Online Display Advertising
Updated: Oct 17, 2019
In this post, I explain why Online Display Advertising for E-commerce businesses is indispensable in your marketing mix.
When we think of e-commerce, we often think directly of getting as many conversions as possible. Especially in Q4 where you have important days in which a lot of conversions
have to be brought in. Think of Black Friday, Cyber Monday, Pakjesavond and the Christmas days. Activation-oriented channels such as AdWords and Bing are often used for these
days. But Display can also be an important channel to deploy.
Display advertising in the R E A N Model
In order to understand how display advertising for E-commerce companies can play an important role in the marketing mix, it is good to know the role of display. In short, the
R E A N model can be used to build an online marketing strategy that fits well with the customer journey of your customers. Various marketing channels belong to the different
phases of the R E A N® model (Reach, Engage, Activate & Nurture). Which also needs to be attached to your own Key Performance Indicators.
A common misconception is that display advertising can only be used to achieve a large reach. But that's not true. If we look at the R E A N® model, there are different
phases in which display advertising can play a role. However, the goals per R E A N® phase are of course different. The goals of display in the different R E A N® phases are:
• Reach - Display with a wide range with the aim of bringing new customers into contact with your brand
• Engage - Display with more specific targeting to inspire and enthuse customers for your brand
• Activate - Display to convince visitors who are already familiar with your brand to a conversion
In the following paragraphs you can read about the advantages of using display advertising for E-commerce parties.
Display advertising for E-commerce produces more brand-name search traffic
Imagine the following situation, you have your own webshop that sells camera backpacks. From the start, your turnover grows fine for the first two years. But growth stagnates
in the third year. You go to research to see which marketing channels you can get even more revenue from. In search you already score well on generic search terms and you
have completely sealed them. You are also active on social media and you already have a large group of followers. However, the search traffic on your brand name is still
somewhat behind. What are you doing then? Ensure that more people look for your brand name! Here, webshops usually get the bulk of their conversions.
The perfect channel for this is display advertising. With display advertising you are able to reach relevant target groups. And you can make visitors aware with a latent need
that they have to buy backpacks of your brand! Because you approach the new target group with striking banners, there will be more requests to your website. Both through
clicks on the banners and via brand name search traffic on AdWords. In this way the knife cuts on two sides.
Display advertising for E-commerce: possibility of re-reaching store-leave
In addition to being able to find new customers for your web shop with display advertising, you can also approach current visitors with retargeting. Here you show visitors
who, for example, have been on your website but have not bought a product, a banner to remind them to buy the backpack they have previously viewed. This is best done with
dynamic remarketing. You show the specific product that the website visitor has previously viewed. The advantage of this is that you can focus on that specific product
instead of showing a general banner. Tip: offer an extra discount if you want to persuade visitors.
With display advertising you can close the gap between branding and activation
A much heard objection to the use of display advertising is that it costs a lot of money and produces only few conversions compared to, for example, AdWords campaigns. That
comparison is therefore not entirely fair. AdWords is in the activation part of the R E A N® model and Display (except for retargeting) is in the Reach & Engage phase. It is
therefore important to fine-tune the KPIs on which you are going to assess the campaign in advance when using display advertising.
A real Reach channel as the deployment of television is also not settled on the number of conversions what this is brought in but at display we often see that this is done,
because it is an online channel and thus more measurable. The display utterances in this example are then settled on the wrong KPI (conversions) while a KPI as (unique) range
fits much better with the Reach phase.
In addition to being able to use your display to reach a wide range or to specifically retarget visitors, it is also able to fill the gap between the branding and activation
channels, the engage phase. Because a lot of data is collected online, display advertising makes it very easy to target very specific target groups so that you can tailor the
message to this specific target group.
An example of our camera backpack webshop: we want to reach such a relevant possible target group and almost certainly the people we reach are interested in buying a
backpack. With the help of data from Google so-called in-market audiences we can reach this target group. In market target groups, target groups of people who are looking for
certain products are for example cameras. They send signals to Google by searching for certain keywords such as 'buy a camera', 'buy SLR camera' etc. Google then adds these
visitors to the in-market audience for cameras that we can target with our display campaign. With this we can show these visitors a relevant banner of our camera backpack.
With display advertising you can visually transfer your brand
Finally, an advantage of using display advertising is that you can make your brand visual. Something that is not possible with the help of search ads. In the book 'How Brands
Grow' Byron Sharp shows the importance of visual aspects and the importance of recognizing a brand to gain a larger market share. In contrast to a channel like AdWords,
display advertising makes it very good to link clear aspects such as colors, logos and names to your brand and thereby attract more customers. In addition, this effect is
enhanced by the large reach that you can achieve with display advertising, and with the use of retargeting banners you ensure that you stay top of mind with your target
So what does Display Advertising do for E-commerce?
All in all, the use of display advertising for E-commerce parties can therefore offer many advantages:
• Generating a latent requirement for potential customers.
• The ability to retarget your visitors
• Closing the gap between large reach campaigns and activation campaigns
• The online visual transfer of your brand