What are the advantages and disadvantages of display advertising?

29 Mar.,2024

 

An ad shown is a paid advertisement that usually includes a click-through image with attractive content placed on it.

 

The ad unit is called a "display" because it is "displayed" as sponsored content on the prediction page that the target visitor is watching. Digital Marketing is the latest trend. Companies are broadcasting modern-day advertising through a variety of platforms, via television and radio, and social media channels. 

 

Google's display network allows advertisers to launch Google ads using various targeting terms, such as cookies. Such Google ads are delivered automatically and in real-time to websites. They use advertising algorithms to select the right advertisements for users.  whether this or that feature is relevant.

 

To measure the value of each appearance, Google advertising is personalized to each user. It is done regardless of the type of domain they are visiting at the moment.  A new user sees an ad tailored to you based on those targeted parameters every time they visit the forecast page. Consider the following example.

 

Display of advertising may be contextualized in these channels, which means that the thematics of the advertisements or services will be matched to the thematics of the site or application they are placed on. How is this possible? 

 

The most common advertising technology that allows advertisers to target relevant audiences online includes search phrases and cookies stored to track site browsing activity.

 

Also watch the video to get detailed information about  display advertising :

 

What is Display Advertising?

 

In simple words display advertising is usually directed at specific audiences. Companies can customize ad delivery based on sites, locations, time, and other factors. Based on their data attributes, the ad unit is presented only to interested people.

 

Exhibition advertising is often used in branding efforts. However, they can also be used for various purposes without product awareness, such as improving product memory and driving sales.

 

(Recommended Blog:- How has IoT changed the Advertising Industry?)

 

 

Advantages and Disadvantages of Display Advertising

 

Before you launch your first display ad campaign, you should be informed of its benefits and drawbacks. Furthermore, this form of the ad may not be the ideal option for achieving your marketing goal, so let's look at the chances it gives.

 

The most significant benefit of display advertising is its global reach, which allows firms to locate prospects all over the world. Take a closer look at the additional advantages of this advertisement.

 

  • Assists in increasing brand awareness

 

Display advertisements, unlike search ads, do not reach audiences with buy intent. However, they help businesses make consumers who have never required their product before remembering the brand. 

They achieve this by arousing initial interest and allowing individuals to recall it when they need it. As a result, this specific brand has become identified with this or that product.

 

  • Targeting opportunities are provided

 

With display advertisements, you can limit your audience down to the most promising possibilities. It is feasible because of the different targeting options offered. 

 

You may reach out to people based on their demographics, geographical location, language, general interests, behaviour, and prior interactions. 

 

Last but not least, you may re-engage leads who loved your items and placed them in their basket but did not purchase.

 

  • Allows for the tracking of outcomes

 

 After launching your display ad campaign, you may track the number of clicks, learn when a prospect became a client, identify the platform where the conversion occurred, and identify the most effective adverts. It is an excellent opportunity to strengthen your future campaigns and invest in winning techniques.

 

You may be eager to create your first advertisement, but you should be aware of its drawbacks as well. So, have a peek below.

 

  • Conversion rates are low

 

 Display advertisements have lower conversion rates when compared to search advertising. It is not surprising that search advertisements are intended for leads with buy intent. In contrast, display ads enable firms to generate interest in a product. 

 

As a result, if you want to increase sales, display advertisements may not be the most excellent option.

 

  • Inadequate reputation management

 

Because you have little control over the platforms on which your advertising are shown, they may at times be irrelevant to your business. 

 

So you'll be charged anyhow. Furthermore, such unnecessary advertisements may upset site visitors. If your brand is well-known and reputable, displaying advertisements on unrelated websites may harm your reputation.

 

  • Blindness to the banner

 

It has been a typical occurrence for many internet users in recent years. It assists us in coping with information overload and ad fatigue. 

 

People unconsciously overlook commercials, especially when they are created as discrete blocks that catch the attention. Take advantage of rich media to see people' attention and stand out.

 

  • Ad Blocking software is available

 

A growing number of customers utilize ad-blocking solutions regularly as a result of ad fatigue. Some businesses ask that they permit adverts or buy subscriptions. Consider the following options.

 

You may now examine all of the advantages and disadvantages to determine which sort of advertisement to use. Let's take a deeper look at search advertising now that we've addressed it.

 

 (Related Blog:- AI in Advertising - Role and Benefits)

 

 

How to set up a Display Advertising Campaign?

 

Setting up a display advertising campaign may appear to be a simple operation because several systems provide marketers with complete workflow automation and real-time optimization.

 

 Indeed, locating good inventory for ad placement is much easier now than it was a decade ago. These systems provide not just automation but also highly tailored ad distribution based on audience.

 

Without human intervention, the computers match cookies with campaign parameters and place the adverts themselves. However, user attention is hugely competitive, and the design, messaging, and campaign controls should never be overlooked.

 

Advertisers pay per 1000 impressions given by publishers on websites/in applications for CPM (cost per mile) display marketing campaigns. This strategy is less expensive than cost per click (since cost per impression is lower).

 

However, the effectiveness of your ad campaign will be determined by how effective the representation of your product or service is to your target demographic. 

 

For the same amount of money you would spend for CPC, you can get more clicks out of those 1000 impressions. Just look at how the campaign is being prepared.

 

 

How to perform retargeting with Display Advertising?

 

Retargeting people who did not convert in the first place is another excellent technique to begin display advertisements. As you may already know, just a tiny percentage of individuals who visit your website have the potential to become new customers; the vast majority of users do not convert on their first visit.

 

For example, suppose you targeted your audience on PC in the first ad campaign. In that case, you may contact them on mobile or linked TV in the retargeting campaign.

 

If you wish to follow the most acceptable retargeting practices, here are a few pointers:

 

  • Define your most valuable items or services. Conduct an assessment of your products and services to identify the best-sellers that produce the most money. Once you've nailed it, please include them in your advertising campaigns. 

 

 

  • Accept new channels. Before you begin a retargeting campaign, identify alternative media your target demographic frequents and launch a campaign on them.

 

 

  • Make use of remarketing lists. Leverage remarketing lists from previous ad campaigns.

 

 

  • Give a discount. Consider how you can better engage your audience by using interesting forms or offering a discount.

 

 

  • Experiment with different forms. Try out several ad types to see which ones work best. Change the placement of the CTA, the image, or the phrase (just one at a time) and discover which combination performs best.

 

 

  • Adapt your creatives to the channel. When launching a campaign across new platforms, such as mobile, remember to adjust the proportions of your creatives properly.

 

 

  • Appropriate timing is required. Determine when your audience is most active during the day and alter the dayparting. Your adverts are only delivered during certain hours. More about dayparting may be found in the article.

 

 

  • Change the frequency of advertisements. It is done to offer the appropriate number of advertising to each user at any given time. If you determine the correct number, your offer will be remembered while being less annoying to viewers.

 

 

You may build a remarketing list for your campaigns in Google Analytics or any other third-party solution created for the purpose. Similarly, you may retarget the same user category that you were targeting in past DSP ads.

 

(Related Blog:- What is Programmatic Advertising all about? )

 

 

Conclusion

 

Display advertising today means more than it did ten years ago. Assume that 10 years ago, display advertising was limited to static banners. In that instance, they now cover all forms of rich media creative that render quickly across mobile devices, PCs, and connected TVs.

 

This sort of advertising, like native advertising, has a lot of potential if the messaging and targeting options are implemented correctly. SmartyAds DSP enables you to tailor 30+ targeting options to assist in delivering your display advertising to the right viewers at the right time and across the channels they choose.

There isn’t any online advertising form which is perfect for the advertiser to promote their products or services online. There are many advantages and disadvantages that advertisers may discover while planning their promotion campaign using online advertising platforms. However, all the advantages and disadvantages may not be applicable to all types of campaigns.

We have discussed top 7 advantages of Display advertising in the previous article and we will be discussing the top 5 disadvantages of display advertising in this article.

  1. Low Conversions:

    A lower click through rate (CTR) means lower sales or less user engagement on the ads that advertisers are serving the on the web pages. When the users see the ad and they aren’t actively looking for the products that advertiser’s promoting, so they may not the targeted audience to convert in to the sale or action.

  2. Integration with Social Media:

    The advertisers to looking at the social media platforms to promote their ads and engage their targeted customers. Also, social media platforms are providing higher return on investment (ROI) on each and every campaign by targeting most relevant audience to the ad campaigns. However, the display advertising platform may not access the deep granular level of data to target the desired audience to increase the ROI.

  3. Lesser Competition:

    Due to their prevalence, display ads aren’t a competitive format to promote new businesses. The advertiser often ends up with building an ad campaign to a wider audience and most of the users may not turn to advertiser page by clicking on the ads. This could be an issue for the budding advertiser look for better option to maximize their ROI instead of waiting for a long time to build their user base.

  4. Lack of Reputation Management:

    With display ads, the advertisers are not always in control of where their ads are serving. The ads may serve on the various web pages with irrelevant content and users may not interested to look into the irrelevant ads serving. This will impact on advertising budget and advertiser end up with paying for these impressions as well. Also, there are scenarios where the ads are serving on the irrelevant pages which may damage the brand image as well.

  5. Spam Activities:

    Another downside of display advertising is spamming the users to click on the ad to view the web page content. The publishers may use bots to generate the fake impressions and clicks to achieve the ad campaign goals which will not offer any value to the advertisers.

Conclusion: Display advertising is an effective advertising format to build the brand awareness and strong user base to the brand. However, these challenges may impact the advertiser’s brand and/or ad campaign budget if they haven’t considered the downsides of display advertising.

What are the advantages and disadvantages of display advertising?

Top 5 Disadvantages of Display Advertising