The adage—location, location, location—pays off not only in the world of real estate, but also digital advertising, according to a new study from Yahoo that set out to quantify the impact that environment has on advertising effectiveness.
As more ad dollars are channeled online and digital ad buying evolves, marketers are embracing data-driven, cost-efficient options, such as audience targeting. But, how does this focus on efficiency measure up when it comes to true ad engagement?
In “Ad Environments: The Halo Effect,” Yahoo delves into this hot topic, comparing the effectiveness of ads run in premium and non-premium environments.
Researchers interviewed 30 marketers and advertisers to understand the challenges faced when making media budget decisions. The group agreed that building relationships with consumers and developing brand stories in immersive premium environments are critical. They also determined that premium environments possess four pillars:
- Design: Modern, clean, and simple palates
- Editorial: Respected experts with a good consumer reputation
- Ad Formats: Innovative formats, such as a Splash Ad video
- Native: Ad units that are easily integrated into web pages and apps.
Yahoo then partnered with Innerscope Research to look at the biometric performance for ads in different environments and surveyed 1,200 people to measure key brand metrics, such as attention, ad recall, and brand preference.
The study found when the same ad is placed in a premium and a non-premium environment, the premium delivers a measurable lift in user engagement and other metrics.
For instance, a full-page ad run on the Yahoo login page drew an average of 6X more viewing time per visit, compared to a static display ad run in a non-premium environment. The ad’s clean and simple design (above, right) drew heavy viewer fixation at more than eight seconds—more time than page viewers spent on the login field itself.
Experiments involving premium editorial placement, premium ad formats and premium native ads drew similar results, with these ads generating more fixation time, ad recall, brand preference and emotional resonance.
On the premium editorial front, for instance, a 15-second pre-roll ad run before an interview by Yahoo News Global Anchor Katie Couric brought greater viewer response than the same ad run in a non-premium editorial experience:
- 3X greater emotional resonance
- 72% lift in ad recall
- 26% more positive emotional association.
Researchers then analyzed a recent campaign to examine how premium environments can be coupled with more common cost-effective options, such as audience targeting, to deliver even greater benefits to advertisers.
- On the efficiency front, audience buying at mass scale accounted for 90% of the total impressions, which delivered 80% of the total conversions for the campaign.
- When the advertiser then added 10% of its total impressions in premium environments, those ads delivered 20% of the campaign’s total conversions.
- Adding premium placements to the audience buy also improved search lift, site visitation and brand perceptions.
The study offers a win-win formula for marketers striving for efficiency and engagement. By combining audience targeting with premium placement, forward-thinking advertisers can capitalize on location to drive results.
For more information on The Halo Effect, visit https://advertising.yahoo.com/Articles/Halo-Effect-PDF/
And, to find our how premium ad placements can boost the performance of your campaigns, contact your Yahoo Account Representative.
