September 06, 2010

MediaMind Technologies Inc. released new research on retail titled, “’Tis the Season for Retail: Using Online Display to Boost Store Traffic.” The study reveals that although online retailers double the monthly average on holiday advertising, users are underexposed to retail campaigns. The full study is available here.

MediaMind’s new research analyzed both direct response and retail brand campaigns served between Q3 2009 and Q2 2010. According to the study, the optimal frequency for online retail campaigns are between four and six exposures, but most users received only a single exposure to each campaign. For retail brand campaigns, the study indicates that users are more likely to engage with ads that they have already seen, and therefore low exposure frequency can jeopardize overall campaign performance. For retail direct response campaigns, the study indicates that as many as four impressions per viewer yield above-average conversion rates.

The study also confirms that retail advertisers continue to spend more during the holiday season. MediaMind’s data from 2007 to 2009 shows that one third of all global retail online ads are spent in November and December. This is compared to only 6% of ads served during January and February.

“Online retailers have an opportunity to strategically drive customers to their stores or to their site during the most crucial time of the year,” said Gal Trifon, CEO and co-Founder at MediaMind. “Advertisers should not hesitate to increase the exposure frequency for their target audience, even before scaling their campaign reach.”

The study further shows that direct response retailer campaigns can achieve the highest conversion rate on homepage placements, while Rich Media ads in placements such as music, mail and instant messaging generate the most engagement for retailers that focus on branding.

For more information at http://www.MediaMind.com

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