(Press-News.org) Key Takeaways:
Discounting or couponing is not the most effective way to tap the power of retargeting in online marketing.
Customized seller recommendations may be more powerful than discounting.
Seller auctions that allow marketers to self-select in the retargeting process improve cost efficiency.
CATONSVILLE, MD, April 1, 2021 - Online marketers have seen the pattern: 95%-98% of online visitors search for something, but the search never converts into a purchase and they leave the site without buying. For marketers, this results in speculation and assumptions that can lead to wasted time and investments in ineffective marketing programs.
One of the more common ways online marketers attempt to solve this problem is to "retarget," which tracks those consumers and reconnects with them at a later point by showing display ads when they browse other websites. You've probably noticed this when using Google Search to find something, such as a pair of shoes, and then later when you're reading a separate news site, you're exposed to a number of display ads centered on that very thing you were searching for earlier.
Once that marketer gets your attention, what can they do to increase the likelihood that you will make a purchase? That question is at the center of a new study that reveals what the best approach to increase conversion rates may be.
The research study to be published in the April issue of the INFORMS journal Marketing Science, "Consumer Search and Purchase: An Empirical Investigation of Retargeting Based on Consumer Online Behaviors," is authored by Zhenling Jiang of The Wharton School at the University of Pennsylvania; Tat Chan of Washington University in St. Louis; Hai Che of the University of California; and Youwei Wang of Fudan University in Shanghai.
To conduct their research, the authors analyzed consumer behaviors in response to two distinct marketing strategies. In one approach, they sent out coupons via those retargeted display ads to be redeemed upon purchasing. In the other approach, the authors used the same display ads to provide seller recommendations that centered on a specific product offering customized to the user, but with no coupon or discount.
"We found that while both strategies help increase the conversion rate, the seller recommendations were more effective than coupons," said Jiang. "This told us that providing consumers with the sellers' information that is most relevant to them may be a more effective way to tap the power of retargeting."
To conduct their research, the authors tapped empirical data from Taobao.com, which is owned by Alibaba, and is the largest online retail platform in China. Like other major e-commerce platforms, it collects consumer browsing history and can reach consumers through direct messaging on the platform, either through the website or its mobile app. The researchers built a consumer search model to establish the relationship between consumer preference and search behaviors. They studied the behavior of 104,189 consumers who searched for a specific product among 20 sellers.
"We noticed some predictable patterns," said Jiang. "Consumers who had a higher search intensity for a specific product were more likely to actually make a purchase. Search intensity was measured in the volume of clicks tied to the same search or search term. What we found was that even where the consumer clicked on multiple possible products, it was the first link they clicked on that had the highest potential of generating a sale. In other words, after a more intense search, the consumer is more likely to go back to that initial seller once a decision to make a purchase is made."
In addition to the two basic retargeting strategies - discounting or customization - the authors proposed to use auction as a pricing mechanism to implement the policies. The auction pricing mechanism requires the seller to self-select. This means the seller selects certain criteria for its ideal customer for a specific product at a specific price point, and then bids on how much it will pay to reach that consumer.
"Through our research, we were also able to show that a pricing mechanism, such as an auction, also tends to improve the effectiveness of a retargeting program," said Jiang. "When Taobao used a pricing mechanism such as an auction, the company was able to improve the efficiency of its retargeting campaigns."
INFORMATION:
About INFORMS and Marketing Science
Marketing Science is a premier peer-reviewed scholarly marketing journal focused on research using quantitative approaches to study all aspects of the interface between consumers and firms. It is published by INFORMS, the leading international association for operations research and analytics professionals. More information is available at http://www.informs.org or @informs.
Boulder, Colo., USA: GSA's dynamic online journal, Geosphere,
posts articles online regularly. Locations studied this month include the
western Himalaya, the boundary between the southern Coast Ranges and
western Transverse Ranges in California, the northern Sierra Nevada, and
northwest Nepal.
Marine sedimentary records of chemical weathering evolution in the
western Himalaya since 17 Ma
Peng Zhou; Thomas Ireland; Richard W. Murray; Peter D. Clift
Abstract:
The Indus Fan derives sediment from the western Himalaya and Karakoram.
Sediment from International Ocean Discovery Program drill sites in the
eastern part of the fan coupled with data from an industrial ...
Below please find a summary of a new article that is published in Annals of Internal Medicine today. The summary is not intended to substitute for the full article as a source of information.
Physicians must advocate for common sense gun laws for good of public health
#thisisourlane
FREE content: https://www.acpjournals.org/doi/10.7326/M21-1505
A pointed editorial by Douglas DeLong, MD, Chief of the Division of General Internal Medicine at Bassett Healthcare in Cooperstown, NY, suggests that it's time for physicians to move past talking and start taking ...
The recent power outages in Texas brought attention to its power grid being separated from the rest of the country. While it is not immediately clear whether integration with other parts of the national grid would have completely eliminated the need for rolling outages, the state's inability to import significant amounts of electricity was decisive in the blackout.
A larger power grid has perks, but also has perils that researchers at Northwestern University are hoping to address to expedite integration and improvements to the system.
An obvious challenge in larger grids is that failures can propagate further -- in the case of Texas, across state lines. Another is that all power generators ...
Telehealth has become a critical way for doctors to still provide health care while minimizing in-person contact during COVID-19. But with phone or Zoom appointments, it's harder for doctors to get important vital signs from a patient, such as their pulse or respiration rate, in real time.
A University of Washington-led team has developed a method that uses the camera on a person's smartphone or computer to take their pulse and respiration signal from a real-time video of their face. The researchers presented this state-of-the-art system in December at the Neural Information Processing Systems conference.
Now the team is proposing a better system to measure these physiological signals. This system is less likely to be tripped up by different ...
SEATTLE (April 1, 2021) - An international consortium of geneticists, biologists, clinicians, mathematicians, and other scientists is determined to take the study of the human genome to the next level - creating a comprehensive atlas of genetic variants to advance the understanding, diagnosis, and treatment of disease.
"This Herculean undertaking is unprecedented," said Dr. Matthew Hurles, a geneticist at the Wellcome Sanger Institute in Cambridge, England. "Indeed, the scientific community has an increasingly comprehensive catalog of functional DNA elements in the human genome, but that catalog remains incomplete. We have collectively characterized the functional impact of less than 1% of genetic variation in the 1 to 2 percent of our DNA."
Hurles and Dr. Doug Fowler, a member of the ...
Exposure to antibiotics in utero and infancy can lead to an irreversible loss of regulatory T-cells in the colon-a valuable component of the immune system's response toward allergens in later life - after only six months, a Rutgers researcher found.
The study was published in the journal mBio.
It is already known that the use of antibiotics early in life disrupts the intestinal microbiota - the trillions of beneficial microorganisms that live in and on our bodies - that play a crucial role in the healthy maturation of the immune system and the prevention of ...
Video games offer students obvious respite from the stresses of studies and, now, a study from a University of Ottawa medical student has found they could benefit surgical skills training.
Arnav Gupta carries a heavy course load as a third-year student in the Faculty of Medicine, so winding down with a game of Legend of Zelda always provides relief from the rigorous of study. But Zelda may be helping improve his surgical education, too, as Gupta and a team of researchers from the University of Toronto found in a paper they recently published in the medical journal ...
East Hanover, NJ. April 1, 2021. A team of New Jersey researchers has shown that changes in perceptual certainty and response bias, two central metrics of signal detection theory (SDT), correlate with changes in cognitive fatigue. They also show that SDT measures change as a function of changes in brain activation. This finding was reported in Frontiers in Psychology on January 15, 2021, in the open access article "Using Signal Detection Theory to Better Understand Cognitive Fatigue" (doi:10.3389/fpsyg.2020.579188).
The authors are Glenn Wylie, DPhil, Brian Yao, PhD, and John DeLuca, PhD, of Kessler Foundation, and Joshua Sandry, PhD, of Montclair State ...
Researchers have developed a new mechanical model that simulates how whiskers bend within a follicle in response to an external force, paving the way toward better understanding of how whiskers contribute to mammals' sense of touch. Yifu Luo and Mitra Hartmann of Northwestern University and colleagues present these findings in the open-access journal PLOS Computational Biology.
With the exception of some primates, most mammals use whiskers to explore their environment through the sense of touch. Whiskers have no sensors along their length, but when an external force bends ...
A new, detailed model of the surface of the SARS-CoV-2 spike protein reveals previously unknown vulnerabilities that could inform development of vaccines. Mateusz Sikora of the Max Planck Institute of Biophysics in Frankfurt, Germany, and colleagues present these findings in the open-access journal PLOS Computational Biology.
SARS-CoV-2 is the virus responsible for the COVID-19 pandemic. A key feature of SARS-CoV-2 is its spike protein, which extends from its surface and enables it to target and infect human cells. Extensive research has resulted in detailed static models of the spike protein, but these models do not capture the flexibility of the spike protein itself nor the movements of protective glycans--chains ...
