It's no amplification to say that the ultimate goal of performance marketing and advertising is to generate sales. When it comes to placing online ads, advertisers and publishers need to consider the different ways consumers encounter their ads and how that affects conversions. Consumers may find product information through targeted searches. They may also randomly discover products through contextually embedded advertisements they see, which we call "serendipity." Luckily, no matter how users find your ad on your site, there are ways to increase your chances of ultimately converting.
Consider the following scenario. Consumers need new mattresses. Search for "mattress" online, go to a mattress-recommending website, and buy a mattress from that website link. In this case, there is a clear line between search and purchase intent.
Here's another scenario. As consumers scrolled through their social media feeds, they noticed articles about sleep. Click an article to start reading about sleep habits. You see an ad for a new mattress that promises you the best sleep. They click on an ad and end up buying a mattress. When they first started reading the article, they had no direct intent to buy the mattress, but the indirect intent, timing, and placement of the ad resulted in a sale.
How can content be optimized for search?
Search is usually initiated by the consumer himself, with a specific goal in mind. Improved conversion rates in search scenarios come from increasing the likelihood that product information will be displayed. He does this through search engine optimization (SEO), which adjusts website content and keywords to improve organic search rankings. Here, as the name suggests, advertisers pay publishers a commission each time their ad is clicked.
Monetizing Serendipity
Serendipity is defined as either accidental discovery or luck. Either way, finding the right ad at the right time may seem like a fluke to consumers, but Wikipedia Editors are actually very adept at placing ads in context.
Wikipedia Editors can maximize random ad placements and improve conversion rates by using advanced technology that can analyze and detect overall consumer intent based on context and serve relevant ads. The more relevant the ad topics are presented to site visitors, the more likely they are to trigger an action and the higher the conversion rate. Leveraging such technologies (such as Code Fuel's IDP: Intent Discovery Platform) is a win-win. They enjoy new revenue streams, and consumers enjoy an immersive discovery experience in the context of the content they're already reading.
Serendipity increases customer satisfaction.
We believe consumers appreciate seeing personalized ads that relate directly to their specific needs. In fact, targeted and personalized advertising has been the last decade's trend. However, research shows that consumers can take issue with personalized ads. A 2009 survey found that "contrary to what many marketers claim, most American adults (66%) want marketers to tailor advertising to their interests. I understand that it is not. Recent research shows that consumers appreciate personalized ads, but most are very cautious about sacrificing privacy in exchange for a better experience than generic ads. One columnist wrote:
Serendipity may be the answer to connect the gap between the value of personalized ads and consumer discomfort with how advertisers get the information to drive those ads. Contextual advertising makes consumers feel like they stumbled upon an accidental discovery when the ads were strategically placed by the publisher.
Researchers at Rutgers University in New Jersey recently investigated when consumers have a positive experience with a product. Specifically, we investigated to what extent such "lucky coincidences" were more satisfying for consumers than planned positive experiences. They came to many conclusions:
A particularly large range of products can increase potential customer interest but make it less likely that a purchase will actually be completed. This may seem counterintuitive, but too many choices can have negative consequences. The more random the recommendations, the higher the satisfaction. In fact, our research found that it is irrelevant whether the suggestions are actually made randomly as long as they are perceived as random by the recipient. For example, a movie recommendation "randomly" selected from a list of 100 movies feels more random and, therefore, more satisfying than the same "randomly" recommendation from a list of 10 movies. The fact is that pre-measured data and algorithms can greatly improve the customer experience.
Coincidence can have a positive impact on product success, but the result must be positive. When a consumer finds an inappropriate offer or responds negatively, it loses the sense of "lucky coincidence."
Conclusion
No matter how or where consumers see their ads, whether in search results or by contextual coincidence, there are ways for publishers to increase conversion rates and maximize revenue. Through the strategic use of SEO best practices and advanced technology, publishers can monetize their websites.
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