Online Display Marketing – “Picture ADs”

What is online Display Marketing?

Also known as “picture ads” is a form of advertising that conveys a commercial message visually using text, logos, animations, videos, photographs, links and other graphics. These messages are delivered on various end devices such as desktop PCs and smartphones. This is done to increase brand awareness, reach in sales and leads.

How Does Display Advertising Work?

Ads usually target people with specific traits and characteristics to increase the chance of ad clicks and conversions. Unlike normal text ads that appear in the search results.  display ads can appear on different websites in many different sizes and formats.

Types of Display Marketing

Depending on the market you are trying to reach and what action you want them to take. There are many different ways to use display ads such as:

  • Specific Product/service
  • Affiliate Marketing
  • Re-marketing
  • Behavioral Marketing
  • Contextual targeting
  • Native advertising
  • Abandoned shopping carts
  • Time of year/Seasonal sales
  • Offer a discount
  • Offer an incentive (e.g. free shipping or giveaway)
  • Explain how you are better than your competition

How is Display Marketing Billing done?

Advertisement space on the respective portal must first be booked or purchased. The principle of online advertising is similar to that of offline advertising in newspapers and magazines. The advertiser reserves advertising space, the publisher publicizes the advertisement. The only difference is the medium that is used, i.e. the Internet.

Commonly Billing methods used

Billing is, however, far more precise in Internet advertising. This is because different parameters are hereby taken into account. The most commonly used is the  CPC (cost per click), CPL (cost per lead), CPS (cost per sale)

Advantages of Display Advertising
  • Large scope of the campaigns
  • Different target groups can be addressed directly
  • Numerous advertising formats and concepts for target group-oriented relay
  • Graphic banners are also compatible with mobile applications
  • Effective performance with cookies and other tracking methods
  • Users are immediately enticed to buy
  • Image and brand building
  • Improved brand awareness through broader coverage
  • Simple monitoring and reporting
  • Ideally suited to re-marketing
Disadvantages of Display Advertising
  • Due to congestion of display advertisements, users sometimes develop a blindness to banners, resulting in them simply hiding most of the advertisements due to information overload
  • Numerous ad blockers are used by users to prevent display of online advertisements
  • Conventional banners often have very low click rates (approx. 0.1%)
  • Clicks on display advertisements on mobile devices are often random
  • Some display advertisements can worsen the user experience and lead to undesired effects
  • Display marketing in certain contexts can have negative effects on the brand
How to measure the success of Display Marketing
  1. Reach/New site visitors: The number of new visitors who came to your site after you launched a campaign.or the number of  people who have potential to view your advertisement online.  This KPI helps you understand how successful your campaigns are at increasing brand recognition and overall site traffic.
  2. Engagement: Including time spent on your site, or number of pages viewed. Is a good indicator of the quality of new traffic to your site. Be sure to compare engagement on a product-by-product basis, too.
  3. Number of conversions:  The conversion rate basically shows what percentage of the people clicking through an AD ended up completing an action or a goal that the advertiser desired. This could be anything from a purchase made online, a registration for a newsletter or even a request for more information.
  4. View-through conversions (VTCs): Conversions that resulted from customers who viewed ads but did not click. The truth is, no one likes clicking ads, but that doesn’t mean they don’t influence conversions.
  5. Attributed closed deals and new sales: The total number of deals closed from prospective customers who interacted with an advertising campaign. In addition to the total number of conversions. You should measure campaigns at the middle of the funnel by the number and quality of deals they’re closing. As well as the number of new sales and overall new customers that they drive.
  6. Cost-per-acquisition (CPA): Your overall campaign spend divided by the total number of conversions. CPA is an important KPI to keep track of across the entire funnel. As a helpful proxy for how effective your teams are at closing, retaining, and cultivating customers. Also known as the decision stage, this is where prospects are deciding from whom they want to buy
  7. Return on investment (ROI): The net profit generated by your campaign. It is calculated as the difference between the total revenue the campaign generated and the total cost of running the campaign.
  8. Lifetime value (LTV): The net profit attributed to a customer over their lifetime. There are many ways to calculate LTV.  A model that is tailored to the specifics of sales cycle will be most effective. LTV is important because it helps marketers calculate their ROI over time.
How to accelerate your Display Advertising

At Learn Africa Solutions, we assist to assist in planning & setting up the environment. To track and measure your online display marketing activities and relate it back to actual business results.

It is important to combine insights with the information from your brand’s online marketing activities for a clearer picture of how well your business is doing.

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