NEWS7 November 2014

Marketing ‘sweet spot’ sits in the hour following signal of intent

Asia Pacific News

AUSTRALIA — Delivering an ad in the 60 minutes following a consumer’s signal of intent can increase conversion rates by up to seven times, according to new research from IAB and RadiumOne.

The report, from the Interactive Advertising Bureau (IAB) Australia and advertising platform RadiumOne, revealed that a travel advertiser delivered 13% of its ad impressions during the “sweet spot” to drive 81% of conversions. By the second hour, conversion rates had dropped to seven times lower.

Similarly, a financial services advertiser, traditionally a field with longer sales cycles, delivered 7% of impressions during the same sweet spot of 60 minutes following a signal of intent (for example a search or click) to drive 29% of conversions. By the second hour, conversion rates dropped by two and a half times.

“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,” said the report. “The greater the latency, the bigger the hit on performance.”