digital ads

A Look Into the Different Types of Digital Ads

by Asif Ali

Marketers spent nearly $500 billion on digital ads in 2021. The number is going to grow even more in 2022. Digital marketing grew because that’s where consumers spend the most time. Americans spent about 4 hours a day on mobile devices.

Consumer spending from mobile apps grew as well. That makes digital marketing a priority for all marketers.

You need to come up with a solid digital marketing strategy, but you need to know the types of digital ads to produce.

Spending money on advertising ideas just because they sound good or they worked for everyone else isn’t the best digital marketing strategy.

It’s a sure way to lose your investment.

If you want to learn more about digital marketing, you’ll definitely want to continue reading. You’re about to learn the types of digital marketing ads and how to create an unstoppable digital marketing strategy.

Video Ads

Video marketing took off over the last couple of years. That’s because consumers watch more video content than traditional television.

The average American spends more than 300 minutes a week watching video content just on their mobile devices. That doesn’t count watching on desktop computers or through TV streaming devices.

Video ads appear before and during YouTube videos (in-stream), while consumers are streaming TV shows, and on web pages (out-stream).

If you want to make a video ad work, you have to grab someone’s attention within the first few seconds. They’ll have the chance to skip the ad or find another way to not watch the ad.

Marketers debate if they should use in-stream or out-stream ads. The advantage of in-stream ads is that you have a captive audience ready to watch a video.

Outstream ads play when a site visitor scrolls over the ad. It might appear as a popup window that automatically plays on mobile devices. It also automatically stops if a user scrolls past the video.

Native Advertising

Native ads function like personalized editorial content. The most common native ad is a sponsored article that appears alongside editorial content in a magazine or blog.

This gives readers a chance to learn about your brand and you can supply additional value in the content. That gives readers a positive view of your company without getting exposed to traditional digital ad methods.

There are other forms of native ads that are very subtle. Have you ever gone to an ecommerce site and gotten a list of recommended products? Those are native ads.

Native ads work because consumers are savvy. They can quickly spot a digital ad and their walls immediately go up. They don’t immediately trust digital ads unless they’re familiar with the brand.

Native ads blur the lines between editorial content and ads. Consumers have their walls down and that allows your message to get through.

Facebook Ads

Facebook ads deserve a category because so much gets spent on Facebook. There’s a reason why the company is worth billions.

Facebook ads let you get your message out to a targeted audience. These digital ads appear in users’ news feeds. Since they integrate with the other types of news feed content, they can be considered native ads.

You can use an image or video to get your message across. The most successful advertisers use a lot of text to tell a story within the post itself.

They address the problem the audience faces and how the company can solve the problem. The value of these types of digital ads comes through in the targeting.

Advertisers can get very detailed as to who those ads are for. It ensures your ads reach the right people and you don’t waste money on impressions.

Instagram ads work in a similar fashion. You can control both ad campaigns through the Meta Business Suite platform since Meta owns both Facebook and Instagram.

Influencer Ads

Speaking of Instagram, one of the most talked about types of digital advertising is the influencer ad. This is where brands pay online influencers to promote their content.

The reason why this gets talked about so much is that brands are shelling out a lot of money to work with the top influencers.

The highest-paid influencers get up to a million dollars per post. Most influencers charge about $10 for every 1000 followers.

The most important aspect of using influencers is their audience. It has to match your target market.

Search Engine Ads

If someone has a question or wants information instantly, they turn to Google. The very first result that appears gets 32% of the clicks.

About 90% of websites don’t get organic search traffic at all. For companies to get in front of consumers searching for them, they have to spend money on search engine marketing.

Search engine marketing (SEM) shouldn’t be confused with search engine optimization (SEO).  SEO is a strategy used to get sites at the top of organic search results.

SEM is a type of digital marketing where companies spend money on ads to appear before organic search results.

With search ads, you enter an auction where you bid on keywords. For instance, you want to appear in searches for “top fitness instructors in New Jersey.”

There are hundreds of others competing for the same keyword. You’ll place a bid that says how much you’re willing to pay per click.

Money doesn’t automatically mean that you’ll show up at the top. Google wants to deliver relevant results to users and uses quality scores to make sure that happens.

It gauges the click-through rate, relevance, and landing page of the ads to determine how and where it appears in search results.

Search engine ads seem very simple because they’re text ads. Once you start building a campaign, you’ll discover how complex an ad campaign is. It’s best to learn as much as you can about Google ads before you dive in.

Display Ads

Who can forget about display ads? These ads appear all over the internet. These are banner ads on web pages, popup ads, or ads on blogs.

These are among the most affordable ads. They also create a win-win situation between advertisers and publishers.

Publishers benefit because they have a way to monetize their content. Advertisers benefit because they have a cost-effective way to reach a new audience.

If you want to get started with these types of digital ads, you’ll have to join an ad network. The two largest are the Google Display Network and Facebook Ad Network.

Once you sign up, you’ll submit your ads. You can let the networks automatically decide where your ads appear based on your budget and target market.

Retargeting Ads

Retargeting ads are a type of display ad with a specific purpose: to bring lost traffic back to your website.

The vast majority of first-time visitors leave your site. Most marketing experts consider a 10% conversion rate outstanding.

Even if your conversion rate is amazing, you’re still losing 90% of your traffic. Retargeting specifically targets those visitors with display ads.

The goal is to repeat the brand impression and get someone to return to your site. It improves your chances of earning a conversion rather than losing a visitor for good.

Email Marketing Ads

One creative way to expand your reach is to leverage the captive audience of another brand. There might be a brand that you align with and target the same audience.

For instance, a nutritional supplement brand can leverage the audience of a fitness blog. They can negotiate with the publisher to have their ad appear in an upcoming email.

Depending on the publisher, it could be a banner ad at the top or a text blurb with a link to your site.

Branded Content

Branded content gets used to create a feeling of trust between consumers and companies. Brandeds content can target any stage of the buyer’s journey, but it’s most often used in the early stages.

Branded content generates brand awareness for companies. This is in the form of blog posts, podcasts, YouTube videos, and social media content.

Branded content isn’t normally considered digital advertising because you don’t pay for placement as you do with ads.

However, it’s an important marketing tool. The best digital marketing strategies integrate branded content with digital ads.

It’s very similar when you look at search engine optimization and search engine marketing. Branded content appears in organic search results and search engine ads appear at the top.

Having both appear in search results.

They work together to create a generous return on investment. LIVID has more details about how targeted branded content delivers a return on investment.

How to Create an Effective Digital Ads Strategy

What do you do with these advertising ideas and digital ads? You have to form an advertising strategy. The best digital marketing strategy takes a methodical approach to digital ads.

Most small business owners and marketers like to pick a few types of ads, try them out, and stop when they realize they don’t work after a few weeks.

Your digital marketing strategy starts with your budget. You can set a percentage of revenue aside for digital ads.

Keep in mind that advertising should deliver a return on investment. As you decide your budget, consider what a new customer is worth to your business.

Then figure out how many leads it takes to get a customer.

These figures will tell you how much you should pay per customer and per lead. You pay for digital ads by the number of impressions or clicks.

These metrics will help you calculate the return on investment.

Set Campaign Goals

The campaign goals determine the types of digital ads to use and if there are other metrics to keep track of.

A company could set a campaign goal to build brand awareness. Branded digital content and display ads are the types of digital ads to implement.

If you want to launch a new product, a video ad campaign can introduce your product to a new audience.

Research the Target Market

This was already mentioned a few times, but it underscores the importance of knowing your target market.

It’s so much more than knowing your market so you can put your digital ads in front of them. Your ads have to appeal to them emotionally.

Learn what their pain points are and understand how your products and services solve those point points. If you can clearly communicate those two things, you’ll get the attention of your ideal customers.

Pick the Types of Digital Ads

Which digital ads are the most appropriate for your budget, audience, and goals? That’s what you need to figure out in this step.

You may decide to start with one type of ad to start with to test a few messages. Once you clarify your messages, expand the campaign to include other types of digital ads.

Clean Up Your Website

Most digital ads lead to your company’s website. It needs to function well and appeal to people who find your site from digital ads.

Make sure it’s a fast-loading site. A slow site leads to a low conversion rate.

You may want to create a new landing page for pay-per-click ads. The landing page could help your quality score and improve your campaigns.

Once you have everything in place, it’s time to launch. Make sure you measure results and adjust your digital ads to get better results.

Understanding the Types of Digital Ads for the Best ROI

Marketers spend money on digital ads because they expect ads to deliver a healthy return on investment. This only happens when they use the right types of digital ads and create a smart digital marketing strategy.

You just learned both of those things in this article. Apply what you learned here in this guide and you’ll see a sharp increase in revenue without wasting your digital ads budget.

If you want more tips on how to grow your small business, check out the other articles on the blog today.