In this digital era, the spending on B2B advertising is only increasing to reflect the needs of all stakeholders. This spending is expected to reach an estimated 69 billion U.S. dollars by 2026 displaying the sheer growing demand in the segment. 

In this guide, every facet of B2B advertising is discussed- importance, types, best ads, and more. 

The Importance of B2B Advertising

Driving Growth and Revenue

B2B advertising is instrumental in generating leads and converting them into paying customers. It helps businesses identify and reach potential clients who need their products or services. Effective B2B advertising can increase brand visibility, grow sales volumes, and expand market reach.

Building Brand Awareness and Credibility

In the B2B sector, trust and credibility are paramount. Advertising helps establish a company’s reputation as an industry leader. Through consistent and strategic advertising efforts, businesses can enhance their brand image, making them more attractive to potential partners and clients.

Facilitating Long-Term Relationships

B2B transactions often involve long-term contracts and ongoing partnerships. Effective advertising not only helps in acquiring new clients but also in nurturing existing relationships. By maintaining a presence in front of clients, businesses can stay top-of-mind and reinforce their value proposition.

Types of B2B Advertising

Content and Search Engine Marketing (SEM)

This involves creating and distributing valuable, relevant content to attract and engage a target audience. Types of content include blog posts, whitepapers, case studies, and eBooks. Content marketing positions companies as experts in their fields and provides potential clients with information that can aid in their decision-making process.

SEM, including pay-per-click (PPC) advertising, targets users actively searching for specific keywords related to your business. Platforms like Google Ads let companies bid on keywords and appear in search results, driving targeted traffic to their websites.

Social Media Advertising

Platforms such as LinkedIn, Twitter, and Facebook offer targeted advertising options. LinkedIn, in particular, is highly effective for B2B advertising due to its professional focus. Social media ads can be tailored to reach specific industries, job roles, and company sizes. Meta advertising powers innovation and helps brands increase reach. 

Email Marketing

Email remains a powerful tool for B2B advertising. It enables direct communication with potential and existing clients. Campaigns can include newsletters, promotional offers, and personalized messages – all designed to nurture leads and build relationships.

Display Advertising

Banner ads, OOH ads, and display ads appear on websites and can be targeted based on user behavior, interests, or demographics. This form of advertising is effective for brand awareness and retargeting potential customers who have previously visited your site.

Trade Shows and Events

Participating in industry trade shows and events offers opportunities for direct interaction with potential clients. Advertising for these events can include digital promotions, sponsorships, and traditional media.

Challenges in B2B Advertising

Long Sales Cycles

B2B transactions often involve a lengthy decision-making process with multiple stakeholders. This can make it challenging to track the effectiveness of advertising efforts and measure return on investment (ROI).

Complex Buying Decisions

B2B buyers typically need to justify their purchases to others within their organization. Advertising must address various concerns and provide in-depth information to support complex decision-making processes.

Targeting the Right Audience

Identifying and reaching the right decision-makers within a company can be difficult. Effective targeting requires a deeper understanding of the target audience’s industry, job roles, and pain points.

Content Saturation

With the proliferation of digital content, standing out can be challenging. Companies need to create high-quality, engaging content that captures attention amidst a sea of information. In a report by Magna and LinkedIn, it was found that B2B advertising faces a challenge in terms of creativity. In fact, 64% of B2B decision-makers feel that B2B ads lack humor, emotional appeal, and relatability. 

Measuring Effectiveness

Quantifying the impact of B2B advertising can be tricky. Metrics such as lead quality, conversion rates, and long-term client value need to be monitored to assess the success of campaigns.

Popular Trends in B2B Advertising

Personalization

Tailoring content and ads to the specific needs and preferences of target accounts is becoming increasingly important. Personalized advertising can improve engagement and conversion rates by addressing the unique pain points of each potential client. In a report, 89% of business decision-makers mentioned they would look into the product offerings and services if the ads were personalized. 

Account-Based Marketing (ABM) Growth

ABM continues to gain traction as companies seek more targeted and effective advertising strategies. By focusing on high-value accounts, businesses can allocate resources more efficiently and achieve better results.

Video Content

Video is emerging as a dominant form of content in B2B advertising. It offers a dynamic way to showcase products, explain complex concepts, and engage audiences. Webinars, product demos, and explainer videos are popular formats. Video content has been instrumental in purchase considerations for B2B decision-makers. 

AI and Automation

Artificial intelligence and automation are transforming B2B advertising. Tools that use AI to analyze data, optimize ad placements, and predict trends can enhance campaign performance and efficiency.

Data-Driven Marketing

Leveraging data to drive advertising decisions is becoming standard practice. Analytics tools provide insights into customer behavior, campaign performance, and ROI, allowing for more informed decision-making.

Interactive Content

Interactive elements such as quizzes, surveys, in-game messaging, and calculators are gaining popularity. They engage users more effectively and provide valuable data that can be used to tailor future advertising efforts.

Influencer Partnerships

Collaborating with industry influencers can extend reach and credibility. Influencers who are respected within a specific industry can amplify your message and connect you with a broader audience. In a survey by Gartner, they found that B2B buyers value third-party interactions and influences while making business decisions for their company. 

Conclusion

B2B advertising is a vital aspect of modern business strategy, offering opportunities to drive growth, build brand awareness, and foster long-term relationships. By understanding the various types of B2B advertising, addressing common challenges, and staying abreast of popular trends, companies can develop effective advertising strategies that resonate with their target audience and achieve their business objectives. As the landscape continues to evolve, staying adaptable and informed will be key to leveraging B2B advertising for success.

Programmatic advertising can be found everywhere: from the websites you visit to the ads on YouTube – and even new formats like interstitial podcast ads or short clips on your connected television. The medium represented over $96 billion of digital display transactions in the US in 2021. This guide on programmatic advertising lays the groundwork for a successful programmatic campaign, telling you everything you need to know about how it works and how to leverage programmatic targeting for success. 

What is programmatic advertising?

The term programmatic refers to how digital ads are sold or bought and programmatic advertising is the process of using technology to automate several aspects of the ad purchasing process. It is more efficient to purchase this way and allows for stronger optimization of digital campaigns. 

Programmatic advertising can be used to strategically plan and execute campaigns for specific audience segments, geographic locations, or across multiple channels like video, mobile, display, and Connected Television (to name a few). 

This methodology of planning and automating ad buying is effective for advertisers and brands irrespective of size since it does away with the “hit or miss” results of traditional display advertising campaigns. With the strategic planning and adjustments made possible through programmatic, reliance and efficiency increase. Algorithms also help advertisers better understand the best way to spend their ad money. 

Programmatic advertising works especially well when building a long-term connection with your audience. It gives advertisers the upper hand for scalability and optimization, helping them create iterative campaigns for improved results. With programmatic advertising, brands can place ads in relevant channels and target the appropriate audiences for better results and improved ROI. 

Some must-know programmatic terms are:

• Demand-side platforms (DSP): Platforms that let media buyers automate and optimize digital ad space purchasing.
• Supply-side platforms (SSP): The other end of the spectrum – publishers use SSPs to manage and sell ad space on their own apps or websites. 

The benefits of programmatic advertising

Programmatic advertising makes it easier for advertisers to access a broader ad space inventory and leverage effective audience targeting. Some key benefits of programmatic advertising include:

• Reach larger audiences: Advertisers can reach larger, more relevant groups than when purchasing ad inventory from several disparate sources.
• Increased flexibility: Advertisers and buyers can make adjustments to ad campaigns transparently and flexibly. 
• Better targeting: There is less wasted ad spend as targeting is more effective and weighed against impressions. 
• Efficiency: Both sellers and buyers can achieve better returns on their respective investments. 

How does programmatic advertising work?

Programmatic advertising requires advertisers to have an automated, ongoing connection with publishers (those with ad space to sell). Through this connection, advertisers can manage ad inventory. This connection is made using software instead of individual, manual negotiations. Additionally, with programmatic advertising, advertisers can pay for ad impressions instead of paying a flat rate across all platforms. Advertisers can also leverage both sell-side and demand-side platforms to buy across open networks. 

For programmatic advertising to work, advertisers need to properly manage their audience, placements, budget, bidding strategy, creatives, and assets. Companies need to mention and specify target audiences, interests, and other essential parameters when leveraging programmatic advertising. These parameters can include: 

• Demographics: age, gender, location
• Interests: medical news, new devices, health information, etc.
• Devices: laptops, desktop computers, tablets
• Behaviors: trends in the medical field 

Programmatic platforms like DSPs will use this data to target appropriate audiences. The DSP bids for ad spaces on relevant apps, publications, and websites in real time. Once the relevant audience starts reacting to ads, organizations can view core KPIs like sign-ups, click-throughs, and impressions.

Types of programmatic advertising

Programmatic advertising is categorized based on how ad inventory is purchased. The most common forms of programmatic advertising are: 

• Real-time bidding: Advertisers purchase ad space on an open marketplace. Ad auctions happen in real-time where millions of microtransactions can take less than 100 milliseconds to complete. 
• Preferred deals: In this type of programmatic advertising, advertisers can choose the ad spots they want before they go to an open or private marketplace. 
• Private marketplace: In a private marketplace, publishers set agreements with advertisers for ad space. This type of bidding lets websites set their ad space at the best price possible.
• Programmatic guaranteed: In this form of programmatic advertising, there is no bidding process. Instead, the ad placement process is automated. In this form of programmatic purchasing, both buyers and publishers can manage and regulate inventory. 

Common methods for ad targeting with programmatic advertising

Programmatic advertising is based on efficient targeting. Here are some common targeting methods:

Audience targeting 

Ads are shown to audiences based on data and potential user interest. Cookies from websites may be used to gather this data for relevant targeting, although there are cookieless data strategies that are gaining momentum. In practice, this means that when a targeted user visits your site, they will shown your ads later when scrolling YouTube or watching a streaming service. 

Contextual targeting 

In this form of targeting, ads are shown based on the website’s context and content. So if an advertiser is selling a health tech product, they might target users on health blogs, publications, or wellness-related platforms and apps. 

Geotargeting 

Brands can also target customers based on their location. Data from the current or past locations of users is used to target, ensuring the right customers are reached in the right places. 

Keyword targeting 

This form of ad targeting focuses on using specific keywords to reach the right audience. This is very similar to contextual targeting and its execution is most often seen in search and social media ads. 

Retargeting

This method refers to the act of re-engaging audiences who’ve previously interacted with your brand. This can be through cookies or a tracking pixel. 

What’s next for programmatic advertising?

The future of programmatic advertising is vast given the strategy’s potential. Many ad-tech companies are now turning to automation and artificial intelligence to build even greater efficiency into the media buying journey. 

Automation 

Automation in programmatic advertising is already prevalent, however, advances in artificial intelligence technology have helped increase the efficiency, relevance, and profitability of ad placements. Big data insights, GPT-3, and augmented intelligence solutions will also continue to impact marketing automation initiatives. 

More than a demand-side platform 

There is disintermediation on both the DSP and SSP side of ad tech. There is also a paradigm shift in programmatic advertising with both platforms stepping into each other’s traditional boundaries. 

For example: solutions like illumin focus on the entire consumer journey to holistically enhance advertising outcomes. illumin offers media planning, media buying, real-time intelligence, and more all in one place, reducing marketing costs and enhancing desired business outcomes. 

Increased personalization 

Ad tech now requires high-level personalization and real-time measurement. It is going to continue to be essential to make decisions based on accurate data and insights – all while prioritizing user privacy. 

Artificial intelligence and machine learning 

Artificial intelligence (AI) is already used to find patterns, analyze actions, and predict future user behavior. AI can also be used to find the best times and locations to place ads. 

Bottom line 

Programmatic advertising is not new, in fact, it is as old as the digital banner ad itself. But the late 2000s saw a staggering evolution in the medium and programmatic platforms are more capable than ever. And now, Current technologies like AI are bringing an exciting edge to the world of programmatic. Programmatic advertising is a major facet of modern advertising and its ability to serve media to users at different points in their purchasing path is essential to long-term, digital success.

Is programmatic advertising part of your marketing mix?

Learn how illumin unlocks the power of journey advertising

Book a demo

To see more from illumin, be sure to follow us on Twitter and LinkedIn where we share interesting news and insights from the worlds of ad tech and advertising.

Follow @illuminHQ

Display advertising is a sub-type of online advertising that combines elements such as banners, text, images, video, and audio formats. They are typically served on consumer-facing news websites (such as those for newspapers, cable channels, etc) where users can perform several different types of calls-to-action, such as simply learning more, or buying/booking products or services. 

Display ads can take many forms such as – static, animated, rich media, text, or even audio. Global spending on digital advertising is expected to reach 836 billion dollars by 2026; it is important to understand the display advertising format in detail to add it to one’s marketing mix. 

What is display advertising? 

Display advertising is an important part of online advertising. These are visual ads that are placed on websites, apps, social media networks, or any channel that is clickable and redirects users to dedicated landing pages. Banner ads, mobile leaderboard ads, desktop ads, and more are display advertising examples. These display ads align with the content of the host website or social media network and audience preferences, similar to native advertising. 

What are display ads?

Display ads are an excellent way for brands to increase the reach of their message and target new potential customers. They are visually appealing and provide an opportunity for advertisers to incorporate copy and graphics into content that will capture the reader’s attention and drive them toward a desired action. Display ads also provide a cost-effective way to advertise with measurable performance, allowing the tracking and optimization of campaigns in real-time. 

The objectives behind display ads can vary depending on the organization and range from building brand awareness to generating leads or driving traffic to certain web pages or specific landing pages. 

By leveraging geotargeting capabilities, businesses can tailor their ad content and call-to-action messages to their exact audience demographics within milliseconds. This enables better customization for specific regions while keeping costs lower compared to traditional advertising methods. 

Additionally, with native advertising gaining recent traction, brands can now present users with relevant content that seamlessly blends within their experience on webpages, enhancing engagement potential.

Display ads versus native ads

Display ads and native ads work pretty closely.

Display ads are one of the oldest and still quite important methods of online advertising. Display ads are an umbrella term used for several types of different ad formats such as banner, text, video, audio, and interactive ads found in emails or web content. The main aim of display advertising is to reach potential customers with memorable visuals (like creative images and interesting videos) while trying to stand out from the sea of content out there.

On the other hand, native advertising is a newer type of online advertisement that looks less aggressive or “pushy” than traditional ads. It works by delivering promotional messages in a way that appears organic and mimics the appearance of non-paid content. This type of advertising usually appears in news feeds or recommended sections on websites so that it fits seamlessly into its surroundings, appearing more as part of the user experience than a disruption. These ads are more organically woven into the content on the website or page. 

Why you should include display ads in your marketing campaigns

Display ads are an effective way of reaching out to customers on a global scale. The Google Display Network, for example, has the potential to serve ads on millions of websites while targeting users with ads that are relevant and timely.

Increase business: Crafting thoughtful messages in various display ad formats can draw attention to your offers and bring clicks, conversions, and sales even from those who may not have considered your business originally.

Raise brand awareness: Remarketing campaigns through display ads are especially useful in increasing brand awareness by reminding users who have visited your website what they’re missing out on once they have left. Display advertising can influence readers in such a way that it increases brand visibility while simultaneously providing users searching for the perfect solution with what they need.

Better return on investment: Selecting the correct target demographic for these campaigns is key to ensuring that each ad-spend investment is as effective as possible in terms of generating ROI for your company’s marketing efforts.

How does display advertising work?

The key to successful display advertising lies in accurate targeting – finding the customers most likely to respond positively to your messaging and using creative strategies to capture their attention. 

1. Define your audience

Creating an effective ad campaign starts with properly defining your audience. Knowing who you want to target and where they are located is essential for ensuring your message reaches the right people. You can begin by identifying the demographic information you wish to target, such as age range, gender, location, and more. 

Additionally, making use of shopping information allows you to narrow your focus even further based on interests and previous behaviors that have been identified as being associated with a higher likelihood of a positive response to your ads.

Here, those who have already visited or interacted with your products or services can be served up additional targeted content that helps keep your brand top-of-mind. Considering who it is that you’re trying to reach can help increase the effectiveness of any ad campaign, as well as ensure that its message resonates with the right people.

2. Set your campaign goals 

When creating a campaign, it is important to establish clear goals. The key performance indicator (KPI) that best represents the desired business outcome should be chosen beforehand and a budget for the campaign should be defined. 

Many settings can also be customized when launching a campaign, including pacing, supply sources, device types, pre-bid traffic filtering, and more. Determining the correct settings depends on the nature of an individual campaign and its aims; however, factors such as ensuring adequate pacing of spend over time to avoid burnout while simultaneously creating competition in the auction space can help increase overall performance.

Utilizing pre-bid filters can also be effective in targeting potential customers without wasting money. Selecting relevant device types within certain platforms can aid alignment with targets while also preventing wasted ad-spend if certain devices are likely to perform poorly or have limited reach.

3.Size display ads to the right specs

Creating display ads to spec is necessary for any successful digital advertising campaign, as the fluctuating size dimensions of modern platforms need to be considered when designing creative for these types of ads. Incorrectly sized ads or those with poorly formatted images can appear odd, reducing their effectiveness and potentially damaging a brand’s online reputation. This not only applies to different devices, such as mobile phones, tablets, and desktops but also to multiple formats such as animated GIFs, HTML5 banners, or static images.

It is important to have a single piece of creative that is sized for all the chosen display ad formats required. While some elements of the ad may remain consistent across all sizes, it is certain that some elements will be omitted on certain sizes to create an aesthetically pleasing design. For instance, in larger display ads there could be more room for additional body copy that wouldn’t fit on smaller ad sizes – however, this would need to be omitted in smaller ads to prevent them from becoming cluttered and difficult to read.

4.Monitor the metrics of your display ads

When it comes to monitoring the metrics of a digital display ad campaign, there are numerous factors to take into account. It’s essential to pay close attention to exactly how your campaign settings and creative elements are impacting the success of the advertising, including headlines, visuals, and calls-to-action (CTAs). With this information, you can make changes that improve your acquisition rate, return on ad spend (ROAS), and click-through rate (CTR). 

For example, if you find that your headline isn’t compelling enough or catching enough attention from viewers, then use A/B testing to test alternative copy to increase your reach. Additionally, explore creative options for images and CTAs that might entice more clicks and attract more customers.

5. Analyse learnings for future display ad campaigns

When crafting any display marketing ads, it’s important to take note of what works and what doesn’t so you can optimize for future campaigns. Analyzing the insights gleaned from a campaign can save you time, money, and effort in the long run. Three essential elements to consider when optimizing are creativity, audiences (who will see your ads), and bidding (how much you’re willing to pay).  

Benefits of Display Ads: Key Takeaways for Marketers

Here are the major benefits of display advertising: 

Measurable outcomes 

The success of a display advertising campaign can be measured in multiple ways. Depending on the call to action (CTA) used, different marketing metrics can be employed for an effective analysis. 

For instance, if the CTA involves “experiencing the brand”, it could be monitored through clicks on the display ad itself and associated cost per click (CPC). Other visible results that should be involved in measurement include impressions, conversions, return on ad spend (ROAS), etc. 

All these are essential metrics to recognize whether or not the ad created the desired effect with its intended audience. It is also important to estimate what stimulated the shoppers into taking certain actions related to the displayed product or service.

Various data points collected from this type of analysis provide detailed insights into customer behavior. By studying them, advertisers can reach informed decisions about their marketing efforts and associated resources. 

With metrics like engagement rate and engagement index, assessing advertisement campaigns becomes easier than ever before. The combination of diverse metrics allows teams running these campaigns to gain accurate answers and valuable perspectives from consumers; and use them for better future strategies when it comes to making advertising decisions.

Cost-effective solution

Display advertising offers an incredibly cost-effective advertising method that allows for ample flexibility. Not only is it much more affordable than traditional advertising methods like TV or radio spots, but brands can also modify their visuals, call-to-actions, and messaging during a campaign. This lets them continuously optimize campaigns and get the most out of their budget.

For example, if one ad isn’t getting the desired results after it begins running, you can easily switch things up with new creative or messaging. This helps maintain a high level of efficiency while reducing costs per action for your marketing efforts. 

Additionally, since display ads are placed across various networks on multiple websites, you have more potential points of contact with your target market – with no extra cost attached. Display ads offer an unparalleled level of customization and value for businesses looking to maximize their budget in the most effective way possible.

Works well with other channels

Display advertising can be a powerful way to reach potential consumers who may not have considered your brand before. When combined with other channels like social media marketing, it can result in an increased return on ad spend (ROAS) or even create a halo effect that continues to bring new customers after the initial purchase.

Flexible 

Display advertising is an incredibly versatile tool for businesses of all sizes. It allows for flexible testing of various ad copy, visuals, and calls to action, enabling brands to more effectively pinpoint which messages will resonate best with their intended audience. Additionally, it is ideal for testing headlines in less-flexible ad formats such as TV spots or billboards, as well as being effective when used alone or in conjunction with other digital marketing channels.

The majority of display ads are delivered through programmatic advertising technology, making them one of the most widely used forms of advertising. In addition to its flexibility and easy implementation across multiple platforms, this technology also tracks each ad’s performance over time, allowing brands to test different variations and gain useful insights into their campaigns. 

As a result of these advantages, display advertising is a go-to choice (or piece of the marketing mix) for many brands looking to reach new customers or markets online.

Six effective display ad CTA examples

Display ads must have the right CTA to lead to the best results, regardless of the types of display advertising. Instead of generic call-to-action phrases, brands should select ones that yield the right outcomes. Here are some effective display ad CTA examples- 

• Learn more: To lead to an informational page
• Shop now: To lead to the product buying page
• Pre-order now: To lead to the pre-order form if the product is not yet available for purchase
• Sign up: To lead to the lead capture page
• Book an appointment: To book an appointment directly 
• Get your free copy today: To sign up for a free copy or product 

Bottomline

Display ads have become a part of modern life within the online world. However, if used correctly, display advertising is a powerful tool to help increase brand awareness and generate sales. Using these strategies can help ace your display advertising strategy. Keeping it simple with the right words, fonts, and colors can be helpful. Regularly optimizing and testing ad materials and strategies is important. 

Made for marketers

Learn how illumin unlocks the power of journey advertising

Get started!

To see more from illumin, be sure to follow us on Twitter and LinkedIn where we share interesting news and insights from the worlds of ad tech and advertising.

Follow @illuminHQ

(Updated on September 2024)

Global brands constantly look for ways to provide compelling visual content to the everyday consumer. Of the several channels that can execute this goal, video advertising continues as one of the most used methods of marketing. 

But what makes a good video campaign? What are the different types of video ads you can create? How do you stay competitive in this ever-evolving marketing landscape? Today, we tackle all these questions and everything you need to know about video advertising.

Video advertising: defined

Although video advertising seems like a very broad concept, it can be defined in several ways.

As the name suggests, video advertising involves the process of selling and promoting a product or service through the use of videos. Specifically, it is a form of video marketing in which promotional content or advertisements are displayed with video content, encompassing those of online display ads.

Video ads can be displayed through mobile or desktop web browsers, mobile devices (whether mobile web or mobile in-app), over-the-top (OTT) devices, and more. They can also appear in native video ads promoted on a website, in social media video ads, or in programmatic advertising.

Typically, video advertisements can play or be displayed in various ways: before (or known as pre-roll), during (mid-roll), or after (post-roll) the main streaming content the user is watching. It can also be a standalone ad. Meanwhile, companion ads include rich text media or images that don’t interrupt the video experience.

Moreover, there are three main formats of video advertising: linear, non-linear, and companion ads. 

Linear video ads are displayed as if it was part of a sequence or order of the streaming content whether it’s displayed before, during, or after, the video content (think TV commercials). Non-linear video ads run concurrently with video content so users see the ad while viewing the content. Meanwhile, companion ads are ads that include text, images or other rich media that wrap around the video which can run alongside either or both the video or ad content. 

Now, let’s put this into the context of marketing and strategy. 

A video advertising strategy is how a brand can utilize video content to promote itself. It involves setting goals, planning the content of the videos, knowing which audience to target and where to find them, how exactly to target them and which platforms to use, and measuring the impact and results of your campaign. 

Types of video advertising

There are many different types of video ads you can use for your campaign. Here are some of the most common types of video ads:

In-stream video ads

As the name suggests, in-stream video ads are embedded or appear in the same video environment. This means that the video ad could be played pre-roll, mid-roll, or post-roll from the main video content. One of the most common examples of in-stream ads is those that appear on YouTube videos. 

Outstream/Native video ads

Outstream video ads are designed to appear in non-video environments such as websites or in-article spaces. Typically, they start playing when a user views or opens the ad and automatically pauses or closes when the viewer scrolls past them. They can appear in-page (via a customized video player that appears on the website), in-banner (appears as an eye-catching ad at the top of the webpage), or in-text (designed to appear as the user scrolls through the page).

Outstream video ads are akin to native ads because they blend with the content and feel less intrusive for the user. It makes for a more seamless browsing experience and could then result in higher conversion and engagement rates.

Social media ads

These are standalone ads that appear in the user’s social media feed as they scroll. Platforms such as Meta, Instagram, and TikTok have their unique video ad formats that blend seamlessly with organic content. 

Interactive video ads

As the name implies, these video ads integrate interactive elements into the ad. It could range from clickable areas, quizzes or polls, games, or any other elements. These ads are effective if you want better engagement with your audience and to capture their attention or obtain valuable information and feedback from them (such as consumer behavior).

Shoppable video ads

These ads also integrate interactive elements into their campaigns. Specifically, giving viewers the option to make purchases directly from the ad via embedded links or hotspots that viewers can click on to complete a purchase. They can also try to learn more about the product or service in the ad, shortening the customer journey and increasing conversion rates.

Virtual Reality (VR), 360-degree, and Augmented Reality (AR) ads

These video ads take interactivity to the next level, letting the audience have a more immersive and dynamic experience. These types of video advertisements are great for when you want to demonstrate a product or for more effective storytelling, but tend to be more costly and require certain technology for proper execution.

VR ads offer a fully immersive experience that often requires a VR headset where everything is fully virtual and controlled by the system. 360-degree videos allow users to control their perspective by dragging the video to look around. AR video ads incorporate virtual or digital elements into the real-world setting that is typically accessed or controlled by a smartphone or other digital device. 

Benefits of video advertising

Video advertising is now a crucial part of digital marketing strategies for various reasons. This medium is effective in engaging audiences and ensuring you a return on investment on your ad spend. There are various advantages and perks to using video advertising. Here are some reasons why you should invest in video advertising:

Better audience engagement and retention

Video ads can increase brand awareness when people watch. They can go beyond awareness and include CTA buttons to drive online actions and conversions. Video advertising is effective at capturing and retaining viewer attention due to its visual and auditory elements. The storytelling in video ads creates a narrative that connects with viewers on an emotional level, making the message more memorable and impactful.

Improved audience targeting and personalization

Video advertising now has advanced targeting capabilities: advertisers can use data to target specific demographics, interests, and behaviors. The use of artificial intelligence and machine learning in advertising allows for a more personalized approach to video content. Different versions of video ads can be created for different audience segments, making the ads more relevant and effective.

Better storytelling and brand-building

Videos grant more opportunities to tell a story to the viewer and can create an emotional connection between them and the brand. Elements such as the music, dialogue, visuals, and scenery can help convey the brand and campaign’s message to the consumer. As a result, it creates a more authentic brand-building experience and impactful viewing experience compared to traditional print advertising and static imagery.

Improved response to customer pain points

Marketing with video allows for more flexibility in positioning your product or service and helps alleviate one of the biggest customer pain points: clicks. Video ads that start playing automatically within content eliminate the need to rely on clicks. Users are exposed to the ad while engaging in an activity of their choice, such as watching a YouTube star’s episode or playing a mobile game. 

When users opt-in to watch a video, engagement rates tend to increase significantly. Giving viewers control over the ads they watch provides an opportunity for brand engagement on their terms, which is an effective way to achieve your KPIs.

Flexible and adaptable to ever-changing consumer habits

The way people consume content has shifted to online and mobile platforms. Technology advancements have made video content more accessible and impactful. Video content is now dominant, especially among younger demographics. 

Social media platforms like YouTube, TikTok, and Instagram have contributed to this shift. Consumers often share these videos on their own social media and engage in the comments sections, making it an effective method to better audience brand-building and customer engagement. 

Advertisers are creating tailored content for these platforms to reach their target audience effectively.

Examples of video advertising

Gymshark’s “celebrity prank” stays true to its humorous branding strategy

The British sportswear brand Gymshark launched a hilarious TikTok campaign called the “Celebrity Prank” back in 2023. The social media video ad campaign made use of celebrity lookalikes who appeared at their flagship store in London at various times of the day. It incited customer frenzy and gained a lot of attention which incited bigger brand awareness and customer engagement for the brand.

Hyundai Australia incorporates AR in its video campaign

Hyundai Australia put the viewers in the driver’s seat through the use of augmented reality in its video ad campaigns. To showcase its i20 N model, Hyundai launched a series of video ads on Meta and Instagram. The video included a CTA button that included a “Try On” filter with the use of AR elements, giving viewers the chance to simulate an experience of actually riding the car. The campaign resulted in an 8.4-point brand lift compared to the brand’s standard video ads.

Hotels.com makes a witty play on “silent” videos

Hotels.com takes advantage of viewers relying on closed captioning as well as the consumer behavior of watching videos without sound in public (and scrolling through ads that autoplay on social media with their volume turned off) with its “Silent Piano” video ad. The ad itself is silent (like a silent movie), and makes use of the compelling text narrative to keep viewers on edge on what the message it is trying to convey. The message pokes fun at how ads autoplay silently on Meta when people scroll mindlessly and ends with a call to action for viewers to download the Hotels.com app. 

Final thoughts

Video advertising is important because it engages viewers and adapts to consumer habits. It drives conversions and offers targeted, personalized content. Video advertising also builds brand identity through storytelling and overcomes traditional advertising limitations.

As digital technology evolves, video advertising is expected to become more integral in marketing strategies across industries.

Made for marketers

Learn how illumin unlocks the power of journey advertising

Get started!

To see more from illumin and our partners, be sure to follow us on X and LinkedIn where we share interesting news and insights from the worlds of AdTech and advertising.

Follow @illuminHQ

(Updated September 2024)

If you’ve ever seen any of digital billboards when walking the streets or an LED board at the side of a bus stop that has an advertisement on it, you may wonder how those ads come to be.

Out-of-home advertising or OOH has been around for decades. However, with the incorporation of AI technology, DOOH advertising has become even more effective in targeting consumers and delivering relevant messages. 

In this day and age, going digital in the marketing world is the norm. But how does one take their advertising to the next level through digital? Today, we look at one of today’s biggest trends in digital marketing: digital out-of-home.

What is digital out-of-home?

Out-of-home advertising or OOH advertising is a form of advertising targeted at consumers outside their homes – pretty simple huh?. Any ad that is not on your phone, a magazine, or computer  (such as those that you see on park benches, billboards, or signage) is some type of OOH ad. 

It can also be a signage at a bus shelter, a poster in a public space, or a digital display in an airport or subway. This out-of-home advertising lets brands reach a wide range of target customers with minimal effort. 

More specifically, digital out-of-home advertising (DOOH) is digital media run outside the home. In other words, it is digital media that appears in public. They can be found on digital billboards in malls, airports, transit stations, and highways. They are great for reaching geo or venue-targeted audiences using highly visual creatives.

It is also sometimes a form of programmatic advertising that utilizes digital displays placed in high-traffic areas to reach a wide audience. Programmatic DOOH allows for the automated buying and selling of digital signage, billboards, and screens. All decisions are data-driven and based on machine learning to target, place, deliver, or measure ads out of home. 

Why invest in DOOH?

There are a lot of benefits and purposes for implementing DOOH in one’s marketing strategies. 

Digital out-of-home advertising is a powerful tool that lets businesses reach the right target audience with tailored messages. In a nutshell, DOOH reduces complexity, increases campaign reach, and grows brand awareness. It also helps create grassroots awareness and delivers the messaging when the audience is technically offline. DOOH can also help increase footfall and overall in-store traffic. 

With digital OOH advertising, you can even target specific audiences with tailored messages that help increase brand recognition and customer loyalty. Some campaigns can change material on the fly depending on outside circumstances (such as the weather, time of day, local news, and other factors). 

One can even use some booming and innovative DOOH advertising trends such as location intelligence mapping and augmented reality experiences. These forms take OOH to the next level with eye-catching visuals and create an immersive experience for potential customers. In addition, businesses can use location intelligence mapping to better understand consumer behavior and create more effective campaigns. 

Global digital out-of-home market is projected to reach $58.7 billion USD by 2031. As well, a study from the Out of Home Advertising Association (OAAA) finds that 76% of recent DOOH viewers took action (such as watching a video, visiting a restaurant or store, or purchasing in-store) after seeing a DOOH ad. 

This suggests that DOOH advertising can lead to higher audience engagement and return on investment. It also suggests that there are more investments and value given towards DOOH both from the consumers’ and marketers’ side thanks to outdoor advertising.

Forms of DOOH

As mentioned, DOOH ads can appear in various forms and places. Almost anywhere can be a location through which DOOH ads can be displayed. Here are some examples and types of common and major DOOH advertising.

Billboard advertising

Billboard advertising is one of the most popular and effective forms of DOOH advertising. Digital billboards are potentially seen by thousands of people every day who are driving or walking in high-traffic areas where they appear. Hence why the presence of digital billboards are growing everywhere. DOOH billboard ads can be static or moving images.

Transit advertising

This type of DOOH involves placing digital ads in public transportation vehicles and other street-level public transit spaces. They can be located inside a subway train or a taxi, a train station or an airport, a bus stop shed, or even at an elevator. This type of practice is effective especially when you want to target passersby and people from all types of demographics. It is also flexible such that your campaign can literally be moving (in the case of public transit vehicles), increasing the reach and visibility of your ads.

Retail space advertising

Another common location where DOOH ads can be found are in retail stores and other public recreational spaces such as shopping malls, supermarkets, gymnasiums, bars and restaurants, gas stations, and more. 

They are typically digital signages displayed on kiosks or LED stands or they can be ads that you see as in-aisle displays when you are shopping at a convenience store. It can also be a point-of-sale digital signage when you are checking out your items at a big box store or a supermarket or at an ATM machine.

These types of DOOH ads typically deliver relevant messaging to passersby depending on the location of the digital ad. For example, a boutique advertising in the same shopping mall where their store can be located or a milk company advertising in a supermarket. 

Location intelligence mapping

As mentioned earlier, location intelligence and geotargeting can be a good driver of effective DOOH advertising. 

Location intelligence is an invaluable tool that lets us unravel a wealth of information by visualizing and analyzing geospatial data. By seamlessly layering various location-specific data sets onto a smart map or dashboard (including demographics, traffic patterns, environmental factors, economic indicators, and weather conditions), we can gain unique and actionable insights.

With a location intelligence platform, DOOH advertisers can conveniently arrange their audience metrics and campaign results into comprehensive maps that offer valuable insights. The visual representation aids in understanding the coverage and impact, allowing users to assess campaign performance within specific target groups and locations with clarity.

Augmented reality (AR) advertising

The integration of augmented reality to deliver out-of-home ads has been a game changer for marketers everywhere. 

Augmented reality (AR) refers to technology that enhances the real-world environment by overlaying digital visual elements, sounds, and other sensory stimuli through holographic technology. AR combines digital and physical worlds, enables real-time interactions, and accurately identifies virtual and real objects in 3D.

Using AR in your DOOH campaigns results in a much more engaging, immersive and memorable experience for those who are seeing your campaign. It makes for a greater brand recall and overall, better return on investment. 

Tips and tricks for DOOH advertising

Here are some tips and tricks and other things to consider when executing digital out of home campaigns:

Location and timing are key

Crafting creatives that take into account the ad’s location and physical context can result in captivating and attention-grabbing content. Consider where ads would be highly visible and seen by audiences, the foot traffic, and other relevant geographical factors. 

Also consider the day and time of day when placing ads. Additionally, take advantage of holidays and seasonal opportunities – they can be the busiest times with additional accelerated traffic, or dead zones depending on the location.

By considering the surroundings and using them to create material that is humorous, intriguing, or even surprising, you can effectively capture the audience’s attention. Not only will this approach engage viewers, it will also leave a lasting impression, leading to a memorable and shareable ad experience.

Consider dynamic storytelling

Digital billboards tend to have 2.5 times greater impact than static ads because it’s more eye-catching and it gives the option to cycle ad creatives to see what performs best. 

Dynamic ads are noticeable because they seem personalized and relevant to the viewer. This makes them more engaging for customers, almost like a conversation, rather than a traditional sales pitch. With Dynamic DOOH, brands can leverage personalization to connect with an audience in a more meaningful way using contextual technology.

Take for example, the Beauty Mark social media campaign by CVS. It was an interactive and personalized campaign that let users upload their unedited selfies to social media with the #BeautyUnaltered hashtag. These selfies would then pop up in various digital billboards across Times Square. Rather than standardized visuals and a one-size-fits-all type of campaign, the ads became more tailored to the users who were uploading their own image for the campaign.

Integrate interactivity in your ad

Dynamic campaigns can be more fun when audience members can interact with a display. Interactivity is especially useful in smaller settings where individuals may want more information or entertainment from a digital screen. Some common interactive features include touchscreen control for on-screen elements, gesture control for manipulating screen images, wayfinding or information services for businesses, buildings, or areas, and geo-targeting to market to nearby mobile devices.

Made for marketers

Learn how illumin unlocks the power of journey advertising

Get started!

To see more from illumin, be sure to follow us on X and LinkedIn where we share interesting news and insights from the worlds of AdTech and advertising.

Follow @illuminHQ

(Updated September 2024)

Augmented reality (AR) is emerging as a groundbreaking technology – not just for consumers in the advertising world; it also offers brands the opportunity to create immersive and interactive experiences for their audiences.

With the integration of Artificial Intelligence (AI) and machine learning, AR is set to revolutionize programmatic advertising and marketing strategy overall, providing a new dimension for brands to engage with consumers in a more impactful and memorable way. 

This innovative combination of AR and AI opens up endless possibilities for advertisers to create unique and personalized ad experiences that captivate and inspire.

What is Augmented Reality (AR)?

Augmented reality (AR) refers to technology that enhances the real-world environment by overlaying digital visual elements, sounds, and other sensory stimuli through holographic technology. AR combines digital and physical worlds, enables real-time interactions, and accurately identifies virtual and real objects in 3D.

Augmented Reality (AR) vs. Virtual Reality (VR)

AR uses a real-world setting while VR is completely virtual. AR provides a more effective way to create, organize, and deliver instructional content by integrating digital information into real-world tasks and situations. Unlike virtual reality (VR) where everything is entirely virtual, AR is designed to add digital or virtual elements over real-world views with limited interaction.

Put simply, AR users can control their presence in the real world; VR users are controlled by the system. In addition, VR users typically require a headset device, but AR can be accessed with a smartphone or other digital devices. 

Types of augmented reality advertising

In a technical sense, there are various types of AR with distinct applications and functionalities:

Marker-based AR

This type of AR makes use of a visual marker such as a QR code or fiducial marker. Users simply scan the marker with their mobile device to initiate the interactive experience. However, augmented reality mobile advertising is limited in the sense that it requires a mobile device or technology that has built-in AR support or a dedicated app for the AR to function.

Markerless AR

Markerless AR functions without the need for physical markers (such as QR codes) and instead, uses location-based data like GPS or mobile device accelerometers. Users scan their environment through a mobile app or website, and digital elements are projected onto surfaces such as floors and walls.

It identifies and monitors the user’s surroundings to superimpose virtual content based on spatial relationships and object positioning. This type of AR is commonly used in online shopping or in-game advertising. 

Projection-based AR

As the name suggests, this type of AR uses projectors to project 3D imagery or digital content onto flat surfaces such as walls and floors. It doesn’t fully create immersive environments but the holograms displayed are intended to captivate and engage audiences.

Projection-based AR is commonly used in in-person events such as store openings, pop-up shops, and movie screenings. 

Location-based AR

Location-based AR is a variant of markerless AR. It makes use of geographic data to deploy digital content at precise locations (similar to geotargeting). The most common example of this is the mobile gaming app Pokémon Go which allows players to trigger various AR functionalities depending on where they are.

Location-based AR has only been used in retail settings to gamify the shopping experience such as virtual scavenger hunts within boutiques to entice customers to explore and earn rewards.

Superimposition-based AR

This type of AR marketing replaces or enhances physical items with digital content. Specifically, it identifies objects or features in the user’s environment (such as book covers or product labels) and overlays digital information onto them. 

For example, in retail settings, this technology can guide customers and provide product information by placing virtual arrows onto the environment to direct shoppers to specific products. A device can reveal the virtual overlays with details such as price, features, and reviews.

Forms and applications of augmented reality marketing

In addition to the technical types of AR, augmented reality in marketing can also take various forms and applications:

• AR OOH advertising: Augmented reality can be integrated with out-of-home (OOH) advertising. OOH advertising refers to any visual media presented outside of the home such as billboards, bus stop advertising boards, etc.
• AR print marketing: Traditional print marketing such as postcards, flyers, and direct mail, can be more engaging and elevated by applying AR elements to it. 
• AR product packaging: AR can also be utilized in various packaging such as adding QR codes to a packaged product that shows how-to videos or a thank-you message.
• E-Commerce: Through appless AR or web AR, customers are able to view and experience products in 3D from the comfort of their own homes. Some websites can offer a “virtual dressing room” or a “virtual try on” feature that lets customers try on products 
• AR events and showcases: Events, conferences, product launches and showrooms, and virtual walkthroughs that integrate AR elements can be used to elevate the user experience. Visitors get to have an immersive event experience through 2D video, 3D animation, and volumetric motion capture.
• Other forms: In addition, there are other various forms of augmented reality advertising. For instance, Snapchat has a feature that uses AR-powered lenses and filters that lets you “try on” various products (such as eyewear or apparel). There are also virtual walkthroughs and showrooms, AR video ads, 3D product showcases, AR games (such as Niantic Wayfarer and the aforementioned Pokemon Go), and more.

Benefits of augmented reality in advertising

Studies show that a great AR ad campaign is typically more effective than traditional advertising techniques. In one study by Meta, 90% of brands found campaigns combining traditional marketing or business-as-usual tactics and AR saw nearly three times the brand lift and costing 59% less on average. 

In another study from eMarketer and ARtillery Intelligence, US mobile advertising spending itself is set to grow over the next year, reaching up to $235.67 billion USD by 2025. Mobile AR advertising revenues worldwide is expected to grow to $39.81 billion by 2027.

This shows there’s a lot of room for potential and growth in the industry and AR advertising is expected to increase in investment and revenue in the coming years. 

Investing in AR advertising provides a lot of value and advantages to campaigns. It provides better user engagement since it offers a more unique, personalized, and interactive experience for customers.

In fact, the Ericsson Emodo Primary Survey Research Study in 2021 found that 68% of respondents agreed or strongly agreed that engaging AR ad experiences reflected positively on the brand on question; 74% said those ads with AR experiences would be more likely to capture their interest or attention than regular ads.

Some companies have also found that AR ads often perform better than display ads, which leads to higher conversion rates. Take for example, Shopify, who found in their study that on average, 3D AR ads generated 94% higher conversion rates than their static 2D counterparts.

Utilizing immersive AR experiences lets brands build deeper emotional ties with their customers and achieve better brand recall. By immersing the audience in the experience and encouraging active engagement, AR increases the likelihood that viewers remember the ads.

Studies show that AR experiences lead to 70% more memory encoding compared to traditional static ads.

Challenges of AR advertising

There are certain challenges, and limitations, to consider when utilizing AR in advertising strategies. For instance:

• AR-enabled technology is required: One of the biggest barriers marketers face when implementing AR is the need for supporting technology. This could be a smartphone or tablet with a camera. In addition, most AR ad experiences rely on a mobile app to host their content. If your target consumer doesn’t even have the app or technology to view your ads in AR, then it would be a lost cause.
• Hardware and network limitations: Your campaign is limited to what a user’s device can withstand. The graphics processing capacity, the battery consumption, the network connectivity, and other factors can be very demanding both from the advertiser and the user’s side. This means that your AR campaigns may not be as effective if there are any hardware and software limitations from either side.
• Expertise required in building the software and ad: It takes technical expertise (such as coding and 3D rendering) to develop AR advertising campaigns. There are AR software development kits and tools that exist. However, they can be very costly. Even outsourcing this work to third-party companies or agencies can be costly if one doesn’t have the tools and resources to build AR campaigns themselves.

Examples of augmented reality ads

Coca-Cola launches “#TakeATaste” AR campaign

In September 2023, Coca-Cola UK had an innovative AR giveaway and a nationwide digital out-of-home (DOOH) campaign called “#TakeATaste” for its Coke Zero Sugar product in collaboration with Tesco group. 

Smartphone users could interact with some of London’s OOH screens (such as the Picadilly Lights) and change the screens’ AR visuals in real time. They could also scan a QR code that awarded them with both a digital bottle of Coke Zero on their phones and a voucher to claim the real thing in a nearby Tesco.

Toyota uses AR to give users a virtual test drive of its “Crown” line

Toyota collaborated with Yahoo Advertising to create an immersive AR experience in support of their launch of the 2023 Toyota Crown line. 

With the AR experience, users can delve into the car’s exterior and interior, taking a complete 360-degree tour around the vehicle, immersing themselves in the driver’s seat, and even virtually driving the car, all within the confines of their own garage or driveway.

To make the experience even more informative, educational highlights are incorporated to offer shoppers a better understanding of the Toyota Crown’s distinctive features.

In addition to the AR experience, Yahoo helps Toyota reach future Toyota Crown customers through additional digital touchpoints including Digital Out-of-Home (DOOH) advertising, banner displays, and leveraged Connected TV (CTV) pre-roll to reach consumers in their homes. 

The Weeknd holds an AR concert on TikTok

To promote his album “After Hours”, musician The Weeknd held a concert in 2021 on TikTok. The Weeknd became the first artist to use TikTok for an augmented reality concert. 

The concert offered a fully live digital experience with scenes changing with each song. Through AR, users could choose the scenes by voting and sharing comments which were displayed live in the surroundings.

Final thoughts

As AR  evolves and integrates into various industries (including advertising), it has the potential to revolutionize how brands engage with consumers.

By harnessing the power of AI and AR technology, advertisers can create personalized and engaging ad experiences that drive meaningful connections. This innovative combination of AR and AI also opens up endless possibilities for advertisers to create unique, experiential ads that inspire and captivate audiences.

AR has proven that it can play a vital role in the advertising realm. The question is: will it play a role in your advertising?

Made for marketers

Learn how illumin unlocks the power of journey advertising

Get started!

To see more from illumin, be sure to follow us on X and LinkedIn where we share interesting news and insights from the worlds of AdTech and advertising.

Follow @illuminHQ

Does your digital marketing mix include native ads?  Native advertising is a proven method for capturing consumer attention. In this guide, we will break down everything you need to know about Native advertising so that you can get started with your own native ad campaigns.

What is native advertising?

Native advertising is a type of paid advertising in which ads match the content, visual feel, and form of media they appear in. Basically, it is digital advertising that blends in seamlessly with its environment- web, social media platforms, or any other format online. The concept of native advertising encourages user’s accept the content that belongs in-stream. Instead of sticking out like a sore thumb, native ad formats ensure readers feel that the promotional information is a natural part of their content consumption experience. 

Although they can technically appear in any medium, native ads are most often found in social media feeds, web pages, and search engines. Wherever they live, all native ads share the trait of “not looking like ads,” instead choosing to emulate the media they inhabit. They are usually highly focused on light-touch content and awareness rather than hard selling. Some of the popular types of native ads include: 

• In-feed ads: These are ads that appear on social or news networks when you are scrolling. It could be Facebook, Instagram, TikTok or Twitter. They merge with your feed easily and engage the reader. They are great for increasing click-through rates to offsite destinations. 
• Sponsored content: These native ads could be blog posts, videos, articles, infographics, or any form of content appearing on publication or platform feed. 
• Promoted listings: Any ads – audio, image, text, or video – that appear at the top of search pages you are browsing are promoted listings. These ads are attractive as they appear in front of users who have a high purchase intent. 
• Recommendation widgets: These ads appear on any website and recommend relevant products or content to improve user engagement and experience. They may lead a user to a destination on that site or platform or to an offside experience. 
• Paid search ads: These are text ads that are activated with relevant keywords to drive traffic and clicks. 

Why native advertising works

• Attention: Like many advertising concepts, Native advertising is backed by hard data. Consumers look at native ads 53% more than display ads, and native ads create an 18% increase in purchase intent (Source: Outbrain). In an industry where an increase of 1% in email click-through or social media engagement rates is considered a huge success, native advertising boasts an incredible advantage over more traditional ad formats.
• Consumer trust: Native advertising also has the benefit of fostering increased trust. A third of consumers were more likely to trust native advertising than traditional advertising, and clicking on a native ad driver on a premium content website had a more significant impact than clicking via Meta (source: Native Advertising Institute).
• Interest: Native advertising also alleviates what advertisers call “ad fatigue” –when consumers become bored and disinterested from seeing too much overt advertising during their day. Native ads usually consist of editorial content instead of “hard-selling”, so they have a greater ability to engage consumers, provided the content is relevant and interesting.
• Non-interruptive: Native advertising is essentially non-invasive or interruptive as the style and format blends in with its surrounding content. This boosts engagement and ensures higher quality traffic. You can also include commercial content here on social platforms in a native content format. 

Native advertising vs. content marketing

Although native advertising sometimes employs content marketing to blend in and appear more “native,” these two concepts are often erroneously used interchangeably. While both native advertising and content marketing employ a softer approach than traditional selling, native advertising is best understood as a concept, while content marketing is a tactic.

As we have learned, native advertising refers to any form of advertising which emulates the format of its environment through an in-stream delivery that does not interrupt a user’s experience. Native ads can include branding, product promotions, or any advertising message. 

On the other hand, content marketing is a form of marketing that focuses on creating and delivering shareable marketing materials like blogs, videos, newsletters, whitepapers, social media posts, and podcasts to establish trust and authority in a given market. It can be promoted through paid advertising, like native, but doesn’t necessarily have to.

Why use native advertising?

In case you aren’t already convinced, here is some more data on native advertising and native ad platforms and why you should include it in your digital marketing mix:

• Native display ad spending in the US is expected to grow 12.5% year-over-year in 2023, reaching $98.59 billion (source:eMarketer).
• 68% of consumers trust native ads seen in an editorial context, compared to 55% for social media ads (source:Outbrain/Sevanta).
• The Native Advertising sector is estimated to be worth $400bn by 2025 (source:The Drum).
• Engagement rates are 20 to 60 percent higher on native ads than on banners and drive retention rates that are 3x higher (source:MarTech).

Three real-life native advertising examples

Buzzfeed – Miracle-Gro

This native campaign is incredibly interactive and features an AI-powered song generator for plants by Miracle-Gro, a plant product brand. Readers can get a song customized for their plant which creates a positive association with the brand and makes it stick out in their mind in a crowded field of gardening products. 

Wall Street Journal – Netflix

The Wall Street Journal’s native ad for Narcos – the Netflix series – engages readers with information on the economics of cocaine production and its impact globally. 

Reddit – Huel

Reddit is a popular social network built on the foundation of discoverability and user generated content. Because of the niche content on the site, native ads are often placed accurately to drive action. The r/Fitness page has a promoted post by a protein company, Huel. The ad blends so well with the other posts and draws attention from the right audiences.. 

Native advertising best practices

Now that the benefits of Native Advertising have been firmly established, let’s look at some best practices to keep top of mind for success when implementing native advertising campaigns. 

• Understand the target audience: For any form of native advertising, it is important to understand the target audience: the pain points, needs, uses, and general persona. This target audience needs to be the center of all content efforts. Conducting surveys, persona research, and more can help marketers learn more about the target audience. 
• Choose interest over interruption: Native ads are delivered in-stream and featured in a way that does not disrupt the user’s experience of the platform or the media itself. The power of native advertising is diminished when the ad itself is highly disruptive! As an advertiser, one must change their approach from “what would elicit a sale from my target audience” to “what would my target audience find interesting or entertaining”? Creating high-quality content that seeks to entertain or inform will help marketers generate the most impact with their next campaign.
• Focus on content: Although content marketing is not the same as native advertising, the two complement each other. Blog articles, podcasts, and entertaining videos are just a few of the content marketing tools at a marketer’s disposal when it comes to creating eye-catching native ads.
• Test everything: Begin with a clearly defined goal, as well as a testable hypothesis. This can be as simple as “smaller text is always better.” Many advertisers choose to test only two variations through a concept known as A/B testing: they test their original ad against a new version that is different in some way instead of running three or more ad variations simultaneously. The original ad or “control” performs an essential function because it is the baseline that determines whether further experimentation is a success or failure. Once the test is run, the only thing left to do is decide which version of the ad to continue using based on the results.

Native advertising: Concerns and obligations

Native advertising is not a perfect science and comes with some issues that all advertisers must consider. Namely, there is some debate around the potential for native ads to blend into their target environments so well that audiences feel as if they’re being misled. One study found that fewer than 1 in 10 people could distinguish “online sponsored content” from news articles (source: Phys.org).

• Finding the balance between the interests of publishers and a marketer’s goals;  create content and ads that are of value to users and align with the overall tone and style of the website. 
• Failure to comply with legal, data privacy, and ethical standards such as GDPR in Europe, FTC and CCPA in the U.S. It is important to maintain transparency and state that they are viewing an ad. 

Journey advertising: The future of native?

According to our own Chief Strategy Officer, Seraj Bharwani, “Journey Advertising is a brand’s ability to reach consumers at key moments along the journey with relevant content and creative messaging to achieve mutually beneficial outcomes.”

Native ads often do just that: they meet audiences at key moments during their journey, seeking to provide value instead of a quick sale. Looking at one’s next native advertising campaign as a journey will help reveal the entire consumer relationship as a connected pathway instead of a final destination.

It is a conceptual framework that you can use to take your native ads to the next level. Learn more about journey advertising here.

Start your Native Advertising campaign today

illumin is more than just a native advertising platform. It lets you harness the power of Native Advertising along a connected journey, allowing you to control ad creative and frequency at each stage and discover the most effective route to conversion. Find out how our connected canvas helps marketers place native ads across the consumer journey where they make the most sense.

Made for marketers

Learn how illumin unlocks the power of journey advertising

Get started!

To see more from illumin, be sure to follow us on Twitter and LinkedIn where we share interesting news and insights from the worlds of ad tech and advertising.

Follow @illuminHQ

(Updated September 2024)

“Hey Siri! Set an alarm for 7AM.”

“Hey Google, turn off the lights.”

“Alexa, what’s the name of this song?”

You may have heard somebody utter these statements recently or something along these lines. You may even have said them yourself at one point. The rise of voice search and smart devices (such as Google Home and Amazon Echo) and virtual assistants (like Siri and Alexa) have changed the way users interact with their devices and ultimately, opened the world up to new possibilities.

Such possibilities include opportunities for the integration of voice-activated technology in advertising. Audio advertising isn’t something new. It has been around for a while and comes in different forms such as podcast advertising.

However, it hasn’t reached its full potential, as there are still facets of audio advertising that have yet to be utilized to its full extent, such as voice-activated ads or voice-enabled ads. 

Devices and technology capable of streaming audio content are highly accessible to consumers and its rate of consumption is growing. That said, marketers are starting to see the potential of interactive audio ads to engage users in more ways as well as target new audiences they want to acquire.

Voice-activated ads at a glance

Voice-activated advertising (or voice-enabled advertising) refers to the usage of voice technology or a voice-activated device to deliver ads to users. Consumers would hear audio ads that are delivered through voice assistants or smart speakers, typically activated by voice commands or integrated into existing content (such as podcasts or music streaming services).

This type of interactive audio advertising works by using natural language processing (NLP) to understand user requests and deliver ads. Consumers interact with the voice-activated technology through which the device records the audio and sends it to a server for analysis.

The server then uses NLP algorithms to identify the user’s intent and then delivers an appropriate ad in response. As a result, we have interactive voice advertising or interactive voice ads. 

Some ad interactivity options include interactive audio ads where customers interact or engage with the ad with a simple voice command. This could be through the ad’s call-to-action (CTA) where users can input a voice request to add to a cart or respond to the ad – the device completes the request without disrupting the streaming audio content. 

Another interactivity option is through branded experiences. These are longer-form experiences users can engage with using their voice. The experiences let brands start a dialogue with customers, offering a variety of paths and engagement options (such as a voice-based car showroom).

Voice-enabled ads are a form of programmatic audio advertising, as it is a digital ad placed in an audio form that uses algorithmic buying to automate and streamline the ad insertion and selling process. 

Examples of voice-enabled ads

Estee Lauder uses voice-activated marketing for its serum

The cosmetics company Estee Lauder launched a voice-activated digital audio campaign called “Send Me a Sample” to launch its Advanced Night Repair serum. Spotify and Google Home users had a chance to receive a free sample of the serum when they said “Send me a sample” at the end of the audio ad.

Burger King triggers voice-enabled technology devices in its Whopper ad

Back in 2017, Burger King launched a 15-second ad that featured users saying “OK Google, what is the Whopper burger?” This phrase would trigger the Google Home devices of those listening to the ad (and in turn, read the Wikipedia entry for Burger King’s iconic Whopper). The ad gained widespread attention, highlighting the early potential of voice-activated advertising.

Downton Abbey movie’s promotion through Amazon Alexa

Focus Features launched an exciting “choose your own adventure” branded experience called “The Downton Abbey: A New Era” using Amazon’s Alexa. Users could activate the experience via a voice command of “Alexa, launch the Downton Abbey experience.”

This would guide listeners through a voice-based experience that provided them with the option of participating in trivia, a behind-the-scenes tour, or purchasing tickets for the movie.

The value of voice-activated advertising

Voice-activated ads offer a lot of value and potential for brands. 

A study by NPR and Edison Research shows that 53% of smart speaker owners who have heard an ad on their device say they would respond to ads on their smart speaker. Additionally, almost half of the smart speaker owners who listened to ads say that – compared to hearing an ad in another place – a smart speaker would make them more likely to consider the brand. 

This means brands can achieve a much higher engagement rate and ROI if consumers are more likely to respond well to ads they can interact with through voice commands or voice-activated technology. 

Voice-enabled ads also bring a better, seamless user experience. Since users interact with voice assistants and smart speakers in a conversational manner, voice-activated ads can integrate easily into the user’s experience. Specifically, brands can connect with listeners by facilitating a voice response with more information.

It also lets consumers engage with the ads hands-free while performing activities like cooking or exercising. That means ads are delivered to consumers with little to no interruption to their user experience or everyday activities.

Voice-enabled advertising also allows for more personalized ads based on the user’s preferences and behavior. Take, for example, Pandora.

After initial testing in 2019, the music streaming service expanded more on its voice control features with the addition of voice-activated ads. Only listeners who already hear ads will be offered the voice-activated ones, which ask the listener to agree to hear additional content (users must actively say “yes” to initiate). 

Ultimately, this can lead to higher conversion rates and a better return on investment for advertisers because brands get their message across to consumers. 

Another benefit to voice-activated ads is their resistance to ad blocking. Ad-blocking tools have not yet invaded the digital audio space. They are only designed to target visual display ads,  audio-based campaigns can quickly resolve this growing problem. 

That said, voice-activated ads have a high chance of accurately targeting and advertising to their users without running the risk of ad blockers and disruption of user experience.

Final thoughts

Voice-activated advertising (and interactive audio ads in general) offers a refreshing and engaging type of user experience. While it is still a niche marketing format (both on the advertiser and consumer side), it offers a unique option for marketers looking to stand out and target segments in an unconventional way.

In a world where technology is constantly evolving and the usage of AI in advertising is growing, voice-enabled marketing could very well be the “new normal” of audio advertising’s future.

To see more from illumin, be sure to follow us on Twitter and LinkedIn where we share interesting news and insights from the worlds of ad tech and advertising.

Follow @illuminHQ

Made for marketers

Learn how illumin unlocks the power of journey advertising

Get started!

(Updated September 2024)

Nowadays, it seems people listen to more than just music on their streaming apps or watch the daily news on television. 

Podcast consumption (and its advertising) is seeing rapid growth, especially among Canadian audiences. In fact, the podcast advertising market in Canada is projected to reach revenue of $67.29 million USD in 2024. 

Additionally, studies from Edison Research show that 78% of Canadians are familiar with podcasting, and 23% listen to podcasts every week. It’s not that they are playing it in the background while mindlessly doing other tasks. Podcast listeners are fully engaged, paying attention to the entirety of a podcast episode.

As a marketer, this information should be music to your ears. Why, you ask? Well, imagine having an audio ad for your brand plugged into a podcast to which listeners are fully engaged and paying attention. That’s a high value of brand awareness and recall. 

Marketers see a lot of potential in this platform and – in turn – investing in podcast advertising. Here’s everything you need to know about this booming trend.

What is podcast advertising?

As the name suggests, podcast advertising is a type of paid marketing that takes place within a podcast episode. Specifically, it is a type of digital advertising where businesses promote their products, brands, or services through audio content distributed via podcasts. 

The purpose of podcast ads is to offer a unique medium for brands to promote themselves to highly engaged and loyal podcast audiences. Because of the typical structure and episodic nature of podcasts, brands are given a distinct opportunity to advertise themselves in a more immersive, natural way.

There are three podcast advertising categories: 

• Standard advertising agreement: the brand pays the podcast host (or podcast network) for ad space in their show. The ad itself can be pre-recorded or host-read, and it can be fixed or dynamic. Both parties will also agree on the ad’s placement within the audio content. 
• Affiliate marketing: the podcaster decides to join the affiliate scheme and market the brand. They only get paid when and if their promotion results in sales or conversions. This is why you’ll often hear hosts give custom URLs or discount codes during their ad reads: to track these sales. 
• Branded podcast: Companies themselves invest in creating their own branded podcast. It is a great way for them to connect with their customers and provide accurate and high-value content that relates to their brand.

Nowadays, podcasts are typically part of a podcast network. Podcast networks are a group of shows under one umbrella company. After joining, a podcast’s ad space is made available to advertisers for the profit of both the network and the podcaster. 

In short, blocks of advertising space are reserved in podcasts but ads are served dynamically depending on targeting. In addition, ads in podcasts can have different placements: 

• Pre-roll: typically plays at the start of the episode but can be moved up to 25% at the start of the episode by the podcaster (before the content)
• Mid-roll: ads are placed in any episode that is at least 10 minutes or more in length (during the episode)
• Post-roll: ads play at the end of podcast episodes but can be moved up to 50% from the end of the episode by the podcaster (after the content)

There are also certain cost models for podcast advertising. One is called CPM which stands for “cost per mille” (mille meaning thousand in Latin). It is essentially the price paid for every one thousand impressions or plays per episode. Pre-roll, mid-roll, and post-roll ads are usually priced according to this cost model. 

Another cost model is the CPA which stands for “cost per acquisition”. Here, the ads are priced according to the number of conversions. Each time a listener converts due to the podcast ad, the business or sponsor pays out a predetermined fee. Affiliate marketing models usually follow this cost model. 

Others use a flat rate model for their podcast advertising strategies. The brand and the podcast team will negotiate a contract for the price of advertising which can be affected and determined by various factors such as audience size, frequency, and more.

Tips on advertising in podcasts

Considering there are various podcast advertising categories, cost models, and ad placements, there is no one-size-fits-all process. However, there are various strategies brands take in advertising in podcasts. Here are some tips to ensure a successful podcast advertising campaign:

• Know your audience: It’s important to know who your target audience is and the podcasts they listen to. Creating and understanding your customer personas can help determine which podcasts to advertise in and what types of content they resonate with.
• Choose which ad model fits your brand and campaign the most: Decide which ad placement and category is the most appropriate for your campaign to ensure high audience engagement and impact. 
• Select which podcasts and shows to advertise on: Do your research and see if there are any existing podcasts that are in line with your brand and its campaign. It’s important to have ads that are contextually relevant and appropriate for your audience. If there aren’t any existing podcasts, maybe it’s worth considering having your own branded podcast too.
• Curate your podcast ad: Write out a script to send to your podcaster or produce everything yourself and send over a final podcast ad recording. The types of podcast ad to use should also be considered. Keep in mind your advertising budget as well and take note of the cost models that come per advertising category. 
• Assess and evaluate your podcast ad: After your podcast ads have gone live and you’ve set enough time to see results, observe the analytics and see where you need to improve or adjust your advertising.

Benefits of podcast ads

Those who invest in podcast marketing would find themselves having a higher audience engagement and return on investment. In fact, 41% of podcast listeners trust ads more if they hear them during a podcast. That’s because people tend to form a strong connection with their favorite podcasters and hosts. This connection creates a unique opportunity for brands to connect with audiences in an engaging media environment and foster trust among them. 

In relation to audiences having a stronger connection to podcast hosts, the podcasts provide a higher degree of listener trust. Thus, giving brands an opportunity to leverage this and advertise themselves through media that the audiences trust. A US Podcast Advertising Revenue study conducted by IAB suggested listeners respond better to ads a podcast host reads than pre-produced ads, much like any type of endorsement. Consumers are more likely to respond to sincere and authentic conversations about a product compared to scripted copy. 

Another benefit is the flexibility for brands to advertise. Because podcasts cover a wide variety of topics and subjects, you have plenty of options to advertise on shows that best fit your brand (for example, a pet grooming company promoting their services to an animal enthusiast podcast). In turn, you open your brand to the possibility of attracting and acquiring new customers that fit your target market.

Podcasts also offer extended reach and repetition, and therefore, a more sustainable form of advertising. When you pay for an ad on a podcast episode, it’s usually a one-time charge. However, you’re likely to get more for your money because podcast ads are on episodes permanently and will be heard by any listeners replaying those episodes or binging the series in the future.

Final thoughts

Podcast advertising offers many opportunities for marketers. In an industry that is continuously expanding, brands can take it up a notch by adding to their arsenal the value and benefits of advertising in podcasts. It’s a step in the right direction that’s full of possibilities and sustainable growth.

Made for marketers

Learn how illumin unlocks the power of journey advertising

Get started!

To see more from illumin, be sure to follow us on X and LinkedIn where we share interesting news and insights from the worlds of ad tech and advertising.

Follow @illuminHQ

Since the early 2000s, social media has been a forum for community engagement and a great way for marketers to reach audiences and build trust; it follows then, that a strong social media advertising or social media marketing strategy is essential for establishing a meaningful digital presence. 

Social ad spending in 2023 is estimated to be about $83.72 billion USD. Influencer spending is also estimated to account for an additional $5.4 billion this year. 

This massive marketplace can be hard to dive into, especially as it continues to become crowded with competing brands. Knowing how to stand out, while engaging with audiences is crucial. 

The first thing to note is that there are two main ways to engage with users on social media: 

Paid social:

Paid social refers to ads created for social media sites. These can be video ads that play on platforms like TikTok and Instagram or banner ads that appear on Pinterest or Meta. Social media platforms also have their own formats and capabilities. It’s worth noting that the formats of ads are frequently changing as social networks update parameters. 

Organic social posts: 

Social posts are another great way to engage with audiences online. By creating and sharing content on social media, marketers can speak directly to their target audience, building trust and fostering relationships. They can count on an audience of engaged followers as it is made up of users who choose to follow their brand and want to see content directly from them.

The second thing to note is that whether engaging audiences through paid social or social posts, marketers are engaging with users on their terms, in their space. 

Social media networks are the realm of social media users, and ads and brand posts can feel like an interruption if they are not created with the intended platform and space in mind. The same way a television ad needs to consider its audience’s desires, so does a social strategy. Effective social media posts and ads fit into the digital space seamlessly. 

Using trends to bolster your social strategy

Following trends is an effective way to create impactful content for social media. By understanding the behavior, humor, and language a target audience uses online, marketers can make posts that fit the mold and attract engagement. 

Social media posts do best when they don’t interrupt a user’s feed, but rather fit into it. This builds a sense of trust by making your brand feel more like a friend and less like an outsider. 

This isn’t to say that posts shouldn’t stand out. There is a balance to be struck between fitting in and making a statement. The best engagement comes from posts that hit the sweet spot in between. 

Trends are also important to understand when building paid social campaigns. Ads that are too interruptive are less likely to be engaged with by audiences in an oversaturated market, like those online. A good paid social ad strikes a similar balance as social posts, blending in with existing trends while standing out from the competition. 

Understanding algorithms’ impact on social strategy

Social media algorithms determine who sees your social posts and when. This means that understanding how algorithms work on a given network is important when building out a social strategy. 

The trick is these algorithms are constantly changing. Like trends, which evolve as users grow and change, algorithms change too. Social networks update these decision making equations in order to create an environment that appeals to their users, and since user behavior changes over time, so do algorithms. 

Luckily, there are many industry specialists who track these changes. The Social Media Examiner, for instance, recently put out their report on how the Instagram Algorithm Works in 2023. By keeping up to date with how algorithms work, marketers stand a better chance of having their work seen and building meaningful engagement.  

Putting your persona first

Like with all marketing, your persona should be at the center of your strategy. Every social media network targets a different demographic or fills a different purpose. By understanding how a network’s target audience intersects with yours, you are better able to delegate your efforts. 

For instance, commerce efforts on social media are best made when targeting millennials and Gen Z. 

Marketers should choose which platforms are the best fit for their brand and spend their resources accordingly. Likewise, when using multiple platforms, marketers should create tailored content in order to more effectively communicate with their audience. 

By creating individual content for each platform, rather than copy-and-pasting from site to site, marketers can build their strategy around their persona in order to more effectively foster engagement. 

Social media is a continually changing landscape. By continually conducting research and by paying attention to social platforms trends, marketers can build a social strategy that effectively communicates with their audiences and fosters meaningful engagement. 

To see more from illumin, be sure to follow us on Twitter and LinkedIn where we share interesting news and insights from the worlds of ad tech and advertising.

Follow @illuminHQ

Made for marketers

Learn how illumin unlocks the power of journey advertising

Get started!