What Is Digital Advertising?

Digital advertising is the use of digital marketing channels to reach customers. Digital marketing channels are electronic communication channels that use digital technologies, such as the Internet, to deliver consumers’ marketing content. Marketing content can be in text, images, audio, posts, ebooks, or videos.

Digital advertising is growing quickly as Internet advertising. It is expected to grow by approximately 20 percent annually over the next three years and accounts for more than 50 percent of all advertising spending. The biggest reason digital advertising is so popular and effective (besides the number of users) is that it is measurable.

How Is Digital Advertising Used?

Digital advertising involves promoting a product or service through digital technologies, such as websites, mobile phones, or any other device that uses the internet.

Digital advertising is a newer form of marketing that uses search engines, display networks, banners, and social media platforms.  The success of digital advertising is due in large part to the interactive nature of digital media.

Targeted Advertising

Advertisements can be tailored to individual users based on their previous Internet activity (for example, if a user has spent a considerable amount of time on a sporting goods site, ads for sporting goods may appear on other sites that feature similar products user browsed). Likewise, digital ads support real-time bidding,

As I mentioned previously, digital advertising targets consumers at various stages of their buying process using data-based strategies. It overlaps with direct marketing but differs because the first is done on a database that is easy to access and modify, while the second is not.

Because digital advertising targets potential buyers through different channels such as social media, search engine results, mobile apps, and others, it is advantageous. The latest trend in this arena is the use of Facebook Ads.

Data-Based Technology

Today’s digital marketing strategies are heavily dependent on data and research. With digital technology and increasing access to data, companies can test their strategies and track their performance in different market segments.

Through this, they can get insights into what their customers need, demand, and use before engaging in a sales relationship with them. Today’s marketing extensively incorporates data and digital technologies to target potential clients and sell them products.

Pay Per Click Marketing

Google AdWords is one of the most popular options used by digital advertising companies today. It is a pay-per-click program through Google where advertisers only pay when someone clicks on their ads.

Google AdSense is another paid program on Google that pays users when using their ads on their sites. These programs help a business establish a strong presence on the web and earn revenues from the traffic they attract.

Social Media Advertising

As a third alternative, digital ads can be displayed on social networking platforms. These platforms include Facebook, Twitter, and LinkedIn. When users interact with the business on these platforms, they can reveal their demographics and personal information. Based on this information, the company can establish an ideal ROI for its product or service, which is why social media marketing can be so cost-efficient.

PPC VS. PPI

As a business owner, you can choose between pay-per-impression (PPI) campaigns such as Facebook Ads or pay-per-click (PPC) as Google Adwords uses. PPI usually refers to displaying digital ads on a website or through search results. The business only pays when a visitor clicks on the ad. On the other hand, PPC targets visitors based on their past search patterns and parameters like keywords.

Digital Ads Vs. Traditional Advertising

Digital advertising campaigns take time to reach the targeted audience because it requires extensive research. Unlike traditional advertising, businesses have to consider the factors influencing their campaigns’ success, such as the audience’s demographics, their purchasing habits, and their spending habits and preferences.

A digital advertising campaign requires an investment of time and money for market research, product testing, proper branding, online marketing, distribution, and promotions. Yet, that’s where digital advertising thrives compared to traditional marketing. With Digital, an advertiser can target a specific audience to increase the possibilities of being seen by interested consumers.

Tracking And Analytics

Another advantage that digital advertising has over traditional advertising is tracking the clicks made by visitors. Google’s conversion rate is one of the factors influencing the success or failure of a PPC campaign. Many people are not willing to spend their money to make a single click on an ad because they are unsure if their clicks will be worth it or not. Google offers an estimate of how many impressions a campaign will generate during its trial period. Through this, you will know if the number of impressions is sufficient to earn your site’s top spots in search engines.

Data Prediction

Businesses that opt for digital advertising campaigns are most often successful because of their creativity in targeting their clients. With this type of campaign, companies can create ads relevant to their target market to get more clicks.

Because Google and Facebook have outstanding data on clicks and impressions, you will know whether your ads are effective. On the other hand, PPC campaigns are more effective if the ads have good content marketing behind them. Content marketing is all about promoting your site by writing articles, producing videos, or participating in forums to create more traffic to persons interested in your products or services.