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Display Advertising and the Future of Ad Retargeting

Display advertising is changing rapidly and those changes are making it harder and harder to understand and keep up.

Here’s a quick breakdown on some of the most recent changes:

  1. Fewer ads per page. Currently, there is way more supply than demand for online advertising. There’s really no limit to the number of ads one can display on a website (though a large number certainly isn’t advisable). As the market matures, and publishers begin to focus on their audiences’ needs, the price of online advertising should force a closer balance between ads and ad space.
  1. People matter most. Some companies purchasing inventory on ad exchanges take a “spray-and-pray” approach to ad retargeting. They bombard the site’s audience with as many impressions as they can, with little regard for performance or efficiency. That works for a little while, but certainly not long term. This should make forward-thinking agencies optimistic about the future, as it allows for thoughtful ads to reach a more accepting audience.
  1. Putting your customer data to work is a must. Too many companies think retargeting is easy… throw a tag on a landing page and retarget every customer who comes to the site. But as display evolves and becomes more competitive, advertisers need to use more of their own data to make decisions and optimally price each impression. For example:
  • What products did the customer buy in the past?
  • How does that inform what products should be shown in the display creative?
  • What’s the sales cycle for the advertiser’s product or service and how should that affect the CPM?

The important thing to remember is that you have a wealth of data to work with. You can control your own results.

For more information about display advertising and ad retargeting, contact KEO Marketing.