retargeting campaign, marketers should know how the characteristics of both search and display fit into this targeting strategy.

On one hand, keyword lists can derive from SEM campaigns. However, marketers should understand that search retargeting is an extension of SEM and keyword lists should scale beyond your search campaigns. Magnetic’s keyword generation tool helps marketers build extensive keyword lists that can be used in display. Search retargeting sits in the mid-funnel area and is designed to push consumers down the funnel. This differs from SEM terms, which are typically found very low in the consumer funnel.

In the article, Aaron uses a hypothetical example:

An SEM campaign for Best Buy might be targeting the term “Best Buy 50 inch Sony plasma TV sale.” This user is likely to convert in a small window of time, as he/she clearly knows exactly what they’re looking for and even the store they’re looking to buy from. However, if a search retargeting company were to target users who searched for this term, they’d be showing an ad to someone who has most likely already converted and would therefore be wasting ad impressions, and more importantly ad dollars.

To read Aaron’s complete article on Search Engine Land, click here.


Magnetic Launches Search Retargeting Report

As the future of digital advertising continues to develop, Magnetic today released a report titled “The Future is Now,” a market analysis that explores the changes taking place in the digital industry by specifically looking at the growth of display advertising and search.

The report, which includes insights from top digital experts and industry leaders, is the first research initiative dedicated entirely to analyzing the power of search retargeting.  In particular, it argues that the future of digital advertising ultimately lies within the combination of search data and display advertisements.  As Magnetic’s CEO, James Green, suggests “There is no more compelling time to put a display or text ad in front of someone than after they search for a specific product…the report reinforces this belief and highlights the promise of search retargeting as the vehicle for placing your brand in front of the customer at the right point in the purchase decision cycle.” The report also highlights that although search spending is expected to double by 2016, display advertising will nearly triple (reaching an estimated $27 Billion).

In addition to discussing the growth patterns of display and search, the report also covers topics such as :

  • Effect of customer demand on digital technology
  • The concept of bringing SEM beyond the search engine
  • Future opportunities and best practices for search retargeting

To read more about how display is expected to drive innovation in search and search retargeting, download the report now>>

In Digital Advertising, “Only the Smart Will Survive…”

In the most recent installment of the “All Marketers are Geniuses” series, Magnetic founder, Josh Shatkin-Margolis, sits down with the VP of Media Technology and Analytics at Fuor Digital, Josh Dreller, to further analyze and understand the current trends that taking place in the SEM sphere and digital media industry.

In this latest segment, titled “All Marketers are Geniuses: ‘Smart is In,’” both Josh and Josh address the importance of media measurement and the various ways marketers are reaching consumers through multi-channel platforms in the digital space.

As a self-described media technologist, Dreller touches on the relationship between analytics and search. According to Dreller, search and data go hand in hand. As he puts it, quite simply, “sure, anyone can load a Google AdWords campaign and bid on some keywords, but they’re not going to be successful unless they have the ability to evaluate the performance and optimize accordingly. Frankly, without the data, you’re just going to waste your money.”

The article goes on to discuss the influence of web analytics on creativity, and Dreller concludes that although data may create roadblocks for some graphic artists, it also has the ability to positively challenge these designers. As Dreller notes, “deep creativity within boundaries might actually be a much more advanced form of creativity than purely free form art – especially if you can generate the sales that a struggling business needs with thousands of jobs on the line.” Ultimately, Dreller recognizes that in order to achieve the best results, a balance must exist between data and creativity where “the decision maker takes into account what the data is telling them as well as what they think will influence their audience to take position action for their business.”

Towards the end of the article, Dreller encourages advertisers to think more holistically in terms of the way they evaluate the performance of SEM. Rather than narrowing in on the success of individual keywords, Dreller argues that consumers are continuously engaging with keywords throughout the buying process, and therefore advertisers must be aware of the entire keyword landscape.

While the article goes on to discuss topics such as hyper-targeting and the future of measurement, one of Dreller’s most memorable conclusions is his suggestion that that all marketers are true geniuses because they ultimately have no choice.  As Dreller contends, “all sizzle and no steak is out”—  only the smart will survive.

Read the full story here>>

Search Enters its Teenage Years

Happy Birthday, Google! The search engine celebrated its 13th birthday last week, marking a year of growth spurts and growing pains. Search Engine Watch rounds up the top 12 Google stories from the past year, including the launch of Google +, antitrust scrutiny, and Android innovations.

As Google enters its teenage years, there’s one story is of top interest; how they make their billions. Last year, 97% of Google’s $32.2 billion in revenue was made through advertising, according to WordStream.

Without question, their search platform has shaped the digital industry and is now carving a space for search retargeting within online advertising. Search retargeting represents the evolution of search through its ability to leverage the power of search data beyond the search engine. Cheers to the future of search and search retargeting.

Magnetic Joins OMMA Global in NYC

At OMMA Global NYC, Magnetic joined the panel, Is the Future of Search about Personalization?. The discussion was centered around how search is evolving — this includes areas of search retargeting, social search, new algorithms and behavioral data. While the panel of experts generally agreed that search represents the highest form of intent, there was disagreement about where search is headed.

Josh Shatkin-Margolis, founder of Magnetic, the leader in search retargeting, lead the discussion insisting that search is an important channel, but the real future of media lies how search data will be used across display channels. Josh went on to explain that through search retargeting, there’s a real opportunity to leverage the power of search beyond the search engine and apply it to display channels, where a majority of users spend their time.

Other experts engaged in the debate including moderator Jason Lehmbeck of DataPop and panelists Viji Davis of Resolution Media, Julie MacGill from Google and Adam Whippy of 360i.

For more information about the relationship between search and display channels, read Search Engine Land’s story on “Why Display is Changing the Value of Search.”

Leader in Search Retargeting Sponsors iMedia

Magnetic, the leader in search retargeting, sponsored iMedia’s September Brand Summit, ”Digital Marketing at Scale: Going Big in 2012.” The Summit shared with marketer’s the key to achieving brand performance through digital advertising.

The cocktail hour was hosted by Magnetic and featured a special punch, titled, “Magnetic, Drink the Kool-aid.”

Check out some of the pics below:

 

To see more pictures from iMedia Brand Summit, click here >>

 

 

 

 

 

 

 

Five Tips for Site and Search Retargeting

Collective’s latest newsletter, AMP Audience Insights features Magnetic in their Sepemtber edition, showing the importance of following up with intent consumers through site and search retargeting. To successfully carry a user though the purchase funnel, it is key to follow up with that user after they visit your site or after they have searched for your product or service. Magnetic’s founder Josh Shatkin-Margolis shares five actions that are imperative to executing the most effective search retargeting campaign.

    1. Define Goals: It is not enough to simply say you want to follow up on all those new or existing customers. It is important to understand your customer’s path to conversion. Don’t simply create a goal for your campaign based on clicks or page views.
    2. Identify Audiences: This is where companies like Collective and Magnetic work well together. There are multiple customer segments for your product and there are multiple paths to conversion. Learn them. Understand the keywords each would be searching for. This is a crucial exercise
    3. Select Inventory: From comScore 250 to ad exchange inventory and even affinity sites, there are a lot of ways to get in front of the right user at the right time and with the right message. The beauty of site and search retargeting is that you have the ability to control what inventory you want for your brand message. Grab the reigns of your campaign and ensure brand safety while targeting the most relevant audience online.
  1. Design Relevant Creative: Serve flash, graphical and video content that is relevant to the targeted audience segment. It is important to have creative that have a clear call to action. If you are conquesting, mention the competitor’s product and provide a clear reason for picking your products. If you are targeting the upper funnel, be informative. If you are targeting the bottom funnel, mention the price or offer a deal close to the customer. Customize the message for users who have already converted to thank them or up sell them with accessories.
  2. Tag, Baby, Tag: Conversion tags provide insight into successful optimization by helping determine which keywords, data sources, recency of searches along with media, creative, geo, etc. are driving results. When it comes to optimization, conversion tags become your best friend.

Co-Founder of Questus Calls for a New Focus in Advertising

In the latest installment of the “All Marketers are Geniuses” series, Magnetic founder, Josh Shatkin-Margolis, attempts to further understand the challenges and changes that are currently taking place in the digital marketing industry.

In his most recent segment, titled “All Marketers are Geniuses: ‘Cut the B.S.,’” Josh sits down with Jeff Rosenblum, co-founder of Questus, an advertising agency with a reputation for crafting some of the most innovative campaigns in the industry for top brands, including General Mills, Capital One, and Suzuki Motorcycles.

In the article, Rosenblum touches on his upcoming documentary, which highlights the ever-evolving marketing landscape and argues that that corporations and advertisers can no longer fool consumers. As Rosenblum puts it, “agencies need to create experiential platforms that enable brands to create a two-way dialogue with customers. Traditional advertising still plays a role in these platforms – advertising is not dead – but we need to think of it entirely differently and put our focus into every single place that a brand touches a customer.”

The advertising industry has changed dramatically over the past decade, and therefore, the article suggests that brands need to similarly transform the way they reach consumers. As Rosenblum argues, “advertisers need to realize that they have a very limited ability to change consumers’ perceptions through messaging alone. Time and attention should be spent on aspects of the customer relationship where we can make a difference.”

The article goes on to discuss new technology platforms in the display industry that are helping to creatively target consumers, such as Meteor Solutions, Meebo, and C3 Metrics. As Rosenblum mentions, however, “the problem is that most brands don’t use these tools. Brands that are lazy and want to simply serve up traditional ad units because they are easy to create and traffic will fail.” Ultimately, in order to succeed in the current marketplace, advertising agencies and corporations need to redefine their approach and use nonconventional methods to target consumers. Only through the use of such tactics, Rosenblum argues, can marketers be considered true geniuses.

Check out the full story here>>

Tis the Season for Search Retargeting

Q4 2011 represents one of the largest business opportunities for brands. Last year, the holiday shopping season set an all-time record, reaching a total of $32.6B for e-commerce spending.

According to comScore chairman Gian Fulgoni, the 2010 season will be recognized for an exceptional Cyber Monday, noting the first billion-dollar spending day in history, and the first time that Cyber Monday rank as the heaviest online spending day of the year. Fulgoni added that retailers targeted many of their promotions even earlier than usual and reaped the benefits.

The chart below shows 2010 holiday sales by week:

With search retargeting, the ability to target users with digital display ads based off of user search history, brands can reach audiences that are engaging (i.e. searching for) in Q4 events and holiday shopping activities online.

This includes reaching those consumers users who have searched and signaled intent in specific products, services and competitors across the following events/topics:

  • Black Friday/Cyber Monday promotions
  • Holiday gifts/deals across consumer categories — electronics, toys, apparel, travel, sports, etc.
  • Gift certificates across verticals — food, travel, entertainment, etc.
  • Sporting events (NFL & MLB post season)
  • Halloween festivities

 

 

 

 

 

To learn more about how you can leverage search retargeting for your Q4 campaigns, contact us here.

Happy Holidays!