There are many different types of online advertising, but which one(s) should your business use? From Display Ads to SEO to PPC, here is your complete guide to online advertising.
Display Advertising
Display advertising is a type of online paid advertising, typically using images and text. The most popular forms of display ads are banners, landing pages (LP’s) and popups. Display ads differ from other ads because they do not show up in search results.
Most commonly, display ads are found on websites and blogs to redirect user’s attention to the company’s product. Working together with remarketing, display ads can have great success. According to Digital Information World, “website visitors who are retargeted with display ads are 70% more likely to convert on your website.”
Search Engine Marketing & Optimization (SEM) & (SEO)
SEM and SEO are two types of online advertising that promote content and increase visibility through searches.
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SEM: Instead of paying for the actual ad, advertising pay each time users click on the ad to their website. Businesses benefit by gaining specific information about their market.
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SEO: To gain a higher rank in search engine results, advertisers use various SEO tactics, such as linking, targeting keywords and meta descriptions and creating high level content that other sites will link to. While SEM is a paid strategy, SEO is organic, making it a sought out type of online advertising.
Social Media
There’s no doubt that social media advertising just keeps growing and growing each year. Consider these numbers: There are 1.65 billion active mobile social accounts globally with 1 million new active mobile social users added every day. According to the Hootsuite social media advertising statistics, social media advertising budgets have doubled, worldwide, from $16 billion to $31 billion in the past 2 years alone.
The two types of social media online advertising are organic, an online word-of-mouth technique, and paid. Placing paid ads, promoted posts or sponsored stories are a popular way to reach more of the demographic of the company, without paying a bundle. As you can see from the chart below, Facebook and Twitter are the most popular social media platforms for companies to reach potential new customers with LinkedIn a popular avenue for B2B sales.
Native Advertising
Have you ever noticed those sponsored ads at the bottom of blog or FB posts? They can be “other recommended readings” or “other people liked” with suggested examples for users to click on. This is native advertising.
Pay Per Click (PPC)
Pay per click (PPC) ads explain their concept right in the name. These are ads that advertisers only pay for when a user clicks on them, which contributes to the strength of PPC as a tool. If the ad was seen by 100 people and only 1 person clicked the ad, the cost of the ad revolves solely around the 1 who clicked. PPC ads are usually text, with a small image if at all. Keep in mind that 64.6% of people click on Google ads when they are looking to buy an item online.
Remarketing
Remarketing (or retargeting) is a type of online advertising that does exactly what it says it does. This cookie-based technology literally followers the user around the internet, in order to remarket him/her again. Statistics show that only 2% of web traffic converts on the first visit, which means 98% of users leave without converting right away. These users are targeted once they leave the website by then seeing subtle hints (ads), reminding them about their previous interest. Here’s how the code works:
Affiliate Marketing
Affiliate marketing is promoting a company’s product while earning a commission for each sale that was made. It’s essentially a 3-party advertising agreement between the advertiser, publisher and consumer. It’s widely adopted with bloggers who have large numbers of followers and are looking to gain passive income.
Video Ads
Video ads are growing in popularity, especially with the younger generation of consumers. BI Intelligence reported that digital video will reach nearly $5 billion in ad revenue and with the highest average click-through rate, 1.84%, of any digital format (2016). And the stats don’t lie. 55% of consumers view videos in their entirety while 43% want to see more video content from markets.
Source: Perion
