Understanding of Display Advertising in eCommerce

Understanding of Display Advertising in eCommerce

Understanding of Display Advertising in eCommerce

If you spend any amount of time online, you are probably familiar with display advertising. Also called banner advertising, it consists of those little clickable ads often nestled in the margins of websites. Display advertising seeks to draw attention with visual messages like videos, images, text, logos, or interactive animations. 

While the average internet user may find banners annoying, they can be a successful and effective tool for entrepreneurs. Display ads can collect incredibly valuable information that may help the success of your business. It’s not hard to see why they’re the leading form of online advertising.

Why display advertising?

Display ads tend to be bold and eye-catching. Images are easiest to consume, and an appealing visual stimulant will usually get a positive response from viewers. You can incorporate the use of colour, text, graphics, and other fun elements to spark interest. The more intriguing your ad is, the more likely you are to gain new customers. 

How do display ads work?

Display advertising seeks to maximize the benefits of advertising, and yield the greatest possible reward. 

Banner advertising strives to be more relevant to its audience. By studying an individual, advertisers can learn what types of content they might prefer, and show personalized ads. Most internet users will only see ads that are related to prior searches or browsing history. Cookies track this data for future use as well.

Similarly, display ads can evaluate the site a user is visiting, and select banners related to the page’s content. It can also work this way for pages a user has recently viewed. If a user has left a site empty-handed, they may see ads for that site later. Browsing and search data is used to show the user more ads related to the content they already like.

Furthermore, display ads can use cookies to track the approximate location of a user to show them businesses nearby. It could also suggest ads that promote things related to the area. 

Things like climate, culture, and other specific traits can come into play when using display ads. This can also help to avoid showing items that they have no need for. 

What can display ads do for you?

For the average user, display ads eliminate redundant or useless ads. For the business owner, they can increase business in ways that traditional advertising couldn’t. The main goal of banner ads is to generate traffic to the website advertised. 

They can also help to increase brand awareness. Even if the customer does not click on your ad, they may remember it later. Digital advertising is one of the fastest methods of brand growth.

Display ads are more efficient for both the customer and the brand behind the ad. Targeted advertising means that your ad will only reach people who are likely to be interested in your products or services.

Additionally, contextual advertising could help you compete with other businesses with similar products or services to yours. Contextual advertising collects data from sites the user has visited, and shows them ads related to this content. 

Targeted advertising isn’t the only advantage of display ads, however. They are also equipped to collect important data for the advertiser. Having such insight allows businesses to see where they are successful, or what they might need to improve. It allows insight into customer engagement and interest. This gives businesses a better idea on how to appeal to their customers.

Masuring your display Ads

It can calculate your general reach, or potential audience. This is based on the number of people who may potentially see your advertisement, not those who have seen it. A greater reach means you have to ability to gain more customers.

The clickthrough rate demonstrates the likelihood of your ad being clicked by users. Clickthrough rates suggest how well your advertisement has been received by users. If your clickthrough rate is low, it may indicate that your ad requires some changes.

Display ads also track the bounce rate of your site and ad. Bounce rate represents the percentage of visitors that only view one page of your site before leaving. This is crucial information, because it shows how many people lost interest in your business before making a purchase. If there are issues with your site, this will let you know.

The conversion rate tracks the overall success of the ad. It shows how many bought the product/service or did what the ad intended. Essentially, it shows you how many customers your ad has successfully converted to your business.

Display advertising is known for being very customization. Businesses can select keywords, tags, and related products or services associated with their ad. Your ad can also track where it is showing up, to let you know more about your target audience. Overall, display advertising is one of the best options, especially for small businesses.

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