Morris Martin, of Microsoft Advertising Institute, theorizes a new way to assign value to search and display conversions, arguing the “last ad standard” is an antiquated model.

In case you are not familiar, the last ad standard attributes the full value of a conversion to the last impression/click. Due to increased complexitiy of the online marketplace and time users spend online, however, Martin believes it is time for a change in conversion attribution.

Let’s walk through his model, a combination of frequency, recency, ad size, and rich media…

1. Frequency (clicks and impressions)- According to Morris’ research, searchers are not going to one source. In fact, 1/3 of all people use multiple sites, such as Yahoo AND MSN. As a result, ads are seen in more than one place. His research also shows 48% of clicks are repeats clicks.

2. Recency (when an ad is seen)- some credit is due to the last click. Morris also sees a difference in conversion rates between day 1 and day 14. Again, due to the increased interaction and exposure, conversions spike after a user has the ability to search over a given time period rather than a single day.

3. Ad Size- Morris finds a 22% lift in the conversion rate when search is combined with display. He attributes this increase to multiple exposures with multiple formats over a period of time.

4. Rich Media- Studies show this type of ad format is more engaging and can lead to more interaction.

Food for thought for your next online ad campaign…perhaps there is underlying value behind impressions and clicks which may not be converting on the first glance. As Martin said, “publishers may not be getting credit for their reach and frequency to converters.”