Definition of Online Display Advertising
As advertisers collect data across multiple external websites about a user’s online activity, they can then combine this information to create a picture of the user’s interests to deliver even more targeted advertising. This aggregation of data is called behavioral targeting. Advertisers can also target their audience by using contextual and semantic advertising to deliver display ADs related to the content of the web page where the ADs appear. Retargeting, behavioral targeting, and contextual advertising all are designed to increase an advertiser’s return on investment, or ROI, over untargeted ads.
As advertising needs become more sophisticated, display ADs can also be personalized based on a user’s geography through geotargeting. Basic information such as a user’s IP address can indicate a user’s rough location with a limited degree of accuracy. This information can be supplemented further through the use of a phone’s GPS or the location of nearby mobile towers to have a clearer indication of the user’s current position for a mind boggling array of advertising possibilities.
What is used to measure the success of Display Marketing?
Clickthrough Rate (CTR)
Typically, when we talk about online marketing, a clickthrough rate refers to the likelihood of a user clicking on your online initiative. This is generally used as a benchmark by advertising agencies to gauge how well an advertisement or a campaign is received by the audience.
Bounce Rate (BCR)
Bounce rate is the percentage of visits that go only to one page before exiting the site.
When a user bounces on a page that was advertised by a display advertisement, it indicates that the user was intrigued enough to click on the advertisement, but when they visited your site, they found that what they saw on the advertised page is not relevant to them.
There are a number of factors that contribute to your bounce rate. For example, visitors might leave your site from the entrance page if there are site design or usability issues. Alternatively, visitors might also leave the site after viewing a single page if they were not able to find what they were expecting.
Conversion Rate (CVR)
The conversion rate basically tells you what percentage of the people clicking through an AD ended up completing an action or a goal that the advertiser desired. This could be anything from a purchase made online, a registration for a newsletter or even a request for more information.