Digital display advertising

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Digital display advertising is online graphic advertising through banners, text, images, video, and audio. The main purpose of digital display advertising is to post company ads on third-party websites. [1] [2] A display ad is usually interactive (i.e. clickable), which allows brands and advertisers to engage deeper with the users. A display ad can also be a companion ad for a non-clickable video ad.

Contents

According to eMarketer, Facebook and Twitter were set to take 33 percent of display ad spending market share by 2017. [3] Desktop display advertising eclipsed search ad buying in 2014, with mobile ad spending overtaking display in 2015. [4]

Overview

Digital display advertising is an online form of advertising in which the company's promotional messages appear on third-party sites or search engine results pages such as publishers or social networks. There is an evidence showing that this advertising can increase the number of website page view of a company from most types of customers except from the non-authenticated visitors who visited the website before. [5] The main purpose of display advertising is to support brand awareness (Robinson et al., 2007) [6] and it also helps to increase the purchase intention of consumers.

Social media is used by many organizations. One example is, in 2014, ASOS and Nike collaborated with Google Hangouts to create the first shoppable video web chat [7] on Google+. The video is an example of display advertising used for commemorating 27 years of Nike's Air Max shoes. The video advertising aimed at creating brand awareness among users and convincing them to watch the Hangout and purchase products from the display advertising itself. Consumers were able to shop by clicking the display advertising. According to an ASOS statement, display advertising has contributed to an increase in both the number of users visiting its website and downloads of the ASOS App by 28 percent, with users having then visited the website eight times a month, on average. [8]

History

Since the early advent of technology, the Internet has completely changed the way people relate to advertisements. As computers prices decreased, online content became accessible to a large portion of the world's population. [2] This change has modified the way people are exposed to media and advertising and has led to the creation of online channels through which advertisements can reach users. [9]

The first type of relationship between a website and an advertiser was a straightforward, direct partnership. This partnership model implies that the advertiser promoting a product or service pays the website (also known as a publisher) directly for a certain amount of ad impressions. The first digital ad, called a banner ad, was run in 1994 by AT&T on a site called HotWired. [10]

As time went on, publishers began creating thousands of websites, leading to millions of pages with unsold ad space. This gave rise to a new set of companies called Ad Networks. [11] The ad network acted as a broker, buying unsold ad space from multiple publishers and packaged them into audiences to be sold to advertisers. This second wave of advertiser-publisher relationships rapidly gained popularity as it was convenient and useful for buyers who often found themselves paying a lower price yet receiving enhanced targeting capabilities through ad networks.

The third and most recent major development that shaped the advertiser-publisher ecosystem started occurring in the late 2000s when widespread adoption of RTB (real time bidding) technology took place. Also referred to as programmatic bidding, RTB allowed companies representing buyers and sellers to bid on the price to show an ad to a user every time a banner ad is loading. When a page loads during a user visit, there are thousands of bids occurring from advertisers to serve an ad to that user, based on each company's individual algorithms. With this most recent change in the industry, more and more ads are being sold on a single-impression basis, as opposed to in bulk purchases.

Programmatic, Real time bidding (RTB)

Programmatic display advertising, or real time bidding (RTB), transformed the way digital display advertising is bought and managed in recent years. Rather than placing a booking for advertising directly with a website, advertisers will manage their activity through a (demand side platform), and bid to advertise to people in real time, across multiple websites, based on targeting criteria. This method of advertising quickly gained popularity, as it allows for more control for the advertiser (or agency), including of the individual target audience, rather than just the website. It has become a threat to website operators and generally the cost paid for advertising in this way is less than the old method and so the earning potential for them is reduced.[ citation needed ]

Programmatic is not without its drawbacks, as without the appropriate management adverts can appear against unsavoury content or inappropriate news topics. This issue became front-page news in February 2017, [12] when advertisers on YouTube were found displayed on terror group websites and fake news sites. As a result, a number of major advertisers paused all of their online advertising until they could put the appropriate measures in place to prevent this occurring again. [13]

Other issues can arise from this method of buying display ads, for example since DSPs mostly buy from inventory on the public ad exchanges, the quality of the impressions bought can often be questionable and low value. in response to this, in the past few years we have seen the proliferation and use of private deals through PMPs.

First online advertisement

The birthday of the first banner display on the World Wide Web was on 27 October 1994. It appeared on HotWired, the first commercial web magazine. [14]

The COCONET online service had graphical online banner ads starting in 1988 in San Diego, California.

The PRODIGY service, launched also in 1988, had banner ads as well.

Operations

Accounts department

The accounts department meet with the client to define campaign goals and translate those goals into a creative brief to be forwarded to the creative department.

Creative department

The role of the creative team is to conceptualise and create the advert. They have to develop a creative execution that will be compelling enough to drive a customer to buy a product or a service. The team often consists of a mix of copy writers and graphic designers who use their respective skillsets to communicate via copy and visuals. [2]

Media planner

People have to test in which way the user experiences all the information of a data visualization. For this reason, they have to study the users' response to sounds, image, and motion. They have to be aware of everything that is digitally consumed, to know all the newest technologies and media solutions, and to help all the other departments to find the best way to reach the object's campaign.

Ad operations

Ad Operations, or 'Ad ops', are the people who ensure that the ad is physically delivered to the correct website at the correct time. They do this by uploading the ad into the advertiser's ad server so that it can be delivered to the website and displayed to the end user who will see it. They are also responsible of delivering 100% of the advertiser's budget in an ad campaign by regularly tracking the ad campaign performance and optimizing it towards the advertiser's KPIs.

Ad server

Ad servers helps manage digital display advertisements. It is an advertising technology (ad tech) tool that, throughout a platform, administrates the ads and their distribution. It is basically a service or technology for a company that takes care of all the ad campaign programs and by receiving the ad files it is able to allocate them in different websites. [2] The ad server is responsible for things such as the dates by which the campaign has to run on a website; the rapidity in which an ad as to be spread and where (geographic location targeting, language targeting.. ); controlling that an ad is not overseen by a user by limiting the number of visualisations; proposing an ad on past behaviour targeting.

There are different types of ad servers. There is an ad server for publishers that helps them to launch a new ad on a website by listing the highest ads' price on its and to follow the ad's growth by registering how many users it has reached. There is an ad server for advertisers that helps them by sending the ads in the form of HTML codes to each publisher. In this way, it is possible to open the ad in every moment and make changes of frequency for example, at all times. Lastly, there is an ad server for ad networks that provides information as in which network the publisher is registering an income and which is the daily revenue.

Importance of formats of display ads

Two students of the "Amsterdam school of Communication Research ASCor" have run studies about the audience reactions to different display advertising formats. In particular, they took into consideration two different types of format (sponsored content and banner advertising) to demonstrate that people react and perceive formats in different ways, positive and negative. [15] For this reason, it is important to choose the right format because it will help to make the most of the medium. It is also possible to add:

IAB standard ad sizes. This illustration has been reduced in size. See actual sizes. Standard web banner ad sizes.svg
IAB standard ad sizes. This illustration has been reduced in size. See actual sizes.

To help to better select the right format for the type of ad, Interactive Advertising Bureau has realized a Display Standard Ad Unit Portfolio that works as a guideline that can be followed by the creatives. The IAB ad sizes as of 2007 are : [16]

Those sizes that are bold above are part of the Universal Ad Package. [20] Grayed entries were delisted after the update in 2011. [21] Standard banner ad sizes are constantly evolving due to consumer creative fatigue and banner blindness. Ad companies consistently test performance of ad units to ensure maximum performance for their clients. IAB has updated its guideline bi-annually.

In 2015, IAB announced advertising creative guidelines for display & mobile, considering HTML5. [22]

Qxz-ad39.png
Typical web banner, sized 468×60 pixels.

In 2017 IAB also introduced the new guidelines, featuring adjustable ad formats, as well as the guidelines for new digital content experiences such as augmented reality (AR), virtual reality (VR), social media, mobile video, emoji ad messaging, and 360-degree video ads. [23] [24] [25]

Fixed size ad spec is: [26]

Ad unit NameFixed Size (px)
Billboard970 x 250
Smartphone Banner300 x 50、320 x 50
Leaderboard728 x 90
Super Leaderboard/Pushdown970 x 90
Portrait300 x 1050
Skyscraper160 x 600
Medium Rectangle300 x 250
120x160120 x 160
Mobile Phone Interstitial640 x 1136、750 x 1334、1080 x 1920
Feature Phone Small Banner120 x 20
Feature Phone Medium Banner168 x 28
Feature Phone Large Banner216 x 36

Ad Fatigue or Ads boredom

Display advertising Fatigue is the term used to describe the state in which consumers lose their sensitivity to or responsiveness to display advertising as a result of prolonged exposure to them. This may lead to poorer click-through rates (CTR), lower engagement rates, and a general decline in the efficacy of ad campaigns. Digital advertising strategies that largely rely on Re-targeting or repetitive exposure across websites and platforms are more likely to face the issue of display ad fatigue. Most common example of ad fatigue is Youtube Ads, Published by Google Ads Advertisers around the world.

Reasons for Fatigue from Display Ads

Overexposure: If users see the same advertisements too often, they may grow irritated or stop noticing them altogether.

Lack of Variety: Users may become disinterested if they always encounter the same messaging or creatives ads.

Inadequate Targeting: Users may become disengaged or uninterested in ads that are not tailored or relevant to them.

See also

Notes

  1. 1 2 This group was added around the beginning of 2000.
  2. 1 2 Added in 2007 update. [16]
  3. ↑ Added in 2003 update. [17] [18]
  4. ↑ Added in 2004 update. [18] [19]

Related Research Articles

A web banner or banner ad is a form of advertising on the World Wide Web delivered by an ad server. This form of online advertising entails embedding an advertisement into a web page. It is intended to attract traffic to a website by linking to the website of the advertiser. In many cases, banners are delivered by a central ad server. This payback system is often how the content provider is able to pay for the Internet access to supply the content in the first place. Usually though, advertisers use ad networks to serve their advertisements, resulting in a revshare system and higher quality ad placement.

Advertising in video games is the integration of advertising into video games to promote products, organizations, or viewpoints.

Google AdSense is a program run by Google through which website publishers in the Google Network of content sites serve text, images, video, or interactive media advertisements that are targeted to the site content and audience. These advertisements are administered, sorted, and maintained by Google. They can generate revenue on either a per-click or per-impression basis. Google beta-tested a cost-per-action service, but discontinued it in October 2008 in favor of a DoubleClick offering. In Q1 2014, Google earned US$3.4 billion, or 22% of total revenue, through Google AdSense. In 2021, more than 38 million websites used AdSense. It is a participant in the AdChoices program, so AdSense ads typically include the triangle-shaped AdChoices icon. This program also operates on HTTP cookies.

An online advertising network or ad network is a company that connects advertisers to websites that want to host advertisements. The key function of an ad network is an aggregation of ad supply from publishers and matching it with the advertiser's demand. The phrase "ad network" by itself is media-neutral in the sense that there can be a "Television Ad Network" or a "Print Ad Network", but is increasingly used to mean "online ad network" as the effect of aggregation of publisher ad space and sale to advertisers is most commonly seen in the online space. The fundamental difference between traditional media ad networks and online ad networks is that online ad networks use a central ad server to deliver advertisements to consumers, which enables targeting, tracking and reporting of impressions in ways not possible with analog media alternatives.

Online advertising, also known as online marketing, Internet advertising, digital advertising or web advertising, is a form of marketing and advertising that uses the Internet to promote products and services to audiences and platform users. Online advertising includes email marketing, search engine marketing (SEM), social media marketing, many types of display advertising, and mobile advertising. Advertisements are increasingly being delivered via automated software systems operating across multiple websites, media services and platforms, known as programmatic advertising.

On the web, an interstitial webpage is a web page displayed before or after an expected content page, often to display advertising or for regulatory reasons, such as to confirm the user's age or obtain consent to store cookies. Most interstitial advertisements are delivered by an ad server.

Mobile advertising is a form of advertising via mobile (wireless) phones or other mobile devices. It is a subset of mobile marketing, mobile advertising can take place as text ads via SMS, or banner advertisements that appear embedded in a mobile web site.

Website monetization is the process of converting existing traffic being sent to a particular website into revenue. The most popular ways of monetizing a website are by implementing pay per click (PPC) and cost per impression (CPI/CPM) advertising. Various ad networks facilitate a webmaster in placing advertisements on pages of the website to benefit from the traffic the site is experiencing.

<span class="mw-page-title-main">Interactive Advertising Bureau</span> American advertising business organization

The Interactive Advertising Bureau (IAB) is an American advertising business organization that develops industry standards, conducts research, and provides legal support for the online advertising industry. The organization represents many of the most prominent media outlets globally, but mostly in the United States, Canada and Europe.

<span class="mw-page-title-main">Targeted advertising</span> Form of advertising

Targeted advertising or data-driven marketing is a form of advertising, including online advertising, that is directed towards an audience with certain traits, based on the product or person the advertiser is promoting.

Adtech AG is a German–American digital marketing company that retails products to manage, serve and evaluate online advertising campaigns. The company was founded in 1998 in Frankfurt, Germany, and was acquired by web portal AOL on May 15, 2007. The company was merged into the Oath Inc. brand, as a subsidiary of Verizon Communications.

Behavioral retargeting is a form of online targeted advertising by which online advertising is targeted to consumers based on their previous internet behaviour. Retargeting tags online users by including a pixel within the target webpage or email, which sets a cookie in the user's browser. Once the cookie is set, the advertiser is able to show ads to that user elsewhere on the internet via an ad exchange.

Video advertising encompasses online display advertisements that have video within them, but it is generally accepted that it refers to advertising that occurs before, during and/or after a video stream on the internet, as well as within programmatic placements on publisher sites.

In the online advertising industry, a viewable impression is a measure of whether a given advert was actually seen by a human being, as opposed to being out of view or served as the result of automated activity. The viewable impression guidelines are administered by the Media Rating Council and require that a minimum of 50% of the pixels in the advertisement were in an in-focus tab on the viewable space of the browser page for at least one continuous second.

Native advertising, also called sponsored content, partner content, and branded journalism, is a type of paid advertising that appears in the style and format of the content near the advertisement's placement. It manifests as a post, image, video, article or editorial piece of content. In some cases, it functions like an advertorial. The word native refers to the coherence of the content with the other media that appear on the platform.

AdChoices is a self-regulatory program for online interest-based advertising that exists in the United States, Canada and across Europe. The program calls for advertising companies to establish and enforce responsible privacy practices for interest-based advertising, aimed to give consumers enhanced transparency and control. Companies adhere to a set of principles that are enforced by accountability programs.

<span class="mw-page-title-main">Digital Advertising Alliance of Canada</span>

The Digital Advertising Alliance of Canada (DAAC) is a Canadian non-profit trade association.

Innovid is an American online advertising technology company that offers services used by advertisers and publishers for the distribution and management of digital ads. Originally launched as a video marketing platform, the company expanded its offering to include display and digital out-of-home when Herolens was acquired in 2019.

Brand safety is a set of measures that aim to protect the image and reputation of brands from the negative or damaging influence of questionable or inappropriate content when advertising online.

In online advertising, a companion ad is a display ad shown alongside a video or audio ad, usually displayed on top of the player and/or on its side. It is displayed at the same time as the master ad and offers the user a spot to click. It can continue to be displayed after the master ad has finished playing. They are called companion ads because they are thought of as a companion to the main video or audio ad

References

  1. ↑ "Display Advertising". Marketing Land. Archived from the original on 24 April 2020. Retrieved 25 October 2014.
  2. 1 2 3 4 5 "Display advertising – Guide". Internet Advertising Bureau. Retrieved 25 October 2014.
  3. ↑ Buying, Media. "Facebook and Twitter Will Take 33% Share of US Digital Display Market by 2017". eMarketer. Retrieved 26 March 2015.
  4. ↑ Buying, Media. "Mobile to Account for More than Half of Digital Ad Spending in 2015". eMarketer. Retrieved 1 September 2015.
  5. ↑ Hoban, P. R.; Bucklin, R. E. (2015). "Effects of Internet Display Advertising in the Purchase Funnel: Model-Based Insights from a Randomized Field Experiment". Journal of Marketing Research. 52 (3): 375–393. doi:10.1509/jmr.13.0277. S2CID   11398413.
  6. ↑ Robinson et al (2007) 'Marketing communications using digital media channels', in Chaffey, D. and Chadwick, F. E. (2016) Digital Marketing: Strategy, Implementation, and Practice.Edinburgh Gate: Pearson Education Limited, pp. 515–522.
  7. ↑ Magrath, V.; McCormick, H. (2013). "Marketing design elements of mobile fashion retail apps". Journal of Fashion Marketing and Management. 17 (1): 115–134. doi:10.1108/13612021311305173.
  8. ↑ Albans, S. (4 April 2017). "Interim Results for the six months ended 28 February 2017" (PDF). ASOS plc. Archived from the original (PDF) on 29 July 2017. Retrieved 11 May 2017.
  9. ↑ Azimi, Javad; Zhang, Ruofei; Zhou, Yang; Navalpakkam, Vidhya; Mao, Jianchang; Fern, Xiaoli (2012). "The Impact of Visual Appearance on User Response in Online Display Advertising". arXiv: 1202.2158 [cs.HC].
  10. ↑ Digiday (8 November 2017). "'The beginning of a giant industry': An oral history of the first banner ad". Digiday. Retrieved 12 May 2023.
  11. ↑ "IAB Evolution Of Display Advertising". YouTube . 13 May 2012. Archived from the original on 21 December 2021. Retrieved 15 January 2015.
  12. ↑ Head Of Investigations, Alexi Mostrous (9 February 2017). "Big Brands Fund Terror". The Times. Retrieved 16 February 2017.
  13. ↑ Maheshwari, Sapna; Wakabayashi, Daisuke (23 March 2017). "AT&T and Johnson & Johnson Pull Ads From YouTube". The New York Times. ISSN   0362-4331 . Retrieved 25 January 2022.
  14. ↑ D'Angelo, Frank. "Happy Birthday, Digital Advertising!". Advertising Age. Retrieved 25 October 2014.
  15. ↑ Tutaj, Karolina; Van Reijmersdal, Eva (2012). "Effects of online advertising format and persuasion knowledge on audience reactions". Journal of Marketing Communications. 18: 5–18. doi:10.1080/13527266.2011.620765.
  16. 1 2 "Ad Unit Guidelines". Interactive Advertising Bureau. Archived from the original on 15 October 2007. Retrieved 21 March 2021.
  17. ↑ "Ad Unit Guidelines". Interactive Advertising Bureau. Archived from the original on 4 December 2002. Retrieved 21 March 2021.
  18. 1 2 "Ad Unit Guidelines". Interactive Advertising Bureau. Archived from the original on 2 October 2003. Retrieved 21 March 2021.
  19. ↑ "Ad Unit Guidelines". Interactive Advertising Bureau. Archived from the original on 15 July 2004. Retrieved 21 March 2021.
  20. ↑ "Universal Ad Package". iab.net. Archived from the original on 5 July 2014. Retrieved 28 July 2014.
  21. ↑ "Ad Unit Guidelines". Interactive Advertising Bureau. Archived from the original on 13 June 2011. Retrieved 21 March 2021.
  22. ↑ "INTERACTIVE ADVERTISING BUREAU – DISPLAY & MOBILE ADVERTISING CREATIVE FORMAT GUIDELINES: 2015 ADVERTISING CREATIVE GUIDELINES FOR DISPLAY & MOBILE – UPDATED FOR HTML5" (PDF). IAB. Retrieved 21 March 2021.
  23. ↑ "IAB New Ad Portfolio". IAB. Retrieved 21 March 2021.
  24. ↑ "IAB NEW STANDARD AD UNIT PORTFOLIO JULY 2017" (PDF). IAB. Retrieved 21 March 2021.
  25. ↑ "IAB NEW STANDARD AD UNIT PORTFOLIO TRANSITION GUIDE JULY 2017" (PDF). IAB. Retrieved 21 March 2021.
  26. ↑ "IAB New Ad Portfolio Fixed Size Ad Specifications" (PDF). IAB. Retrieved 21 March 2021.
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