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Google IPA

IPA analysis finds GDN text ad format can be cost-effective for search marketers

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By The Drum Team, Editorial

February 2, 2012 | 2 min read

The IPA Search Group has today released research, carried out in connection with Google, showing that Google Display Network (GDN) text ad format can be a cost-effective way for search marketers to drive additional conversion volumes.

An analysis of GDN text ad performance for UK search advertisers by the IPA Search Group found that GDN text keyword contextual targeting has a median cost per conversion (CPA) 7% lower than search in the UK, while generating an average conversion volume equal to 40% of the search conversion volume.

It was also discovered that GDN text remarketing has a median cost per conversion 55% lower than keyword contextual. The IPA Search Group said that ‘in view of fact that 97% of customers don’t convert the first time they visit a site, remarketing proves to be a cost efficient way to drive customers through the conversion funnel.’

It was concluded that by using remarketing, search marketers can employ the benefits of audience targeting and customised messaging by using text ads, and that coupled with low CPCs, especially in some industry verticals with intense search actions, GDN text CPAs can be as cost-effective as search.

Chris Whitelaw, president of I Spy and chair of the IPA Search Group, said: “The IPA Search Group’s core role is to raise the digital standard and to share knowledge among members of the IPA, and through this analysis of the Google Display Network we can highlight to our agencies the ways in which they can make their text advertising more relevant and cost effective to their target audiences.”

Kevin Mathers, head of media solutions for Google UK, added: “The IPA analysis has demonstrated the benefit of GDN text ads for marketers to extend their search campaigns. It has provided valuable insight into the cost-effective results advertisers can expect when using contextual or audience targeting on a text campaign.”

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