OK let's get a couple of things straight here:
1. Display advertising does work & can be profitable.
2. Display advertising is generally seen to be a branding exercise, but if you have multi-channel set up correctly then it will definitely help support all of your other channels.
3. Display advertising does generally get significantly lower CTR than what you may be used to - if your experience is in search PPC for example.
How do you actually decide whether display advertising is worth while or not?
Firstly, set yourself up an Excel sheet - ask the seller / check the DSP network what rates they are offering, you want the following:
- CPM Rate
- Past CTR Performance
- Banner Sizes
These are the most important things you need, the above will help you build your display forecast.
Next, you input these in to your excel sheet, you add your conversion rates (from past/current activity), AOV, e.t.c and calculate direct sales - generally speaking it will be pretty poor because the average CTR of display advertising (can't remember the exact figure) is quite low, imagine figures in the 0.05% - 0.50%.
It's also - REALLY important to know the costs of each banner size, as each banner will have different CTR. For example a double skyscraper generally have much better CTRs than most.
Oh, also - check whether it's above the fold or below the fold - if it's below the fold, make sure the CPM is cheap and make sure the CTR reflect the below the fold positioning.
OK, now what about multi-channel...
Well, display as you all should know is just one out of a variety of channels, it should be used as both a branding and direct sales piece, but you should also have a retargeting pixel on your website, ready to collect the audience that clicks through to your website so you can re-engage with them later down the line.
Secondly, opt in boxes / lead generation - get their email address so you can begin email marketing (it's free...)
Third, have search activity live - make sure you are present for your brand, if you do a big display campaign it will have a knock on effect on brand traffic.
There is loads more to display advertising than meets the eye, you just need to be smart about what your doing...
for example a Youtube masthead would set you back about £150k in the UK (from what I recall) for 24 hours...you will NEVER make £150k back unless you are Apple and selling iPhone 6's for a 75% discount or something...but let's be real, no one is going to make a profit directly from a youtube £150k masthead...
Yet, you continue to see companies advertising...why?
Well, because they are MULTICHANNEL...simple.
^OK that was a really poor example, that sort of display advertising is only really for large well-known brands who have multiple access points for users to buy (website, showroom, retail store e.t.c) but just remember MULTICHANNEL.
OK I am done, that was long and I some what rambled, but I hope it was semi-useful - starting a blog soon for anyone interested, hopefully create more informative/less ramble articles.
