SYDNEY: Online marketers have a "sweet spot" when they can increase consumer conversion rates up to seven times new research has shown.
That "sweet spot" lies in the 60 minutes or so following a consumer's signal of intent, whether that comes through searches or clicks, according to a study by trade organisation IAB Australia and advertising platform RadiumOne.
The report examined RadiumOne data for a travel advertiser and reported that it delivered 13% of ad impressions during the "sweet spot" to drive 81% of conversions. By the second hour, conversion rates for the travel campaign had dropped seven times lower.
Similar, if less dramatic, results were found for a financial services campaign, where 7% of impressions during the sweet spot drove 29% of conversions, falling off by a factor of 2.5 in the second hour.
This indicated, the report said, that "the power of acting immediately holds true even for advertisers with longer sales cycles".
And with conversions more likely to take place close to intent signals, RadiumOne argued that marketers needed to be able to "activate real-time data about consumers in milliseconds, not minutes or even hours".
In technical terms that requires a real-time link between their data management platforms and demand-side platforms.
"When there's latency between the moment that a consumer signals intent and the moment that an advertiser responds with an ad, advertising performance suffers," the report stated. "The greater the latency, the bigger the hit on performance."
Patrick Darcy, Asia Pacific commercial director at RadiumOne, told SmartCompany that "this insight is valuable for all marketers regardless of business size, but especially so for SMEs, who need to maximise the return from every single marketing dollar they spend".
The finding formed part of a wider report into how marketers can approach cross-channel digital marketing, where "inactivity is not an option".
Data sourced from RadiumOne, SmartCompany; additional content by Warc staff