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What are social and display ads and why do we need to use them?

Have you ever noticed that you start coming across popup ads in social nets or banners on other websites offering you things that you have actually recently been looking for or browsing through out of boredom?
Why are advertisements in social media and banners everywhere? Why has it become a popular tool with businesses and how does it actually work?
The reason why social media ads, such as, Facebook ads, for instance, have become so popular is simple. Through targeting you are reaching out for a more definite target audience, exactly that type of customer you want to engage with. This, unlike a one-way street billboard, enables conversion to actually happen, and it allows you to clearly estimate how successful your every particular offer and the entire ad campaign is.
With banners, videos, native advertisement, bright and engaging ad texts, using targeting and retargeting techniques Display Ads offer a wide coverage, increasing chances for your offers to be noticed by your target groups.

Figures and facts about social and display ads

  • According to a survey conducted by PEW Research Center roughly ¾ of Facebook community and ½ Instagram communities use the platform every single day. This comes close to using social ads.
  • According to a research by IPG Lab 52% of consumers consider buying products due to the native ads created trademark value.

4 mistakes to avoid when dealing with social and display advertising

Your ad is not tailored specifically for the chosen platform

All the online ads are different. All the existing platforms have their rules and requirements, for example requirements concerning the amount of the image material and the length of your text. So, we are speaking about creating a template when you want to place your ads on a specific website so that your ads that you have paid for could bring its maximum use.

You forget to monitor your ads

If you place an ad and then forget to check it from time to time it can get a little bit too expensive. If, on the other hand, you regularly track the performance of your advertisement you can make reasonable and timely decisions, such as to stop running this ad or you should continue with it or the content can be somehow enhanced.

(Too) wide Targeting

Your advertisement has to have and reach out for its specific target audience and not try to embrace every user possible. Otherwise your ad may generate zero conversion.

Lack of recognition value on landing pages

That’s probably the worst that can happen to you: your ad uses completely different image, picture and text from what you have on your landing page, which creates an effect of a mismatch in the heads of people who see your ads. So, they get confused and basically just leave the page.

Classifying social and display ads in the Marketing context

Social and display advertising in the entire marketing funnel

The position of all the activities you associate with social and display ads falls in between the top of the funnel and its middle.

The emphasis here is put on the activities that make potential customer get closer to you and your unique products and services, evoking bigger interest to learn more about your company and solutions you offer.

Immediate impact vs Sustainability

Social and display ads represent a fast and flexible tool with a robust immediate impulse that stimulates buying.

The reverberation in this channel is, however, quite small, because as soon as a user closes/turns off your ad it means no new visitors get to your website.

Categorization in your Channel-Portfolio

When you create your brand portfolio by the channels and campaigns, then all the steps of your brand community building will typically serve its main purpose, which is to help your brand image seeds to mature in the minds of your customers.

In conjunction with the nets thrown and seeds planted this channel works at its best.

4 often underrated Tips und Hacks to ramp up your social and display advertising

Use the possibilities of Similar Audience

The more personalized you can make your advertisement the stronger 1 to 1 feel you generate, and the bigger your chances are to evoke interest. It can be implemented through segmenting your target group, for instance using Similar Audience. Take a look there and keep enhancing your Buyer Persona.

Enhance your ads with discounts

A very well placed ad may also contain some attractive price quotes in order to catch more attention. Exactly when we speak about Display Ads a special attention has to be given to the color choices and play of colors, because you probably place your ads inside some website, so everything has to look natural and not obtrusive.

Test and optimize the timing for your advertising

This tip also makes sense while using other channels. When we work with display und social ads we have to figure out the time periods within 24 hours when your target audience are not actively online and can’t see your ads, so that you also do not place your offers in those time periods not to waste your money.

Make sure that your offer brings value to customers

There has to be some clear value for the customer in every ad you place online. So, make sure that your special offer is clearly conveyed and clearly perceived, without any misinterpretations.

Social and display ads are influenced by these indicators

Click Through Rate

This is a ratio showing how often people see your ads in the search engine and end up clicking it. Click through rate (CTR) can be used to gauge how well your keywords and ads are working, with the formula going as follows:
Total number of clicks on your ad / the total number of impressions * 100
Example: 200 clicks / 10.000 display ads * 100 = 2 % CTR

Share of possible impressions - impression share

Impression share is the percentage of impressions, that your ads receive compared to the total number of impressions that your ads could get. In a nutshell, impression share is the number of impressions you've received divided by the estimated number of impressions you were eligible to receive.
Formula: actual ads placements / possible ads placements = Impression Share

Return on Advertising spend

Regardless of how massive an impression your ads make and how many clicks your ads get, your primary focus and interest is on how much it costs you to run those ads and how much money they generate for you.
Formula: ROAS = (profit / advertising expense) * 100

Get going

Social und Display Advertising can become your tool that allows you to be noticed by the potential customers, to reach out for your target audience with minimum time consumed. The steps involved mainly belong to the top of the funnel and in the middle of marketing funnels, from the point where the attention is turned to your product to the point where a potential customer goes to your landing page where you create understanding with your customer.
When you generate an even more accurate customer picture of your target group using the possibilities of Similar Audiences, you lay the foundation to a perfect understanding of what your customer is looking for, and you can target your customer with the maximum precision.

And now: find your existing networks for Social Ads or websites on which your Display Ads can be seen.

You want more Impulses to Social and Display Ads?


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André Wehr
André Wehr
As a founder and entrepreneur, I experience every day how important Traction and Customer Centricity is. It makes the difference between a nice idea and a viable business.

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