Advertising Personalization Redefined: How to Optimize your Spend with Landing Pages

By: Tyson Quick

Digital advertising isn’t going anywhere. In just the third quarter of 2016 alone, marketers spent a record breaking $17.6 billion on digital. That’s a 20 percent year-over-year increase.

But how much of that spend actually translates to customer acquisition and optimal ROI? Thinking about search advertising specifically, there’s a massive inefficiency in turning ad clicks into conversions, and I’ve seen first-hand how marketers with the biggest budgets just weren’t generating the proper results. In fact, a 2015 study by Proxima found that 60 percent of global digital ad spend goes wasted each year.

A new kind of personalized advertising

Advertisers today don’t have an excuse to not provide an incredibly relevant and personalized advertising experience through each part of the customer journey. Without personalized advertising, you’re just blasting your brand messaging in the hopes of seeing positive returns without using insights into who a customer might be in order to increase the relevancy of an ad.

Guy Marion, CMO at Autopilot, said it best: “Today's consumers are expecting a personalized experience. In fact, we know that the majority of consumers now are turned off by generic, common messaging and marketing that doesn’t take into account their interests and behavior.”

But there’s one thing that marketers and advertisers are missing: the customer journey doesn’t stop at the ad.

Continuing the personalization with landing pages

I founded Instapage almost five years ago, and in that time, I’ve increasingly found that advertisers aren’t capitalizing on where the conversion really happens. It’s the landing page that carries the customer through to the final destination, the point of conversion.

Think of it this way: a potential customer searches for something on Google, clicks on an advertisement, and is directed to a landing page. That landing page is the customer’s first full experience with the brand, and therefore should continue the personalization of the ad that the customer first interacted with. However, we’re seeing that advertisers are far too often sending potential customers to a generic website that erodes all of the work they put in at the top of the funnel.

Google AdWords advertisers see an average conversion rate of 2.70 percent. With a personalized landing page, that rate can increase to an average of more than 20 percent. A company that spends $1M per year in advertising would need to spend $3M more to achieve the same conversion quantity if they chose to send their ads to a generic website.

It seems simple, but customers benefit from this enhanced personalized form of advertising because it reduces the search time to deliver what they want, and businesses benefit because they can target their audiences with higher granularity. That means less wasted money on irrelevant advertising.

So, what is the future?

When talking about digital, I see a future where every marketing campaign directs to a personalized landing page, as they truly make the difference in increased conversion rates and improved user experiences.

And because advertising personalization is continually enhancing the way in which brands and consumers interact, landing pages will be the driver for more direct communication channels, fewer irrelevant brands, and less friction points in the customer journey.

Not only will our customers thank us for it, but our conversion rates will, too.

By: Tyson Quick

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