3 Facts About the Value of Digital Advertising
Digital advertising has enabled businesses to break the barriers of traditional advertising and is allowing them to harness the potential afforded by the online platforms being used daily. There is no limit to what digital advertising can do. No other advertising model gives your business daily access to many average Joes. Every business that wants to harness the expansive reach of online spaces is looking out for people with digital marketing and strategy skills. A survey conducted by The Social Shepherd found that the two most sought-after competencies in marketing professionals are digital advertising (45%) and content creation plus curation (42%). Here are three interesting facts about the value of digital advertising for businesses and brands.
1. Digital Advertising Expands Your Reach and Target Capabilities
With billions of people accessing and using the internet and social media platforms as part of their daily routine, businesses tap into a vast and diverse user base. Targeting is now quite automated due to extensive studying and monitoring of user behaviors. Platforms like Google Ads and Facebook Ad Manager allow someone to leverage inbuilt advanced targeting capabilities.
These ad managers can narrow your audience based on specific demographics, interests, locations, shopping habits, and device types. This high-level targeting ensures the businesses on those platforms can deliver their ads to the right people at the right time, maximizing the chances of engagement and conversation. Digital advertising offers unparalleled opportunities for businesses to expand and narrow their reach simultaneously.
2. Digital Advertising Gives You Measurable, Data-Driven Results
All the renowned online ad managers come with robust measurement and analytics tools featuring user-friendly interfaces that enable your business to track and evaluate the performance of campaigns in real time. Through various metrics and key performance indicators or KPIs your digital marketing person sets through the ad management platform, the business gains valuable insights into the effectiveness of running ads and campaigns.
Monitoring metrics like impressions (how often an ad is seen), clicks, click-through rates (CTR), conversions and conversion rates, cost per acquisition (CPA), and return on ad spending (ROAS) is possible. One can analyze this data to inform data-driven decisions on the products, services, brands, and future campaigns.
Digital advertising platforms have begun offering A/B testing, allowing businesses to compare ad variations and strategies and identify the best approaches. This test-to-optimize process leads to continuous improvement and a higher return on ad spending. A proven practical approach you can adopt is using the pay-per-click on Google Ads, Bing Ads, and Twitter. According to Web FX, advertisers and brands adopting pay-per-click advertising make a median return on investment of about $2 for every $1 used.
3. Compared to Traditional Advertising, Digital Advertising Is Cost-Effective and Flexible
A report from Statistica has projected that the digital advertising industry will be worth around 460 billion US dollars by 2024 in annual revenue. This is an exciting fact, given that, with more automation, digital advertising is becoming pervasively accessible and less expensive. Since its inception, digital advertising has provided businesses of all sizes with a cost-effective means of reaching potential customers.
Compared to traditional advertising channels like radio, newspapers, TV, or pamphlets, digital platforms have much lower entry barriers and budget options. As a business, you can set your budget based on your financial ability and adjust as often as possible. Take, for instance, email marketing. It costs as low as a 12-dollar monthly subscription to email up to 10,000 people per day.
New businesses now use email marketing as a market penetration strategy. Because of how flexible digital advertising is, if a specific email marketing campaign is not delivering the desired results, it can be paused or modified midflight. This way, businesses and brands can quickly respond to the rapidly morphing market conditions to ensure their ad spending is appropriately allocated.
Overall, digital advertising has many advantages. It's a powerful tool for businesses that want to effectively promote their products or services, share their brand story, connect with existing customers, drive sales, and build an online community that's engaging and active.
