Search and Display Advertising Synergies.

Part of the attraction of search advertising is that since it targets consumers toward the bottom of the purchase funnel, ads are served to users likely to convert. But display ads appear to a wider swath of consumers, pulling some into the purchase funnel and thus energizing search.

Data from Eyeblaster on cross-channel search and display campaigns demonstrates the synergy of the two channels. While 23% of conversions came after a customer saw a search ad only, 5% were from search ads in combination with display.

That means almost one-fifth of the 28% of users who converted after search had seen at least one display ad as well.

“This data proves that cross-channel synergy expands reach and brings greater scalability to digital campaigns,” said Ariel Geifman, research analyst at Eyeblaster, in a statement. “The consumer funnel takes users along a journey—awareness, favorability, consideration, intent to purchase and purchase.

“Display works at all stages of the funnel, bringing new prospective customers in, while search works on the lower funnel targeting those that already show interest,” Mr. Geifman said.

Eyeblaster noted significant variation across verticals in the proportion of conversions from search and display. The “Search and Display: Reach Beyond the Keyword” report explained that some industries such as travel focus on Web users already in the market, meaning they lean heavily on search to target the lower funnel. On the opposite side of the spectrum, verticals such as consumer packaged goods aim to bring as many users into the purchase funnel as possible through banner advertising.

The report noted that the share of search versus display conversions were the result of past budget allocations in the respective verticals and did not necessarily represent best practices for search and display cross-channel optimization.

Understanding the relationship between search and display ad campaigns is vital for marketers working with tight budgets. The “Search Ads + Banner Ads: A Powerful One-Two Punch” white paper from ad technology firm AdReady discussed several limitations to search advertising that could be overcome with a cross-channel display campaign, including a competitive search market, difficulty scaling and the limited branding and awareness benefits of search.

The paper also pointed out that search can be effective only when Internet users are searching—which they do just 5% of the time they are online, according to the Atlas Institute.

For more information at http://www.emarketer.com