Digital Display Advertising

Digital display advertising is graphic advertising on Internet websites, apps or social media through banners or other advertising formats made of text, images, flash, video, and audio. The main purpose of display advertising is to deliver general advertisements and brand messages to site visitors.

According to eMarketer, Facebook and Twitter will take 33 percent of display ad spending market share by 2017. Google’s display campaigns reach 80 percent of global internet users. Desktop display advertising eclipsed search ad buying in 2014, with mobile ad spending overtaking display in 2015.

History Display Advertising

Digital display advertising is an online form of advertising in which the company’s promotional messages appear on third-party sites or search engine results pages such as publishers or social networks. There is an evidence showing that this advertising can increase the number of website page view of a company from most types of customers except from the non-authenticated visitors who visited the website before. The main purpose of display advertising is to support brand awareness (Robinson et al., 2007) and it also helps to increase the purchase intention of consumers.

Social media is used by many organizations. One example is, in 2014, ASOS and Nike collaborated with Google Hangouts to create the first shoppable video web chat on Google+. The video is an example of display advertising used for commemorating 27 years of Nike’s Air Max shoes. The video advertising aimed at creating brand awareness among users and convincing them to watch the Hangout and purchase products from the display advertising itself. Consumers were able to shop by clicking the display advertising. According to an ASOS statement, display advertising has contributed to an increase in both the number of users visiting its website and downloads of the ASOS App by 28 percent, with users having then visited the website eight times a month, on average.

Since the early advent of technology, the Internet has completely changed the way people relate to advertisements. As computers prices decreased, online content became accessible to a large portion of the world’s population. This change has modified the way people are exposed to media and advertising and has led to the creation of online channels through which advertisements can reach users.

The first type of relationship between a website and an advertiser was a straightforward, direct partnership. This partnership model implies that the advertiser promoting a product or service pays the website (also known as a publisher) directly for a certain amount of ad impressions. As time went on, publishers began creating thousands of websites, leading to millions of pages with unsold ad space.

This gave rise to a new set of companies called Ad Networks. The ad network acted as a broker, buying unsold ad space from multiple publishers and packaged them into audiences to be sold to advertisers. This second wave of advertiser-publisher relationships rapidly gained popularity as it was convenient and useful for buyers who often found themselves paying a lower price yet receiving enhanced targeting capabilities through ad networks.

The third and most recent major development that shaped the advertiser-publisher ecosystem started occurring in the late 2000s when widespread adoption of RTB (real time bidding) technology took place. Also referred to as programmatic bidding, RTB allowed companies representing buyers and sellers to bid on the price to show an ad to a user every time a banner ad is loading. When a page loads during a user visit, there are thousands of bids occurring from advertisers to serve an ad to that user, based on each company’s individual algorithms. With this most recent change in the industry, more and more ads are being sold on a single-impression basis, as opposed to in bulk purchases.

Digital Display Advertising
Digital Display Advertising

Real time bidding (RTB)

Programmatic display advertising, or real time bidding (RTB), transformed the way digital display advertising is bought and managed in recent years. Rather than placing a booking for advertising directly with a website, advertisers will manage their activity through a (demand side platform), and bid to advertise to people in real time, across multiple websites, based on targeting criteria. This method of advertising quickly gained popular, as it allows for more control for the advertiser (or agency), including of the individual target audience, rather than just the website. It has become a threat to website operators and generally the cost paid for advertising in this way is less than the old method and so the earning potential for them is reduced.

Programmatic is not without its drawbacks, as without the appropriate management adverts can appear against unsavoury content or inappropriate news topics. This issue became front-page news in February 2017, when advertisers on YouTube were found displayed on terror group websites and fake news sites. As a result, a number of major advertisers paused all of their online advertising until they could put the appropriate measures in place to prevent this occurring again.

First online advertisement

The birthday of the first banner display on the World Wide Web was on 27 October 1994. It appeared on HotWired, the first commercial web magazine.

The COCONET online service had graphical online banner ads starting in 1988 in San Diego, California.

The PRODIGY service, launched also in 1988, had banner ads as well.

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