Unit-III Advertising Tools and its Optimization

❖ What is advertising?
Advertising is any paid promotion of a product, service or idea meant to influence one or
more people. It can take place on several mediums, such as print, radio, television and digital
media. The main goal of advertising is to persuade someone to buy a project or perform an
action.
❖ Types of advertising
There are three main types of advertising, which are:
1. Above the line: Above the line advertising is not targeted to a specific group and is created
to reach large audiences. TV, radio and magazine advertisements are usually this type.
2. Below the line: Below the line advertising is a type of advertisement that is directed
toward a specific target audience. These can be mailing lists, in-store advertisements and
commercials created for a specific program.
3.Through the line: Through the line advertisement is often used for brand-building
campaigns and has a mix of above and below the line techniques. They're usually widely
distributed advertisements that use cookies or digital data to personalize the customer's
experience.
❖ Reasons why advertising is important
Advertising is an important part of trade and commerce for multiple reasons, including:
1.Increases sales
Advertising's main goal is to increase the number of people who buy your product. You can
achieve this by using advertisements to encourage customers that your product is high-
quality, useful or desirable. An effective advertisement can convince customers to purchase
your product, which may dramatically improve your overall sales.
2.Informs customers
Creating an advertisement is a simple way to inform potential customers of your product and
any advantages or features it may have. You can include important information such as the
function of a product, where you can buy it, price and unique qualities in a short period of
time. Advertising also allows you to tell your audience about promotions such as sales,
special services for new customers or special events.
3.Helps introduce products
When your company introduces a new product or service, you can create an ad to inform
your customers about it. This allows you to show the new product to a large number of
people and create an interest for the release. Telling a larger amount of people about your
product release may increase the number of people who want to buy it.
4.Informs you about your competition
You can use advertisements to monitor your competition and learn about any developments
they make. When a competitor releases a new product or feature, they may create an
advertisement to inform their customers. This gives you the opportunity to develop
something new of your own or create a new advertisement detailing the features of an
existing product that addresses the same challenges.
5.Retains customers
Using advertising can help remind your customers about your brand and may encourage them
to continue buying your product. A customer who once used your product may see an
advertisement and remember their positive experience. This can motivate them to purchase
that product again or try other services from your company.

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6.Increases employee morale
An effective advertisement may improve the morale of coworkers who see or hear about it.
People may find it easier to talk to potential customers about new products or services if the
customer is already slightly aware of them. A quality advertisement may also increase a
person's pride in their workplace.
7.Differentiates your brand
Because most products and services have multiple companies competing for customers, your
company may need to find ways to distinguish itself from competitors. Advertising elements
such as logos, color schemes, fonts and taglines are ways to establish a brand identity and
create a difference between your product and other companies. If a customer recognizes or
likes your brand design, that may increase the chances of them purchasing your product.
8.Increases customer trust
Advertisements can increase familiarity and trust between a company and its customers. If a
potential customer sees multiple ads about your product, they may consider you a trusted
brand. You can also use advertising to address any concerns, which further builds trust
between your company and your customers.
9.Reaches target customers
Using advertising can help you easily identify or market toward a particular target audience.
After researching a target audience, you can release an ad that may appeal to them at
locations they usually frequent. If you have more than one target audience, you can create
separate ads and market to both audiences in different areas.
10.Explains company values
A company with powerful, visible values can resonate with customers and may encourage
brand loyalty. Advertisement allows you to describe your company's core traits or values to a
wide audience and may encourage them to try your product. Having clear company values
can also increase customer trust and may strengthen a brand's identity.

❖ What is performance marketing?

Performance marketing is a digital marketing strategy based on results in which the brands or
businesses only pay the marketing agencies, advertising platforms, or affiliates when they
achieve their specific campaign goals, typically in the form of sales, clicks, or leads.
❖ What are benefits of performance marketing?
Even though this marketing strategy can be challenging for some businesses, there are many
benefits for those who dive in.
Here are three reasons why you should give performance marketing a try.
1.Low risk
Performance marketing is a low-risk method to introduce new strategies since it requires
(relatively) little investment. If the campaign works, you can scale up and increase the
budget; however, if it doesn’t, it’s easy to back up without a big loss.
2.Targeted
This marketing strategy allows you to target the right people with your message. You can
focus on demographics and geographic locations or narrow your searches by interests and
behavior, such as consumers who visited your site recently or who clicked on the ad in the
last 24 hours.
3.Increased ROI

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One of the biggest benefits of performance marketing is that it can result in higher ROI than
other types of advertising because it’s focused on a specific goal.
❖ How do you measure performance marketing?
Performance marketing is the art of achieving your business goals through paid advertising.
It’s not just about buying ads and hoping they work. It’s about getting a return on the money
you spend, which means measuring performance and adjusting your strategy accordingly.
The following are some of the most important metrics you should track to ensure your
campaigns are running smoothly and meeting goals.
1.Cost per click (CPC)
Cost per click refers to the cost of each click on an ad. The higher the CPC, the more
expensive it is for your business to advertise on that particular keyword or keyword phrase.
2.Cost per impression (CPM)
The average amount paid by an advertiser for every 1000 ad impressions. This is calculated
by dividing the total cost of the ad by the number of times it was viewed.
3.Cost per lead (CPL)
The number of prospects responded to your ad and filled out a form. CPL is a standard metric
used in PPC campaigns because it gives insight into how much each lead costs.

4.Cost per acquisition (CPA)

The cost per acquisition refers to how much you spend acquiring new customers. When
looking at CPA, you should consider both the cost of your ad and the value of each sale or
conversion.
5.Lifetime value transaction (LVT)
LVT is a metric that can give marketers valuable insights into potential revenue from a
customer over time. In other words, it estimates how much one customer will spend on your
product or services during their entire relationship with your company.

❖ What is Display Advertising?

A popular and effective format of digital advertising is display advertising. It is completely
driven by the visuals it uses to attract attention and spread brand awareness across the
internet.
Display ads are a profitable method of advertising for marketers looking for ways to reach
and acquire customers. They make generous use of visual media in the form of texts, images,
or even videos to catch people’s attention.
You can usually spot display ads in designated corners of webpages and social media
platforms, and they are usually showcased in the form of a banner ad (graphic or text). All
campaigns ranging from the ones using simple text to those with attractive videos can be
grouped under display advertising.
Most successful display advertising campaigns use a clever combination of images, text, gifs,
and videos to stand out on the internet and send their message across to the targeted audience.
Marketers can play around with language, design, shapes, and sizes of banners to create
engaging display ads.
❖ The Display Advertising Targeting Process
One of the most vital features of display advertising is its ability to target specific sections of
the audience that match parameters based on the advertiser’s requirement. The display

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advertising targeting feature ensures that your ad reaches the right audience, and ad spend
isn’t wasted on a demographic that isn’t interested in your product/service.
The multitude of options available when it comes to display ad targeting can be
overwhelming; it is important to have clarity about the kind of demographic that you want to
cater to, and accordingly choose from available targeting options.
Display advertising targeting is a complex process – here’s a look at some of the steps you
can take to maximize this feature:
1. Define your demographic: You can segment the audience based on their basic
demographic details like age, gender, interests, etc.
2. Identify target keywords: This allows you to reach the target demographic based on
selected keywords as per your product or service. The display ad network Opens a
new window will match your keywords with words/phrases present in the publisher’s
site where your ad will be displayed.
3. Zero-in on the topic: This feature lets you choose a group of websites that fit a
specific topic/category within which your business operates.
4. Formulate the ideal placement: You can choose the website you want your display
ads to run on. For example, if you’re targeting customers of a specific car variant, you
can display the ads on articles related to that model, or even on a product review page.
5. Show ads based on interest: Google collects data on its users’ behavior, and
depending on what users are searching for, you run display ads that resonate with
specific interest areas. For example, a car enthusiast may be researching tires, car
stereo systems, etc. Interest-based display ad targeting will place your ad on all
relevant webpages.
6. Retarget based on past behaviour: Also known as retargeting, this display ad
targeting feature lets you target users who have already visited your website, thereby
reinforcing the brand’s impact and recall.

➢ YouTube marketing refers to the promotion of products, services, or content through

the YouTube platform, using videos to reach and engage audiences. It involves
creating and sharing videos to promote a brand, educate consumers, or entertain
viewers. Businesses and individuals use YouTube marketing for various purposes:
1. Brand Awareness: Companies create videos to introduce their brand or product to a
larger audience. These can be in the form of advertisements, product demos, or
behind-the-scenes content.
2. Content Marketing: Many brands use YouTube as a content marketing tool,
providing helpful or entertaining videos that indirectly promote their products. For
example, a cooking brand might upload recipe videos using their products.
3. Engagement: YouTube allows for interaction through comments, likes, and shares,
helping brands engage with their target audience and build a community around their
content.
4. Influencer Marketing: Collaborating with YouTubers or influencers who have a
large following is another popular way of reaching audiences. These influencers
promote products in their videos, leveraging their trust and relationship with their
audience.

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 5. Advertising: YouTube offers paid advertising options like video ads that play before,
during, or after videos. These ads can be targeted to specific demographics based on
interests, age, or location, ensuring that they reach the right audience.
Digital marketing tools in advertising are platforms and technologies that help businesses
promote their products and services effectively in the online space. These tools enhance
advertising efforts by automating tasks, providing data-driven insights, and optimizing
campaigns.

➢ Advertising tools in Digital Marketing

1. Google Ads
1. Purpose: Helps create search, display, video, and shopping ads that appear on
Google and its partner sites.
2. Features: Pay-per-click (PPC) advertising, keyword targeting, audience
segmentation, conversion tracking, and remarketing.
3. Example: A shoe brand can show their ads to users searching for “buy sports shoes
online.”

2. Facebook Ads Manager

1. Purpose: A platform for creating and managing ads on Facebook and Instagram.
2. Features: Audience targeting based on demographics, interests, behaviors,
lookalike audiences, ad format customization (image, video, carousel), and A/B
testing.
3. Example: A local restaurant can target users in a specific area interested in dining
out.

3. Google Analytics:
1. Purpose: Provides detailed insights into website traffic, user behavior, and the
performance of advertising campaigns.
2. Features: Traffic tracking, goal conversions, e-commerce tracking, and audience
reports.
3. Example: A business can monitor how many visitors their Google Ads are
bringing to their website and track which pages are driving the most sales.
4. HubSpot:
1. Purpose: A comprehensive inbound marketing tool that helps businesses with
content marketing, lead generation, and customer relationship management
(CRM).
2. Features: Email marketing, automation, SEO, blogging, social media
management, and analytics.
3. Example: A software company can use HubSpot to track how potential customers
engage with their website and follow up with targeted emails.

5.Mailchimp:
1. Purpose: A tool for email marketing campaigns.
2. Features: Email automation, audience segmentation, A/B testing, landing pages,
and detailed campaign performance tracking.

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 3. Example: An e-commerce store can send personalized promotional emails to
customers who abandoned their shopping carts.

6. Hootsuite:
1. Purpose: A social media management tool for scheduling and tracking social
media posts.
2. Features: Scheduling posts, managing multiple social media accounts, tracking
brand mentions, and performance analytics.
3. Example: A fashion brand can schedule posts across Instagram, Facebook, and
Twitter for the next month, ensuring consistent engagement.

7. Canva:
Purpose: A design tool for creating eye-catching ads, social media posts, and other visual
content.
Features: Templates for social media graphics, posters, ads, banners, and easy-to-use
drag-and-drop features.
Example: A small business can create visually appealing ad banners and infographics for
their social media ads.

8. Ahrefs:
1. Purpose: A tool for SEO (Search Engine Optimization) and content marketing.
2. Features: Keyword research, backlink analysis, site audits, and competitive analysis.
3. Example: A business can find the best keywords to target in their Google Ads
campaigns and optimize their website to rank higher in search engines.

9. SEMrush
1. Purpose: A digital marketing toolkit for SEO, PPC, and competitive research.
2. Features: Keyword research, backlink analysis, position tracking, and ad research.
3. Example: A business can use SEMrush to track how their paid search campaigns
compare to their competitors and make improvements.

10. Buffer
1. Purpose: Another social media management tool used for scheduling and
managing posts across multiple social platforms.
2. Features: Post scheduling, analytics, content calendar, and team collaboration.
3. Example: A digital marketing agency can manage social media posts for several
clients in one place.

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