This latest installment of the media planning and buying series explores paid media and digs deeper into digital search advertising and TV ads.
Paid Media Overview
Paid media advertising is all around us. It’s the content you pay to place—Google Adwords, tv and radio ads, direct mail, print ads, display/video, outdoor media, social media ads, retargeted online ads and influencer marketing. A significant benefit of paid media is control—of the right message, for the right audience, at the right time.
%
of consumer purchase decisions are influenced by paid advertising.
- Introduce new products and services.
- Build brand awareness and generate brand loyalty.
- Drive traffic and sales to your website, store or office.
- Carve out market share from competitors.
- Maximize content marketing initiatives.
- Educate consumers or businesses.
- Attract new customers and promote repeat business.
Paid advertising influences nearly 90% of consumer purchase decisions1 though advertising channels of interest vary for different generations. For example, Generation X and Baby Boomers still prefer TV advertising while Generation Z and Millennials prefer social media ads.2
Digital Search Advertising
Digital search ads provide the highest rate of return for U.S. advertisers. For every $1 invested, advertisers gain approximately $11.3 That’s a serious return!
Digital search advertising, or search marketing, are interactive ads to gain traffic and visibility from online search engines. Did you know 49% of web users use Google to find a new item or product?4 Search marketing is excellent for driving more immediate action and creating a conversion. A conversion rate is the percentage of website visitors who complete a desired goal (click, call, direct sale, etc.) out of a total visitor number. Website landing pages have the highest conversion rate (23%), while pop-up ads have one of the lowest conversion rates (3%).4 Data like this helps guide the marketer toward more effective media buys!
Digital Search Advertising Pros & Cons
Pros
- Only pay for each ad click.
- Gain impressions even without clicks.
- Can tightly target the ads.
- Great for brand building simple messages.
- Get top position on the web page.
Cons
- Short space limits copy and design.
- More competition for specific keywords.
- Marked as an ad.
- Requires ongoing funding to be competitive with keywords.
TV Advertising
TV advertising also has a high return rate, with U.S. advertisers earning roughly $6.50 for every $1 spent.5 TV advertising is split into two categories: broadcast/cable TV with traditional channels and over-the-top (OTT) TV provided via the internet, such as Hulu or Netflix. Audiences still view traditional broadcast TV; however, OTT TV has gained significant prominence in recent years. OTT streaming has seen 28% growth year-over-year and 78% of households subscribe to at least one streaming platform.6
Broadcast TV Advertising Pros & Cons
Pros
- Reaches a mass audience.
- Preferred by Generation X and Baby Boomers.
- 2nd highest return on U.S. ad expenditures.
- 3rd highest favorability among types of advertising.
- Enhances visual brand.
Cons
- No guarantee ad will be viewed.
- Tougher to reach younger audiences.
- Can be expensive.
- More challenging to target specific audiences.
- Difficult to make changes to ads.
OTT TV Advertising Pros & Cons
Pros
- Extensive reach into households.
- Highly targeted.
- Can be less expensive than cable TV ads.
- Easily viewed on mobile devices.
Cons
- Less ad inventory available.
- Difficult to evaluate success.
- Fragmented landscape may mean brokering deals with multiple vendors.
- Advertising in this area is still evolving.
Search marketing and TV advertising are just two of the many paid media types you can choose. Agencies like Voom Creative can help you map out the best options for your business and level the media buying playing field to create the most efficient, highest-quality buy to meet your goals.
Want to learn even more about media planning and buying? Check out “Powerful Media Planning and Buying Philosophy Yields Results,” and Q&A with industry expert Paul Evseroff with NBC Universal OTS.