How does display advertising compare to search advertising? This is an important concept to understand if your business is planning on a marketing campaign that involves online ad placement. Just like offline advertising, there needs to be a method to your ads. While many studies have been done on the topic, let’s take a look at one that discusses the revolution in online advertising and how we can compare search and display advertising  methods.

A Quantcast whitepaper titled PROMISE UNFULFILLED? LESSONS FROM THE REVOLUTION gives us some interesting information about display advertising and how it compares with search advertising.

As the report states:

The real-time bidding (RTB) industry began nearly three years ago with the September 2009 launch of Google’s DoubleClick Ad Exchange, the first marketplace powered by real-time auction technology. Since then the industry has experienced tremendous growth… eMarketer projects that spending on real-time exchanges will grow to $5 billion by 2015.

Those who work in advertising will understand there are many variables that go into an equation and that determine whether or not a particular ad or ad campaign is right for the client and the goals that you have. Since it is such an important topic, it’s one that has been studied time and time again.

This Quantcast whitepaper explains some important and interesting facts about display advertising and real time bidding. Here is a snippet from the study:

It all began with a simple question: Could display advertising borrow the key lessons from search advertising? In creating the DoubleClick Ad Exchange, Google challenged the accepted wisdom of traditional advertising, choosing instead to discover new rules that took full advantage of the new medium. First, being able to uniquely target every single ad impression is immensely useful. Second, pricing each ad impression based on a real-time auction is massively valuable.

So what does this to us and to business owners who want to market their services? Revolution doesn’t proceed in straight lines, as the study tells us. While there have been important changes happening in the world of advertising since the Internet came along, it doesn’t always advance in one specific way or even as quickly or as smoothly as we would like it to. There are blips along the way and we are forced to study, track our results and learn.

This whitepaper explains to us the way it was supposed to work and then also tells us six reasons why RTB 1.0 have turned out flawed:

  1. Cookies are far shorter-lived than thought.
  2. Clicks are a poor metric for display advertising.
  3. Prospecting and retargeting are not separate activities.
  4. Data is necessary but not sufficient.
  5. Data volume matters.
  6. Machines beat people.

The paper then goes on to explain how performance can be improved with a holistic approach. While the RTB industry is only 3 years old, it has come a long way and we can expect to see many more tweaks and changes but this does not mean that it cannot be successful.

The paper explains in closing:

As we move from RTB 1.0 to RTB 2.0, it is important to remember a key lesson from the evolution of search: Success comes by applying the emerging rules of a new medium rather than misapplying the rules of thumb from other media.

What can we learn from this paper and the studies done by Quantcast? How can we apply this knowledge to our own campaigns? For the answers to your questions about display advertising, contact Vantage Local today.