Do you use digital advertising? In this week’s Monday Marketing Motivation, I touch upon the topic of digital advertising. It’s such a broad topic that I couldn’t cover everything in the 5-7 minute video, so I decided to dig in more deeply in this article.
What Is Digital Advertising?
Digital advertising consists of online ads. These may appear in search engines such as Google and Bing or on social media platforms like Facebook, Instagram, LinkedIn, and so on.
Why Use Online Ads?
Like organic search, digital ads reach customers at the point in their buying journey when they are actively seeking information about products or services. This is why they are so powerful in the marketing mix. It’s like getting an instant appointment with a prospect who is knocking at your virtual door!
Core Features of Digital Advertising
Digital advertising is both precise and measurable. Targeted reach allows businesses to focus their efforts based on specific demographics, interests, and behaviors of their ideal customers. This ensures that marketing messages reach the most relevant audiences rather than being broadcast broadly to uninterested viewers.
Think about it this way: television, radio, and print (newspaper, magazine) ads reach a broad audience. This audience may, or may not, be interested in the product or service displayed. Yesterday, I saw three ads in a row for prepared, frozen meals. I don’t eat or serve prepared, frozen meals, but many people do. The company advertising frozen chicken dinners has to assume that the majority of people watching TV want fast and easy food, so they use broadcast ads.
However, many businesses, especially those that market to other businesses (called “B2B” or business-to-business marketing), need precise targeting. They can’t use “spray and pray” methods of advertising because it is unlikely that they will reach their target market using mass media. Many consumer-focused brands need precise targeting, too, and that’s where digital advertising shines.
Performance tracking is another aspect of digital ads. It provides detailed and quantifiable metrics such as clicks, impressions, and conversions. This data-driven approach enables marketers to see exactly how their campaigns are performing and make informed decisions about future investments. The ability to track return on investment in real time sets digital advertising apart from traditional methods, where results can be difficult to measure.
Broadcast ads are priced on a fixed basis, often referencing viewers and cost per thousand of viewers reached. Digital ads are budgeted like a checkbook. You set up an ‘account’ and ‘bid’ on a price per click, with the amount deducted from your account. This makes them more affordable for smaller businesses who may not have tens or hundreds of thousands of dollars to spend on ads each month. It also enables easier and more affordable testing, so you can test new concepts, measure the results, and invest in what works.
Search Advertising: Capturing User Intent
Search advertising places your brand at the top of search engine results when users enter relevant keywords. These ads typically operate on a pay-per-click model, meaning you only pay when someone actually clicks on your advertisement.
Google Ads: The Market Leader
Google Ads dominates the search advertising landscape, processing billions of daily searches and offering outstanding targeting and reach. You can set your ad to appear only for specific keyword terms and phrases related to your products and services. Location filters enable local businesses to focus their advertising on specific geographic areas, while audience segmentation helps refine targeting based on user behavior and interests. This means that a restaurant in Farmville, Virginia, can show ads only to central Virginia residents. Let’s face it; if you’re in the Dakotas, you’re not going to drive to Farmville for dinner!
Google Ads reaches high-intent users who are actively seeking solutions to their problems. When someone searches for a specific product or service, they’re often ready to make a purchase decision, making search ads particularly effective for driving conversions. The platform’s extensive reach ensures that businesses can connect with potential customers at the exact moment they’re looking for relevant solutions.
Bing Ads: The Overlooked Opportunity
Bing Ads are like the forgotten stepchild of the search engine advertising world, and that’s a shame because, for certain companies, they are an excellent choice. The platform tends to attract older and more professional audiences, making it particularly effective for B2B companies and businesses targeting mature demographics. I’ve seen it generate better results for B2B companies time and time again, so it’s worth testing if you sell services or goods to other businesses. Lower competition on Bing often results in cheaper cost-per-click rates, allowing businesses to stretch their advertising budgets further.
Integration with Microsoft products expands Bing’s reach beyond just search results. The platform connects with various Microsoft services, providing additional touchpoints for reaching potential customers. This ecosystem approach can be particularly valuable for businesses targeting professional audiences who rely heavily on Microsoft’s suite of business tools.
The Power of Search Advertising
Search advertising offers immediate visibility for relevant queries, putting your business in front of potential customers exactly when they’re looking for what you offer. The high conversion potential stems from user intent – people clicking on search ads have already demonstrated interest by searching for related terms. This qualified traffic often leads to better conversion rates compared to other advertising methods.
Detailed analytics provide ongoing optimization opportunities, allowing marketers to refine their keyword strategies, adjust bids, and improve ad copy based on performance data. This continuous improvement process helps maximize return on investment over time.
Social Media Advertising: Building Relationships and Driving Action
Social media platforms provide rich environments for brand storytelling, engagement, and direct response advertising. Unlike search ads that capture existing demand, social media advertising can create demand by introducing products and services to users who might not have been actively searching for them.
Facebook and Instagram: Visual Storytelling Platforms
Facebook and Instagram offer access to a massive user base with sophisticated targeting options that go far beyond basic demographics. The platforms’ advanced targeting capabilities allow businesses to reach users based on interests, behaviors, life events, and even connections to existing customers. This precision targeting helps ensure that advertising messages reach the most receptive audiences.
These platforms support various ad formats, including single images, videos, carousels, and stories, providing creative flexibility to match different marketing objectives. Visual storytelling opportunities make Facebook and Instagram particularly effective for B2C campaigns where emotional connection and brand personality play important roles in purchasing decisions.
LinkedIn: The B2B Marketing Powerhouse
LinkedIn serves as the premier platform for business-to-business advertising, offering unique targeting options that reflect its professional user base. Advertisers can target prospects by job title, industry, company size, seniority level, and many other professional characteristics. This granular targeting makes LinkedIn ideal for reaching decision-makers and influencers within specific industries or organizations.
The platform excels at promoting professional services, educational content like webinars, and thought leadership materials such as whitepapers. LinkedIn’s professional context lends credibility to business-focused content and creates an environment where users expect to encounter industry-relevant information and solutions.
Emerging and Specialized Platforms
Twitter, now known as X, remains useful for real-time engagement and capitalizing on trending topics. The platform’s fast-paced nature makes it ideal for timely campaigns and brands that want to participate in current conversations.
Pinterest represents a powerful platform for lifestyle, fashion, home decor, and DIY brands. Users often come to Pinterest with purchase intent, researching products and ideas they plan to implement, making it valuable for driving qualified traffic to e-commerce sites.
Benefits of Social Media Advertising
Social media advertising enables deep audience engagement through comments, shares, and direct interactions that can build a community around brands. This engagement creates opportunities for relationship building that extend beyond the initial ad impression.
Creative flexibility allows brands to experiment with different formats, messaging approaches, and visual styles to find what resonates best with their audiences. The informal nature of social media also permits more personality and creativity in advertising approaches.
Retargeting is also possible on social media. Retargeting means that the platform re-engages, or shows your ad again, to customers who may have visited your website or seen your ads before. This helps encourage buyers to revisit your site with the goal of more leads or sales.
Strategic Budget Planning for Digital Advertising
Budgeting digital advertising is both an art and a science. Most companies start with their best estimate and refine their budget based on demographics, targeting, and campaign results. A/B testing, or testing each new ad against the control or previous ‘winner,’ helps refine budgets and increase response rates over time. It builds on what works to maximize ROI.
How to Budget for Digital Ads
The first step is essential – define your goals. What do you want to accomplish? Brand awareness, lead generation, direct sales, customer retention, or something else? Identifying specific goals will help you focus and refine the entire campaign, including establishing the budget.
Next, choose the platform for your ads. Base your choice not on your favorite platform but on the demographics of the platform’s users. In other words, your ads should appear on platforms where your target audience likes to hang out. B2B ads may wish to test Bing, Google, and LinkedIn, while consumer-focused ads may wish to try Facebook, Instagram, or Pinterest.
I like to start with small ad budgets to test different approaches. Think about your first few campaigns as reconnaissance; you want to gather as much information as you can, learn from it, and move on to bigger and better things. Based on the metrics from the initial campaigns, you can then increase successful ones and sunset unsuccessful ones.
An important, but often overlooked aspect of digital advertising budgets is budget management. Keep an eye on your bank account, so to speak. Look at the metrics, including cost per click, conversion rates, and return on ad spend. Are you getting the most bang for your buck?.
Platform-Specific Budget Considerations
Google Ads typically requires higher minimum budgets due to competitive keyword costs, with most businesses starting their ad budgets around $500 monthly. However, highly competitive industries may require higher investments to achieve visibility and meaningful traffic volumes. This is why many companies prefer working with consultants and marketing agencies that specialize in Google Ads. (Note: Seven Oaks Consulting does have a partner ad agency that does this work for us, so let us know if it’s of interest!)
Facebook and Instagram advertising can be effective with smaller budgets, often starting around $300 monthly. The platforms’ advanced targeting and optimization algorithms can work effectively even with limited spend, making them accessible to smaller businesses.
LinkedIn advertising generally requires higher budgets, typically starting around $1,000 monthly, due to the platform’s premium audience and higher cost per click rates. However, the qualified nature of LinkedIn traffic often justifies the higher investment for B2B companies.
The Strategic Importance of Extended Campaign Duration
Don’t shortchange your ad campaigns by running them for a week and declaring victory (or losses). I recommend a minimum of three to six months of investment in an ad campaign to test, measure, and deliver information that can be used to improve future campaigns. If you can’t invest consistently in a digital ad campaign, now is not the time to run it.
Learning from Your Online Ads
All digital advertising platforms today use sophisticated algorithms that require time and data to optimize how, when, where, and to whom they show your ads. That’s why you need several weeks, if not months, to allow the ads to settle down (as I like to say) and start producing results. During the first few weeks of a campaign, the algorithms learn about your audience. They test different delivery strategies and identify the most responsive users. Cutting campaigns short disrupts this learning process and doesn’t provide a good return on investment.
Ads Build Recognition and Trust
There’s a reason why you see the same ads over and over again. Advertising success relies on repetition to build recognition and trust. Brand exposure, or seeing your company name, logo, and products repeatedly, imprints them in the viewers’ subconscious, helping them return to your company and products. Multiple touchpoints and multiple times seeing your ad improve brand recognition.
Accounting for Seasonal and Market Fluctuations
Here’s another often overlooked factor: seasonality.
All businesses experience natural seasonal shifts. Even technology and manufacturing companies see ups and downs in interest from customers. Consumer companies face even greater seasonal peaks and valleys. The Christmas rush, Black Friday, Mother’s Day, summertime…depending on what you sell, one season or month may be busy or slow. Longer campaigns offer more data, which smooths out potential biases from seasonal peaks and valleys.
Recommended Campaign Approach
So, how should you start a campaign? Focus first on strategy: where you should run your ads based on your customers’ platform or search preference. Then, establish your budget for at least three to six months of testing.
Next, conduct keyword research to develop your creative approach. Launch your ads.
The first month of digital advertising gives the algorithm time to adjust. During this time, watch carefully to ensure you’re reaching the desired target audience.
Months two and three represent the optimization phase, where insights from initial testing are applied to improve campaign performance. This might involve refining audience targeting, adjusting ad creative, or reallocating budget toward the highest-performing elements.
Months four through six focus on scaling successful strategies and maximizing return on investment. By this point, campaigns have sufficient data and optimization to support increased budgets and expanded targeting while maintaining efficiency.
Maximizing Digital Advertising Success
Digital advertising represents a powerful tool for reaching and engaging target audiences in today’s connected marketplace. Success depends on understanding the unique strengths of different platforms, from search ads that capture existing intent to social media advertising that builds relationships and creates demand.
Strategic budget planning ensures that advertising investments generate meaningful returns while supporting long-term business growth. The commitment to extended campaign durations allows for proper optimization and relationship building that short-term approaches cannot achieve.
Whether focusing on immediate conversions through search advertising or building brand awareness through social media campaigns, digital advertising offers measurable, scalable solutions for businesses of all sizes. With thoughtful strategy, appropriate budgeting, and patience for optimization, digital advertising can drive significant growth and create lasting competitive advantages in the digital marketplace.