Performance Ads Will Be the Future of Digital Advertising?
The digital advertising ecosystem is experiencing rapid development. This is due to the characteristics of a digital medium that can be measured and appropriate. As a result, digital advertising offers clients the opportunity to target the audience as precisely as possible with highly relevant content, and at the right time.
Recognizing the vital role of digital advertising for brand success today, Vikas Gulati, Managing Director of Opera Mediaworks Asia, a provider of mobile advertising services, provides interesting insights about the world of digital advertising. Following are the results of his thoughts received by Marketeers.
Digital advertising has been divided into two parts, namely brand advertising and performance advertising. Brand advertising is considered as a method for creating awareness and starting a good relationship with customers.
Meanwhile, performance advertising is considered as a way to close the marketing circle through sales and actions initiated by customers, such as coupon codes, unique telephone numbers, links, leads, application installations, etc.
We often realize that the purpose of brand advertising is now not very clear. However, on the contrary, the purpose of advertising performance is quite real. No wonder advertisers are accustomed to seeing brand ads with lower accountability standards than performance ads.
Now, it’s time for marketers to think about performance ads rather than branding ads, one of which is through mobile video.
Mobile is now an integral part of the average lifestyle of customers, with 45% of all time spent in front of the screen. Mobile has also shifted desktop and television functions.
As a result, mobile video is now experiencing high demand and is the fastest growing digital format, which has also contributed to the growth of digital advertising.
While television, print advertising, and display ads have long been a company’s advertising strategy. However, he is fixated on traditional measures, such as impressions and the number of clicks that are no longer relevant.
Because the attention of customers is shorter, and they are approached by many brands through various channels. The emphasis lies on capturing their attention with a medium that makes them captivated (video) and on a very personal (mobile) device.
The digital industry as a whole must focus on measurements that can trigger brand performance. This is a key performance indicator (KPI) that shows interest after someone clicks on the link provided.
When someone watches the video until it runs out, this is just the starting point. After that, then we will see a lot of interactions in the video that actually shows real engagement.
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Big data wave
In Asia Pacific, there are one million billion smartphone users, and it is predicted to increase to more than 2 billion by 2020. That number will not only give brands and marketers access to a strong advertising medium. But it also allows them to target their audience more deeply and design more effective purchasing programs.
Thus, as the volume of mobile users increases, the amount of data used by advertisers will also increase.
Through big data, targeting an audience can be one of the most impactful tools for brands to increase the effectiveness of campaigns carried out exponentially.
For example, AskMeBazaar, an Indian e-commerce site that is determined to be the main destination for online shopping by offering specific products to consumers based on their preferences.
Through its partnership with Opera Mediaworks, AskMeBazaar has successfully launched a customized marketing campaign for each customer every time they go online.
Opera Mediaworks utilizes information about users’ browsing habits to classify data and display the most appropriate products.
This means that there are more than 1,500 creative versions released every week, with a total of 200 campaigns in more than 12+ specific audience segments to be matched with 34 relevant product categories that can be found on AskMeBazaar.
The complexity in fact generates more than 3,800 sales per day and more than 260,000 unique transactions where 80% is done via mobile devices.
Delivering specific ad content based on data from the audience ensures high customer engagement. This not only impacts on brand awareness, but also at an amazing level of sales.
The rise of m-Commerce
Total e-commerce sales in 2015 were more than US $ 300 billion. Meanwhile, according to Forrester Research, total m-commerce transactions surged to US $ 142 billion in 2016,
This figure is much higher compared to last year which was US $ 115 billion. In 2020, mobile devices will take up 48% of the role in e-commerce sales.
As mobile devices become more sophisticated and third-party location technology (geotg) providers have sprung up, advertisers can become hyperlocal and be able to experiment with in-store marketing,
That is, advertisers or brands can promote certain products or send push notifications to deliver the right offer, at the right place, at the right time.
We need to think critically beyond just prioritizing brand awareness or customer acquisition. We must turn our attention to things that make it easy for customers to complete the stages of their purchase.
Nor is it retention or building brand loyalty and post-sale engagement that will create meaningful value over time.
In the end, brand ads and performance ads don’t work together. As mobile video, big data, and m-commerce become more influential, advertisers must move away from their old ways of shopping for media. So they can maximize the ROI of their digital investment.
Performance ads are not just a new era in advertising. This is also a new era in doing business online.