How does Display Advertising Work?
Advertising of the multidimensional type is based on a combination of the appliance of technologies, data, and intellectual capabilities to accurately address the audience and present them with a personalized message. The following steps provide an overview of how display advertising works,
1. Advertiser Setup: An advertiser creates a display ad campaign with specific goals, such as driving website traffic, increasing sales, or raising brand awareness. They also define their target audience, budget, and other campaign parameters.
2. Ad Creative Creation: The advertiser designs the visual elements of the display ads, including images, text, and sometimes interactive features like animations or videos. These creatives should be attention-grabbing and relevant to the target audience.
3. Ad Placement Selection: Advertisers choose where they want their ads to appear. This can include selecting specific websites, mobile apps, or categories of content where their target audience is likely to spend time. Advertisers can also utilize targeting options to reach specific demographics, interests, or behaviors.
4. Ad Auction and Bidding: Ad space on websites and apps is typically sold through ad networks or exchanges. When a user visits a webpage or app, the publisher’s ad server sends a request to an ad exchange or network, seeking an ad to fill the available space. Advertisers participate in real-time auctions to bid on this ad space. The highest bidder’s ad is then displayed.
5. Ad Display: If the advertiser’s bid wins the auction, their display ad is shown to the user on the publisher’s website or app. The ad appears in the designated ad slots, such as banner placements, sidebar placements, or interstitial ads.
6. User Interaction and Engagement: Users who view the display ads may choose to interact with them by clicking on the ad. Clicking on the ad typically directs the user to the advertiser’s website or a specific landing page relevant to the ad’s content.
7. Tracking and Optimization: Advertisers track the performance of their display ad campaigns using various metrics such as impressions, clicks, conversions, and return on investment (ROI). They analyze this data to optimize their campaigns, adjusting targeting parameters, ad creative, or bidding strategies to improve results.
8. Ad Retargeting: For users who interacted with the ad but didn’t convert (e.g., make a purchase), advertisers may implement retargeting strategies. This involves displaying follow-up ads to these users as they browse other websites or use other apps, encouraging them to return and complete the desired action.