In the field of marketing, it’s never too early to think about and prepare for the future. Today, we are already seeing the scope of digital advertising expand to mobile devices and other channels. The future holds even greater possibilities as brands experiment with innovative ways to advertise products and services.
To understand how digital advertising will evolve in the coming years, it’s important to know what digital advertising is. In this blog post, you will learn more about its different types, its value proposition for advertisers, brand owners, and media companies, as well as its implications for publishers and marketers.
What is Digital Advertising?
Digital advertising, also known as digital marketing, is advertising that’s delivered via digital channels. This includes digital advertising services such as digital advertising networks, advertising exchanges, and programmatic platforms. Digital advertising is the use of digital media for marketing. It is targeted advertising on digital platforms such as email, mobile apps, desktop/laptops, and other digital devices.
Digital advertising enables brands and businesses to promote their products or services in a variety of effective ways. This includes mobile ads that show up on your computer or mobile phone when you’re online. It also includes online banner ads you might see on websites or apps.
Types of Digital Advertising
There are many different types of digital advertising. Here are a few of them:
– Banner ads: Broad, horizontal ads that appear on publisher sites. They’re also known as “inline” ads.
– Banner ads with links: Ads that appear on publishers’ sites and links to other pages on the publisher’s site. They’re also known as “landing” or “destination” ads.
– Display ads: Ads that appear on websites or apps, and are often images or videos. – Email advertising: Ads that appear in email inboxes.
– Native advertising: Ads that appear on publisher sites but look like content. For example, a restaurant may have a sponsored post on its site that looks like a customer review.
– Social ads: Ads that appear on social media, such as Facebook or Twitter.
– Sponsored stories: Popular stories on social media sites, often not marked as ads.
– Sponsored videos: Popular videos on social media, often marked as ads.
– Paid search ads: Ads that appear in search results.
– Display network ads: Ads on third-party websites that are generated by an ad network.
– Rich media ads: Ads that include images, videos, or other multimedia.
– Search ads: Ads that appear when people search online.
Value Proposition of Digital Advertising to Advertisers
Advertisers have three main reasons to use digital advertising:
– Reach: This refers to the overall number of individuals who see your advertisement.
– Resonance: The likelihood that someone will remember your ad and buy your product once they see it.
– Retention: The percentage of people who see your ad and then go on to buy your product.
Here’s how you can use digital advertising to reach, resonate and retain your target audience.
– Reach: You can reach your desired audience through digital advertising channels. These include banner ads, videos, websites, social media, and email.
– Resonance: Digital ads help build brand equity because they’re associated with products people are familiar with.
– Retention: Digital ads encourage customers to buy your products because they’re likely to be reminded of these purchases.
Brands and Media Companies as Publishers
Brands are a type of business that sell products or services. Brands are the most recognizable names in a category, such as coffee, cars, computers, or airlines. Media companies are the creators of digital ad campaigns. They set the creative strategy, select the media channels, and choose the creative for their brand advertisers.
Media companies include digital ad networks, ad exchanges, and publishers.
Digital ad networks are centralized buying platforms. They collect bids from thousands of buyers and sellers of digital ads. The highest bidder receives the ad impression. Digital ad networks can be public or private. They can be owned by advertisers or by investors. A public ad network is open to anyone. Anyone can buy ad impressions on it. A private ad network is restricted to a select group of advertisers. It is owned by those advertisers.
Here are a few examples of digital media companies:
- Google, which shows ads on search results and YouTube.
- Amazon runs ads on its website and makes money from its AMS (Amazon Mechanical Service).
- CBS, which has content published on its online platform, CBS Interactive.
- LinkedIn, which runs ads on its social media channels.
Advantages of Digital Advertising for Marketers
First, digital advertising is more effective than traditional advertising because it’s interactive. Ads that are interactive prompt a customer to take any action, such as clicking on a link or filling out a form. This type of ad is called a “click-through rate” or CTR.
Second, digital advertising is cost-effective. Digital ads can be placed on websites, social media platforms, and mobile apps. They can also be shown on television and in print media.
Third, digital advertising is flexible. Brands can use digital ads to reach a wide variety of consumers, in any location at any time.
Fourth, digital advertising is measurable. Advertisers can track the performance of their digital ads and make changes as needed. This information can help them optimize their campaigns and increase their ROI (return on investment).
Digital advertising is a powerful tool for marketers. It has many advantages, such as being interactive and cost-effective, flexible, and measurable.
Disadvantages of Digital Advertising for Marketers
There are some disadvantages of digital advertising that should be considered before implementing a strategy.
First, digital advertising can be intrusive. Ads can be displayed on websites, social media platforms, and mobile apps in a way that is disruptive or distracting. This can be a problem for users who are trying to concentrate on their tasks.
Second, digital advertising can be spammy. Advertisements can be excessively promotional or contain misleading information. This can irritate users and damage brands’ credibility.
Third, digital advertising is often targeted inaccurately. Ads may target specific demographics (such as age or gender) or interests without taking into account the user’s actual preferences. This can lead to wasted money and lost opportunities.
Fourth, digital advertising is vulnerable to cyberattacks. Advertisers’ data and websites can be compromised by hackers who want to steal information or cause damage. This is a growing problem and advertisers need to take precautions to protect themselves.
The future of digital advertising holds great promise. As consumers continue to adopt new technology and channels, professional digital marketing company will need to adapt to stay competitive. We are already seeing the scope of digital advertising expand to mobile devices and other channels. The future holds even greater possibilities as brands experiment with innovative ways to advertise products and services. However, digital advertising must be done responsibly to avoid damaging brands and users.