What is Digital Advertising?
The new age advertising strategy which uses the digital platform for the marketing of the products or services in order to reach a wide range of target audience hailing from diverse backgrounds.
Digital Advertising Campaigns are ruling the business industry that strive to promote in order to gain an objective target approach. Advertisement has also been a source of income for media platforms, both conventional and contemporary, yet what distinct the digital advertising campaigns from the conventional set up, is its global accessibility, ease in consumption, mode of consumption, network creation and target-driven algorithms.
Types of Digital Advertising Campaigns
The spiking demand in the e-commerce industry and the growth in social media consumption has led the advertising sector to shift its activities from offline to online models. Here are few popular models of Digital Advertising Campaigns:
SEARCH ENGINE MARKETING
The strategy of gaining traffic to the target advertisement via promotion on search engines. It is one of the most relied on advertising strategies and has two subparts, namely, Pay Per Click (PPC) and Search Engine Optimization (SEO). PPC is a quick and monetary driven strategy wherein the Ad campaigns are seen in the form of pop-ups, flashs, cookies, etc. Some of the PPC are Google Ads, Bing Ads, Yahoo Ads... On the other hand, SEO strategy depends on the free organic, editorial search engine results. It is time consuming yet pays off well in the long run. It is focused on content relevance, therefore optimization of advertisements/websites with keywords can gain more traffic.
AFFILIATE MARKETING
An advertising model where a company pays commission to the third party publishers to generate leads to the company products. Example, Amazon Associates, Commission Junky, etc. The advertiser pays not for the traffic but the conversion of leads into a win. It is a performance based strategy, mostly practiced by bloggers and marketers having heavy traffic for their respective digital platforms. Though the rates in Affiliate Marketing are high, the risk for the advertiser to invest in the third parties lowers since the payment is only done for the leads generated.
VIDEO ADs
Over the past few years consumption of the digital content has indirectly reduced the span of attention of the consumer. Therefore it becomes vital to hold an increased span of attention of the consumer towards the advertisements. The Video Ads have those attributes and are one of the leading strategies in the advertisement. The videos can be animated, podcasted or naturally filmed in accordance with the target requirements of the objectives.
EMAIL MARKETING
The e-mail marketing is the best affordable strategy for conversions and builds a solid connection with the customers. The email sent in a regular time period allows a percentage of subscribers into potential leads over the time. The listing of emails are personally earned, nurtured and turned into digital assets in the long run. So email marketing is much more than just spamming of the mails.
DISPLAY ADs
Display Advertisements are the most commonly encountered while one is browsing on the internet. They are static in nature and show as cookies, pop-ups, flashes, etc. Some of the websites have more number of Display Ads than the actual content itself because the revenue for that particular website is generated purely through advertisements. The market arena for the Display Ads is huge but the ROI on such Ads is comparatively less.
SOCIAL MEDIA ADVERTISING
Communication is more virtual nowadays. Thanks to all the Social Media platforms like Facebook, Instagram, LinkedIn, Twitter etc, the saying ‘World is so small’ has become the truth of life. Millions of people are active on such social media sites which makes it a great layout for advertisement and these sites offer differentiated accounts - personal & business - giving specialized features based on the kind of account.
Digital Advertising Analytics
Analytics of Digital Advertising are important to analyse the metrics that determine the success of the strategy applied. It is noted that in the FY-19 global brands investment in Digital Advertising Marketing is $3,330 Bn which is a 17.6% increase over the years.
Web analytics, analyses the behavior of visitors to the websites, serves as an input metric. It is both off-site and on-site in nature.
Sales Funnel is another input metric which is an ideal sequence of events a lead goes through to go from a traffic audience to a repeat customer. The sequence follows - Awareness, Interest, Decision, Action - pattern that determines the conversion of the leads.
The percentage of leads converting from one stage of the funnel to the next stage, affecting the performance of the funnel is known as Conversion Rate Optimization.
METRICS:
Cost per Measure (CPM)
The cost of expenditure required to reach a certain measure of traffic on a digital platform. For instance, it is the calculation of how many USD does it cost to advertise for a firm to reach one thousand users is the CPM metric.
Cost per View (CPV)
Determines the cost spent on views, largely affiliated to Video Ad Campaigns. The measurement varies based on the viewing time, i.e, for the first few seconds (eg. 3 secs) or play through time or completion of video. A subset metric of this Video Completion Rate (VCR) where it is essential to watch the video till the completion. VCR may or may not necessarily be a key performance indicator because it might be optimized not to get views instead to gain website traffic or online conversions.
Click per Action (CPA)
Values the cost spent on the action by the lead, wherein the Action can be either fetching a lead submission or visit to the store or traffic gain to the website. These are mainly used for the measurement of website traffic campaigns.
Customer Lifetime Value (CLV)
The prediction of a net profit attributed to the entire future relationship with a customer. It is very challenging in nature and is measured for long-term investment products or services in the market.
Bounce Rate
Measures the volume of traffic that visits and quickly bounces off from the respective website or any digital advertising content. The active time spent on the website is the key determinant of the Bounce Rate.
Click Through Rate (CTR)
It is a ratio of the average number of clicks administered on an actual link/post/website to the average volume of traffic exposed to the same link/post/website.
Return on Ads (RoAds)
The return on investment on advertisement. It is gauged against the expenditure and income cost of an advertisement.
The aforementioned were the quantitative metrics that help in determining the success of a digital advertising strategy. Besides these, to gauge the effectiveness of the media the digital platforms in partnership conduct surveys. These are the studies, a part of analytics but not termed as metrics:
Brand Studies - A survey which deals with factors like the rate of consumption of advertisement over its exposure, recall value, favourability and consideration. This varies from brand to another and helps in understanding the significance of brand value over generated leads.
Offline Data - Studies the lead behaviour with respect to the purchase rates in the offline market rather than on e-commerce. It aids in estimation and associates of the influence digital advertising has had on the customer, in an offline setup.
Conclusion
In a nutshell, it is important to understand that no two businesses are the same. Every business is unique in it’s own way and so is the advertising strategy. Also whichever strategy one may opt, consistency is a mandate in determining the success of the strategy applied. All the metrics cannot be viewed holistically but only with respect to the context of what the actual objective of the campaign is.
Digital advertising is a niche for creativity and endless possibilities. Now it’s your turn to go viral with the digital advertisements. Chalk out your unique strategy and keep us posted in the comment section.
Hoping to see you on the other side.
Very apt! Brilliant work!
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