Digital Ad Benefits Over Traditional Ads

In today’s discussion, we will explain some of the main reasons digital advertising is fast becoming the main avenue for ad spend. We will also contrast how digital sets itself apart from traditional ad platforms and how these differences translate into powerful capabilities, features, and opportunities not present in the traditional setting. 

Low Barriers for Entry 

What is arguably the greatest differential between digital ads and traditional ones is cost. This difference is both in terms of lower cost for entry and the ability to conduct ongoing ad testing. Digital ads win on both of these fronts. When it comes to entry barriers – for most of the popular digital ad platforms, such as AdWords, Facebook, and Twitter, campaigns can be initiated at a minimal cost. Such low initial investment is needed, allowing for fledgling businesses to embark on advertising strategies without committing their entire chest of resources. In contrast, traditional media platforms such as print and television advertising require substantial initial commitment, making it more difficult for new businesses to test the market and/or vary their ads.

Testing 

In part because of the low initial costs and the native capabilities that make digital advertising unique, businesses can take advantage of in-depth and continuous ad testing. Such diagnostics include trying different ad platforms, designs, and target settings. Since there is no large and upfront commitment required, ad spend can be divvied up and segmented in practically any formulation one might decide upon. For example, a new business owner might test two different ad designs via AdWords and another two via Facebook. After running these ads at a modest cost, granular analytics will show which platform performs best and provide the valuable data required to fine-tune the campaign strategy further. In contrast, traditional media platforms such as print and television advertising require substantial resources devoted to each ad display. Therefore, segmenting campaigns by trying different TV spots and commercial formulation requires a much greater devotion to money. Even more importantly, though, traditional advertising mediums do not provide detailed diagnostics and analytics commonly found with digital ads. For this reason alone, digital is leaps and bounds ahead of the traditional and quite frankly the “old” way of marketing and advertising. 

Data-Driven Targeting Including Intent 

While this next feature of digital advertising really flows from the testing feature discussed previously, it needs to be addressed individually because of its importance. Digital ads allow for a campaign to be targeted specifically by location and demographics. While traditional ad platforms also offer targeting capabilities based on these metrics, such as by running advertising on TV programs or in print publications catering to a specific location or demo, they cannot accomplish the exacting standards that digital can. Furthermore, digital allows for the targeting and re-targeting potential customers based on their search history and interests. For example, say you have searched for a pair of running shoes on google; or if you are part of a running group on Facebook, digital ads can dynamically be displayed to you based on these criteria. Traditional platforms cannot offer such laser targeting primarily because they do not have the almost frighteningly exhaustive amount of data that internet behemoths like Google and Facebook hold.

Large Potential Customer Base 

As previously cited, with 93% of the 18-49 demographic online, the chances are that there is a huge audience interested in what you have to offer. Digital ads allow you to target this burgeoning and ever-increasing audience. This is probably not news to you, but traditional platforms such as TV and print have seen an increasingly downward spiral of audience numbers.

Detailed Performance Indicators & Tracking Metrics 

While performance indicators and tracking also tie into tracking and targeting, they also fulfill an aspect that makes digital advertising stand out over their traditional counterparts. Digital allows marketers to follow the customer journey from initial interaction with an ad all the way through the sales funnel and beyond. Whether your KPI is getting customer emails or a call your office, each can be meticulously tracked. As stated, with this beneficial data, campaigns can be tweaked and improved for better future performance. While capable of providing some tracking through codes and specific channels, traditional platforms do not come even close to the tracking metrics that digital ads provide.

Native Ads Including Influencer Marketing 

While digital advertising is unique in the powerful data it provides, it is also unique in the opportunity it provides by way of native advertising and related influencer marketing. While traditional platforms also provide native and influencer marketing opportunities, the effectiveness and possibilities are much more present in the digital arena. This is both because of the greater number of platforms available as well as the methods that allow for a more mainstream, and hence more “native experience.” It is no wonder then that native and influencer marketing is seeing a huge surge in popularity among marketers. So popular in fact that in 2018, it is estimated that $21 billion will be spent on native ads.

Varied Platforms 

The practically never-ending possibilities in terms of platform choice for digital marketing also makes it more attractive than traditional in many circumstances. This is because of the numerous avenues available, such as the most famous platforms like Adwords, Facebook, Instagram, Twitter, and websites and other lesser-known platforms. Each has its unique selling points, advantages, and disadvantages. For example, while Google’s AdWords platform is a great tool to reach users in “micro-moments,” Facebook might be a better avenue for targeting the members of a group relevant to your product or service. Further, in addition to the seemingly endless choice of platform, marketers have the ability to segment further upon specific “platforms within platforms.”

ROI 

And now for the holy grail… Digital ads in many (but not all) situations provide a superior ROI. When a campaign is executed properly, the results that one sees from their digital campaigns in terms of returns can almost be surprising; they are so good. That is not to say that traditional ads do not provide great results if executed properly as well. Rather, it is simply that in many situations, the ROI and performance of digital ads are far better. For example, Google reports that businesses advertising on AdWords make an average of $2 on every $1 spent. Traditional ads are great at creating overall brand awareness, but our experience has shown digital to be king when it comes to targeted conversions.

We look forward to dissecting further in later discussions some of the features that make digital ads unique and powerful as a tool within your overall marketing strategy.