Analysis reveals 80 per cent of conversions happen on the first day of creative exposure: RadiumOne

With digital advertising campaigns, the tail may be long but it is not very lucrative. Instead, 80 per cent of all conversions happen within the first day of a consumer becoming exposed to the creative – anywhere across the web, online video, social or mobile.

That’s a key finding from an analysis of the global data managed by programmatic platform RadiumOne, according to CMO Eric Bader.

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“And of that first day conversion, 80 per cent of these happen within the first hour of exposure. Even a small delay in data analysis to activation can translate to a massive loss in conversion, which can’t be reclaimed.”

He says that to illustrate the point, RadiumOne analysed recenttwo  leading travel and financial services campaigns. “In the first, travel client, 81 per cent of the conversions happened in the first hour. After that first hour, the conversion rate dropped by seven times, ” said Bader “What that means to the advertiser, is that the time between the signal and the impression are crucial for monetising the ‘sweet-spot’ of the campaign.”

According to Bader, “Of course, the hours and days after the first hour produced efficient conversions, but nowhere near the rate of the ‘sweet-spot’.

For the global financial campaign, on the other hand, he said that within the first hour, and after only seven per cent of the impressions had run, 29 per cent of the conversions occurred.

After that first hour, the conversion rate tanked dropping, by 2.5 times. “That’s significant because financial services products are not necessarily an impulse buy and if a brand misses the moment of the consumer’s interest, the consumer can get distracted with a myriad other engagements – content, email, entertainment – and not take the required action.”

Further more he said conversions of financial services products usually happen over a longer period of time due to longer consumer consideration cycles, with other factors like eligibility and credit approval creating barriers to immediate conversion.

“In this campaign we saw proof that if you reach and engage consumers in the first-hour ‘Sweet-spot’ when they’re most receptive, they convert at surprisingly high levels. But, there can’t be any latency between the signal (when the data shows the consumer is in the market) and the impression. Data and delivery should not be separated.” 

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Author: which-50

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