The steady rise in the importance of display advertising to an effective digital marketing campaign is well-known throughout the business world. The ability to target these ad campaigns to reach the customers your brand is targeting is second to none. And this is particularly true if you’re using Google Ads to reach a wide range of buyers and increase conversions and traffic to your website.
But Google uses a pay-per-click (PPC) business model on their platform. This means that you have to enter bids for the ad types and placements you want. And the PPC business model can cause your conquesting costs to soar if you’re not placing your bids correctly.
The PPC business model works because the advertiser bids on the keywords in the ads and relies on a combination of the ad’s quality and the keywords to entice a potential customer to click on the ad. The advertiser only pays once the user clicks on the ad.
Google offers five types of display advertising to choose from. These five ad types consist of Display Network, Search Network, Video, Shopping and Universal Apps. Knowing what types of ads make the most sense for your type of products and services is only half the problem. You still have to contend with the PPC aspect of bidding to complete the process of advertising on Google.
Satisfying Acquisition Costs
Before you decide what type of ad works well for your products and services, you need to have a firm grasp on your acquisition costs. These are the costs your brand incurs in the process of getting a customer to buy a product or service. Your acquisition costs are part of the formula you use in setting your advertising budget. And it is an important part of display advertising bidding.
Once you decide on a type of ad to create, you have production expenses in creating the ad. You also have to add in the ad rates. In the old days of print, radio and TV ads, these rates were generally fixed. You know what you would be paying for placement and could add this in as part of your costs of acquisition.
In the new age of digital display advertising and the PPC model of bidding, this is more of an unknown factor. But staying within your brand’s targeted acquisition cost per product or service is still important to your brand’s ability to remain profitable.
Relying on the Experts
Before your brand enters into the sometimes expensive world of display advertising, it’s good to have qualified experts on your team to figure out what the correct amount to bid is in relation to your acquisition costs.