There are five main channels that comprise Digital Advertising. Find out more information about Paid Search, Display Advertising, Advertising on Social Networks, Online Classified Advertising, and Video Advertising below.
Paid Search is sponsored links on search engines which consist of 50% of Internet advertising spent in the automotive industry. Target relevant traffic to users who are “ready to buy”. Paid Search offers the ability to focus advertisements to a certain group of people by using specific keywords.
Traffic is considered to be relevant if targeting methods provide desirable website metrics, such as a high click through rate (CTR) or a high conversion site, or someone who spends a lot of time on a site or is likely to submit a lead or convert to a customer.
Display Advertising is static images or animated graphics on a content publisher’s website and are often referred to as Banner Ads. There are a number of ways to target Banner Ads towards in-market users; you can target Banner Ads based on website content or anonymous user data based on cookies.
One of the most powerful methods of targeting Banner Ads is called Remarketing. With Remarketing, you can directly target your ads towards people who have previously visited your website. Studies have shown Remarketing increases incremental conversions by a large margin.
Display Advertising can be paid for with two different methods – cost per click (CPC) or cost per mille (CPM), which is cost per thousand impressions.
Advertising on Social Networks
Businesses can advertise on Facebook, Twitter and LinkedIn.
Let’s focus primarily on Facebook. 700 billion minutes are spent on Facebook each month. Businesses can reach engaged users based on their interests and demographics. Facebook features text ads with companion banner ads, which is a picture accompanied with 1-2 sentences of content. Another great feature on Facebook is Sponsored Stories, where businesses can pay to have an event, Facebook Offers, or special status update promoted to a highly targeted audience.
Social leverage of Facebook ads: if the admin of a page pays for an ad, they can target people that “Like” that particular Facebook page. Businesses can leverage the endorsement of target user’s network. Social endorsement shows a user’s friends who likes the product or service that is being advertised on their newsfeed.
Twitter – Businesses have the ability to promote tweets or promote profiles. This type of social media advertisement is effective but has a high barrier to entry.
LinkedIn – Targeting LinkedIn ads is based on members’ industry, job titles, companies and groups they have subscribed to.
Online Classified Advertising
Online Classified Advertising, for example when referring to the automotive industry, is simply paying to have a car dealership’s inventory listed on online classified sites.
Video Advertising combines the visual and audio stimulations of traditional TV advertising with the advance targeting ability, the accountability, and interactivity of online advertising.
One popular form of Video Advertising is called Pre Roll. Pre Roll Video Advertising is when a 15-30 second ad is played before a popular YouTube video. Businesses can access other premium content on video advertising networks, such as CNN, CNBC, ESPN. It is possible to target video ads in similar fashion as targeting display banner ads.