4 Things to Consider When Investing in Digital Advertising

4 Things to Consider When Investing in Digital Advertising

“Advertising’s not going away. Really sh**ty advertising is going away, and I bid that farewell.”

-David Droga at the Cannes Lions Festival of Creativity for 2018

 

Ad platforms continue to unveil the latest and greatest ad practices, providing the biggest bang for your buck in digital ad spending. Each of these new platforms causes increased competition, creating a battle for optimal CPM (cost per 1,000 impressions). This begs the question, where is it best to invest your money to ensure the most optimal return?

Some ad networks are offering cheaper CPMs than others in the industry, creating a less expensive initial investment. We’d like to quote the Harvard Business Review when they say, “your impressions are getting cheaper? Who cares? The real question is whether they are becoming more effective.”

1. Staying Within Arm’s Reach

Digital advertisements based on web traffic (i.e. cookie-based advertising and search engine marketing) are typically served to ALL online traffic. This includes the international web traffic which represents nearly 30 percent of all online traffic within the United States. The problem with this is that a high volume of United States businesses only offer their services and/or products to United States consumers. This means that any international engagement received is a complete waste, as they are unable to convert.

2. Finding Your Target

Arguably the most crucial aspect of advertising, both traditional and digital, is whether or not the advertisement is reaching the correct audience. Most online targeting has been based on behavior as tracked by cookies, making use of a consumer’s interests or likes as seen in social media advertising, or rolling the dice with search engine marketing (SEM).

Cookies are Crumbling
In 2018, cookie-based advertising is becoming a dying practice, though some still clutch onto hope for its success. Cookies typically expire within 30-60 days, if they’re not cleared by the user before that happens. Additionally, around 70 percent of mobile devices do not allow the use of cookies at all anymore.

The Risk of Being Pseudo-Social
Social platforms boast high numbers of consumers when targeting ads through their platform. While this can sound enticing, by increasing your bucket of leads with more hopeful targets, you’re merely increasing your ad spend on more hopeful targets rather than quality leads.

Search Engine Mishaps
SEM ad platforms try to stress the low costs of their platforms; however this typically only applies to the less in demand search terms. More popular search terms tend to result in CPCs as high as $60, which can burn through an advertising budget at a rapid pace.

3. Weeding Out the Bots & Frauds

If you are able to successfully find your target audience, now you need to worry about whether or not your ads are being shown to and seen by real humans.
The monumental problem with this is that online fraud traffic is estimated at around at least 30 percent across the web, though some sources estimate it to be as high as 45 percent. By advertising through cookies, this translates into 30-45 percent of the ad traffic as being unprofitable. Apply these metrics to an ad campaign and this equates to the misuse of at least 30 percent of the budget.

Let’s look at social media as well. Last year Facebook disclosed that over 270 million of its users were either fraudulent or duplicate accounts. Twitter falls right in line with this, with around 50 million fake accounts. This means that Facebook’s and Twitter’s fraud accounts each tally up to be nearly 15 percent of its overall users. With these facts at hand, this presents the point that when advertising through social media, you’re looking at an anywhere between 5-15 percent of your targets being fraudulent.

4. Finding Your Optimal Frequency

A lot of ad buyers do not realize the importance of frequency. Too often ad platforms get caught up in impressions served, rather than considering how they were served. Frequency represents the number of impressions served per person.

Research has shown that frequency operates most ideally on a bell curve methodology of implementation. Studies show that the ideal frequency should be between 4 and 7 to be optimized for conversions. This is typically seen on a per week measurement, so 4 to 7 impressions per target, per week.

How Adronitis Rises Above the Rest

These are merely the most significant accuracy measures to consider when investing in digital advertising. However, these four are all Adronitis, in partnership with El Toro, needs to prove the case that we offer the best digital advertising solution on the market.

Our company knows the precise consumers being targeted. We are able to do this by utilizing only consumers’ physical addresses and the IP addresses correlated with them. Through this, we are able to remove any possible fraud, ensuring targeting the correct consumers.

Inside Optimal Frequency is an aspect that Adronitis takes seriously. We recommend to most of our clients the 4 to 7 frequency that research has proven to most help optimize conversions. Since we know our exact targets and number of those targets before executing an ad campaign, we can ensure ideal frequency throughout the campaign.

Adronitis takes pride in our CPM rates, we know for a fact that it’s worth the investment. We stand firm in that and have proven data to back up our statements of unparalleled assurance.

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