The market size of
Internet advertising
continues to expand year by year. There are many companies and marketers who are trying to increase the value of their businesses and services by using Internet advertising. Such Internet advertisements exist in our daily lives as a matter of course, and there is a high probability that we will come into contact with Internet advertisements when using the Web. One of the reasons behind this is the rapid spread of smartphones and the steady expansion of the Internet environment, which has increased the number of points connecting Internet advertisements and Web users.
Internet advertising is attracting more and more attention every year, and one of the most popular types of Internet advertising is display advertising. When many people hear the term Internet advertising, the first thing that comes to mind is listing advertising.
However, in recent years, there has been a significant increase in the number of companies and marketers aiming to expand their businesses and services by utilizing display advertising.
Listing advertisements also play a major role in Internet advertising and have various advantages. On the other hand, display advertising has many innovative functions that cannot be compensated for by listing advertising.
In this article, we will introduce in detail the basic knowledge and characteristics of display advertising, as well as the differences from listing advertising.
What is display advertising?
Among Internet advertising, display advertising is an advertising method that attracts attention. Although many people have heard of the phrase display advertising, there are still many people who do not have a detailed understanding of what it actually is and its characteristics.
Display advertising is advertising carried out in ad distribution slots on websites and apps. Remember that a major feature of advertising display is that it uses images and videos in addition to text. In addition, display advertisements are often used and displayed as banners on web pages, and advertisements are displayed in accordance with the content of the advertising display space on a website. Also called content-based advertising.
Web users usually have many opportunities to come into contact with display advertisements. When browsing various websites using the Internet environment, many display advertisements consisting of images, videos, and text are displayed all over the site. It is possible to display advertisements not only with text but also with images and videos, which makes it easier to catch the attention of web users and is highly effective in expanding your business and services.
In addition, display advertising has many detailed targeting functions, making it possible to effectively approach target users by taking various user signals into account according to the purpose of advertising distribution.
Types of display ads
There are two types of display ads: “GDN (Google Display Network)”, a service provided by Google, and “Yahoo! Ads/Display Ads”, provided by Yahoo!. There is a major difference in that Google Ads is capable of distributing advertisements on a global scale, whereas Yahoo! Ads is a platform specialized for distributing advertisements within Japan.
About Google Display Ads
As mentioned above, Google Display Advertising is a type of Internet advertising provided by Google, also known as “GDN (Google Display Network)”.
By advertising your business or services using Google Display Ads, you can reach out to a wide variety of web users. Delivery destinations include over 650,000 apps and over 2 million websites, including Gmail and YouTube operated by Google. Using creatives that use images and videos in addition to text increases visibility and creates touch points with many users.
In addition, since Google boasts the world’s largest share of the number of users, it has accumulated a huge amount of user data. By utilizing this high-quality, detailed accumulated data for targeting, we can identify the web users who best match the purpose of ad delivery and achieve highly accurate targeting.
About Yahoo! Display Ads
Display advertising provided by Yahoo! is a service that delivers advertisements on websites and apps provided by Yahoo! JAPAN. Similar to Google Display Ads, you can use creatives such as text, images, and videos in the ad distribution space. This will help you visually approach your business and services to web users.
Yahoo! Display Advertising can be used to match the diversification of advertisers’ advertising distribution objectives, such as number of clicks and number of views.
Additionally, in order to approach your target users, it is possible to perform targeting based on various user signals (gender, interests, age, region, etc.) that Yahoo! has accumulated.
Display advertising pricing structure
From here, we will introduce the pricing structure for display advertising.
There are actually three billing methods used for display advertising pricing. Each of the three billing methods has different characteristics, so be sure to understand them carefully.
pay per click
First, we will introduce a payment method called pay per click.
Pay-per-click is a typical payment method used in various fields in Internet advertising. Sometimes called PPC advertising. PPC stands for “Pay Per Click.”
The unique feature is that the cost is only incurred when the displayed ad is clicked. A fee is incurred when an ad is clicked, so there is no fee if the displayed ad is not clicked. Therefore, you can increase the cost-effectiveness of advertising by delivering your advertisements to the desired users without paying unnecessary advertising costs.
In addition, the cost per click plays a major role in the metrics that are considered important in determining the final cost of the pay-per-click method. The cost per click has the characteristic that the cost fluctuates depending on each keyword used to display the ad and market trends.If a keyword becomes popular, there are many competitors, so the cost per click tends to rise. Additionally, an auction-style bidding system is adopted based on the calculated cost per click. Please keep in mind that auction evaluation indicators include items such as bid price and ad quality, which serve as evaluation points when displaying ads.
Impression charge
Next, we will introduce a billing method called impression billing.
Pay-per-impression is a system where you pay a fee based on the number of times your ad is displayed. The system uses a system where you pay for every 1,000 times an ad is displayed, and ads are displayed with the aim of maximizing the number of impressions, making it possible to reach a wider range of web users. . In Internet advertising, impression charging is the same mainstream charging method as click charging, and it is a typical charging method that is used in various cases of Internet advertising, so it is important to understand it thoroughly.
Conversion charge
charging is a system in which advertising costs are incurred only when the final goal or result set for displaying an ad is achieved. Costs are not incurred just when an ad is clicked, but only when a pre-set conversion goal is achieved, and the cost per conversion can be set freely.
At first glance, conversion billing seems to be a great deal without unnecessary costs, but Google Ads has recorded more than 100 conversions in the past 30 days, and more than 90% of conversions. Please note that there is a restriction that the ad must occur within one week after the user actually clicks on the ad, so please be careful when considering using it.
In addition, costs are incurred when a conversion occurs, so if you want to manage and understand costs on a daily basis, please be aware that costs may not be stable and may affect budget management.
Difference between display ads and listing ads
The two types of advertising methods, display advertising and listing advertising, are the most important advertising methods in Internet advertising, and are the key to success in Internet advertising operations. Although both have the same fundamental purpose of displaying advertisements, there is a clear difference in the user groups that are approached through displaying advertisements.
In addition, there are major differences in the specifications for displaying advertisements, so by understanding the differences between display advertisements and listing advertisements, you can display advertisements without waste to the user group that suits your purpose, and increase the effectiveness of your advertisements. It will be possible to maximize the.
A basic listing advertisement consists of three elements: “ad headline, link destination URL, and explanatory text”, and the advertisement is displayed using only text. When a web user uses a search engine to perform a search, advertisements related to the search keyword are displayed on the search results page. Since web users enter search keywords and take search actions, we can understand that they are a group of people who have an obvious need, such as “I’m currently looking for an answer to a problem.”
Listing advertisements make it possible to immediately reach out to users who have such needs with answers to their problems through the display of advertisements. Therefore, the conversion achievement rate for advertising display objectives tends to be relatively high.
On the other hand, unlike listing ads, which consist of only text, display ads can display ads using a variety of creatives such as text, images, and videos. This makes it possible to visually approach web users with products and services that are difficult to convey through text alone. Also, in contrast to listing ads, display ads are effective for targeting a user group that has latent needs that they are not yet aware of for your business or service. The advantage of this is that you can approach it from a wide range of perspectives to meet diversifying goals, such as increasing awareness of new products and services, achieving conversions for sales purposes, and improving the branding of your own business and services. Equipped with
summary
In this article, we will discuss what is display advertising? From this point on, we have introduced the basic knowledge and characteristics of display advertising, as well as the differences from listing advertising.
Display advertising is the mainstream of Internet advertising, but we have found that it can be very effective if you carefully identify the purpose of advertising and the target user group. In addition, even if you find it difficult to distinguish between display ads and listing ads because they are similar, this article may have helped you understand the differences between the two.
Now that we have entered a new era of the Internet called 5G, businesses and services that utilize Internet advertising will continue to expand in market size, and we foresee the emergence of even more new services. However, display advertising, which forms the basis of Internet advertising, is expected to continue to establish its value, regardless of the trends of the times, even when new services emerge. Understanding the basic knowledge of display advertising will continue to be an important element in the future, and will be used in a wide variety of fields in Internet advertising.