Programmatic Advertising -All You Need To Know

Programmatic Advertising -All You Need To Know

Executive summary

In the era of machine learning, many companies have shifted their digital advertising and media buying habits. Many companies are now replacing people with machines when it comes to decision making on buying Ads.

The fact is, most of the newly developed advertising systems are faster, better at making decisions and implementing more accurately than humans.

Digital marketing has embraced these machines in several ways to improve efficiency, save cost, increase growth faster and compete better.

Today we have programmatic advertising which is been widely used in the industry by many companies to grow their outreach attracting new customers all over the world.

It has become so important to the point that almost every marketer is getting to use one or two systems that deliver programmatically media buying solutions.

We notice the importance of these systems and decided to write about it to improve your understanding of these tools and shape your media buying habits for good.

So first let’s start with the definition.

What is Programmatic digital advertising

This is simply an automated way of buying and selling digital display advertising using big data and machine learning systems to make Ad placing decisions, cost of Ads, distribution channels etc.

Programmatic advertising trends

There has been a massive shift in the way companies across Europe and Americal has been buying digital advertising ads since 2016.

Let’s look at the trends for more insights.

According to emarketer, It is estimated that over half of the U.S ad spend will hit $45.72 billion dollars in 2019. This is a massive increase from $17.50 billion in 2016 all in the US advertising market alone.

In major parts of Europe, countries such as Germany and France, Programmatic ad spend has also grown but not as much as the U.S advertising market.

Programmatic Ad spend in the U.K

Despite the uncertainty on Brexit and the implementation of the GDPR, the UK still remains positive when it comes to programmatic ad spend. It is reported that nine out of ten digital display ad pounds will be spent on programmatic advertising.

The UK programmatic ad market is second to the U.S and the largest in Europe with an estimated 6.8 billion pounds in 2020. This shows a significant increase from 2.8 billion pounds in 2016 according to eMarketer.

Programmatic Ad spend in Germany

eMarketer estimated Germany programmatic digital ad display will hit €1.982 billion euros in 2020. This is an increment from €768 million euros in 2016.

Even though programmatic digital display ad spends in Germany dropped a bit in mid-2018 due to the European General Data Protection Regulation (GDPR), Programmatic advertising still accounts for 70% of total digital display Ad in Germany.

The GDPR also does not seems to have a long-term negative impact on programmatic advertising.

Programmatic Ad spend in France

In France, the figures are less but significant. Programmatic digital ad spend in France hit €1.04 billion ($1.18 billion) in 2018. Based on eMarketer predictions, Investment in programmatic digital display ads is estimated to approach €1.22 billion ($1.38 billion).

Here are some of the most asked questions about programmatic advertising

With confusing terms, marketers are confused with what means what, here are some of the answers to the most asked questions

How to do programmatic advertising?

Executing programmatic advertising is simply making the right decisions and allowing Ad networks algorithms to implement the process when needed.

Here is a list of things to consider when setting programmatic Ad Campaign

  1. Identify your target audience using Facebook Audience insight
  2. Target specific audience with about 50k to 60k size
  3. Collect and use your Facebook Pixel data
  4. Allow for automated placing
  5. Allow automated bidding
  6. Do split testing while using different targeting channels
  7. Set your budget, time and period and prefered cost per bid

These above listed can be applied on several platforms to maximize media buying in order to increase advertisers ROI.

How is programmatic different from real-time bidding?

These two advertising terms go hand in hand. Although there is a slight difference in their meaning and often misused by marketers.

Here is what it means…

Real-time bidding simply means a process where bidding of ad inventory is done between online advertisers and sold by publishers using an action model in an online ad exchange.

The bidder with the highest amount wins’ and make the purchase. The bidding process takes few minutes usually one to three seconds.

On the other hand…

Programmatic advertising involves the buying and selling of media by using ad systems to make decisions as regards to ad placement, audience size, devices, cost etc.

What is a Demand Side Platform (DSP)?

A demand-side platform also known as DSP is an advertising system which allows online advertisers to buy and manage multiple digital ad inventories from multiple ad exchange and data exchange accounts using one interface.

Benefits of programmatic advertising

There are many advantages to engage in programmatic media buying and here are some of them.

Programmatic advertising and DSP platforms

Flexibility

Most programmatic media buying systems allow advertisers to manage multiple channels in one system. This saves time, resources, energy allowing them to concentrate and improve efficiency.

Accuracy

In many cases, these programmatic ad technologies are accurate in their targeting making it very beneficial for advertisers.

With the use of real-time data, most campaigns are able to return very high ROI media buyers need.

What are the limitations of programmatic media buying?

Even though there are benefits of programmatic advertising, there are also some negative issues with it.

These disadvantages are as follows…

Fraud

Advertising fraud has always been a problem with the advertising industry. It kept becoming sophisticated day-by-day. There is so much fraud associated with online advertising and programmatic is not left out.

Because it’s not done in real-time, some publishers have the tendency to cheat by sending bolt traffic to the buyer and claiming it’s real traffic.

Another disadvantage of this is that,…

It costly

Because most programmatic ad campaigns are highly targeted and narrowed down with precision. The Ad Networks charge a bit higher for such targeting when they have the capacity to deliver such Ads.

This is because quality stuff is often expensive and quality traffic is as well expensive.

Misplacement

Too often publishers have the habit of exchanging or redirecting ad to their affiliates which lead to misplacement on the wrong source of media.

Misplacement on wrong media which result in the wrong traffic as it’s shown to wrong audience resulting in a bad reputation for the brand.

Just imagine programming your media buying campaign for an adult site that might end up showing on teenagers game sites. Even though this might sound crazy, unfortunately, it has happened and will continue to happen.

What is programmatic advertising media buying

This simply means using software to purchase online advertising slots from publishers across several platforms. Or you can put it as it is an automated process of buying display advertising.

What does programmatic advertising mean?

Programmatic advertising refers to an automated system that allows advertisers to process online advertising transactions involved in dynamically placing ads on publishers websites or apps. 

It makes it easy to make targeting and pricing decisions, bidding and placing decisions and apportioning cost based on the best scenarios at the moment.

What’s the best programmatic advertising platform?

There are several ad networks that allow marketers to use their programmatic systems for digital media buying and selling campaigns.

These platforms are many and here are the few ones you can trust and work with.

AdRoll
This is simply one of the best and popular retargeting advertising systems known to marketers. The uniqueness of their programmatic ad targeting technology known as BidIQ makes them one of the best targeting platform in the industry.

Programmatic advertising Platform

Since precise targeting requires data, AdRoll focused more on social media such as Facebook and Instagram to make its programmatic ad campaign more effective.

Adobe Marketing Cloud
Adobe automation platform claims to be a Leader in Cross-Channel Campaign Management offering advertisers the best programmatic targeting tools.

Their Ad targeting allows advertisers to automate their advertising campaigns using machine learning tools while giving them access to monitor where their ads are placed and run.

Even though it was launched recently in 2017, the platform is an efficient and effective programmatic advertising platform for digital marketers.

Rubicon Project
Rubicon Project boasts of 900.000 advertisers bid, about 12 trillion bids per month, 5 million bids per second and 500, 000 ads per second shows how massive the programmatic platform is.

Many well-known brands such as eBay, CNN, Google, Spotify, SoundCloud US today sport and many thousands of brands across all industries use Rubicon for media buying to deliver their advertising to their targeted audience.

DoubleClick
Known as one of the biggest and effective online advertising tools in the industry.

Google’s DoubleClick gives advertisers the opportunity to buy media and how to optimize them for better campaign results.

It offers publishers also a great opportunity to monitor their campaigns in realtime in order to identify what is performing and what is not so as to eliminate what is not working for optimal result.

Choozle
This is another great programmatic platform for advertisers using big data from their trusted third-party partners and the advertiser’s data to scale and improve the precision of the media buyers campaign.

Their advertising software allows advertisers to liberate their video ads, display ads, mobile ads with transparency in real-time. The company charge $99 for a monthly subscription with no minimum ad spend.

AdReady
AdReady is an innovative Solutions for Advertisers, Publishers, and Agencies. Just like other programmatic platforms, AdReady gives advertisers the ability to customize their campaigns to drive the performance that they need for higher advertising ROI.

Its cutting edge technology allows companies to focus on their ROIs rather than benchmarks. They maintain transparency and geared toward client goals, using an optimized media mix to beat KPIs.

Centro
Last on this list but not the least is Centro.

A platform used by advertisers to run their digital advertising campaigns across multiple channels.

They have a great platform that integrates not only media buying but also many other media buying, communication tools and analytical tools necessary for your campaign success.

Programmatic advertising

They combine DSP buys, budgets, direct buys and social buys giving advertisers all the tools they need for efficient and effective campaigns.

Conclusions

Digital advertising has been experiencing several changes in the past few years which brought about programmatic advertising. Am not sure what will come on board next for display advertising.

If you have experienced changes in the topic we discussed in this post, it will be great if you can share your experience with us.

Let us know what you think of the post, suggest ways we can improve it and make it more valuable. We ask you to share your expertise in the comment section.

If you are new to the industry or programmatic advertising, please let us know if this post has helped you learn one or two things in the comment section.

What marketers need to know about Digital Video Advertising

What marketers need to know about Digital Video Advertising

Execute summary

Digital video advertising also known as online video advertising has been on the rise in the past 7 years. More and more advertisers are venturing into digital marketing particularly video marketing.

Several studies proved video marketing is one of the most effective advertising methods. However, many digital marketers are still not aware of the opportunities online video advertising presents.

Video marketing has always been an important part of marketing. However, it was used mostly in television ads even before the coming of the internet.

Now in the era of internet especially in the last seven years, videos have always been an important part of storytelling.

Several brands have used videos to tell their stories to create brand awareness to capture audience attention and connivance them to become loyal customers.

Digital video advertising has the potentials to capture the audience attention in a creative and intelligent way. This is because videos can easily be understood by viewers within the first few minutes of just looking at them.

Based on the importance of online video advertising, we have analysed, evaluated and list the effective ways for digital video marketing.

Let’s start with the definition

Online video advertising is a form of video marketing which contains video ads sponsored by brands to acquire paid traffic. Which lead to gain more visibility in order to increase sales and profitability.

It has become a trend among all digital brands to use video marketing techniques which include, video advertising to tell their brand stories to a larger and wider audience.

Considering the popularity of this form of video marketing, let’s explore how effective it is to companies.

How effective is video advertising?

Studies show that online video advertising is very effective as compared to any other forms of video advertising. They effective when compared to television video ads and other digital advertising forms.

To support the above paragraph, In a recent study, marketingland claims that about 72% of advertising agencies believe video advertising is more effective than television Ads.

Cheap Banner advertising
Cheap online advertising

This is because many video ad campaigns show that over 71% of the viewers take some sort of action after viewing the video.

They either by visiting the advertiser’s site, subscribe to their newsletter, purchase their products or services etc.

Digital video advertising results in more leads for businesses and increased conversions which makes it a very effective type of digital marketing.

Another important feature of video advertising is, it involves audio and visual elements that use various effects which are appealing to the viewer. This makes it easy for companies to tell their products and services story.

Digital video advertising trends

Here is what marketers need to know about video advertising progress. Trends makes it very easy for digital marketers to understand what’s going on and help them make more informed decisions about digital marketing campaigns.

Video advertising generally has been growing in all spheres especially in the last four years. It is believed that the U.S. market alone will spend over $36 billion on online video advertising this year.

Interestingly, these $36 billion will be committed in advance for video advertising. Also, The U.S advertisers will spend $29.24 billion on programmatic video advertising this year alone, this will account for 49.2% of the entire U.S programmatic display spend.

The trend on the video viewers online has also increased to over 63 million people viewing videos online with their various devices. This is a massive increment compared to the 18 million in 2013 based on the figures from the Interactive Advertising Bureau (IAB).

Another survey involving 650 media and technology companies in New York also confirms that about 60% of their advertising budgets are reserved for digital video advertising.

Also, As mobile subscribers consumptions of video ads grow more and more, brands are also shifting more of their budgets on mobile advertising.

In summary, online video advertising will continue to rise and become more relevant among other advertising methods.

It is estimated that other ad formats such as television, banner ads, text ads, interstitial Ads and push notification ads etc will rally behind video advertising.

Digital marketers need to take video advertising seriously in order to be more successful with their digital marketing campaigns.

Who Dominates Digital Video Advertising?

The entire digital advertising is dominated by Google and Facebook. There is no doubt these two ad giants take the largest market share of the Ad revenue and also control much of what consumers are given access to see.

In the U.K alone, both Google and Facebook take an estimated 63.3% market share of digital advertising. At the same time, they both keep a market share of 59.3% in the U.S.

Google and Facebook Ad Share

These same figures are estimated to be on the rise in the U.K hovering around 64.7 in 2021 and 54.7 in the U.S in the same 2021 according to eMarketer.

See the chart below.

Digital advertising share of Google and Facebook in UK and US

Other dominant players in paid digital video advertising are Amazon, Instagram, SnapChat and Twitter. Which are also predicted to compete and take a share of the present Google and Facebook dominated market.

There estimated share is as follows: Snapchat (0.7%) and Twitter ads (1.4%) will catch small shares below 2% of the UK digital advertising market this year.

However, SnapChats growth is expected to be bigger reaching £100.1 million in advertising revenues which will account for 0.9% of the UK mobile advertising market.

Meanwhile, Instagram is set to increase almost 52% in 2019 to reach £984.0 million accounting for 6.7% of the UK digital market and 9.5% of the mobile market.

The share of smaller other ad networks is not included here due to their small size of the market. of course, there is an alternative ad network that allows advertisers to place all ad types just like Google did which is AdsTargets.

However, these smaller ad networks are growing and have started sharing some percentage of the ad revenue in major participating countries.

Mobile and digital video ads

It might interest you to know that over 66.53% of the world population has access to mobile phone.

Statistics show that the number of mobile subscribers is even more than the entire population which amounts to over a billion mobile subscribers than the actual world population.

World mobile connections vs world population

Mobile devices have shaped the way we all look at online advertising specifically mobile video advertising.

Since 2015 when mobile search request surpassed desktop, mobile became a very important part of digital advertising.

It seems the number of mobile users has always been on the rise in the past six years. More and more people get access to smartphones across the globe which presents great marketing advantage.

One of the biggest advantages of these increase in mobile users is that they seem to spend a lot of time on social media. These present marketers with a chance to target their audience.

With the use of various social media platforms and advertising tools, Ad networks such as Google Ads and Facebook Ads presents various targeting ways.

It has become easier for digital marketers to target their prospective customers for better success rates using digital video advertising tactics.

To achieve a high success rate for your online video campaigns, see the following tips for better video advertising.

Online Video advertising Best practices

Haven’t gone through the trends and data of the online advertising, lets me take you through the best practices that will lead to successful video ads campaign online.

Mobile Display Fit

Make sure your videos are optimised for mobile so they can fit all mobile sizes.

It is important to check and make sure your digital video advertising campaign displays very well.

This will make users of various smartphones, tablets and other smart devices can access and view your video easily.

Mind the length of your video

The length of your video is very important to your viewers. This is because long videos will simply discourage them to view the video until the end.

understand this should make you create a short video with all the necessary information you need to tell your audience.

Therefore, keep your videos meant for digital video advertising short, precise and simple to convey the message.

Have a clear call to action

Do not forget that your audience wont take the right action after watching your video. This means you have to create a clear call to action plan when creating your video.

You might choose to tell them to signup, register, visit your site for more information. Whichever CTA you choose to use, make sure it is mentioned in the video either in the form of text or audio.

Optimise for social media platforms

Since social media websites have different requirements for the size and length of the required digital video advertising.

It is highly advisable to make sure your video Ad fit each social platform size and length and other necessary requirements for greater performance.

All social media platforms have their specification for various ad and video advertising requirement.

Here are some specific video advertising requirements for Facebook, Instagram, Twitter, YouTube, SnapChat, LinkedIn and Pinterest

PlatformLandscapePortraitVideo LengthSize
Facebook1080 x 10801080 x 1080Max 30 seconds or less 2.3GB
Instagram1080 x 19201080 x 1920Max 15 seconds or less4GB
Twitter1280 x 720640 x 640Max 140 seconds or less512MB
YouTube1920 x 10801920 x 1080Max 30 seconds or less10GB
SnapChat1080 x 19201080 x 1920Max 15 seconds or less1GB
LinkedIn1280 x 7201280 x 720Max 15 seconds or less1GB
Pinterest600 x 600640 x 640Max 30 seconds or less2GB

There are more specific details such as accepted video format such as max size and duration. Others include various types of video sizes on different platforms, aspect ratio and many more which will be covered in the next post.

In the meantime, you can visit SproutSocial for all the required video attributes on all digital video advertising platforms.

Maximise the first three seconds

The first three seconds of you have the ability to convince the viewer to watch your video until the end.

This means the first three seconds of your video should contain the most attractive part of your message.

Convince your audience that your video worth their time and will be valuable to them.

This can be done by using very curious words or actions that will interest them to watch until the end.

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Make money blogging

By doing so, you will then present them with the main message of your products and services or even your entire brand story. It should be concise as much as possible.

Brand Constituency

Logos, brand colours and slogans are a very important part of the branding and should always be used in your videos. This improves your visibility and gives your audience a sense of recognition.

By presenting your brand identity, you help your target audience remember your business and also recognise your brand anytime they see your brand features anywhere.

Most large brands such as Apple, Amazone, McDonald’s are all known by their logos and colours. So it is vital you remember to include your logos at least in your mobile video ads to keep your brand alive.

Conclusion

Digital marketing has evolved so much in the last seven years and digital marketers also need to evolve in their thinking. There is so much to gain in digital video advertising nowadays.

The issue is, how digital marketers are able to utilise their resources and talent to gain from their video campaigns. Video marketing will continue to be on the rise as more and more as the number of mobile subscribers continues to grow.

subsequently, social media platforms are also part of the equation as more mobile subscribers spend more time looking at their feeds. marketers need to take advantage of these presented opportunities and make the best they can out of digital video advertising and social media and mobile users.

conclusively, if you have been in the online advertising business for long, please let us know what you think about this post. suggest ways we can improve it by either adding to the post of letting us know what we can remove or add to the post.

If you are new to digital video advertising,…

we encourage you to use this post and several others on our blog to learn all you need to know about digital advertising.

How to Increase Brand awereness with Mobile Video Advertising

How to Increase Brand awereness with Mobile Video Advertising

Executive Summary

Mobile video advertising is one of the best ways to increase your brand visibility online. Even though there are several ways to advertise your brand, products and services, there are recent methods that prove to be more effective than others.

With the number of smartphone users predicted to reach about four billion users in 2021, there is a high correlation with the massive increase in numbers of mobile Ads.

Estimates show that mobile Ads in the US alone will hit twenty-five billion in 2022 according to emarketer.

With the above figures, you can be assured that Mobile video advertising has potentials to take your brand to the next level given the massive number of active smartphone users.

Cheap Banner advertising
Cheap online advertising

Apart from the potentials video marketing present to marketers, it is a well-established fact that videos can be understood faster and easier by the audience.

Even a micro video up to ten seconds is able to tell a brand story in a way a wider audience will be able to understand faster and better than any other form of digital content.

With these great opportunities given to digital marketers, how can they make good use of mobile videos to increase brand visibility which will extend to an increase in sales, revenue and profit.

Read till the end to learn all you need to know about mobile video advertising and the best tips for effective video advertising.

First things first, let look at the definition of mobile video marketing.

What is Mobile Video Advertising?

Mobile video advertising is a form of digital advertising that is displayed in the form of videos on mobile devices such as smartphones and tablets that mostly use wireless connections.

Due to the nature of these devices, they typically have smaller screens than other traditional electronic devices used for digital marketing such as laptops and desktop computers, these form of advertising is designed to display on mobile screen sizes.

Also, the portable nature of these devices makes it easier for marketers to target their audience anytime and anywhere as these mobile devices are always carried along with their users.

The earlier digital marketers understand the importance of mobile video advertising, the better for their video advertising campaigns.

That being said, Let’s look at the formats used in mobile video advertising.

Formats Used in Mobile Video Advertising

Just like every other type of digital advertising, this type of digital advertising also has specific formats used by marketers.

Let’s look into them…

  • Mobile App Interactive pre-roll: These are types of mobile video ads that are shown in Apps before the user is given access to use the Apps. These types of mobile videos Ads are usually six seconds or less.
  • Mobile Web and App Standard Pre-Roll: These mobile video Ads are shown in mobile devices through web browsers and mobile Apps. They usually show before the content is displayed.
  • Tablet Web Tap-to-Play Medium Rectangle 300×250: Similar to the above-explained Ad format but usually different in size and are shown in full screen and sound only when the user taps the video on the mobile device or mobile web browsers and only seen on tablets.
  • Smartphone App Tap-to-Play Banner 320×50: These are animated banner mobile Ads shown on smartphones when the user interacts with the Apps. These Ads are shown mostly in App games during the user interactions.

Above described types of mobile video Ads and other forms of mobile Ads mostly used by digital marketers to run mobile Ad campaigns.

Benefits of Mobile Video Advertising Campaigns

After understanding what is mobile video Advertising and its Ad formats, let’s look at the benefits that comes with it.

  • Reach highly engaged content viewers: With mobile advertising regardless of all the mobile devices, you stand a chance of getting your audience to engage in with your content and take actions which enhance your visibility.
  • Expand reach: With video advertising campaigns, marketers can expand their reach by reaching more mobile users aside other various campaigns on desktops and other formats of advertising given brands more visibility online.
  • Drive up to a 3x viewer engagement: Because videos are easily understood by viewers than other types of digital content, your audience is more likely to watch your videos and get engaged or take the right action leading to increase in brand visibility.
  • Deliver highly viewable mobile video ads with full-screen executions: Another great feature of this Ad format is that it gives the marketer the opportunity to optimize for full-screen in order to capture their audience attention.

As stated earlier at the beginning of the post, Video advertising and video marketing is growing at a high speed and will continue to grow as the number of mobile subscribers keep growing. Therefore, the benefits are endless.

Mobile Video Advertising on Social Media

Mobile and social media is a match made from heavens. Both platforms are revolutionary and necessary tools for digital marketing and most importantly, they both go hand in hand.

With more people spending countless hours on social media platforms using their mobile devices. It has become a must do, I mean video mobile advertising and to a larger extent video marketing on social media.

Mobile advertising on social media

Social media giants such as Facebook, Instagram, LinkedIn, Twitter and SnapChat are constantly filled with video contents in users feeds. Mobile video advertising on these platforms has also seen a tremendous increment in the last few years.

It is believed that mobile advertisement constitutes more than 70% of Facebook revenue while Instagram mobile advertising is almost 100% as it’s mostly used on mobile devices.

In 2018, mobile video ad spending quadrupled to a whopping $6 billion and is believed to grow even more in the coming years and all credit to social media.

Hence, let’s look at the most used social media platforms for mobile advertising.

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Make money blogging

Facebook

Facebook is the biggest and most popular social media platform. This means advertising on Facebook gives you a big opportunity to reach a wider audience.

Facebook has the largest number of active users all over the world and boast of having the most diverse audience. This means you will sure get your customers on Facebook.

Apart from that, Facebook gives advertisers the opportunity to target their audience using the standard mobile video ads which are shown like other forms of Facebook Ads in user feeds.

Facebook has a fantastic App installation Ad drive which allows advertisers to advertise their Apps in other to increase their downloads and exposure.

Facebook Premium mobile advertising, on the other hand, are mobile video Ads that start showing automatically in silent mode but when tapped, it enlarges to full-screen mobile Ads with sounds.

With Facebook Ads, digital marketers or brands can target audience based on their demographics, location, behaviours, interests, and connections.

Advertisers can also use auto-play video ad format, multi-image carousel ads and dynamic products ads to reach a targeted audience. 

Facebook charge advertisers based on Cost Per Click (PPC). That means campaign that are PPC charge advertisers only when people click on those ads.

Twitter

Twitter is another great social media platform that has always encourage mobile first concept.

With over 800 million active users monthly, Twitter presents a good opportunity for digital marketers to grow their businesses.

Mobile video advertising on twitter is done in several ways to target the right audience. It allows users to upload their videos and promote them inform of pre-roll or mid-roll ads.

Twitter videos ads are auto-play and also allow for direct App installs.

Just like any other Ad network, Twitter also allows advertisers to target their audience based on their demographics, location, behaviour and interest.

Twitter uses a Cost per view (CPM) pricing model to charge its customers. This means you will be charged only when someone views your mobile video Ads on.

Instagram

This is one of the biggest mobile advertising platforms nowadays. Instagram does have over a billion active monthly users. All these users feed are always field with video contents.

It has also become the most engaged and active social media platform.

Analyst believe viewers of video ads Instagram are 75% more likely to take action either by visiting your website, converting or buying your goods or services.

The beauty of advertising on Instagram is that It is integrated with Facebook which means advertisers are able to use the same Facebook data for targeting their audience.

Mobile video advertising on Instagram is believed to be very effective as more than 75% of the viewers take action. They either purchase or product or services, convert or visit your website.

Also, over 37% of adult Americans are said to be active Instagram users which also present targeting opportunities for advertisers.

When it comes to the cost of advertising on Instagram Ads, It varies based on certain factors. However, the average cost of Instagram mobile Ads ranges from $0.25 to $0.75.

Your Ads could cost less or even more the average cost depending on several factors. It is worth trying mobile video ads on Instagram as it offers a lot of opportunities for brands and businesses.

YouTube

YouTube is simply the biggest video content platform online. Also, YouTube is also the second largest search engine with over a billion active users every month.

YouTube has several ad types such as InStream Video Ads, Mobile Roadblock, and Brand Channel. All these Ad types are designed to target audience precisely using the Google Ads platform.

The beauty of YouTube is that it’s own by Google and is all managed by Google Ad platform with a lot of features allowing advertisers to target their audience using their demographics, interests, behaviour, industry, Keywords, topics, devices etc.

YouTube also offer mobile and desktop InStream Ads which allows advertisers to target specific devices and Apps. Brands use these InStream Ads and Brand channels in promoting their products and services to target their desired audience.

Another plus using YouTube mobile Ads is the management and adjustment platform in the Google ads which allows for daily analysis of Ad ad performance and improvement for better results.

YouTube also allows digital marketers to target their audience using keywords, Topics, demographics, industry, sector, devices, locations, ad extensions etc.

Since YouTube is the biggest video content platform, It worth giving it a try for brand exposure and growth.

Tips for Successful Mobile Video Advertising

Since mobile has become more important than desktop in several regions, it is very important to pay attention to mobile advertising.

With over two billion mobile subscribers in the world, there is every reason to take into account the potentials this figures present to digital marketers.

Mobile users often spend their time on various social media platforms on a daily bases interacting with contents field in their feeds.

It is very important for digital marketers to make good use of these great opportunity by engaging their audience through mobile devices.

Even though there is no specific way to win in mobile video advertising, there are several tips that enable one to get better ROI in mobile video ads and here are few of them.

Optimise For Size and Length

Video marketing on mobile devices needs to be as light as possible to enable them load faster and better on all mobile devices. This is achieved by making sure the video is short in length and the file size is not heavy.

This will enable the video load faster even with low bandwidth connection. It is advisable that your mobile video should be 15 seconds or less and crafted to load faster and fine on smartphones.

Ensure the quality of the video is not lost while making your brand story is well communicated.

Offer Value for Your Audience

The goal of your mobile video campaign is to get more conversions and sell more products or services.

It is common knowledge but that does not mean putting only that in your video. I mean your product and services and then call to action.

Often times you need to offer great value in your video Ads so people can relate with your content, share it and remember it.

Providing value here entails creating quality videos that educate, entertain and possibly inspire your audience. These are the types of videos that are shared more and probably gain more attention.

It is always good to have a video strategy that will capture the hearts of your audience and make them remember your video and come back to visit your website or take other actions that will increase sales and profit.

Example of such video is the Starbucks video shown below.

Maintain Brand Consistency in Your mobile Videos

Many marketers often forget that branding is required in their video Ads. Because their focus is to capture the attention of their audience, they forget to include brand attributes such as Logos, brand colours, fonts style and voice tune.

These attribute keep brand identity alive and visual identity alive.

As you craft your video as a marketer, you need to make sure your brand attributes are present in some form no matter what. It can be in the beginning, middle or at the end but make sure it appears.

By communicating your brand identity, you help your target audience remember your business and also recognise your brand anytime they see your brand features anywhere.

Most large brands such as Apple, Amazone, McDonalds are all known by their logos and colours. So it is vital you remember to include your logos at least in your mobile video ads to keep your brand alive.

See the example video below

Craft quality mobile videos that make sense even without voice

Social media like Facebook, Instagram and Twitter have autoplay enabled on mobile devices. This means your videos automatically start playing before your target audience will tap on it before the sound will start playing.

Normally when these videos are tapped, they display on full-screen and then start playing sounds also. The fact is, majority of viewers will not enable sounds on their mobile devices.

This means you have a short time to capture your audience’s attention and send a message within the first few seconds before they will scroll down and leave your mobile video.

One of the perfect ways you can send a message through your video without sound is to use captions in your videos. Captions or Text are simply a great way of delivering your message.

You should also understand that using Text or captions too much will be bad for your mobile video. Therefore, keep things clean and simple for better mobile video marketing.

Have a clear call to Action (CTA)

Even if you manage to create a great video for your mobile ad, if you are not able to add a clear call to action, you won’t be able to get your audience to take action.

One of the most important things to do in your videos generally is to be specific on what action you want your audience to take after watching your video.

There is a reason CTAs are called call to action. It could be asking your audience to click on a button such as “Learn more”, “Sign-Up”, “Download your ebook” or “Subscribe” etc.

Without a clear call to action, your mobile campaign will fail to produce the desired result.

Here are the best places you can place your CTAs

  • Pre-roll CTA: Place your CTA before the video starts so that the viewer sees it even if they don’t watch the whole video.
  • Mid-roll CTA: Here place this anywhere between the beginning and the end so that viewers see it in a moment when they are most engaged with your mobile video.
  • Post-roll CTA: Put this at the end of the video when the viewer is most interested and, since they’ve watched the entire video, they may be more likely to buy your products or services.

My advice would be using the Mid-roll CTAs as a study shows they convert better.

video CTA conversion rates

Optimise For All Social Media Platforms

Since most people access social media platforms using various mobile devices, It will be beneficial if you take your time to review your mobile video before you post it on all social media platforms

See the image below for the right dimensions for each social media platform.

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Conclusion

Mobile video advertising and marketing has become one of the most important ways to engage your audience. Hence, it is very important for digital marketers to know the most effective ways to get their audience to take actions leading to conversion, purchase or subscription.

It is important for marketers to know what works best for specific brands and when exactly to implement it. understanding what your audience need will help you achieve your mobile video advertising better.

Make sure you know which platforms your audience are spending more of their time so you will be able to target them better.

If you have been in the practice of video advertising, please do not hesitate to share your audience in the comment section to help if improve this post. Also, if you have any doubts, please do not hesitate to ask your questions below in the comment section.

Best Guide To Video Advertising For Digital Marketing

Best Guide To Video Advertising For Digital Marketing

Video advertising is one of the most popular forms of online display advertising. We have seen a massive increase in video advertising in the last years.

More brands have realised the benefits of getting into this type of display advertising.  

Videos generally have great potentials for brands in various ways. It helps brands tell a story about their business in a visual form helping their audience to easily understand what the brand represents. 

The good thing with video advertising is that it works for all businesses across the board whether is B2B, B2C, SMB, Enterprise, High-Tech or analogue products.

Video has become an important part of internet browsing as more brands recorded high engagement on video display platforms such as YouTube, Instagram, Facebook and Snapchat to mention just a few.

In the last year alone, expats estimated over 7 billion US dollars was spent on Video Ads alone while Cisco estimated that 80%  of all internet traffic by 2019 will come from video content and global video traffic will increase threefold from 2016 to 2021.Due to these high expectations and importance of video marketing/video advertising, it is important all digital marketers have a clear understanding of video advertising and video marketing.

The good thing with video advertising is that it works for all businesses across the board whether is B2B, B2C, SMB, Enterprise, High-Tech or analogue products.

Video has become an important part of internet browsing as more brands recorded high engagement on video display platforms such as YouTube, Instagram, Facebook and Snapchat to mention just a few. 

In the last year alone, expats estimated over 7 billion US dollars was spent on Video Ads alone while Cisco estimated that 80%  of all internet traffic by 2019 will come from video content and global video traffic will increase threefold from 2016 to 2021.

Due to these high expectations and importance of video marketing/video advertising, it is important all digital marketers have a clear understanding of video advertising and video marketing.

So let’s jump into….

What is Video advertising?

Video advertising generally comprises of display Advertisements that contain video Ads in them which are shown in the beginning, during the video, at the end of the video or after the video stream online.

These advertising units are also known as pre-roll, mid-roll, and post-roll advertising units which comes with the online streaming videos just the television Ads but normally shorter than the Ads in the TV programs.

It is a common knowledge that Video Ads are now shown on almost all streaming services including social media platforms such as Facebook, Instagram, YouTube and Snapchat among others.

Video Ad format

Video Ads comes in various formats. However, according the Interactive Advertising Bureau (IAB) guidelines, there are three main types of video ad formats which are namely:

  • Linear Video Ads: These type of video ads are similar to the above-described video ads that are shown before the video, during or after the video is streamed on the internet by a user. Similar to this type of video ads are the commercials seen on the TVs before, during or after the TV program is watched by the audience.
  • Non-Linear Video Ads: these ads run concurrently with the video content so the users see the ad while viewing the content.
  • Companion Video Ads: commonly text, display ads, rich media, or skins that wrap around the video experience.

These video Ads formats are the most used in both TV Ads and on the internet. The most used on major platforms such as YouTube and Facebook are the Linear video Ads.

Video Advertising Platforms for brands?

Even though there are numerous video advertising platforms also know as Ad Networks out there, there are some that are more effective and popular among digital marketers due to their scale, efficiency and effectiveness.

Below are the most used Video advertising platforms

Google Ads and YouTube Ads

There is no doubt Google ads is the most biggest display advertising platform in the market. Although platforms such as Facebook/Instagram video Ads are scaling up but still far behind Google Ads.

The display Ad section of Google Ads is what marketers use to place video Ads on YouTube and other Google Video advertising platforms.

The good thing about using Google video Ads platforms such as YouTube is that YouTube single-handedly is the second largest search in the world with over five billion videos viewed everyday and over 1.5 billion active users every month.

You can agree that YouTube as part of Google display Ads has a lot of potentials your business can benefit from.

Apart from video advertising on YouTube, It is one of the best platforms for video marketing.

Also, when it comes to targeting your audience, Google display Ads gives you the best options for reaching your audience. Hence, we advise you to give YouTube a trial for video Ads.

YouTube Ads are very important when it comes to video advertising. Even though it’s under Google Ads, It is important to elaborate more on YouTube Ads to enable marketers to understand the most important types of Ads that produce more effective results

There are two automatic YouTube Ads that are designed to grab the attention of your audience which is namely, TrueView Ads are usually played before a video. Bumper Ads are too, but these Ad types are designed to last for only 6 seconds and they can’t be skipped.

To improve your ROI on those Ads, You can also run Discovery Ads to improve the reach of your video, but this helps you show up in the search results.

Another valuable feature of YouTube Ads is the analytical system which gives marketers the opportunity to analyse their advertising reports periodically and adjust their Ads in order to achieve better results.

By adjusting your Ads, You are also able to cut down the cost of advertising and prevent your Ads from showing to unwanted audience and places to increase advertising ROI.

With these analytical tools, you will be able to understand what is working and what is not working so you can adjust your Video Ads to target the right people and save cost of advertising.

Facebook and Instagram Ads

Facebook and Instagram video Ads are integrated under one system, hence, we will be treating them together as one Video Ad system.

Both Facebook and Instagram Ads are displayed within the users feeds. Within these feeds, advertisers are allowed to show story video Ads in both platforms in order to reach their target audience.

These video Ads are allowed to be 15 seconds or less and also are full-screen mobile experience designed to increase audience engagement.

In recent times, Facebook launched Video Ads which are shown within publishers video content mostly in the middle of the video contents from various publishers.

In addition, Facebook places video ads in audience network placements such as mobile Apps and blogs that match their targeting criteria in order to increase targeting.

How to use Video Ads to spur engagement online

One of the recent trading video Ads are mostly the short or micro video Ads that are less than 10 second but highly engaging and designed to leave a massive impression on viewers.

These Video Ads have created several challenges for the traditional 30 seconds video Ads usually used in the television Ads.

In several studies, these video Ads have proven to be more effective than other longer video Ads formats.

The brain behind these winning micro videos is the fact that digital marketing these days takes more than one interactions before customers are converted or convinced to buy.

It’s a curated process that comes with stages and techniques to completely win the customer’s heart.

Using micro videos does not give you all the privilege to say everything about your goods or services which means, you just have to target on saying the most attractive and interesting stuff about your business to lead your audience to find out more about your products or services through other channels like content marketing, emails and lead capturing.

Since most people engage with your content on silent mode, It is advisable to make sure your micro videos are able to engage with your audience even when their audio is turn off.

Using micro videos for advertising should not completely stop you from crafting 30 seconds of videos. Make sure you leverage the power of both 30 seconds of videos and 6 second micro videos for successful video advertising and marketing.

Social Media and Video Advertising

Social media users have become accustomed to videos being filled in their feeds especially on Facebook, Instagram and Snapchat. These auto-playing videos are created by various marketers and publishers.

Video marketing on social media has become very popular due to its effectiveness. people from all works of life tend to spend time on social media scrolling through tons of text and video contents.

This gives digital marketers the opportunity to dominate their specific markets by creating videos that match their audience interests as well as video Ads that could grab their attention easily.

Facebook specifically is a great tool for video marketing. Billions of users scroll through their feeds watching tons of videos each minutes making Facebook one of the most popular social media platform.

Creating story telling videos that helps tell your business story in an attractive manner will obviously take your brand to the next level.

Best Practices for Video advertising

When it comes to video advertising, the advertiser needs to understand that, every brand and business is different, therefore, originality and creativity will play a vital role in the video making process.

An understanding of who the target audience will be very important as well as it will help in crafting the required video.

Here are some few step-by-step guides for improving your video advertising results.

Make the first few second count

The first three seconds of your video is very important and should be used to grab the attention of your audience.

Give them a reason to stick with the video until the end. Make them curious and motivated to hear the rest of your story.

See the Dove video below did a great job of capturing their audience attention from the first three seconds and keeping them till the end of the video

You have to understand that those first three seconds are also been counted and charged by the advertising agencies and counted for as well.

In essence, make sure whatever you are going to say or show in the first three seconds has the capacity to keep your audience engaged till the end.

Optimise Your Video For Mobile

Since mobile traffic surpassed desktop traffic in 2015, mobile has become a very important part of digital marketing. Hence, it is important to keep this in mind when creating videos for advertising or digital marketing purposes.

Because of the massive traffic coming from mobile users, it is important to keep your videos short, informative and attractive so you don’t lose the mobile traffic.

You can as well include a lot of vertical content in your video and also make sure it appears full-screen in your mobile viewers screens.

Use Storytelling Videos

Story telling videos have a strong emotional attachment to them. They are probably the best means of emotionally engaging your audience.

These video leave lasting impressions on viewers. They are designed to make viewers remember your story even after a long time watching your video.

Using storytelling videos is a way of interrupting online audience and it is important to make sure they remember your story even after they leave the platform and get back at what they usually do so they can come back again to visit your webpages.

Use Call to actions (CTAs)

For every video campaign you run or create, One thing you can’t afford to miss is using the right CTAs to drive your audience to take the right action.

Your video campaign will only be valuable if you drive viewers to take the necessary step(s) to either converting or making a purchase or rather visiting your website for a specific action.

It only makes using the right CTA at the end of the video to tell your potential customers what step to take next and be specific about it.

See the example of the right CTA in the video below:

In summery here, use the right CTA that suits your campaign.

Use Closed Captions

Using closed captions may help do your video advertising campaign a lot of good.

It turns out not many online viewers use sounds to watch videos especially Platforms such as Facebook and Instagram.

Also people with hearing disabilities could easily understand your video with closed captions. Make sure your closed captions are well framed with the right worlds.

Conclusions

Video marketing and Video advertising has become a very important part of digital marketing and will continue to be impactful for a long time.

If you have not taken the necessary steps to boost your video marketing and advertising, the time is now.

The manner in which videos are consumed is also evolving as people watch videos online in several ways with several devices, you have to keep in mind video advertising is key to growing your business especially now that the number of internet users is increasing day by day.

I would like to ask you guys to share your experiences with video advertising and video marketing in general so we can continue to update this post to help others improve their video marketing skills.

Guide to understanding Cost per click advertising

Guide to understanding Cost per click advertising

Cost per click advertising is also popularly known as (CPC) or as others refer to it as Pay per click (PPC) is one of the most popular ways online businesses and digital marketers use for calculating the cost of clicks acquired through PPC advertising.It sounds very easy looking at the above description, however, there is more to it than just a form of advertising.

In recent years, Pay per click advertising to become more complex and competitive which means, online marketers need to optimise their game to rank their Ads.

It takes a combination of various inputs and factors to actually profit from Pay per click advertising while dramatically lowering the cost per click on campaigns.

Several digital marketers struggle to get their CPC to earn high ROI on their campaigns. The solutions to this are understanding how the cost per click works.

In this blog post, we are going to explain Cost Per Click advertising thoroughly including all the strategies you need to implement and manage a successful CPC or PPC campaign.

What is Cost Per Click Advertising?

Cost per click (CPC) also known as Pay per click (PPC). In a layman’s language, simply means the actual amount of money you pay per click when running an advertising campaign.

What is Cost Per click?: The actual amount of money you pay per click when running an advertising campaign.

The actual cost of every click is what it refers to as CPC. Some digital marketing experts actually refer to cost per click as the cost assigned to each keyword by search engines such as Google.

Cost per click

CPC Ad Group

The truth is, If that’s true, no one will be able to pay for Google PPC campaigns. Even though there are more important factors to pay attention to when running a Cost per click campaign, however, it is still very important to understand how cost per click works especially in Google Ads.

How does Cost Per Click works?

Cost per click is just one among many other metrics CPC platforms such as Facebook, Google Ads and Bing use to evaluate PPC campaign performance.

The most popular CPC advertising platform is Google Ads also known as Google Adwords which this article is mostly centred at.

This is because has created a reputable system that delivers what the customer want’s to see.

Google has developed into a monstrous Advertising platform because it shows most updated, relevant search results to people all over the world.

It is estimated that Google process about 3.5 billion search queries every day. In my opinion, As of today, Google process over 5 billion search queries every day.

Each of these 5 billion queries returns results based on the most relevant keywords. This is how auction Ads are also determined to display alongside those search results.

How is Cost Per Click Calculated

Most ad networks display the average cost per click on various keywords. This does not reflect the actual CPC your Ads will be paying for but rather to show you an average cost per click of those keywords.

In particular, Google Ads calculate your CPC by using two variables or factors if you like which are usually your closest competitor AdRank and Your Quality Score.

The formula for this is… Competitors AdRank is divided by your quality score plus .01 which gives you the actual CPC rate. See image below.

Cost per click
Google Ads Cost per click formula

As an advertiser, creating quality Ads should be one of your top priorities. This is because it helps you outrank even your competitors who have higher bids.

Google Ads consider several factors for ranking Ads which are Max bid, Competitor Ad Rank and your quality score all play significant roles in determining your CPC rates.

Cost per click
Google Ads auction ranking (Image credit: TryAdhawk)

How to improve your CPC rate and maintain high-quality score

After having an understanding of how CPC Ad work plus how CPC auction is calculated, Let’s see how you get cheaper CPC rates while maintaining a high-quality score.

It is extremely important for advertisers to maintain a high-quality score as it comes with several benefits. There are a couple of things which I will describe as a process since it’s not a one-time thing. Cost Per Click Ads requires constant optimisation.

This is what this section is all about. Please follow the stages as explained below in order to get a high-quality score and maintain it.

1. Add relevant Keywords to your Ads Headlines

Keywords are really important factors when it comes to ranking in search engines. The same way you use keywords in your content to tell search engines what your content is actually about, the same process is replicated to Google Ads.

Make money blogging

Make money blogging

When creating Ads, Using your most relevant keywords in your Ads headlines and in the description tell Google exactly the types of audience you wish to target.

This helps improve the quality score of your Ads overtime as you maintain high Click through rate (CTR).

Also, as some experts suggest, do some research on your competitor’s Ads and see the keywords they are using in order to have an idea of the kind of keywords they are using and use those as well.

Doing so will give you a competitive advantage over many of your other competitors.

2. Make a good landing Page

Consistency matters a lot when it comes to online advertising. The final destination URL placed in your Ads should have reliable, easy to understand and action buttons well placed.

The message on the ads should be consistent with what the Ads portray on your landing page or website. The advantage of this is that it leads your visitors to stay more on the page and take necessary actions such as signing up or making purchases.

The more time your visitors stay on your landing page, the better relevance and quality score your Ads will gain.

So in summary, make sure your PPC advertising message align with what you have on your landing page.

3. Group Your Ads into Smaller Targeted Ad Groups

In 2018, Google added great features that allow advertisers to group Ads based on keyword making targeting more precise.

This feature helps advertisers have a better understanding of which Ad groups based on those keywords that are performing well and the Ad groups that are not. 

See the example of Ad group in the image below

Cost per click
Google Ads Group

The data derived from each of the Ad groups makes it easier for advertisers to make decisions optimising their Ads.

It presents you the information required to pause or stop some Ads and spend more on the Ads that are performing better.

4. Add Negative Keywords

Negative keywords are extremely important for saving your Ad budget and optimising your Ad quality score which will lead to a better average cost per click.

Using negative keywords tells Google Ads platform to avoid showing your Ads when queries that contain those negative keywords are entered into the Google search bar.

The impact of this is powerful help get your Ads shown only when the right keywords matching your Ads are entered.

This makes you get more engagement based on CTR as they appear only on the specified keywords raising your overall quality score.

5. Create Targeted Ad Extensions

Google Ad extensions are designed to make your Ads more relevant and engaging. It simply gives visitors more reasons to click on your Ads while positively impacting your Ad Rank.

There are a lot of Ad extensions we can create manually such as site-links, Locations, Call-Out, Calls, messages, Sign-ups, App, Review, price, structures snippets, affiliate locations etc.

PPC Ad Google Ad Extensions

Google Ad extension has potentials to increase conversions and sales in many cases. In the end, they impact your overall Ad quality score.

6. Create Google Ads Conversion tracker

Conversion tracker is another great decision-making tool advertisers need to take advantage of it.

Conversion tracker can be easily installed through your Google Tag manager or direct installation of the code on your website or specific landing pages.

Cost per click

Cost per click advertising

Sitelink Ad Extension

Cost per click

CPC Advertising Ad extension

Callout Ad extension
Structured snippet Ad extension

The least it does is to collect data about the actions of your visitors such as Sign-ups / registration, Purchases, calls etc.

This data is then used by Google Ad to determine which people are more likely to take those actions you need.

Conversion tracking helps increase your Ads quality score as it contributes to more precise targeting and ultimately higher CTR, lower Avg. CPC.

Cost Per Click Ad Networks

Cost per click ad networks are Ad networks that use Cost per click also known as CPC. We discussed a lot about CPC Ad networks but need to also discuss Ad Networks that use CPC as a pricing model.

The most popular CPC Ad network as we discussed extensively in this blog post is the Google Ads. They simply have the largest share of CPC advertising online today.

Cheap Banner advertising

Cheap online advertising

This is simply why this post is mostly focused on discussing Google CPC advertising. Our Ad network AdsTargets a similar Ad network features like Google Ads.

Although our bidding system works a bit different from Google’s bidding system. We have a similar CPC system. Advertising on Google Ads or AdsTargets Ad network for advertisers and publishers will give you almost the same results.

AdsTargets competing advantage here is the cheap cost of advertising and automatic Ad optimisations features. you can become part of us by joining AdsTargets advertising Ad network.

Conclusion

Cost per click advertising will continue to evolve while positively and negatively affecting online advertisers. For those who are able to adapt will reap the benefits of CPC advertising while the ones that ignore it will face the consequences.

This post will be updated from time to time and we would like to know from you what you think about the post and suggest ways to make it better.

Guide to understanding Pay per Click advertising

Guide to understanding Pay per Click advertising

Pay per click advertising has been around over the last two decades and have seen a lot of transformation. 

PPC has evolved a lot basically the way PPC giants such as Google, Yahoo, Bing and Amazon has adjusted their PPC advertising tools constantly to ensure enhanced performances. 

It is always important for online advertisers to follow-up and be updated as much as possible in order to be able to run more effective PPC campaigns.

In this post, I will guide you through the process of formulating and running successful PPC or CPC campaigns.

Let’s jump into it…

What is Pay Per Click Advertising?

First things first. Let’s understand what is pay per click advertising.

Pay Per Click (PPC) advertising is also known as Cost per click (CPC) advertising it is an online advertising model used by both the advertisers and the publisher as a pricing model to sell or buy traffic.

The advertiser is required to pay for the traffic sent by the publisher which in most cases the publisher is a website owner or a group of websites inclusive of blogs.

Advertisers often buy specific targeted traffic that is relevant to their niche or market type.

Make money blogging
Make money blogging

Pay per click advertising usually send traffic through banner ads, Text ads, Interstitial Ads, In-App ads across mobile and desktop devices. Other forms of utilising PPC Advertising is through Pop-Up Ads, contextual ads, links etc.

Pay per click advertising or cost per click advertising is largely controlled by search engine giants such as Google (Google Ads), Bing and Yahoo Bing and Yahoo Ads). These search engines display these ads on their various platforms.

How PPC advertising works will be discoursed in detail below…

The image below shows how Pay per click Ads appear in Google results.

Pay Per Click advertising

Pay per click Trends

PPC trends shows the evolution process of PPC advertising. The online PPC community could testify that a lot has changed over the past years. In particular, 2018 witnessed a lot of changed in online PPC such as,

PPC Trends

Google rebrands her online advertising from “Google AdWords” to “Google Ads”. This change was accompanied by a lot of features within the systene much as creating various types of campaigns, enhancements, and targeting options making creating and targeting campaigns more effective.

Bing also followed the same way in their PPC advertising system making it more convenient to create and manage campaigns with the more efficient reporting system.

LinkedIn on the other hand also implemented profile targeting system in 2018 while Amazon has received more PPC Ad budget as advertisers noticed more products search taking place on Amazon.

How does Pay Per Click Advertising work?

PPC advertising or cost per click advertising works by using highly technical IT systems designed by various Ad Networks. Although each of these systems works differently, they all have one thing in common which is generating clicks for the advertiser.

PPC or CPC pricing model

Cost per click advertising works on two popular models which is known as the Bid-based CPC and Flat-rate CPC.

In each of the models, the advertiser’s sign’s up with the Ad publishers which in most cases is an advertising ad network.

The registration also includes an agreement which allows each advertiser to indicate or choose how much money they are willing to pay per certain keyword or keyword phrases.

The Ad network system then automatically ranks advertisers bids and show them when a quarry is entered in the search engines.

To break it down further…

Cheap Banner advertising
Cheap online advertising

For search engines such as Google, Bing and Yahoo. These Ad giants use a bidding system that allows advertisers to bid for keywords that are related to their niche or market.

The bid system works in favour of the advertiser that pays higher for a certain keyword or keyword phrases. These Ads are displayed on top or below search results.

On the other hand, websites owners or bloggers charge advertisers a fixed amount to place banner ads, interstitial ads or Text Ads within a given time frame. Ad operate in a similar way such as search engine while also they have the capability to charge a fixed amount per click as well.

Pay Per Click advertising Check list

In every project, there are set of activities which involves proper planning and management for those budget to be successful. This same ideology is applied for PPC campaigns in other to reap the full benefits of PPC advertising.

This checklist entails how the cost per click campaigns should be planned and managed Daily, weekly, Bi-Weekly, Monthly and Quarterly.

Pay per click check list
Infographic credit: Media media

Planning Pay per click

Planning your PPC campaign entails the following

Outline Key Performance Indicators (KPIs)

Budget your estimated campaign spend and approximate cost per click you expect to spend on your campaign.

Set your target for conversions and acquisitions (CPA)

Define your frequency of measuring your campaign

Daily checklist

Daily monitoring and optimization is done by checking the daily spent and the conversions.

Movers: Click through rates and changes in the cost

Bid Adjustment: Adjust Ad bids based on top performance and poor converters

Keywords adjustment: Monitor and adjust poor performing keywords

Weekly checklist

Position: Click performance top verses side

Rebalance: Refine performance anomalies

Keywords: Negative Keywords research

Mobile: Mobile bid adjustment versus desktop performance

Bi-Weekly Checklist

Impressions: Search and update missed opportunities

Ad groups: Split out, narrow and refine

Ads: Create new Ads, analyse the existing ads and pause poor performing ads

Placement: Remove or poor performing Ads

Monthly checklist

GDN: Display verses search search performance review

Quality: address low quality keywords scores

Website links: Analyse performance, Add or remove

Analytics: Search for poor visitors and fix metrics

Quarterly checklist

Landing pages: refine copy, improve conversions rates.

Geo targeting: location performance and adjust bids

Day parting: Day of the week and time of the day analysis.

Review: Historical performance analysis.

How to Calculate Pay per click advertising?

To understand how PPC or cost per click advertising is calculated is very simple. This is done by dividing the cost of advertising by the number of clicks from a particular campaign.

The formula is as follows: pay per click ($) = Advertising cost ($) / number of clicks (#). Doing so will give you an insight on how much your PPC advertising campaign actually cost.

PPC Advertising cost OR CPC advertising cost

PPC advertising cost Or CPC advertising cost is simply the specified cost of running a PPC or CPC campaign in a given period of time. These advertising cost can vary besed on when the advertisier decides to analyse their cost of advertising compared to the performance of the Ad campaign.

Types of Pay per Click Advertising

There are various forms of PPC advertising also known as CPC advertising. They come in various forms of online advertising and the most popular ones are Banner advertising also known as Banner Ads, Text advertising or Text Ads, Interstitial Advertising or full-screen Ads, mobile and in-app advertising.

The example of these PPC advertising types will be briefly discussed below as follows…

Banner Advertising PPC.

PPC Banner advertising is a form online advertising that allows advertisers to design banners with promotional information and display them on publishers channels.

Banner advertising is arguably one of the oldest forms of online advertising. It is still one of the most popular among online marketers. The reason for this is simply because they are more attractive and eye-catching for visitors.

The most popular banner sizes are the 728×90, 300×250, 160×600 and 468×60 while there are many other banner sizes. These banner sizes are also known to be most converting ads.

Interstitial Advertising PPC

Interstitial PPC advertising also known as full-screen advertising is mostly used on mobile devices to get the full attention of the visitors. They appear on full screen or mostly covers 70% of the screen with the possibility of closing them down or it automatically disappear after few seconds.

Cheap Banner advertising
Cheap online advertising

Interstitial Ads comes in various sizes. The most popular once are 320×480 and 480×320 for mobile phones while 1024×768 and 768×1024 are more suitable for tablets.

PPC Mobile advertising have grown significantly in the past five years. This is patly because of the dramatic increase in mobile use by internet users. Google reported in 2015 that mobile search surpase desktop searches made in their search engine.

This made Google and other search engines lay more emphases on mobile devices. It presented online advertisers the opportunity to target mobile users and increase their sales and ultimately profits.

Because most people carry their mobile devices with them all the time. online advertisers has also been doing their best to target mobile users while implementing various mobile Ads targeting strategies.

Text Advertising PPC

CPC Text advertising has also come a long way making it one of the oldest and the most popular form of PPC online advertising. Text ads are mostly used by Google and other search engines.

These text Ads are mostly displayed on top and bottom of google search results. Google also display PPC Text Ads on YouTube and publishers blogs and websites all over.

Pay per click advertising Agency

These are pay per click advertising Ad networks such as AdsTargets offering advertisers the opportunities to run their PPC campaigns.

Also, there are a lot of advertising agencies which helps small businesses to run, monitor and optimise their PPC or CPC Ad campaigns for a monthly feel. These are all classified as Pay per click advertising agencies.

Benefits of Pay per click

There are numerous benefits brands get from PPC or CPC adverting. Nowadays, most brands have dedicated pay per click budgets and put them to use year round. It is one of the reasons why Google makes over 100 billion dollars why Facebook makes over 40 billion dollars.

The benefits are as follows

  • PPC advertising give brands online visibility;
  • It increase their online exposure which makes impact on their off-line; exposure as well.
  • Brands that engage in CPC advertising increase their sales and conversions;
  • It enable fast growth for brands

Conclusions

We have covered pay per click or as you like cost per click here but will be very happy to know what you think about this online advertising concepts.

Suggestions with the most recent updates about PPC or CPC are welcome so we can improve the quality of this post and keep it as fresh as possible.

Guide to Ad Rates: Interstitial Ads CPM rates explained

Guide to Ad Rates: Interstitial Ads CPM rates explained

I just answered a question about Interstitial Ads CPM rates on Quora. This is actually an interesting question for me cause I get these types of questions almost every day from publishers willing to monetize their traffic or publishers who have already registered.

Similarly, Advertisers are not excluded as many ask the rates on Banner Ads rates, Text Ads rates or as many prefer to refer to PPC Ads rates, CPA Ads rates and many other Ad types.

I thought I should clear this issue or rather explain why Interstitial Ads CPM rates and other Ad types are not fixed on the majority of Ad Networks.

The fact is, There is no flat rates for PPC, CPA that runs throughout the year for either publishers or advertisers on an Ad Network.

This answer is meant to be fair to clarify this question so it can help many others. Interstitial Ads CPM rates vary across Ad networks and based on various factors. I will briefly mention those factors below

Advertising GEOs

Interstitial Ads CPM works just like any other Ad types and several things are considered as I mentioned above. Geographical location where the advertiser chooses plays an important role in the pricing of Interstitials Ads CPM rates.

This is because some geographical regions have better CTRs, CPA and conversion rates than others and this is always considered in all Ad types. Another important thing to consider is Advertising cost varies in different countries.

Even in the same country, Ad cost differently, for example, In the US, California has one of the highest costs charged for advertising than other states within the country.

Advertising cost explained

This goes for Banner Ads, Text Ads, In-App, Interstitial Ads etc. Again, Advertising cost in the US, The UK, Germany cannot be compared to the advertising cost in India, Nigeria and Ghana. Advertisers are willing to pay even more in these high-cost regions because of the benefits that come with advertising in these areas.

Income levels

Just a follow up on the GEOs, income levels in some countries and regions of various countries are different and so as taxes in those GEOs. Ad Networks consider this as a price factor. In turn, publishers are paid higher for clicks, CPA and CPI on traffic in certain regions such as the US, UK, Germany.

This same advertising strategy is applied for Banner Ads, Text Ads, Interstitials, In-App ads and other ads as well.

Ad Display device

The Interstitial Ad display device (Desktop and mobile) also plays a role in Interstitial Ads CPM rates. This again varies across Ad Networks and bidding systems employed by those Ad Networks. Mobile interstitials are more popular and mostly more effective in mobile App Advertising. In many cases, the effectiveness of the display device also influenced the cost of advertising.

Advertising time

Ad prices change based on the demand on a particular Ad which forces the bidding system to either increase or decreases the prices of ads including Interstitial Ads CPM rates.

I could actually go on and on but will leave it here and hope this helps in understanding why CPM rates are not fixed and subject to change always.

Conclusion

The cost of advertising is more complicated as many advertisers or publishers expect it to be. there are many factors that are considered by ad networks or even bloggers or webmasters selling their Ad space. If there are other factors that you consider play a role in the advertising cost that is not covered in this post, please let us know so we can update this post to be more relevant.  

Online Advertising ROI: What you need to know

Online Advertising ROI: What you need to know

Online advertising ROI also known as digital marketing ROI is simply the return on investment one is expected to achieve during their advertising campaign or digital marketing activity. It is often measured using several ways and medium. 

It is confusing to a lot of online advertising especially new advertiser to figure out what their advertising ROI on their PPC advertising. Due to that, you see questions like these “What Ad Network has good ROI?

Online advertising ROI This is a serious question to be considered cause a lot of digital marketers are out there wondering about how to get higher ROI on their Ad campaigns while others think there are specific Ad networks that give higher ROI on Ad campaigns. 

After I saw the above question, I decided to write this blog post to clear the confusion and rather describe few but important steps on how you can actually achieve high ROI with your Ad campaign

See my answer below…

So… I was thinking it will be better to make one thing clear before jumping in the answer. All most Ad network especially Facebook, Google Ads, Bing Ads, Yahoo Gemini have potentials to deliver good ROI on your Ad campaigns.

However, there are certain things you need to do as an advertiser to be able to achieve high ROI on your Ad campaigns.

You should never expect to put Ads on any Ad network, sit back and get good ROI. That’s the sad truth about online advertising.

Good ROI comes with certain procedures and tactics which I will lay below.

Audience research

The first thing you need to do as an advertiser is to figure out where your audience is spending most of their time. You can be able to do this by simply looking at how they interact with your content on your social media.

Another way and the best is to use Facebook audience insight tool especially if you choose to use Facebook for your advertising campaign. There is more to this but I will stop here for now…

Choosing the right Ad network: Once you are able to determine where your target audience are, it’s time to decide which Ad networks will work best for you.

If you are targeting global or national audience, my suggestion will be to use one of the Ad giants such as Facebook or Google Ads.

This way you will be able to target a larger audience and achieve a high ROI on your Ad campaign.

Audience research tool

Target Audience

Now that you have known where your audience is and chosen your desired ad Network, It’s time to target your audience which is one of the most important things for your Ad campaign.

You can target your audience based on several criteria such as their interest, industry, age, gender, location and psychographic data about your best customers.

These tools give you the opportunities to reach your best audience. Make great use of them.

Evaluation and optimization

Once your Ad campaign starts going out, You don’t stop there but rather keep evaluating and optimizing your Ads if possible on daily basis, this process involves looking at what is performing the best and focus target those audiences.

The example of this may be looking at which age group converts more and in what location, income levels and their industry could be considered also. Looking at these data will allow you to target those audiences more and remove the categories that didn’t perform well.

The benefits of doing this or following these online advertising campaign stages and the process will be:

  • It will save your cost of advertising
  • More sales or conversions and
  • Overall High ROI

This is how you could achieve high ROI from your online Ad campaign using any Ad Network.

Conclusion

Advertising online generally can be tricky but if the right steps are followed, getting higher ROI on advertising is very possible on any of the gain Ad networks. I will like to see your comments in the comment section if you have good experience advertising online. Also, your ideas are very much welcomed to help us improve this piece.

Review of Google Adwords alternatives Ad Networks

Review of Google Adwords alternatives Ad Networks

Google Adwords alternatives ad networks are simply Ad networks with similar features as Google Ads. Basically, these Ad networks offer advertisers the online platform or the advertising technology to create and share Ads of various kinds on either their publisher’s networks, search engines or other partner platforms to reach a vast number of internet users or potential customers.  

It is important for Advertisers to understand how to exploit the benefits of using Google Ads alternatives Ad networks to achieve their online advertising goals. These other ad networks to a larger extent are cheaper, more niche targeted, less competitive, more flexible and geographically targeted and more effective when compared to Google Ads. 

In this post, we focus on Google Adwords alternatives ad networks that all online advertisers should be using to achieve their advertising targets with less cost. But first, lets briefly look at Google Adwords also known as Google Ads.

What is Google Ads?

Google Adwords also known as Google Ads has been around for 17 years now. Google Adwords is an online advertising platform designed and managed by Google which offers various advertising solutions to advertisers in various forms. The name has just been changed from Google Adwords to Google Adwords which took effect as of July 24, 2018.

It will be fair to say that, Google Adwords has the largest share of internet advertising providing all sought of advertisings to internet marketers on the most popular platforms such as Youtube and DoubleClick all belonging to Google Ads. The platform is the main source of Google revenue over the years, In 2017, Google Adwords brought about 95.4 billion dollars in revenue for Google making it the largest advertising platform on earth.

Google Adwords also known as Google Ads offers advertisers various pricing models which include, Cost per click (CPC), Cost per 1000 impressions (CPM) and Cost per acquisition (CPA) which can also mean Cost action (CPA), Cost per conversion (CPC). Most of Google Adwords pricing model is based on biding where the highest bidder wins on certain keywords as specified by the advertiser’s campaign cost settings

Google Adwords targeting is vast as it covers local Ads, national and international Ads depending on the advertiser’s preference. They recently upgraded their ads format by expanding the Ad features. These advertising formats are displayed on both the Google Display network and the Google Search Network. It allows two headlines with 30 characters each, which replaces the standard of a single headline with 30 characters. The display URL is also replaced with two 15 character paths, not including the root domain.

These are the most important features and changes of the new Google Adwords you need to take into account.

Now let’s move on to the Google Adwords alternatives

AdsTargets Ads

AdsTargets may sound new to you but you definitely need to know what it has to offer before thinking of the Ad giants. AdsTargets Ad Network offers advertisers across the world the opportunity to take their products and services to the right customers. AdsTargets provide one of the most flexible advertising platforms for advertisers to reach only the right people.

AdsTargets Ads

AdsTargets Ads are served to thousands of websites and Blogs just like Google Adsense. The networks offer keywords targeting while the same time their system automatically scales and optimize advertisers Ads to appear only to the right customers.

AdsTarget also cares about fraud clicks and has implemented one of the best advertising fraud systems to protect advertisers from losing their Advertising budget. As an online advertiser. You should jump right now to AdsTargets advertiser’s registration and start showing Banner Ads, Text Ads, Interstitial Ads, In-App Ads to reach your customers with cheap and effective Ads. 

Start Advertising with AdsTargets Today!!

Facebook Ads

Facebook Ads is no doubt in our review of Google Adwords alternatives Ad Networks the second largest advertising platform online. Facebook the social media giant has grown in size and numbers as it covers almost every part of the world and used by over two billion people.

Facebook Ads as Google Adwords alternatives

As Facebook grows, It has developed one of the most effective advertising technology that is admired by many advertisers online. Facebook Ads evolved to become its main source of revenue bringing in 40.653 billions of dollars in 2017.

Facebook Ads has one of the best trackings and remarketing strategies which allows advertisers to reach their specific target audience by interest, age, gender, location, relationship status, work etc. Unlike Google Ads, Facebook Ads do not use text Ads format but rather use videos, photos which are added to Facebook posts or created in various forms of Facebook advertising like lead generation, conversion Ads etc. 

Facebook Ads are displed on several Facebook-owned networks such as Instagram, Facebook feeds which shows on all mobile devices and desktop devices. The flexibility and tools that come with Facebook Ads enable advertisers to achieve their goals by setting the duration, preferred daily, monthly budgets, the nature of Ads and also to modify their audience based on their preference.  

Bing / Yahoo Ads

Bing and Yahoo Ads from Microsoft has also occupied a share of the advertising industry over the years. Their growth has been steady and upward which is shown in their increment of advertising revenue year by year. Bing Ads and Yahoo Ads joined forces together to compete more effectively with Google Ads

Yahoo Bing Ads

These two Ad Networks work hand in hand which each other showing Ads on both platforms and their partner networks such as Media.net. Ad advertiser with Bing and easily create and show Ads on Yahoo Ad Networks and vice-versa for Yahoo Ads.

Bing Ads is a really good alternative for Google Adwords as it shows Ads for both search engines of Bing and Yahoo. These two Advertising giants are a force for good even though they are not a cheaper alternative to Google Ads but can offer almost all advertising solutions offered by Google Ads.

Yahoo Gemini

Welcome to Yahoo Gemini

Yahoo Gemini is another powerful advertising giant that combines search and native advertising to boost advertisers advertising experience. Yahoo Gemini offers online advertisers the opportunity to drive traffic to their website, raise brand awareness, promote their Apps, and increase online sales.

Yahoo Gemini Ad formats

Yahoo Gemini Ad formats

The Ad network is powered and managed by Yahoo which controls a large share of the search engine and email markets. Yahoo Gemini advertising platform is massive in numbers with over 2 billion Ad impressions per day, 1 billion active users and 165 billion intent signals per day. This is worth trying for an advertiser.

Yahoo Gemini also offers advertisers various targeting and advertising options. Yahoo Gemini Ad formats are search ads, Image Ads, Video Ads, App installs Ads, Tumblr-sponsored posts, Native carousel ads and Mail Ads. 

Amazon Product Ads

There is no denying that with over 312 million active users and almost 100 million prime users in the USA, Amazon is the biggest e-retailer worldwide. Amazon net sales in 2017 alone was 177.86 billion dollars making it one of the most valued companies in the world.

Amazon Ads

This is another massive Google Adwords alternatives. However, this works with e-commerce merchants. Probably Amazon product Ads has the biggest share of this market. If you are selling products online, you may want to try Amazone sponsored products Ads to increase your sales.  

Amazon product Ads gives advertisers the opportunity to set their campaigns using specific keywords to attract a target audience. Those ads are displayed on top of the search results, or within search results and on product detail pages. They also show those Ads on both mobile devices (mobile phones and tablet browsers).

To benefit the most from Amazone sponsored Ads, it will be in your best interest to create those Ads within the Amazon seller platform and then setting specific keywords that are most relevant to your products. This practice will drive specific traffic to your products while increasing your sales. 

LinkedIn Ads

LinkedIn Ads is one of the most underutilized and underestimated advertising platforms by online advertisers. LinkedIn has the potentials to take advertisers business to the next level with over 560 million active professionals, you can reach your target audience by their job title, Industry, function, company, and their seniority etc.

LinkedIn Ads

LinkedIn Ads offers advertisers the opportunities to scare down their targeting and reach specific networks of professionals which helps save advertising cost and increased conversion rates. In addition, LinkedIn Ads offers advertisers the necessary tools to retarget or re-engage website visitors, Contact targeting by emails and account targets with account-based marketing. 

LinkedIn is a powerful advertising tool advertisers should definitely take into account. With over 560 million active professionals, 73 million senior-level influencers, 45 million decision makers and 8.2 C-level executives, your campaigns will surely reach the right people if your targeting is done right. 

Why should online advertisers use Google Adwords alternatives?

Using Google Adwords alternative Ad Networks will surely have a positive outcome for your online advertising experience. Let’s just say putting your eggs in one basket is not a wise idea, but apart from that, there is a lot to gain while exploiting other advertising platforms. Here are just a few benefits you will get from using Google Ads also known as Google Adwords alternatives

  • Cheaper campaigns from Google Adwords alternatives
  • More Targeting power in other Advertising Networks 
  • More control of Ads data while using Google Adwords alternatives
  • Reach Specific and target audience using different targeting options provided by other ad Networks 
  • Have a backup in case something goals wrong with Google Ads or your Google Adwords account.
  • Reach more and a wider audience

Use those Google Adwords alternatives for a better overall performance of your online advertising

Conclusions

All the above-discussed Ad networks have specific tools that work best in their advertising fields. Each of the potentials to reach a specific audience in different niches. It all comes down to the advertiser to research and know their potential customers are spending more time and target them using one of the above Ad Networks. 

As usual, We would like to hear your opinions, experiences about Google Adwords alternatives. Let us know in the comment section your suggestions on what to improve, remove or Add in the post.   

Good luck with online advertising 🙂 

How to Calculate Your Advertising Cost and  Advertising ROI

How to Calculate Your Advertising Cost and Advertising ROI

The advertising cost calculator is what you need before jumping into online advertising campaign of any sought. Unfortunately, many business owners and companies struggle with it. Understanding how to calculate your advertising cost will determine how much you need to spend on a particular campaign and the profit that will come with those Ads.

The benefits that come with effective advertising cost calculation are many and determine how much you need to spend to break even point on your yearly advertising budget. 

In this post, we are going to discuss all the strategies you need to effectively determine your advertising cost and your advertising ROI from each of your advertising campaigns. having said that, let’s jump into it.

First, we are going to start with the basic definitions of the key terms to make things easy for you to understand.

What is advertising cost calculator? 

An advertising cost calculator is a simple tool that helps both individuals and businesses to calculate their actual advertising cost for a certain fiscal year in order to determine how much money they have actually spent or will spend on subsequent advertising campaigns.

These tools are also capable of making projections on the possible ROI which most consider as the profit from those advertising campaigns.

In addition, when calculating advertising cost, one must take into consideration the following.

  • The projected budget for the Advertising
  • The expected CPC and CPM costs e.g ($2 per CPC and $5 per CPM)
  • The targeted conversion rate of the advertising campaign
  • The average sale price of products and how each customer worth
  • The conversion rate (What percentage of those customers will be converted)

The final results of these projections will be summarized into the number of clicks, the number leads, the actual cost of CPC and CPM, the click-through rates (CTRs) etc. Those projections will help a business systematically enhance their advertising strategy. 

What is Advertising cost? 

In the most simple terms, we define cost as the total monetary value or the amount of money expended to acquire goods or services. In business, costs are assigned to various goods and services acquired by a business over time to determine the true value of those products and their expected value or depreciation over a period of time. consequently, we define the advertising cost here as..

Advertising cost is the amount of money a business or an individual spent on advertising campaigns over a period of time. For instance, a particular business may assign or budget $5,000 for Facebook advertising, $6,000 for Google Advertising and maybe $3,000 for TV and Radio advertising all in a one-year advertising budget. 

Summing all that up will give you the total amount the company is willing to spend on advertising in that fiscal year which will be as follows ($5,000 + $6,000 + $3,000  = $14,000). Now, $14,000 here is considered the advertising cost the company is willing to invest in advertising in one year.   

You may also like to read: Top tips for effective mobile advertising

what is Advertising ROI?

Wikipedia defined Return on investment (ROI) as the ratio between the net profit and cost of investment resulting from an investment of some resources. In other words, ROI is basically Return On Investment. The makes Advertising ROI the return on investment of the money spend on advertising.

Even though you may see or hear of ROI many times but it simply means “what you get from an investment” It may be seen by many as the profit derived from a particular investment while others may see it as the net profit you get after deducting the total amount of the investment cost in a particular project or an advertising. 

How is ROI Calculated? 

There is one formula used in calculating return on investment mostly everywhere. This is because ROI is an internationally recognized and used indicator to evaluate the gain on investment both in small and big businesses. To some extent let’s say investment projects are declared successful only when their ROI is evaluated and determined. 

Return on investment, or ROI, is the ratio of a profit or loss made in a fiscal year expressed in terms of investment and shown as a percentage of increase or decrease in the value of the investment during the year in question. The basic formula for ROI is ROI = Net Profit / Total Investment * 100. Or you can use the following ROI formula

 

Calculating advertising cost ROI

How to calculate adverting ROI

So now you know the basic formula to calculate ROI. we will now proceed to show you how you can actually calculate your ROI on advertising.

Using the same figures we used previously, ($5,000 + $6,000 + $3,000  = $14,000). We can calculate this in a simple way to determine the actual Return on Investment of the $14,000. Since we don’t have the net profit along with the $14,000 advertising cost, we can only assume that after spending $14,000, We gain $67,000 in revenue. 

The $67,000 gained from advertising on the various forum was able to increase our revenue by $67,000. Now having this figure, we calculate the advertising ROI as follows. First, we say $67,000 – $14,000 = $53,000 which now becomes our Net profit. Now let’s take the Net profit of $53,000 / $14,000 * %100 = %378.571 ROI. In this case, our ROI is %378.571. This is how most online advertising campaigns ROI is calculated.

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Now I believe you have a full understanding of ROI and calculating ROI. The most important thing you need to know is that when it comes to advertising in the business perspective, we calculate things a bit different from the business perspective to truly arrive at the cost of advertising and the true advertising ROI. This simply means that we have to consider other costs involved such as the cost of goods sold, our fixed cost and deduct that from the initial ROI.

We demonstrate how this is actually calculated using Jeff Sauer’s example in the image below

ROI and Advertising cost calculator

AdsTargets advertising cost and ROI calculation

Calculating cost per click CPC ROI campaigns

Calculating ROI on CPC campaigns is simple but first, you need to determine the cost of the CPC. In this case, let’s say you agree to pay $0.50 per each click on your Google or Facebook Ads, On that particular campaign you end up have about 2,000 clicks for the entire campaign of one week. 

Now, you will simply have to multiply $0.50 by 2,000 which will give you $1000. $1,000 here is the cost of this particular CPC campaign. So, after spending $1,000 running your campaign, you were able to make sales worth $10,000 within that week. Having these figures will make things easy for you to determine the ROI of this CPC campaign and this is how you will get that. 

Cheap Banner advertising

Cheap online advertising

First, Input the revenue generated during the campaign which is $10,000, deduct the cost of running the Ad which is $2,000 and you will arrive at $8,000. Now, in many cases, some marketers will consider $8,000 as the ROI on this campaign. However, In the business world, you are far from the true ROI.

The true ROI of this campaign will be calculated by taking the $8,000 which is the net profit and deduct the cost $2,000 and then dividing by the initial cost of the CPC ad which is $2,000. The answer here is always expressed in percent as you will have to multiply your answer by %100.

Also, You will have to consider deducting other expenses that come with the Ads such as the advertising agency that help you run the Ads, cost of goods sold etc. this will help in giving more accurate ROI of your campaigns  

Calculating CPM cost per 1000 impressions ROI

Using simple Advertising cost calculator will help you calculate CPM ROI. The application of the same method and formula applied in the CPC above. The difference is that CPM ads costs are based on 1000 impressions or 1000 views per the agreed amount. It might be that you agreed to pay $5 per every 1000 impressions or views during the advertising campaign.

So, if you end up getting 200,000 impressions per one-week ad campaign, you will have to multiply 200,000 impressions by $5 which will give you the cost of $1,000. Take into account that $5 is for every 1000 impressions or views. Understand how to calculate that will enable you to apply the above formula and determine your true ROI on your CPM campaign.

How to calculate Profit from the advertising campaign

Many marketers use online advertising cost calculators to determine their profit from advertising. However, many of those Advertising cost calculators have very basic formulas that only subtract the cost of advertising from the revenue generated during those Ads. This method does not give an accurate representation of the situation. 

It only shows the net profit derived from that Ad campaign. The best way to determine the profit generated from a particular advertising campaign would be to consider all the cost associated with the ad campaign.

Costs such as the cost of goods sold, fixed cost, cost of service rendered, the cost of advertising agencies if any etc. All these costs need to be deducted from the net profit generated from the Ad campaigns.

Using the above ROI formula will help a long way in determining the actual cost profit and ROI on advertising campaigns.

How to profit from Advertising

Most companies advertise to increase their profit margin,  However, very often you found out that is not the case, even though some advertise for exposure, the long-term goal is to attract customers and expand their sales in order to increase their revenue and profit.

Now that you understand how important profit is to advertising, how do you profit from advertising should be the main focus of your advertising? Below we outline a few but effective tips you need to profit from your advertising.

  • Research and know which platform your target audience are spending most of their time
  • Determine your Advertising budget and duration you will run your Ads
  • Determine your desired cost per CPM and CPC and make sure is always average or below average
  • Customize your Ads to show on specific devices, time and location 
  • Always monitor your Click through rate (CTR) to make sure is above average

The above-listed tips will reduce unnecessary cost and deliver your ads to only your potential customers. This will increase your conversion rate, increase your sales and ultimately your profit. See some more tips in the video below.

Conclusions

Advertising can be potentially profitable for businesses if only it’s done right. The profitability is determined only when the true ROI is known. We encourage all advertisers to take this serious and always make sure they calculate their advertising ROI before carrying on with their Advertising campaigns. If you have other tips on how to improve advertising profits, please let us know in the comment section of this post.