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What is Targeted Display Advertising?

what is targeted display advertising

What is Targeted Display Advertising?

Targeted display advertising uses banners (static images, video and HTML5) of various sizes to display advertisements on websites and apps while users surf the web. Targeted display advertising is a type of digital marketing that targets potential customers based on a wide set of variables, such as demographics, online habits and interests. Unlike Pay Per Click (PPC) or Cost Per Click (CPC) advertising, targeted display advertising is charged by the impression (CPM) and not by how many people clicked on the banners.

Tactics Matter

With your ideal customers in mind, the first step is identifying you business goals an determining which tactics are most relevant to your promotion. In most cases, promotions, also known as campaigns, will use a blend of tactics, such as:

  • Site Retargeting -Almost always used in any type of campaign. This tactic targets users who have visited your website. This is important because there’s a higher chance of conversion with someone who has already shown an interest in your product or service.
  • Search Retargeting – A common tactic used in most campaigns. People searching for certain keywords and/or phrases will be targeted with your banners. The keywords selected are based on search volume and relevance to the campaign.
  • White-Listing and Black-Listing – A strategy that chooses specific websites to target, or to avoid. With white-listing, relevant websites are selected to target potential users. Black-listing involves selecting websites you wish to avoid. Sites with questionable content, or sites your company does not want to be associated with, can be black-listed to ensure your banners will not be found on their domains.
  • Category Contextual -This approach targets sites with content related to the services or products you are promoting. Unlike white-listing, category contextual is more broad because banners may appear on any website (even blogs) with content relevant to your services.
  • Keyword Contextual – This tactic is closely related to category contextual. With keyword contextual, potential customers are targeted based on specific keywords in content they read online. This differs from search retargeting because it isn’t targeting what people searched, but rather the content they are consuming through blog posts, articles, social media, and other online forums.
  • Geo-Fencing – Geo-fencing targets people who visit specific physical locations, such as your competitor’s store, events happening in your city, or even a body of water. The possibilities are practically endless. Once a person enters the geo-fence, they can be targeted through their mobile device for up to 30 days.
  • Geo-Optimization – Geo-optimization targets anybody in a general geographic area (ZIP code, city, state, etc.). Unlike geo-fencing, however, this tactic can display banners on laptops, desktops and mobile devices, but it’s not hyper-targeted. It’s best used for events or other promotions that have a broad audience.

The blend of tactics used in a campaign depends on of the needs and goals your business. Each campaign is uniquely designed to fully optimize your budget and provide the best results. The key is knowing your company and the audience you want to reach.

Is CTR Important?

The average Click Through Rate (CTR) for campaigns is .10%, which may not sound very impressive. And to be honest, it isn’t. But, you know what? Your CTR doesn’t matter. In fact, a recent article from SEO experts Moz, further highlights why CTR isn’t necessarily the best metric when looking at the success of a banner campaign. Using data from a published study, they found that 33 percent of people are likely to make a purchase as a direct result of seeing a banner ad, and 44 percent of those consumers did so without clicking on the banner. CTR does not consider the numerous people who may see an ad, take action later, but never click on it.

Targeted display banners have two main purposes: (1) to increase brand awareness and (2) to drive traffic to your website. They rarely result in a “direct” conversion, but they do play a major role in influencing online (and offline) purchasing decisions. That’s why they should be included as part of any robust business marketing strategy.

Learn more about our digital marketing services. If your company is interested in increasing its online presence, contact 3D Digital at 904-712-4004.

3D Digital is a full-service, digital marketing agency located in Jacksonville, FL. We offer website design and development, video production, social media management and an array of digital marketing solutions, such as display banners and AdWords. To learn more about our services, please visit 3ddigital.com.

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