Google ads, social media ads, even streaming ads — it’s enough to make your head swim when you’re trying to advertise your business online.
Our digital marketing manager, Josiah, presented on digital media buying to a sophomore class through Butler Community College’s Mass Communications department. We thought our clients and the larger business community would find the information helpful, too!
If you’ve been in business for a long time, you may have bought and placed ads in a newspaper, billboard, radio, or TV. Digital media buying is the online equivalent. You can place ads on search engine results pages, relevant websites, social media, video platforms, streaming and more.
There are several advantages:
However, running a successful digital media campaign requires a nuanced understanding of audience targeting and setup. This primer will deliver a general overview of the most popular digital ad platforms. If you’re interested in learning more about how a particular type of digital ad campaign could benefit your business, we encourage you to contact us for a free consultation!
Before we dive into the digital ad types below, it’s essential to know that there is no one “unicorn” platform or ad campaign for every objective and scenario. Rather, the platforms can work together to target the entire sales funnel.
Throughout this guide, we’ll share which ad types work best for which parts of the funnel.
You’ve seen these ads — they most commonly appear at the top of the search results and often in the map or shopping listings when you use Google or Bing. They are marked as “sponsored” or “ad” to differentiate them from organic (non-paid) search listings.
Other terms for this type of digital ad:
People see these ads at the exact moment they’re searching for what they want. As a result, you tend to see a higher conversion rate as these high-intent users are ready to take action (buy, book, schedule, etc.) They may also be researching their options about a purchase decision.
On the sales funnel model, search ads target users in the Consideration and Conversion phases.
Conversely, search ads are not a strong option for building brand awareness. Ads will only appear for people searching specific terms, limiting your reach. People clicking on these ads aren’t looking to learn about a new brand, either — they are focused on the product or service they want. It’s tough to turn people’s intent in the second it takes them to scan an ad.
Advertisers set up campaigns in the ad management platform, choosing the keywords, target audiences, bids and budget.
When someone searches using the specified keywords, Google or Microsoft Advertising runs a behind-the-scenes ad auction to determine which ad shows up for them. There may be dozens, hundreds or even thousands of advertisers bidding on the same keywords.
Advertisers pay only when someone clicks on the ad. Ads do not automatically ramp up to the maximum bid; the advertiser pays only what’s needed to beat the next highest bidder.
Impressions (the number of times people saw your ad) aren’t the key indicator of success with search ads. While it may feel fantastic to see a large number, what people did when they saw the ad is far more critical for this conversion-focused channel.
The best indicators are click-thru rate (the number of times people click the ad) and conversion rate (the number of purchases, bookings, schedulings, etc.).
Cost-per-conversion is highly dependent on your industry. Ads that are very competitive and/or for high-dollar products and services will cost more than others. You should review your return on ad spend (ROAS) to determine if your results are worth what you invest in ads.
Unlike search ads that are mostly text, display ads use graphics, motion or video to catch attention and, ideally, make a memorable impression. They appear on thousands of websites at the top, bottom, margins or within the body text of an article.
YouTube ads vary in length from a few seconds to multiple minutes and serve as “commercials” within many videos.
These ads offer large numbers of impressions (eyes on your ad) at a relatively low cost. If you’re introducing a new brand, event, service or concept, you might consider running a display campaign as part of your marketing mix. Audience targeting allows you to show your ads to those you think will be most interested, and you have tons of creative options to spotlight your brand.
On the sales funnel model, most display and YouTube ads target users in the Awareness phase.
Unlike search ads, people who see these ads are not specifically searching for a product or service. They are doing something else, like reading an article or watching YouTube, when your ad shows up. As a result, you shouldn’t expect high conversion rates from these ads. That is not their intent.
If your audience is large enough, you can use display ads in a remarketing campaign. These ads show up for people who have already visited your website or engaged with your brand in another trackable way. Sending them a reminder of your brand may prompt them to take action.
The setup structure is similar to search ads, but advertisers target based on audience demographics and interests instead of keywords.
Bidding may be based on:
Audience targeting options:
Impressions are high for a low cost (which is great for awareness), but you tend to see very low clicks and conversions on these platforms.
Most conversions are view-thru, meaning the customer may not have clicked the ad but saw it, visited your site, and converted.
Nearly every social media platform (e.g., Facebook, Instagram and LinkedIn) offers ads, some with more options than others. Ad revenue helps keep these platforms free for users.
There are so many ways to be creative with social media ads. Ad types vary by platform, but common formats include text, photo, video, carousel, lead forms, Instant Experiences and Stories. Robust ad management platforms allow you to track campaign performance and easily adjust or optimize.
As with display ads and unlike search ads, social ads appear in front of users who aren’t actively looking for your brand, product, or service. They are scrolling through their feed or watching videos. But with smart targeting and messaging, you can get in front of people in the market for your product or service who may consider it once you introduce your brand.
On the sales funnel model, most social media ads target users in the Awareness and Consideration phases.
That said, it is possible to drive conversions, particularly with consumer goods targeted to a specified market. Shopping ads on Facebook or Instagram can be highly effective for the right product.
Like display and YouTube ads, advertisers target based on audience demographics and interests rather than keywords. Each platform has its variations on targeting options, so the list below is general.
Bidding may be based on:
Audience targeting options:
While some platforms are more expensive than others, overall, you can expect to receive many impressions at a relatively low cost.
Engagement is a common success metric for social, as are clicks.
Although conversions for social ads are typically lower than search ads, they can drive conversions very effectively for some industries.
Conversions tend to be a mix of click-thru and view-thru.
Think of these as the digital version of old-school radio and TV commercials. You can purchase 15-30 second audio or video ads that run on popular streaming services (network TV, Hulu, Disney+, iHeartMedia, etc.) Almost every audience can be found on streaming platforms.
These ads are more sophisticated and have a higher production value than the average video ad, so they work best for campaigns that can bear out the investment. They typically require a greater commitment of advertising dollars but can be very effective for your long-term marketing funnel. For small-budget standalone campaigns, search or social may be the better option.
On the sales funnel model, most streaming ads target users in the Awareness phase. Larger companies with bigger budgets can use streaming for remarketing campaigns, which fall under Consideration.
The setup structure is similar to search ads, but advertisers target based on audience demographics and interests instead of keywords.
Bidding may be based on:
Audience targeting options:
While not necessarily a cheaper option, streaming can get in front of people who are more engaged with the content using more 3rd-party data points to target your audience.
Streaming uses view-thru as a conversion. Cross-device tracking pixels attribute a user who may be presented with an ad on one platform, like a smart TV, and later go to another device, like a phone or computer, to take action.
Like the other digital channels mentioned in this article, streaming also has similar metrics to determine changes and success, including CPM, CPC, CPA and ROAS.
The benefits of various digital media advertising platforms depend on how they fit into your sales funnel strategy. This funnel moves people from discovering your business to taking action. By building a consistent strategy that works for you over time, you can create a system that continuously grows awareness and nurtures prospects until they convert.
Ultimately, you should choose the platforms that complete your funnel while fitting your budget.
At cb{d}, we don’t just run digital ad campaigns. We continuously improve them on both the platform side and your website side to deliver the best results.
