Home Data Nugget Data Nugget: How Undervalued Is Display?

Data Nugget: How Undervalued Is Display?

SHARE:

credit-displayMost marketers, even search devotees, can agree that display advertising (some of it anyway) gets short shrift when it comes to conversion attribution. But how short is the shrift?

We asked Visual IQ, a well-regarded attribution platform, to share with AdExchanger readers some data to illuminate – broadly — how display and search perform in its clients’ attribution models, versus a “last ad” model. The findings below are from Visual IQ’s Marketing Attribution CPA Index, and will be the first in a quarterly data contribution from the company.

Visual IQ says 94% of online display advertising spend goes to placements with a “Cost Per Acquisition Skew” that is 70%+ lower than “last ad” based CPA. (CPA Skew is defined as the difference – high or low – between last ad based-CPA measurement and Visual IQ’s proprietary TrueCPA measurement.)

“What this means is that an extraordinary high percentage of display placements are being considerably undervalued using last ad measurement – leading to dramatically inaccurate optimization decisions when deciding where to invest future display spend,” says chief marketing officer Bill Muller.

By contrast, Visual IQ says only 0.6% of its clients’ display ad spend have a CPA Skew 70%+ HIGHER than last ad-based CPA. So, according to Visual IQ algorithms at least, an extremely tiny share of display spend is dramatically overvalued.

Meanwhile, in the paid search channel, the difference between low and high CPA skews is not quite as lopsided. Visual IQ says 10.7% of client spend goes to ad placements that have a CPA Skew 70%+ LOWER than “last ad”-based CPA.  Compare this to 13.9% of spend on paid search placements that have CPA Skew that’s 70%+ HIGHER than last ad-based CPA.

Muller said, “What this means is that more paid search placements are being overvalued using last ad measurement than are being undervalued – leading to inaccurate optimization decisions – both high and low — when deciding where to invest future spend. The reason that the CPA Skew for paid search isn’t as great for the display channel is that search is a bottom of the funnel tactic (as opposed to display which is more of a top of funnel tactic).

He adds, “Display is also more of an impression-based tactic, and search is more of a click-based tactic.  As a result, search is less disparate in its attributed vs. last ad metrics than display.

 

 

Tagged in:

Must Read

Criteo Is A Survivor, But Expanding Beyond Retail Media Will Be Its Toughest Challenge Yet

Criteo has weathered considerable storms in its day, including a painful moment in March 2020 when its market cap bottomed out below $500 million. Can it pull off yet another turnaround?  

Sports Leagues Can’t Stop Putting Ad Revenue Ahead Of Fan And Player Interests

Disaffection and outright anger toward US sports institutions run deeper than logo-cluttered fields. Leagues and teams are sacrificing player safety and fan enjoyment for marketing dollars.

Comic: Traffic Jam

With Search Traffic Down 70%, People Inc. Bets On Revenue Beyond Site Visits

People Inc.’s referral traffic from Google search is down 70% over the past two years, and by 26% in Q3 alone. But its digital revenue is still growing, albeit slowly.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Chord Buys Its Rival Zenlytic To Build An Agentic Version Of A CDP

On Tuesday, Chord, a six-year-old commerce tech startup, acquired Zenlytic, an AI startup with an anthropomorphized data analyst agent named “Zoë,” for $5 million.

Tal Jacobson, CEO, Perion

Affle Acquires Perion For $420 Million, Because ‘Synergies’

If you ask the executive leadership of Affle and Perion why the two companies are merging, the answer you’ll get is “synergies.”

Konskie, Poland - December 02, 2024: Fox Corporation logo displayed on mobile phone

Fox Doesn’t Want To Talk About Roku, But It’s Got Lots To Say About Tubi And Politics

A combo of Tubi, sports and political ads powered Fox’s growth this last quarter, even as Fox News lost viewers and the Roku deal awaits DOJ clearance.