Web advertising is becoming more cultured by the day. It is worth appreciating that Google has, for example, successfully tied its ad service to an incredible amount of user data, which enables marketers to tailor advertisements to specific traits, demographics, and wants. And the bigger the internet population gets, the better we can expect to target and reach the right people with our products.
In this article, we will discuss the importance of web advertising to businesses and the features of select ad formats. Next, we'll address how to handle any setbacks that you might encounter in running such ads.
The Year of the Pandemic
The effects of the pandemic disrupted global business activities throughout 2020. But despite that, online activities grew as businesses needed to shift to where their customers are.
According to the Internet Advertising Bureau (IAB), there was a 12.2% increase in digital advertising spend, with Video and Social Media experiencing the largest year-over-year increase at 16.3% and 20.6% respectively despite amidst the pandemic.
We can choose to see this growth in video and SNS ads as a proportional shift from offline to online. As the virus forces our adaptation to a more digital-driven society, web advertising will only keep growing at a tremendous rate.
A Peek into the Future
Experts projected global advertising spending to rise by 14% in 2021. With internet advertising platforms looking to grow by 107.7%, this web ad bubble will probably stabilize without bursting. Once hailed as a temporary breakthrough, web advertising is now a stand-alone culture.
In this section, we will examine what differentiates web ad formats, how they appeal to different companies in different industries at different stages of operation, and how that affects online advertising.
Listing ads are by far the most common advertising format. Also referred to as "search advertising," search engines such as Google and Yahoo display these ads to users based on the keywords entered. These ads differ from regular search results in that listing ads are placed on certain ad slots and include details that are rarely found in regular search result snippets.
The format doesn't require much budget to operate as it uses a click-based monetary system, making it attractive to advertisers. Listing ads are typically used to promote or announce a company's product and they are most effective when used for direct sales.
These are ads published on niche websites. Also known as content-linked advertisements, display ads are published on websites whose content is of high affinity with the ad. The banner can be an image, text, or video.
Display ads differ from listing ads in that they rely not only on images and text in their advertising but also on moving pictures. Unlike listing ads, display ads can involve creative animations, allowing advertisers to better engage the target audience.
The format is commonly used to attract previous website visitors, as its targeting relies on the data obtained from the behaviors of users as studied on a website’s analytics. Where listing ads are meant to show users new products, display ads are meant to retain user attention to your product or service.
Video ads are just as the name implies, advertising in video format. Most people use it on free video-sharing platforms like YouTube, Tiktok, and more.
The rise in video advertising in 2020 is due to people spending more time indoors and less time outdoors. YouTube, a platform that is most popular with users in their late teenage years, saw a surge of viewers from other age groups during the pandemic. The format is often used by advertisers for company PR, product promotion, and general brand awareness campaigns. As it provides a better storytelling experience than text ads, video ads will likely remain a relevant ad format for many years to come.
Social Media Ads
Social media ads are those displayed on social networking sites like Twitter, Instagram, Linkedin, etc. and each platform is unique. As with any marketing campaign, the success of a social media ad greatly depends on how well an advertiser chooses the right platform for their campaign and narrowly targets their intended audience.
Previously, many regarded social media as a tool solely for young people. In recent years, however, Social media has attracted a lot of older users, making it an attractive way to market products to a wider audience.
Troubles in Paradise
All would have been alright if that is where this story ends. Advertisers would have been on their merry way, creating ad masterpieces and leveraging web ads to reach millions of people. Unfortunately, that isn’t the case. Fraudsters use sneaky ways to manipulate how ads are displayed on the web, siphoning advertising costs from companies.
Many brands have adopted measures to address these ad frauds since there has been no effective legal legislation to tackle the issue and no sign of the damages slowing down. In fact, when internet usage soared in 2020, businesses lost at least $39.5 million to ad fraud. We can no longer ignore that a single business can suffer damages worth thousands to millions of dollars to such frauds.
If you are considering adding new web ads to your advertising, be sure to also have fraud prevention measures in place. By detecting invalid clicks alone, you can dwindle your advertising costs. Explore our site to learn more about taking ad fraud countermeasures.
As ad spending is set to skyrocket and social media continues to be integral to online advertising, companies must make smart decisions about their marketing strategies. Ad fraud is a significant and widespread problem. To stay in the game, advertisers must adapt and respond to challenges with the right mix of awareness and surveillance, rigorously protecting their revenue streams.
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