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December 15, 2008


Fred Wilson has an interesting post today on search vs. display. Here is a quote:


The impact of search ads alone on consumers’ buying behavior was found to be clearly greater than that of display ads alone. This is true both in terms of the ads’ impact on online buying as well as the impact on offline sales. This is not surprising because consumers responding to search ads are much more likely to be “in the market” for buying the advertised product. However, it must be remembered that the reach of display ads is typically much higher than that of search ads. For example, in the studies conducted by comScore, approximately 81% of the consumers who saw an ad received only a display ad, while a much lower 8% received only a search ad. When the lift factors are weighted by the reach of the ad, display ads typically emerge as being able to generate a higher total lift in sales.   

Conventional wisdom says that media works best when multiple programs are used together, and we do indeed see clear synergies between search and display. Both in terms of the impact on buyer penetration and dollar sales (per thousand consumers exposed), it’s clear that the combination of search and display together is greater than the sum of the impact of display and search ads separately. The synergy is notable.

A VC, Dec 2008


You should read the whole article.

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