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Online display advertising involves placing visual ads such as banners, images or videos on websites, apps or social media platforms to promote products or services. These ads appear in different formats, such as static images, animated content or rich media, to engage audiences.
Display ads work through programmatic advertising, where ads are bought and sold in real time through automated systems. Advertisers bid for ad space and the highest bidder gets their ad shown to the user. The system takes into account factors such as user behavior, Web site content and the advertiser's target audience.
Increased brand visibility: Display ads can significantly increase brand awareness by reaching a wide and diverse audience.
Targeted ads: You can target specific demographics, geographic locations or user behavior.
Versatile formats: Use images, videos or interactive content to capture attention and drive engagement.
Measurable results: You can track impressions, clicks and conversions to evaluate the effectiveness of your campaigns.
While search ads target users based on their searches, display advertising reaches users as they browse Web sites, even if they are not actively looking for products. Display ads are designed to attract attention and increase brand awareness, rather than relying on direct purchase intent.
Banner Ads: The most common form, usually seen at the top or sides of a Web page.
Video Ads: Engaging video content that is displayed before, during or after other video content, for example on YouTube
Rich Media Ads: Interactive ads with advanced features such as animations or clickable elements.
Native Ads: Ads that blend seamlessly into Web site content, making them less distracting to the user.
Retargeting involves showing ads to users who have already visited your Web site but have not completed a desired action, such as a purchase. This technique helps bring back potential customers and increases the likelihood of conversion.
The success of a display campaign can be measured by tracking:
Reviews: How many times your ad was displayed.
Click-ThroughRate (CTR): The percentage of users who clicked on your ad after seeing it.
Conversions: The number of users who took a desired action, such as a purchase or sign-up.
Returnon Ad Spend (ROAS): The revenue generated per ad dollar spent.
Cost per Mille (CPM): You pay for every thousand impressions of your ad.
Cost per Click (CPC): You pay only when someone clicks on your ad.
Cost per Acquisition (CPA): You pay when a user completes a specific action, such as a purchase.
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Glossary.
The meaning behind the terms used in display advertising.
CPM (Cost per Mille)
CPM stands for Cost per Mille, where mille means one thousand in Latin. This metric refers to the cost an advertiser pays for every thousand impressions (views) of an ad.
CPC (Cost per Click).
A pricing model where advertisers pay each time a user clicks on their ad.
CTR (Click-Through Rate).
Measures the percentage of users who click on an ad after seeing it. This is calculated by dividing the number of clicks by the number of impressions.
CPA (Cost per Acquisition).
Refers to the cost to acquire a new customer or lead. This pricing model charges only when a specific action is completed, such as a purchase, sign-up or download.
Post View Conversion
Takes place when a user sees an advertisement but does not click on it directly. Later, the user visits the advertiser's website and completes a desired action, such as a purchase.
Post Click Conversion
Takes place when a user clicks on an ad and then completes a conversion, such as making a purchase, filling out a form or signing up for a service.
Impression
Refers to when an ad is displayed on a user's screen, regardless of whether they interact with the ad.
Ad Inventory
Refers to the available advertising space on a website, app or digital platform where ads can be displayed.
Programmatic Advertising
The automated process of buying and selling digital advertising space using AI and real-time bidding (RTB) technology.
Targeting
Selecting specific audiences to show ads based on criteria such as demographics, behavior, interests or location.
Conversion Rate (CR).
The percentage of users who complete a desired action (such as a purchase) after interacting with an ad.
Lookalike Audience
A group of users who have similar characteristics to an advertiser's existing customers. This target group is often created based on data from existing customers.