Every brand has an advertising budget that governs the extent of their display ads. But with Google offering four types of ads in their suite, and your advertising creation costs coming into play as well, there’s a lot to consider in Display ad management. What type of ad, how often it is placed, and how large the ad is will serve your campaign in different ways.
Finding that ‘sweet spot’ where a display ad delivers the most conversions at the lowest cost per unit may seem like rolling the dice, but in fact, it’s all in a day’s work for an experienced and skilled digital marketing agency.
Digital marketing agencies know that different ad types have different conversion rates. This is why they differ in the cost charged. You may wonder why they even bother to offer some of the lowest costing ads formats, as the low costs are assumed to correlate directly to the effectiveness of the ad format, but this assumption has some flaws in it.
Effective Management is More Valuable than the Ad Itself
The best format for a specific ad has little to do with the cost of the ad format and more to do with the audience the advertiser is trying to reach.
Ads that are cheaper because they only run a few times per cycle can be just as effective as more frequently run ads if you have a strikingly visual product that’s cheap to manufacture and widely used by the public.
These types of products benefit from their own design and popularity. They don’t require a campaign of ceaseless, expensive advertising to make the product’s point. The design and function of the product are used to help make the advertising effective. The type of ad used is cheaper because it serves the purpose well enough to justify the conversions and the ad cost.
Conversely, sometimes a product needs the impact of an image, video or rich media ad. These types of ads generally generate a higher click-through rate than other types of ads, though they are much more expensive.
Your product may need the impact that an explainer video or rich media ad can provide. It may be an expensive product that’s well-made but appeals to a smaller segment of consumers. Still, the cost of an image, video or rich media ad is low enough as a percentage of the product’s total cost to justify the expense.
Weighing the Value of Display Ads
It’s these types of ongoing analyses that digital marketing agencies perform regularly. Google has metric and analytical tools that make these types of judgements less of a gamble and more of a science.
A skilled and experienced digital marketing agency relies on these tools, as well as the agency’s experience in the market, to effectively manage the entire cycle of a digital advertising campaign. At the end of the campaign, the display ads will have been used in the most efficient way possible to achieve the desired results by the client.