Technology is rapidly changing the face of marketing. Even newer forms of marketing, like display advertising, have changed dramatically since they first appeared.
So what is display advertising? How has it changed in recent years? And why do digital marketers need to know about this?
These questions and more were the focus of our recent Webinar called the Fundamentals of Display Advertising, which was presented by special guest Shai Luft from leading digital media agency Benchmarketing.
What is Display Advertising?
Display Advertising is an online advertising medium that relies on elements such as images, audio and video to communicate its message. The most common example of these are the banner adverts you see on websites. But it also includes other types of adverts, like the video adverts you see on YouTube.
Display Advertising is evolving, moving away from direct advertising to programmatic advertising and marketeers should understand how this new approach can benefit their advertising.
The Evolution of Display
A few years back, display advertising was very website based. Now it has shifted towards being more user based.
Under the website model, online advertisers would place their adverts on websites individually. They would advertise on the sites they thought would best target their audiences. This was called Direct Advertising.
Under the user based model, advertisers use special software platforms to distribute their adverts. These software platforms connect to a whole network of websites where Advertisers select their ideal target market based on demographics. The software then places the adverts on the web pages most frequented by the target market. This new form of online advertising is called Programmatic Advertising.
Unlike direct advertising, programmatic advertising does not guarantee the placement of your adverts. And your advertising doesn’t always cost the same amount of money. It all hinges on real time bidding. When an advert is set up, the advertiser puts down a bid, stating how much they are willing to pay. Based on this, and the bids of competing advertisers, the software decides when, how often and whose adverts to show.
How do Businesses Set up Programmatic Advertising?
There’s a fine science to programmatic advertising. In fact, it is too complex for most businesses to do in house. As a result, they usually outsource it to specialised agencies.
Simply put agencies use a program called a Demand Side Platform (DSP) to bid on advertising space. Over time the agencies monitor the success of their adverts. Then they gradually optimise the adverts according to the data they collect.