Conversion rate is the proportion of the number of website visitors who have been converted into paying customers. It is an effective measure of conversion marketing, which aims to boost online revenue in the end. But with the tough competition out there in the online and offline world, increasing it is much harder these days.
Conversion rate difficulties this day and age
Conversion rate in terms of television ads has become much more difficult. Before, major TV networks used to control what people are watching, when to watch them and how often to watch. That means they have some control over conversion rate as well. But nowadays, at the dawn of the digital age and of social media, people are tuning in to streaming sites more than televisions for their daily fix of entertainment and information.
In the book The Long Tail, author Chris Anderson cites that in the future, what used to be the television audience will be spending more hours watching online than on the boob tube. People will instead directly go to the websites that interest them rather than wait for their favorite interesting shows to come up on TV. Chris predicts that people will spend more time with their long-tail interests, hence the title of his book. If this prediction would be true, it will be bad for the TV networks’ conversion rate.
Why online viewing is better
The internet is a better source of information and entertainment than the television because people can watch at will what they want and what they need. That means major television networks no longer control the conversion rate, and no longer control the people’s viewing schedules and what to view.
What makes it worse for the television networks is the invention of DVRs or digital video recorders. With DVRs, less and less people are watching advertisements, which is the primary source of the conversion rates of the TV networks. According to the research figures, on an average, people watch online four times longer than the average time of watching television. And with a DVR, those watching TV can skip through the commercials already.
The truth of the matter though is that people don’t like advertisements. They are a disruption to their regular viewing, most especially not in the middle of their favorite shows. Even if they do catch the commercials, most people just ignore them. So much for advertisements conversation rate then. That is why big brands are now careful on spending their budget on television advertisements and looking more into online ads.
Increasing conversion rate via PPP
PPP or Pay per play is a type of online advertising that uses audio ads, that aims to increase one’s conversion rate. Samples of companies that have effectively employed PPP are Taco Bell and Harley Davidson. They used 5-seconder audio ads for their website visitors, focusing on their demographics and psychographics in order to achieve the ideal conversion rate.
Because of the effectiveness of PPP in raising it and leading to more cost effective advertising, ROI or return on investment is expected earlier than investing on television advertisements. PPP is deemed effective because its ad placements and impressions can be checked by a third party supplier.
PPP is actually not a new strategy, it has been present for more than 3 years already, and more than 60,000 advertisers have been using it to create a higher conversion rate on ads online.