The Surprising Impact of Brand Advertising on Conversion Rates

Digital marketing is incredibly effective due to its measurable and concrete return on investment. But what about those huge companies spending millions on traditional advertising like TV, radio, and billboards? Are they wasting money on outdated methods?

brand advertising

The truth is, these large corporations understand a fundamental principle: people won’t search for you if they’ve never heard of you. If consumers are unfamiliar with your brand, they’re unlikely to click on your paid ads or organic search results. And without those clicks, conversions are impossible. The reason is simple: They don’t know who you are. You’re not a universally recognized brand; you’re just another face in the crowd. The key to successful conversions is establishing brand familiarity before potential customers initiate a search. Here’s why.

Search capitalizes on existing demand

There are three main categories of searches:

  • Informational: Users seeking answers or information. We attract them through SEO by crafting valuable, optimized content that educates and resonates with our target audience, avoiding overt promotion.
  • Navigational: Users aiming to reach a specific website, like those searching for “facebook.” They are already familiar with your brand, having visited your site previously and found it valuable enough to return.
  • Transactional: Users indicating an intent to purchase. This is where search marketers shine – SEOs tailoring content for purchase-ready visitors and PPC specialists creating compelling ad copy with enticing offers for highly interested prospects. Search marketing excels at capitalizing on pre-existing market demand. While we’re adept at leveraging this demand, search itself doesn’t generate new demand. What ultimately motivates users to click on your organic result or paid ad? More importantly, how many of those clicks translate into leads and sales upon reaching your landing page?

Minor adjustments yield minimal conversion rate improvements

unicorn math

Quick question: what’s the magic bullet for drastically boosting your website’s conversion rate?

  • Switching a keyword from plural to singular on your landing page
  • Incorporating a captivating image of smiling individuals
  • Streamlining your forms by reducing the number of fields
  • None of the above The correct answer is none of the above. These tweaks won’t lead to dramatic conversion increases. Small on-page modifications result in equally small conversion rate improvements. While changes to on-page elements like button placement, color, image dimensions, and fonts might boost sales by a respectable 5 percent, these victories are often fleeting. Don’t overestimate the impact of A/B testing. Offer fatigue is real. No single test can magically transform an average brand into a market leader.
Landing page optimization myths A/B test result graph over time

Today’s winning strategies might lose their effectiveness over time as their novelty fades. There’s a whole world of optimization beyond these minor on-page tweaks. Why settle for a 5 percent improvement when you can achieve exponential growth?

The key to transforming clicks into conversions

On-page elements, targeting, psychology, and ad extensions all contribute to the conversion process. While traditional CRO tactics are important, their impact can be unpredictable, necessitating A/B testing. However, the most reliable predictor of purchase behavior is prior brand familiarity. This process should begin long before users are ready to buy and encounter your organic listing or paid ad. Instead of viewing conversion as a single event, consider it a customer journey. Start targeting qualified prospects before they even realize they need your product or service!

Invest in your brand!

importance of branding

Building a strong brand is crucial for influencing consumer behavior in your favor. When users scan search results, they gravitate towards familiar brands. Research by Search Engine Land and SurveyMonkey reveals that 70 percent of consumers will click on a retailer they know. A recognizable and trusted brand significantly increases the likelihood of users clicking on your organic listings or paid ads. With sufficient brand affinity, even non-branded keywords can function like brand terms.

brand recognition effects

Your click-through rate (CTR) directly impacts your conversion rates. In fact, it’s the most critical conversion metric. A higher CTR translates to a higher conversion rate:

online marketing ctr vs. conversion rate

This example from a large nexus-security client illustrates a pattern observed across various industries. Why is this the case? Our findings indicate that generating enough excitement to entice a click often translates into continued engagement, ultimately leading to sign-ups, checkouts, or purchases.

Measuring the impact of brand advertising

Traditionally, quantifying the value of branding has been challenging. However, tools like RLSA allow you to segment and analyze user behavior based on brand affinity. Repeat visitors, serving as indicators of brand affinity, demonstrate conversion rates 2-3x higher than first-time visitors. This is significant!

conversion rates for repeat visitors

This insight suggests we should reconsider our priorities and approach our marketing activities differently. Attention all search marketers: segmenting conversions by new versus repeat visitors offers a far more impactful method for achieving significant conversion rate improvements.

What does this mean for you?

PPC specialists – embrace other online brand advertising channels like display and social media, as well as traditional media such as radio and TV. Branding amplifies the effectiveness of your paid clicks, converting them into paying customers. A well-crafted social media strategy allows you to reach your ideal audience with minimal expenditure. Focus on directing users to your most engaging content instead of bombarding them with sign-up forms. While immediate conversions might be lower, you can leverage remarketing through social media ads. When these users encounter your offer again, their likelihood of conversion increases significantly. SEO professionals – brands dominating organic search results often owe their success to their overall popularity. Broaden your content strategy to include off-topic content that enhances your brand’s reach and starts influencing future commercial searches and conversions in your favor.

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