Online advertising presents a potent avenue for companies of all magnitudes to broaden their audience, attract new customers, and diversify their income sources. However, success hinges on skillful navigation. Every ad network possesses unique advantages that demand strategic utilization to realize a return on investment. This guide aims to simplify the intricate realm of online advertising by deconstructing it into its four primary channels and demonstrating how to leverage each one for business growth. Let’s begin.

Table of contents

• What is digital advertising?
• Types of digital advertising
• Digital advertising benefits
• Digital advertising examples
• Digital advertising tips

What is digital advertising?

Digital advertising encompasses all digital methods of what is commonly referred to as “paying to play.” Businesses pay for visibility on popular online platforms, including search engines, social media, websites, apps, and more.

Types of digital advertising

Digital advertising revolves around four primary channels: search, display, social, and video.

Search advertising

Search advertising is also called paid search, PPC, search engine marketing, search ads, or text ads.

Search ads, the text-based ads displayed on search engine results pages (SERPs), appear in response to user searches. They can be found at the top, bottom, or sometimes alongside search results. While both Google and Bing support search ads, Google is the dominant platform. Shopping ads, identifiable by the “Shopping” tab on Google, also fall under the search ads umbrella and may appear within the standard Search tab:

Display advertising

Display ads, also known as banner ads, are the visual advertisements encountered on websites and apps. Unlike text-based search ads, display ads utilize images and come in various shapes and sizes. Numerous networks offer display advertising, with the Google Display Network being one of the most prominent.

Social media advertising

Social media advertising refers to ads placed on popular platforms like Facebook, Instagram, Twitter, LinkedIn, TikTok, and others. Similar to display ads, they offer a variety of formats, placements, and creative options, ranging from images and videos to immersive mobile experiences. Given its versatility for businesses, Facebook will be the primary focus in this guide.

Video advertising

While social and display networks support video ads, video advertising is considered a distinct channel. In the realm of video streaming and over-the-top (OTT) services, YouTube reigns supreme. YouTube ads encompass video ads played before, after, or during other videos, as well as non-video ads overlayed on videos or displayed in search results.

Benefits of digital advertising

Digital advertising is renowned for its cost-effectiveness. Operating on a pay-per-click model (or pay-per-impression, pay-per-view, etc., depending on the platform), advertisers only incur costs when a desired action is taken. This efficiency is amplified by sophisticated targeting capabilities, ensuring that ads reach the most qualified audience. Furthermore, each digital advertising channel offers distinct advantages. Let’s explore these benefits further.

Benefits of search ads

Search engines capture users with high purchase intent. By targeting specific keywords, advertisers can position their ads in front of users actively seeking the products or services they offer. Notably, 89% of buying journeys originate from search engines, and for commercially driven queries, paid ads capture 65% of clicks. This explains the impressive 200% ROI often observed.

Benefits of display ads

Display ads excel at building brand awareness, a primary objective for 89% of marketers. Enhanced brand visibility directly contributes to the success of all marketing endeavors, including search ads. Studies reveal that 27% of consumers initiated a search for a business after encountering its display ad. Additionally, conversions surged by 59% when users conducted searches related to previously seen display ads. Moreover, retargeting, a powerful display advertising technique, boasts impressive performance, with 92% of marketing professionals reporting that retargeting display ads perform on par with or even surpass search marketing.

Benefits of social ads

While search engines capture users with high purchase intent, it’s crucial to engage audiences at other stages of the funnel. Social media platforms excel at capturing users in the discovery and engagement phases. Social media ads, much like display ads, effectively build brand awareness due to the extensive reach and creative capabilities of these platforms. Their unobtrusive integration within users’ feeds, coupled with features like liking, sharing, and commenting, enhances their appeal. Furthermore, the wealth of personal information users share on social media platforms empowers granular targeting, making social ads perfect for driving impulsive actions by reaching users when they are most receptive.

• The average Facebook user clicks on 12 ads monthly.
• 78% of US consumers have made purchases based on discoveries made on Facebook.
• Social media ranks as the second-most preferred channel for online brand research.

Benefits of video ads

The power of video content is undeniable. It can inspire needs through compelling storytelling, highlight product or service relevance, simplify complex offerings, and cultivate positive brand sentiment. Although video ads can be run on Facebook and other display networks, they often play without sound, diminishing their impact, especially since sound is not the primary reason users visit these platforms. Conversely, YouTube users actively seek visual and auditory experiences. Moreover, as the world’s second-largest search engine, YouTube offers an ideal platform for reaching audiences through education, entertainment, and emotional connection.

88% of people admit to being persuaded to purchase a product or service after watching a brand’s video. YouTube holds the position of the second-largest search engine globally. 70% of consumers have made a purchase from a brand after encountering it on YouTube.

Digital advertising examples

A multitude of digital advertising examples are available for exploration.

• Google Ads examples

• Facebook ad examples

• Instagram ad examples

• YouTube ad examples

• Display ad examples

Digital advertising tips

Recognizing that each digital advertising platform has its nuances, let’s delve into channel-specific tips to enhance campaign performance.

Search advertising tips

For those new to search ads or seeking to reinforce fundamentals, mastering these core aspects is crucial.

• Grasp how the Google Ads auction operates. A clear understanding of this mechanism empowers informed decisions regarding strategy and account structure.
• Master keyword research. Search ads hinge on keywords—the terms users input into Google during searches.
• Implement responsive search ad best practices. Responsive search ads (RSAs) have become the default search ad format, necessitating a thorough understanding of their workings.

• Learn how to set up your initial campaign. Nuances abound in this process. Our Google Ads tutorial and conversion tracking guide provide comprehensive guidance. For advertisers with some experience in search ad strategies, these advanced tips can further elevate campaigns:

1. Understand the nuances of Quality Score

Maintaining a high Quality Score is paramount as Google rewards high-quality ads with better ad positions and lower cost-per-click (CPC) rates, making it our top starter tip. Strategies include maintaining a high click-through rate, ensuring tight alignment between ads, landing pages, and keywords, and optimizing the landing page experience.

However, a well-rounded Google Ads account comprises a mix of campaigns, and achieving a perfect Quality Score of 10 isn’t always feasible for all keyword types. Consider these Quality Score benchmarks for different keyword categories:

• Branded keywords: 8-10
• High commercial intent keywords: 7-9
• Low commercial intent keywords: 7
• Competitor keywords: 3+ Keep these benchmarks in mind during campaign creation.

2. Theme out your ad groups

The organization of campaigns and ad groups significantly impacts account management ease and ad effectiveness, ultimately influencing costs. While campaigns can be structured based on various factors like product or service types, or geographic locations, ensuring thematic consistency within ad groups is paramount. This is because each ad group can only have one associated landing page. Thematic alignment ensures strong relevance between ads, landing pages, and targeted keywords, contributing to a high Quality Score.

3. Get feisty

The effectiveness of search advertising also breeds competition, requiring a proactive approach. Bidding on competitors’ branded terms, especially if they are already bidding on yours, is a good starting point.

Leverage competitor keyword research tools to uncover their targeted keywords. While some keywords can be targeted head-on with compelling offers, others might require strategic use of ad extensions and exceptional copywriting to enhance click appeal. Remember, presentation, enthusiasm, and persuasive language are key. Don’t overlook opportunities presented by competitors’ neglected keywords, capitalizing on their lack of focus to capture valuable clicks.

4. Be a keyword connoisseur

The right keywords are the cornerstone of a successful Google Ads campaign. However, it’s not enough to simply conduct keyword research, populate ad groups, and consider it done. Regular keyword list maintenance and the pursuit of new keyword opportunities are essential. Consider these practices:

• Utilize the search terms report. Uncover cheaper, high-converting keywords with less competition; identify new keywords to incorporate into ads; and add negative keywords to eliminate wasteful spending.
• Isolate low-Quality Score keywords. Isolate these keywords into dedicated ad groups with highly focused ads and landing pages. If performance improvements are elusive and the keywords lack significant value, consider pausing or removing them.

• Explore Microsoft’s Advertising Intelligence. This free tool is a valuable resource for uncovering Bing AND Google Ads keywords. Explore its potential for expanding keyword lists.

5. Adequately fund your campaigns

A common pitfall is encountering accounts with average CPCs exceeding $10, numerous high-quality, well-targeted keywords, but paltry daily budgets spread thinly across 5-10 campaigns, leaving some with as little as $5/day—insufficient even for a single click.

This underscores the importance of thorough keyword research (starter tip #2). Our Free Keyword Tool can help! Google Ads dynamically adjusts and optimizes ad delivery based on real-time performance data. Underfunded campaigns hinder this optimization process by limiting data collection, ultimately impacting return on investment. For advertisers with extremely tight budgets, numerous strategies exist to save money in Google Ads while maintaining campaign effectiveness. After exploring these options, prioritize campaigns or keyword sets with the highest potential, pause all others, and allocate the entire budget to the chosen group. Monitor performance, and if positive results materialize, continue with the strategy. If not, pause and move on to the next promising candidate.

Display advertising tips

Consider these fundamental tips to transform display ads into powerful tools for audience building and brand awareness:

• Understand display ad sizes, specifications, and setup. Our comprehensive cheatsheet provides all the essential information.
• Embrace design best practices and seek creative inspiration. Unlike text-focused search ads, display ads demand visual appeal. Explore our collection of display ad examples for inspiration, insights, and design best practices.
• Master audience targeting. While search ads rely on keywords, display ads thrive on audience targeting. Familiarize yourself with the wide array of audience options available. Beyond these basics, optimize display campaigns further with these advanced strategies:

1. Carefully curate your audiences

While gaining impressions and building brand awareness are primary goals for display advertising, carefully curating audiences amplifies the impact on other marketing efforts. Explore these sources for valuable audience insights:

• Referral traffic report (Google Analytics). Navigate to Acquisition > Referral traffic to identify websites that link to yours most frequently. This reveals potential websites catering to audiences who might find your products or services valuable.
• Audience report (Google Analytics). Explore Audience > Interests > Overview to uncover affinity and in-market audience segments your existing website visitors belong to. ● Audience Insights (Google Ads). In Tools > Shared Library > Audience Manager, delve into the affinity and in-market characteristics of various lists or segments, such as all users, converters, blog subscribers, or users who logged in. Observe how these qualities vary across different segments.

2. Strategically retarget your engagers

Retargeting campaigns allow for precise ad targeting based on users’ previous interactions with your business, such as viewed but not purchased products, downloaded content, explored solutions, or engaged ads. The compelling reason? Retargeting display ads boast an average click-through rate of 0.7%, a staggering 10 times higher than regular display ads. Furthermore, website visitors exposed to retargeted display ads are 70% more likely to convert. Integrating remarketing campaigns is essential for maximizing display ad performance. Avoid common remarketing pitfalls to ensure optimal results.

3. Conduct placement audits

While choosing appropriate audience targeting parameters is essential, great advertisers go a step further by analyzing the performance of placements within those audiences and refining them through exclusions. For instance, mobile app and game placements tend to generate accidental clicks, leading to wasted budget. Conversely, some placements consistently outperform others. Conduct placement audits to identify and prioritize high-value placements.

Image source

4. Know how to measure their success

Given that display campaigns often exert their influence indirectly, measuring their success requires a nuanced approach. The most effective advertisers understand how to accurately gauge display campaign performance. View-through conversions offer a simple yet valuable metric. These occur when a user sees a display ad without clicking on it but later returns to the website (organically or directly) and completes a conversion. Enable view-through conversions in Google Ads settings and use a short lookback window (the timeframe between impression and conversion) for more accurate attribution.

While not as definitive as click-through conversions, view-through conversions offer valuable insights. Additionally, explore more sophisticated strategies to measure the impact of display ads on search campaigns.

Social advertising tips

For successful Facebook advertising, consider these pointers:

• Understand account and campaign setup. Our Facebook ad tutorial provides a step-by-step guide to creating your first campaign.
• Embrace Aggregated Event Measurement. This privacy-focused setup element requires attention. Our AEM tips clarify its implications and guide event prioritization.
• Master Facebook targeting. Targeting remains Facebook’s forte, though recent privacy changes necessitate adjustments. Our Facebook Ad Targeting guide keeps you up-to-date. Elevate Facebook advertising efforts further with these advanced strategies:

1. Build a full Facebook ads funnel

Focusing solely on bottom-funnel offers that promise immediate profits might seem tempting but can be counterproductive. Remember, not every audience member is ready to purchase immediately. Align your offerings with the value they provide to prospects at different stages of their buying journey. Utilize various campaign objectives within Facebook ads to promote offers spanning the entire funnel. A full-funnel strategy allows for lead capture, nurturing, and retargeting with higher-value offers, leading to significant improvements in conversion rates and ROI.

2. Organize your campaigns by objective

Many advertisers mistakenly structure campaigns based on target audience rather than campaign objective. For instance, consider promoting an SEO ebook tailored for small businesses with three variations: one for physical therapists, one for interior designers, and one for lawyers. Instead of creating three separate campaigns, a more effective approach involves creating one campaign for the ebook and then dividing it into three ad sets within the campaign, each targeting a specific audience. This aligns with the intended use of Facebook campaigns and ad sets. Proper Facebook ad account structure enables efficient ad management, optimization, effortless scaling, and effective offer promotion.

3. Consolidate your conversions

Once your pixel is set up, define the conversion events to track. Continuing with the SEO ebook example, while it’s possible to create separate conversion events for each ebook download, doing so results in a cluttered campaign-level view:

This makes it difficult to glean conversion counts at a glance, requiring navigation into each ad set’s data to calculate total campaign conversions. Creating a single “ebook download” conversion event allows for easy tracking of total conversion counts directly from the campaign view. This small tweak saves time and facilitates faster decision-making. Moreover, with Aggregated Event Measurement, consolidating conversions as much as possible is crucial since events outside the eight prioritized choices won’t be reported for iOS 14+ users who have opted out of Facebook tracking.

4. Learn how to get creative

Understanding your target audience and knowing how to pique their interest is paramount for paid social media success. While this used to be straightforward, privacy changes have added complexity. However, that doesn’t preclude creativity. Numerous clever workarounds can be employed. Consider these examples:

• Given that the pixel might not accurately capture all website visitors, explore retargeting based on interactions with your Facebook page, posts, and other ads. These resurfacing on-platform strategies offer valuable alternatives.

• Frustrated by Aggregated Event Measurement limitations? Capture leads directly on Facebook using lead form ads or click-to-messenger ads.
• Discouraged by restrictions on employment, real estate, and finance-based targeting? Leverage Google’s in-market audiences, which still offer this targeting capability, to drive traffic to your website. This traffic can then be used as a source audience for a Facebook lookalike campaign.

5. Be more strategic with interest targeting

Despite privacy constraints, Facebook still provides granular interest-based targeting. However, instead of directly targeting interests identical to your product or service, think laterally. Consider these options:

• Competitors. Even without clicks, targeting competitor interests generates brand awareness among their audiences.
• Parallel interests. For instance, when advertising toys, target children’s clothing. For workout equipment, explore interests in electronic music or healthy recipes.
• Adjacent audiences. Identify influencers and institutions within your industry with large followings. Analyze their related pages, liked pages, and top fans. Explore their profiles, append “/likes” to the URL, and uncover their liked content for potential targeting inspiration.

YouTube advertising tips

Consider this your essential guide to YouTube advertising.

• Master the fundamentals of advertising on YouTube. Our comprehensive YouTube advertising tutorial equips you with the knowledge to launch your first campaign successfully.
• Learn how to create compelling video content on a budget. While video content is incredibly powerful, it can strain resources. Discover three effective methods to minimize the burden.
• Uncover the secrets to creating memorable YouTube ads. Interrupting a user’s video session requires finesse. Learn how to do it effectively. For those seeking to elevate their YouTube advertising game, consider these advanced strategies:

1. Prioritize the first 5 seconds

Effective video ads acknowledge that most users won’t watch beyond the first five seconds. While some leverage the concise six-second bumper ad format (a blend of creativity and strategy), others aim to captivate viewers and encourage them to watch the full ad. Ensure your business name and a compelling call to action or contact method are prominently displayed within the first five seconds.

2. Use YouTube Studio analytics

YouTube Studio offers a treasure trove of data not available in standard Google Ads reports. For instance, while device reporting is available in Google Ads, YouTube Studio allows for incorporating additional metrics like card clicks. This is crucial because analyzing device data in isolation might suggest that TV, tablet, and game console devices generate a significant number of views.

However, incorporating card clicks and average percentage viewed reveals that while average view durations might be longer on TV and game consoles, these devices yield zero clicks.

This is because TV and game console devices don’t display cards. Running a TrueView discovery campaign on these devices leads to paying for video views that don’t convert. Unless awareness or video engagement are primary goals, these metrics suggest focusing campaigns solely on Computer and Mobile phone devices. Explore more YouTube Studio report insights and tips.

3. Be aware of fine-print settings

When setting up video campaigns in Google Ads, pay close attention to subtle yet important settings. For example, Video Action campaigns support various extensions, including call-to-action and sitelink extensions, to encourage website visits.

Image source However, according to Google, “The call-to-action button on TVs is only available for Video campaigns that use the “Brand awareness and reach” and “Product and brand consideration” goals." This means these extensions won’t appear on most TV devices. Therefore, disable this placement for Video Action campaigns.

Targeting TV devices isn’t entirely ineffective. Many viewers use their phones while watching TV and might search for a brand or product after seeing an ad. However, to capitalize on TV devices effectively, create dedicated campaigns. This allows for better budget control and provides clearer insights into Action campaign performance on and off TV devices.

4. Set a frequency cap

Beyond creative considerations, remember that video ads interrupt content a user has actively chosen to engage with. Excessive ad exposure (of the same ad or ads within a series) leads to ad fatigue, potentially resulting in negative brand sentiment. Always set a frequency cap for daily/weekly views. Starting with five views per week and adjusting based on performance is a good practice.

Digital advertising 101: Wrapup

Whether it’s search, display, social, or video, each ad channel deserves a place in your digital advertising strategy when utilized strategically. This guide provides a comprehensive understanding of their respective strengths, empowering you to transform each ad into a lead-generating, sales-driving, and ROI-boosting asset for your business. For expert assistance with your digital advertising endeavors, explore our full range of marketing solutions.