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Search Engine Marketing Firm iProspect Research Study: Almost as Many Internet Users Respond to Online Display Advertising By Performing a Search as Those Who Directly Click On an Ad

iProspect study also shows that nearly half of Internet users eventually perform a search related to the online display ad to which they were exposed

BOSTON, MA, May 11, 2009 — Search Engine Marketing Firm, iProspect®, today published the iProspect Search Engine Marketing and Online Display Advertising Integration Study. Sponsored by iProspect, and based on a commissioned survey fielded by Forrester Consulting, iProspect’s analysis reveals that almost as many Internet users who visit an ad-supported website initially respond to online display advertising by performing a search on a search engine as those who respond by directly clicking on an ad. In addition, the study shows that nearly half of Internet users eventually perform a search related to the online display ad to which they were exposed.

Despite considerable speculation about the relationship between search engine marketing and online display advertising over the years, the findings from this new study indicate that the two channels have a closer relationship than many marketers may have thought. In fact, the study shows that Internet users initially respond to the medium as follows: 31% respond by directly clicking on an ad; 27% respond by searching for the product, brand, or company by launching a search on a search engine; 21% respond by typing the company Web address into their browser and directly navigating to the website; and 9% respond by investigating the product, brand, or company through social media venues. Overall, 52% of Internet users actively respond to online display advertising.

“The key message from this study is that online display advertising is far from dead — its 31% direct response rate confirms that,” said Robert Murray, CEO, iProspect. “However, it is interesting to see that almost as many people initially respond to display ads by performing a search as those who actually click on an ad. In essence, search becomes an alternative mechanism for Internet users to respond to online display.” Murray continued, “Considering that, this finding has an important message for marketers — if they are going to invest in online display, then they should leverage search marketing to help them capture the demand that display advertising creates. In other words, they should consider search as a form of insurance for their display investment.”

But beyond Internet users’ initial response to online display advertising, the study also reveals some interesting findings when the latency element is taken into consideration. When asked how they eventually respond, nearly half of Internet users (49%) launch a search on a search engine for the company, product, or brand that was the focus of the ad to which they were exposed. This figure is comprised of those who eventually perform a search and visit the website from the search results (38%), those who do the same but actually purchase the product (14%), and those who perform a search but do not click on any of the results (11%).

“Clearly, this finding underscores the close relationship between search and online display advertising,” said Misty Locke, President, Range Online Media, and Chief Strategy Officer, iProspect. “First, it speaks to the power of display to drive search, and it demonstrates search’s ability to boost the effectiveness of display. However, it also quantifies the risk associated with not supporting the display channel with search engine marketing. Obviously, marketers who fail to do so will be missing out on a considerable portion of potential website visitors, and as the stats show, customers. The findings also speak to the need for marketers to implement attribution modeling that is created with their needs in mind. This is key to understanding not only the impact of search and display on conversions, but also the impact of all of their online tactics.”

Other key findings from the study include:

  • One third of Internet users (33%) who respond to online display advertising eventually purchase from a company/offering with which they are familiar – more than twice the number who eventually purchase after learning of an offering/company for the first time from online display advertising (14%).
  • Nearly four in ten Internet users (38%) who respond to online display advertising learn about a brand for the first time as a result of their exposure to this type of ad.
  • 9% of Internet users initially respond to online display advertising by investigating the product, brand, or company through social media venues or message boards.

“At the end of the day, the findings from this study closely tie search and online display advertising together,” said Murray. “Overall, they tell a story of improved efficacy, which is a message that marketers should find particularly compelling during these trying economic times when they are being asked to do more with less.”

About iProspect

iProspect is the Original® Search Engine Marketing Firm. The
company helps many of the world’s most successful brands maximize their online marketing ROI through natural search engine optimization, paid search advertising management, online display advertising management, paid inclusion management, shopping feed management, global search engine marketing, Web analytics/attribution modeling, reputation management, and other related services. By dramatically increasing business results for clients, iProspect helps to create search marketing heroes every day.

With offices in Boston, San Francisco, Chicago, and Dallas-Fort Worth, as well as global search engine marketing offices , iProspect can be contacted at 1–800–522–1152, or by visiting http://www.iprospect.com.

Questions regarding this release should be directed to iProspect Media Relations Manager, Colleen Reed, at 1–800–522–1152 x1203 or colleen.reed@iprospect.com.

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