Unlocking the Potential of O&O in your Omnichannel Strategy
Owned and operated (O&O) assets constitute an important part of an omnichannel strategy, and data supports that omnichannel is more effective than single channel. Still, many companies overlook the significance of incorporating their O&O into an omnichannel advertising mix.
Omnichannel approach can yield a 3x higher conversion rate compared to running a single media product at a time.
Estimates suggest the average American may be exposed to anywhere from 4,000 to 10,000 ads a day. This means marketing messages face fierce competition and it matters what type of marketing approach a company chooses, according to the “Omnichannel Media: The Key to Better Local Ad Conversions” report from ad sales automation firm Spotlight. With that number of advertising messages coming at them daily, consumers are filtering out what they can and being very selective about what they choose to pay attention to and, more importantly, take action on.
Studies clearly show that omnichannel advertising campaigns — those that reach the same user through targeted advertisements across both traditional and digital multiple channels — are more effective than single-channel advertising in today’s competitive advertising landscape.
An omnichannel marketing approach delivers a consistent message on every channel, one that’s personalized based on the recipient and their interests. As a result, that person receives a consistent branding, tone, and vision that’s easily identifiable. This type of marketing, which lets people engage with a brand on their terms, leads to a better overall customer experience.
Embracing an omnichannel advertising strategy that includes O&O channels helps you stay ahead of your competition. For the most effective advertising, O&O should be a part of every omnichannel strategy.
Omnichannel consumers shop 1.7 times more than single-channel customers and spend more money.
How Effective are Omnichannel Strategies Locally?
Spotlight analyzed 32,000 local ads and 2.2 billion impressions to study how effective omnichannel campaigns are locally and to determine the best combinations of media for advertisers wanting to reach a local audience.
Spotlight’s findings revealed that an omnichannel media approach can lead to substantially higher conversion rates – in some cases as much as three times higher than running a single media product.
For instance, adding video to an omnichannel display campaign has far better conversion rates than using a single channel. Users who viewed more than one impression on multiple channels also had improved same-day conversion rates. Using the right media mix can also reduce conversion costs by up to 50%.
Using the right media mix can reduce conversion costs by up to 50%.
Omnichannel Strategy: Understanding the Value
Media companies can benefit from understanding the impact O&O channels have and the value they can bring to a broader advertising strategy.
“O&O is a significant differentiator. Competitors will not be able to speak to this unique part of an omnichannel offering,”
Mike Dragosavich, founder of Spotlight
Media companies may think third-party channels are more effective and therefore allocate more of their budget to those channels. They may not have the time, money, resources, or know-how to coordinate an effective omnichannel campaign, of which O&O plays an important role. Or they may not have integrated their O&O with other channels, which can mean a lost opportunity for the media company to reach that target customer and convert them.
“However, as the data supporting the effectiveness of omnichannel campaigns with O&O becomes undeniable, we’re starting to see the pendulum swing back and balance out,” adds Mike.
How O&O Optimizes Omnichannel Solutions
A media company’s owned and operated media is their core business, according to Mike. “It’s quality content and a brand with decades of experience reaching a local target audience,” Mike says.
Including your O&O channels as part of a comprehensive omnichannel strategy let’s you “own the relationship,” Mike says. It enables you to create a more integrated and seamless customer experience, leading to better customer loyalty, more purchases and higher profitability. Whereas selling only a single-channel solution means you risk being left out of the consideration process when an advertiser decides to move forward with an omnichannel solution.
To get the most effective advertising results, no matter your location, product or industry, O&O should be a part of every omnichannel proposal.
National Media Company Finds the Right Media Mix with Spotlight
Case study: One national media company embraced an omnichannel approach – and rapidly achieved results that far exceeded their expectations. Partnering with Spotlight, enabled: 85% of their proposals had an O&O component (both digital O&O and print)
Driving Profit: O&O and Third-party Products
While data clearly shows that combining third-party products and O&O results in a more successful advertising package, it’s also true that a third-party product can help sell more O&O inventory.
For instance, a business that uses a media company’s non-O&O service for its digital advertising needs (say, for search engine marketing) has the opportunity to expand its solution set to include O&O as part of a more effective omnichannel campaign, Mike offers, as an example.
“The key is to have the right technology stack to integrate all of this efficiently,” Mike says. When you have a coordinated and efficient system for your omnichannel plan, integrating third-party products can help you sell more O&O products.
Choosing a Partner for your Digital Advertising
The highest cost of omnichannel is the complexity of managing different media types. Therefore, the first thing to do is check your integration: Are your sales, operations and reporting processes all coordinated within one platform?
“If the answer is no, then you have tripled overhead,” Mike points out. “You need a technology partner to coordinate this because integrated technology is going to drive efficiency,” concludes Mike.
The right partner can help with an integrated technology that enables omnichannel media planning, execution, and reporting, which could include a media plan generator, buying systems integration, optimization, and edit capabilities, report integration, and data feedback on cross-platform performance.
Conclusion
To achieve success in today’s market, you need to develop an effective omnichannel marketing strategy. By showcasing your brand authentically and personally, O&O assets allow you to stand out from the competition. Spotlight will analyze your customer data using its sophisticated ad network optimization expertise to uncover what works best for your brand.
