In occasion of the SMX East 2011 in New York, I checked out a couple of seminars I was interested to learn more about. Particularly, I was curious to get more acquainted with Display advertising and I attended a brief seminar held by Jeff Green, founder of The Trade Desk, company that figured out how to manage all of online advertising on just one platform.
As an emarketer.com survey showed recently, display will perform better than search in terms of spending growth for the next few years (chart below). Why is this shift happening? For Jeff there are two main reasons:
- Managing Display Advertising gives a profit 4 times higher than Search Ad
- The presence of many more publishers in Display compared to Search, where few big players control the market, gives ad exchange platforms more room for bargain using Real Time Bidding technologies (RTB) and get more data
However, what’s really important is that display ads drive conversions because it’s a user-based targeting. As Jeff argues, it’s not like used to be in the past when advertisers where buying blind impressions, now they can buy extremely targeted ads.
The key is to integrate search and display. Indeed, the latter gives a double value when integrated with search: it drives people down the funnel , creating brand awareness and widening the neck from the top to the bottom; data obtained through search can be used for retargeting users through display ads around the web, users that already expressed intent of buying using specific keywords related to the brand.
As Adexchanger.com argues in a post of February 2009, “Combining the customer acquisition power of search with display ads across a network or exchange in the form of re-targeting would appear to be a very powerful tool. If an advertiser can get a sense of the user’s intent (search), it follows that the advertiser should be better able to target their display ads.”
It seems like there are big opportunities for search and display if joined together. Good luck!
Photo Credit: Adexchanger.com