ADOTAS – Government and Utilities ad campaigns should wish that they were more like sports teams. It is a fact of life that some industry verticals need to fight an uphill battle to deliver their message to users, while others enjoy a light tailwind breeze. A look at the newly released MediaMind Global Benchmarks shows that some industry verticals fare better than others when it comes to online display advertising.
There are many reasons for this. For example, Sports tend to fare better than Automotive because people attend sporting events more often than buying a new car. Entertainment does better than Finance since the launch of a new movie is more exciting than the launch of a new insurance-related product. To sum it up, there are two factors that come into play here: whether people find the industry or product exciting, and how narrow the target audience is.
News and Media tops the list for both “Rich Media Dwell Rate” and standard banner click-through rate (CTR). This industry vertical includes many ads for new TV shows, TV channels and magazines that appeal to a broad audience. In addition, people find Media and News exciting and as something worthy of their time, so clicking on it makes sense. The same reasoning applies to Sport, Entertainment and Apparel.
On the low Dwell Rate and CTR end, we have Medical and Government and Utilities. Medical may generate interest only if the user suffers from a specific condition or illness. Government and Utilities ads may often advertise topics that many people find less than exhilarating (tips for saving on your electricity bill, anyone?).
What does it mean for advertisers? It is impossible for advertisers to change the industry vertical that they were born in. Advertisers in some verticals need to acknowledge that they will need a larger budget to generate the same response as other verticals.
Nevertheless, advertisers should take steps to increase their response rate. One of the most effective ways to increase clicks and conversions is automatic creative optimization. These algorithms identify and serve the most effective creative for that placement or audience. Advertisers that used automatic creative optimization increased CTR by 70% and conversion rate by 40%.
Another creative strategy that proved very successful for automotive advertisers is using synched ads—two ads on the page with shared content. Synched ads have a conversion rate that is 67% higher than other ads.
The target audience may never be as pumped from a government ad as from a campaign for a new action movie. However, by using the right tools advertisers can increase the likelihood of users clicking or engaging with their ads.