Display Advertising - Use Display Ads To Grow Your ...

Display advertising is one of the most effective ways to grow your business.

If you want to learn more, please visit our website Sawink.

With display ads, you can reach a large audience with a visual message and target it to specific demographics.

The best part?

Display ads help drive brand exposure to a wide audience at a relatively low cost. These ads can be shown to users multiple times a day, thereby subliminally increasing brand recall.

If you’re looking to build a brand, reach a big audience, and generate demand for a new business or service, then display advertising is for you.

In this article, we’ll cover:

• What is display advertising & how does it work
• Why should you invest in display ads
• Key metrics to measure its effectiveness

Ready to dive in? Let’s get started.

What Is Display Advertising?

Display advertising refers to any form of advertising that appears on a screen, such as print or electronic ads. Typically, display advertising includes large, captivating images and clever copy that attempts to capture the attention of viewers. Unlike traditional forms of advertising, which are placed in specific locations where they may or may not be noticed, display advertising is meant to be seen by as many people as possible. This approach makes it an ideal way to reach a large number of potential customers quickly and easily, without requiring them to actively seek out your product or service.

How Does Display Advertising Work?

Advertising is a big part of modern society, and it’s no surprise that display advertising plays a major role. It is the most common form of advertising, which involves placing ads on websites or in newspapers and magazines.

Display advertising works by presenting ads to potential customers who are likely to be interested in what the advertiser offers. Advertisers can target their ads using a variety of methods, including age, gender, location, and interests.

The display ad industry is valued at almost $250 billion annually and is projected to grow even larger in the coming years. There are several reasons why display advertising works well for brands. Firstly, people spend much time on digital devices, so ads appearing when users seek information or entertainment are more likely to be noticed and remembered. Secondly, people tend to be influenced more by visually appealing information. Ads that are aesthetically pleasing and professionally designed tend to be more effective than those that appear amateurish or cheap.

Why Should You Invest in Display Advertising?

Here are three reasons why display advertising is crucial:

1. Improved Reach

Display ads can be specifically targeted to users’ interests and behaviors. This means you’ll reach more people with your message than through traditional online advertising methods, like search engine marketing (SEM) or paid social media ads.

2. Enhanced Frequency & Timing

You can target individuals with display ads multiple times a day, providing a higher perceived value and increasing the likelihood that someone will see it. Display ads typically have strict time limits, typically around 30 seconds, so they must be effective within that timeframe.

3. Increased Engagement

Display ads tend to be more interactive than other forms of online advertising, leading to higher engagement rates and a greater likelihood that users will take action, such as clicking on the ad or purchasing your product. This engagement can translate into conversion rates, which are essential for businesses seeking organic growth or acquiring new customers.

When Are Display Ads Used?

Display advertising can be particularly effective during specific times. It can increase awareness of a product or service, enhance user engagement, and motivate individuals to make a purchase.

Here are four ways display advertising can help you achieve your marketing goals:

1. Building Awareness

Display ads can promote products and services to a broader audience. They can also introduce new customers who may not have heard of your offerings before. By enhancing brand awareness, display ads can lead to increased sales.

2. Encouraging Engagement

Interactive and entertaining display ads can engage users on an emotional level and encourage them to learn more about your offerings. This engagement builds trust and familiarity with the brand, increasing the likelihood of conversion into customers.

3. Facilitating Consideration

When users see an ad relevant to their interests, they are more likely to consider purchasing the product or using the service. Ads targeting specific demographics (like age and gender) can resonate with those individuals more effectively than generic ads.

4. Driving Conversion

Once users consider buying a product or using a service, targeted ads prompting them to convert can lead to higher sales. For instance, an advertisement featuring products related to items customers are already purchasing is more likely to convert those users into buyers.

5. Promoting Advocacy

Advocacy involves using advertisements to sway public opinion or support a cause. Display advertising can serve both positive and negative purposes. Pro-environment organizations may use display ads to advocate for stricter pollutant regulations, while tobacco companies might promote their products as safe alternatives to cigarettes.

Measuring Success in Display Ads

To measure display ad effectiveness, several formulas and metrics can be utilized. Let’s review the most common metrics:

1. Click-Through Rate (CTR)

CTR is a valuable metric for assessing display ad success. It measures the number of clicks on the ad divided by the number of views.

To calculate your CTR, divide the total clicks the ad receives by the number of ad displays (impressions). The result is the CTR percentage. A higher CTR indicates that more people are taking action after viewing the ad, which is generally a sign of success.

2. Cost Per Click (CPC)

CPC is another key measure of display ad performance. This metric highlights the cost incurred for each click on the ad.

To calculate CPC, divide the total amount spent on the display ad by the number of clicks it garnered. This metric helps assess the ad's effectiveness regarding conversions.

3. Cost Per Acquisition (CPA)

CPA is an essential metric for measuring display ads' effectiveness in terms of conversions. CPA indicates the cost of acquiring a customer or completing a sale.

To determine CPA, divide the total spending on the display ad by the number of customers acquired or sales generated from the ad. This figure shows how effective the ad is in garnering customers or driving sales.

4. Return on Investment (ROI)

ROI is a significant metric for evaluating display ad success. It compares the revenue generated from the ad to the expenses incurred.

To calculate ROI, subtract the cost of the ad from the revenue it generated, then divide this figure by the ad's cost. This percentage represents your ROI, with a higher ROI indicating greater profitability from the ad.

5. Overall Assessment of Your Display Ads

When evaluating display ad success, consider all the metrics discussed to develop a comprehensive understanding of performance. Not all metrics will apply to every ad, so it’s crucial to assess ads within the context of relevant metrics.

This approach provides insight into the ad's effectiveness and identifies areas for improvement. Testing different ad variations can help discern which ads perform best and maximize the effectiveness of your display ads.

Types of Display Advertising

A variety of display advertising types can be employed online:

1. Responsive Display Ads (RDAs)

Responsive display ads are tailored to adjust according to the device being used, making them appear differently on desktop computers versus mobile devices. This ad type is increasingly popular as it allows brands to target their ads more effectively, generating a more engaging experience for users.

Examples of RDAs include car ads that change with the viewer's location or ads that adjust based on the time of day.

2. Native Ads

Native ads are designed for mobile platforms, typically comprising short videos or text snippets serving as part of the brand's regular content stream. They allow brands to directly target users with relevant information and offers without bombarding them with intrusive banner ads.

3. Video Display Ads

Video display ads, designed specifically for mobile devices, often include short videos with interactive elements, such as game buttons. Video ads are a popular form of display advertising, as they effectively reach a large audience across various platforms.

4. Other Display Ads

Other forms of display advertising include banner ads, search engine results pages (SERP), pop-ups, and interstitials. Each format has unique advantages and disadvantages, which is critical when determining the optimal advertising type for your business.

Why Display Advertising Outperforms Search Advertising

While focusing on advertising, it’s essential to recognize the benefits of display advertising. It excels in showcasing your product or service appealingly to potential customers, including print ads, online ads, and billboards.

For more information on advertising display solutions, feel free to contact us.

1. Greater Traction

Display advertising is more likely to generate awareness and interest compared to search advertising. Studies suggest that for every $1 spent on search ads, there is only a 0.06% chance of resulting in an acquisition or sale. Conversely, for every $1 spent on display ads, there is a 1.5% chance of resulting in an acquisition or sale.

2. Higher Conversion Rates

Display advertising is also more effective at converting leads into customers. Approximately 72% of conversions from display ads stem from first-time visitors, as people tend to be influenced more by visual cues than textual information.

3. Enhanced Retention Rates

Lastly, display advertising boasts higher retention rates than search marketing. Around 66% of consumers exposed to online banner ads stay on the website long enough to see results, as banners are often positioned prominently for visibility.

Display Ad Creative Considerations

Display ads can significantly impact potential customers, but several considerations should be kept in mind during creation:

1. Pre/Post Click Alignment

Ensure the text and imagery in a display ad are aligned, allowing users to easily notice the call-to-action (CTA). Placing text in the bottom left corner and centering images or videos improves visibility, while ensuring CTA buttons are prominent is crucial for encouraging clicks.

2. Cross-Channel Alignment

The placement of a display ad should be consistent across different platforms. For example, desktop ads should appear near the top of the page, while mobile ads might be placed closer to the bottom. Personalizing for each platform enhances user engagement.

3. Personalization

Ad tone should align with the targeted demographic. For instance, ads targeting a specific age group might adopt a friendly and readable format, while ads aimed at men or women might feature tailored language and imagery.

4. Repurposing Opportunities

Display ads can often be repurposed. An ad promoting a new product can be reformatted to provide updates on its features or history. Similarly, ads for sales events can include additional information, such as timings or available discounts.

How to Create Must-Click Display Ads to Grow Your Business

Creating compelling display ads is a key strategy for business growth. When potential customers encounter an ad that resonates, a strong connection develops.

Essential considerations for crafting must-click ads include:

1. Well-Designed Ads

Ensure your display ad is simple, easy to understand, and aesthetically appealing. The key message should be clear and prominent, while the offer must be compelling enough to encourage visitors to click.

2. Compelling Visual Content

Include eye-catching graphics or images that portray your product or service in an interesting light. Increased visual appeal significantly raises the chances of attracting and retaining viewer attention.

3. Discounts or Bonuses for Clicks

Catering to potential customers with enticing offers, such as discounts or free samples, can encourage more clicks on your ad. Incentivizing clicking through your ad adds value to the potential customer experience.

4. Leveraging Programmatic Advertising

Programmatic advertising enables targeted demographic engagement through tailored ads that appear on various platforms, significantly enhancing conversion potential.

Eye-Opening Display Advertising Statistics

Let’s explore some facts surrounding display advertising:

Fact #1

The global click-through rate for display advertisements hovers around 0.07%, indicating that only seven individuals out of every 10,000 who view your ad will click it. Despite these low odds, with advertising being relatively inexpensive, even one person converting can make display advertising worthwhile.

Fact #2

In the U.S., it’s projected that businesses spend around $37.36 billion annually on display advertising, which encompasses mobile and desktop marketing.

Fact #3

Ad-blocking tech results in over $20.3 billion in lost advertising income for U.S. businesses.

Fact #4

Despite the prevalence of ad blockers, some businesses have witnessed returns on investment (ROI) as high as 486% from a single display advertising campaign.

These statistics underscore that display advertisements aren't solely about driving mass traffic to websites in a day; instead, they focus on increasing the number of qualified leads capable of being converted into paying customers over time.

Boost Your Business Revenue with Our Solutions

If you desire to enhance your brand's exposure, consider our digital marketing campaigns, including Sawink's display advertising solutions. Our strategies target one in every two internet users, making your brand visible to a high-quality audience.

Wrapping It Up

While many marketers may presume that display advertising is ineffective, it remains a viable strategy for achieving marketing goals. When integrated with other strategies, it can significantly enhance overall effectiveness.

Remember that targeting is paramount in paid marketing endeavors. Even the most attractive advertisements may fail to elicit responses if they don't reach the intended audience.

1. Integrate Display Advertising

This will enhance your brand's visibility and secure better engagement with your potential customer base.