The Pareto Principle is a mathematical phenomenon that may reveal a surprising secret to boosting the effectiveness of display advertising. Better recognized as the 80/20 rule, it states that 80 percent of results derive from 20 percent of effort. The key to applying this principle lies in knowing which 20 percent to focus on. In other words, your advertising efforts don’t necessary need to be 100 percent right, as long as the most relevant components are dead on.
When it comes to predicting the successful elements of display advertising, you need to work within a frame of known variables. In other words, you need the right tools for the job. Without access to meaningful data, it is difficult to predict if performance will improve or not.
These days, display advertising effectiveness data is accessible online. You can easily research brand data to distinguish between what is effective and what isn’t. This isn’t rocket science; it is verifiable and tangible knowledge of what consumers respond to.
Most digital advertising hosts run simple A/B tests to identify specific elements that are successful. Using both a test group and a control group, advertisers are able to compare small changes to an ad to see which has more impact. The statistical results of testing are used to tweak creative content to generate a better version.
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Digital publishers and agencies often work together on optimizing advertising for a mutual benefit. While the agency tracks a publisher’s success rate, the publisher must ensure performance or risk being dropped from the campaign.
The 20 Percent
Using the above mentioned tools, there are three main steps that you should be taking to leverage your effort. This represents your 20 percent. Even if you do nothing else, by following these steps you will improve your performance.
1. Test your ad copy. Know which copy works and why.
2. Test your publishing sites. Identify your top performing sites and focus your efforts on increasing the amount of creative volume you publish with clear winners.
3. Don’t sacrifice profit for increased ad exposure. Pay attention to the frequency that the ad is shown and what type of response you are getting. Set the limit of how often the ad is displayed at an optimal level.
For more ideas on how to get the most out of a display ad campaign, check out the Vantage Local blog, in which we offer regular updates for local advertisers looking to leverage the web for more business.