Clicks and conversions – what you’re missing out on by focusing only on these metrics in programmatic advertising
In the world of digital advertising, we always strive for measurable results that would allow us to calculate the return on investment in marketing. Clicks and conversions certainly play an important role in evaluating the effectiveness of campaigns. However, focusing on these metrics alone may not be enough to fully understand the value of programmatic advertising. My name is Sergey Samonin, CEO of the RTBSape programmatic platform, and in this article we will look into the details of what we are talking about.
It is often assumed that reach ads (i.e. those that target views and frequency of interaction with the audience) are less useful and must and should always be accompanied by concrete results. For example, such a result may be adding certain goods to the basket or replenishing the deposit of online gaming services for a minimum amount. But, in our opinion, there are several reasons why this point of view is not entirely sound.
What was before: historical formats of visual advertising
Before we delve deeper into clicks and conversions, let’s take a look at the history of visual advertising. Billboards, billboards, posters and other formats have long been used to capture the attention of an audience.
Print advertising in magazines. In the past, print magazines were a popular channel for advertising. Brands used high-quality photography, eye-catching designs, and unique content to grab readers’ attention. A well-executed print ad could evoke an emotional response, create a brand image, and leave a deep impression on the audience.
Advertising posters on the streets. Large posters and placards displayed on the streets and in public places were a popular means of capturing the attention of the audience. They usually featured bright colors, eye-catching images, and short, catchy slogans. Such posters evoked emotions, captured the eyes of passers-by and helped brands create recognition and awareness of their products or services.
TV advertising. Television has become a powerful medium of communication and mass advertising. Commercials aired on TV offered a combination of visual and sound effects, music and stories to evoke emotion and imprint on the memory of the audience. A well-crafted TV ad could become a symbol of the brand and evoke strong reactions from viewers.
These examples show how historical visual advertising formats have sought to engage emotionally with audiences and build long-term brand bonds. They reflect the understanding that advertising must go beyond simply driving clicks and conversions in order to stay in memory and evoke positive associations with the target audience. By themselves, these associations are of little value, but over time they build brand loyalty – and not just from loyal customers.
The mechanisms of the human brain and the perception of advertising
The human brain is an amazing organ capable of processing vast amounts of information and perceiving the world around us. When it comes to advertising, brain mechanisms play an important role in how we perceive and respond to advertising messages. Neuromarketing research shows that emotions, aesthetics, and the creation of connections with certain values are key factors influencing the perception of advertising.
Here are some examples. We intentionally didn’t show pictures here, but we did mention brands and briefly describe what they show in ads. And, we are sure, advertising images will pop up in your memory.
Emotional Impact. The brain has a strong connection between emotions and memory. Ads that evoke positive emotions, such as laughter, joy, or admiration, may more easily be remembered and associated with the brand. For example, a Coca-Cola ad with smiling people and a festive atmosphere creates positive emotions and brand associations.
visual stimulation. The brain processes visual information much faster than text or sound. Bright and eye-catching visual elements in an advertisement, such as colorful images, contrasting colors, or movement, can grab attention and generate interest. For example, Apple ads with minimal designs and elegant products are eye-catching and associated with innovation and style.
Create links and associations. The brain seeks to create connections and associations between perceived objects. Advertising that skillfully uses associations with certain values or symbols can evoke strong reactions from the audience. For example, Nike ads with images of athletes and the phrase “Just Do It” create associations with motivation, activity, and the spirit of victory.
Stories and narration. The brain remembers better information that is presented in the form of a story or narrative. Advertising campaigns that tell compelling and emotionally charged stories can hold attention and evoke strong emotional responses. For example, a Google ad featuring a story about the friendship of two aging men and their adventure together evokes sympathy and admiration.
These examples demonstrate how the mechanisms of the brain influence the perception of advertising and highlight the importance of creating an emotional connection with the audience to achieve effective results in programmatic advertising. This means that advertising value cannot be reduced to clicks and conversions alone.
An example of modern inclusive advertising: large digital billboards on skyscrapers
It should be noted that while some formats of outreach advertising are gradually dying out (for example, advertising in glossy magazines), others, on the contrary, are actively developing. Although a digital billboard on a high-rise building is a complete analogue of advertising in a magazine in terms of the ability to track conversions. Why is this format popular and continues to evolve? In short – because it makes it possible to work with all 4 mechanisms described above. Now – to the details.
Large digital billboards installed on the facades of skyscrapers and other public places have a special impact on the audience. They attract attention with their bright colors, moving images and large format. These billboards can be used for various purposes and evoke different emotional and informational reactions from passers-by.
For example, imagine a digital billboard on the facade of a high-rise building in the city center. It can display an advertisement for a car that is speeding along a scenic road with beautiful scenery. This type of advertising not only attracts the attention of passers-by with its brightness and movement, but also conveys an emotional message about the freedom, adventure and prestige associated with owning this brand of car. Even if passers-by may not immediately make a transition or conversion, they can remember the brand and associate it with positive emotions and lifestyle.
Another example is a digital billboard that displays ads for a cosmetics brand. With the help of dynamic images and videos, you can demonstrate the transformation of the face thanks to the products of this brand. Even if passers-by can’t instantly jump in and buy products, they may be impressed with the results and likely interested in learning more about the brand and its products. This billboard becomes part of the urban landscape and generates discussion, which helps build brand awareness and appeal to potential customers.
Thus, large digital billboards on skyscrapers play an important role in shaping the brand image, enhancing brand awareness and creating an emotional engagement with the audience. They can evoke positive associations, be remembered and influence the decisions of potential customers, despite the lack of a direct transition or conversion opportunity.
Last click issues and assisted conversions
Now let’s look at an advertising approach that is different from reach – the last click attribution model. It takes into account only the site from which the user who completed the target action was taken as a source of conversion. So, if a user came from a link from contextual advertising, it will be considered that it was the context that helped bring the client.
The last click model, although widely used, has its limitations. Let’s look at a few examples to illustrate the challenges associated with this model and the importance of assisted conversions.
Example 1: Advertising in different channels
Suppose a potential buyer first sees your product ad on social media, then notices your ad on a search engine, and finally clicks through to your website via email. In the last click model, the attribution will only be assigned a value for the last channel, in this case email. However, other channels such as social media and the search engine have also played a role in attracting and persuading the buyer. Their impact will be underestimated if you focus only on the last click.
Example 2: Multiple Interactions
Imagine that a potential client interacts with your ad on different platforms and at different times: he sees an ad on TV, then goes to the Internet and sees a banner ad, and then comes to your site after searching in a search engine. In the last click attribution model, only the last click, i.e. the search query, will be taken into account. However, all prior exposure to advertising has a direct bearing on the customer’s decision and is important in shaping their opinion of your product or brand.
Example 3: Long term impact
Sometimes ads have a long-term impact that cannot be measured immediately after being viewed or clicked. For example, advertising on cars (there are several services, including Russian startups, that rent the surface of their cars from drivers for advertising pasting) can attract the eyes and evoke an emotional reaction from passers-by. While they may not immediately go to your site or make a purchase, these ads create brand awareness and positive associations that can influence a shopper’s future decisions.
All of these examples highlight the importance of assisted conversions in measuring ad effectiveness. They take into account the contribution of all channels of interaction with the audience and allow you to get a more complete picture of the impact of advertising on the conversion process.
Finally
However, it should be noted that clicks and conversions are still important metrics for measuring the success of advertising campaigns. They provide specific metrics to measure performance in attracting and retaining customers. Performance metrics, such as clicks and site actions, help determine the direct reaction of the audience to an ad.
At the same time, they must be considered in conjunction with other factors such as engagement rates, brand awareness, association formation and long-term loyalty. Only a comprehensive analysis of all these factors will allow you to fully understand the value of programmatic advertising and optimize its effectiveness.
