What form of advertising is considered to be the fastest growing?

Businesses have things to sell. In order to survive and thrive, they need to find customers who want to buy those things. Enter advertising.

The earliest recorded advertisements have been found on ancient Egyptian papyrus, while modern advertising can be traced back to the invention of the printing press. When the first regular gazettes and newspapers began to be published in the 1500s, it started a revolution that ultimately evolved into the wealth of advertising channels, tools and tactics we see today.

But what exactly is an advertisement? And what does the modern business owner need to know about advertising? In this article, we’ll be answering those questions and more.

An advertisement, otherwise known as an advert or ad, is generally considered a public communication that promotes a product, service, brand or event. To some the definition can be even broader than that, extending to any paid communication designed to inform or influence.

If these definitions feel vague, it’s because they are – the truth is that advertisements can be tricky to define, now more than ever. From bus shelters to search engines to Instagram influencers, the field of advertising has never been broader, deeper or more complex.

It’s important to note that advertising is not the same as marketing; it is rather a subcategory of it. Advertising is a type of paid marketing that the advertiser enjoys complete control over.

Advertisements are important for businesses because they are the most direct and proven way to reach potential customers. They can have an instant impact on your business in a number of ways, including:

• Brand awareness: Advertising can make your target audience aware of your existence, helping them take the first step into the sales funnel.

• Brand reputation: Carefully crafted messages can tell an audience what your brand stands for and how you work. By sharing your mission, philosophy, values and track record, you can use advertising to build an enviable reputation.

• Corrections and apologies: Advertising can grant you the opportunity to apologise for a slip-up or correct the record if you feel as though something has been misrepresented.

• Sales: Last but not least, the overwhelming majority of ads are designed to increase sales, whether by directly promoting a specific product, service or deal or by any of the less direct methods listed above.

The vague definition of advertising offered at the top is a consequence of the variety of different forms ads come in and channels they’re delivered through.

• Print advertising: Print ads see ink printed on paper. Newspapers, magazines, brochures, posters, flyers and direct mail are all examples of print advertising.

• Broadcast advertising: In years gone by the term ‘broadcast advertising’ covered radio and TV, though these days the line between these formerly analogue channels and digital streaming services is blurrier than ever.

• Outdoor advertising: Bus stops, billboards, blimps, banner planes, other things that don’t start with ‘B’ – outdoor advertising treats the whole world as an advertising stage.

• Product integration: Perhaps the most subtle form of advertising, product integration sees products and brands included (and implicitly promoted) in film, TV, Instagram, YouTube and other forms of media.

• Digital advertising: Over the last couple of decades digital advertising has overtaken all the other forms listed above. In fact, it really deserves its own section …

On the 27th of October 1994, some of the earliest internet users were met with a black triangle marked with a strange message as they browsed HotWired.com – “HAVE YOU EVER CLICKED YOUR MOUSE RIGHT HERE? »> YOU WILL.” This was the first ever banner ad, and almost half of those who saw it clicked on it.

This was perhaps the moment that digital advertising turned into the arms race we see today. The effectiveness, affordability and immediacy of digital advertising has seen it take over the marketing industry. Other forms of advertising simply can’t compete.

Digital advertising can be thought of as any advertising served up via the screen of your smartphone or computer. Unlike its print, broadcast and outdoor cousins, digital advertising is uniquely interactive – the audience can click on an advertisement to learn more about the brand or purchase the product.

The term ‘digital advertising’ covers a wealth of different marketing channels, tools, tactics and mediums, so let’s take a look at four of the most common digital advertisement examples.

From YouTube pre-roll ads to podcast sponsorships, digital advertising comes in seemingly endless forms. So instead of running through individual digital advertisement types, let’s instead focus on the four main subcategories of digital advertising.

It should be noted that this is far from a comprehensive list, but the four channels below do form the foundational pillars of many digital marketing strategies.

1. Display ads

Display ads are the digital ads comprised of imagery and text that you see as you browse a website. The humble banner ad is an example of a display ad, though they come in a number of different forms, such as pop-up ads, flash/animated ads, interstitial ads, lightbox ads and expandable ads.

No segment of digital advertising has grown faster than social media advertising, for one major reason: social media platforms have deep knowledge of each of their users, which allows them to offer hyper-targeted advertising. If you want to advertise exclusively to 40-something women who have one child and are interested in softball, you can.

Social media ads include sponsored Twitter posts, Facebook carousel ads, YouTube pre-roll ads, Instagram influencer product integrations and more.

3. Search engine ads

While the marketing strategy of search engine optimisation (SEO) will help you to work your way up the search engine results page (SERP) for relevant search terms, there’s a far quicker and easier way to reach the top spot – pay.

You might think that you’ve become blind to the ads that are served up at the top of a Google search and that they, therefore, aren’t worth the money and effort, but the beauty of Google Ads is that they are pay per click (PPC) – you only pay if someone actually interacts with your ad! As such, they should form a key pillar of any digital advertising strategy, but always alongside SEO efforts.

4. Email marketing

It turns out that the oldest digital advertising campaign actually happened 16 years before the first banner ad. In 1978 Gary Thuerk sent out an email blast to 400 recipients. His company, Digital Equipment Corporation, reportedly made $13 million from the campaign.

Almost half a century later email marketing remains as effective as ever, earning $36 for every $1 spent. And in Square Marketing, you have a solution that can make your email campaigns even more effective, by creating and sending a campaign in minutes, and by using clever analytics to understand what works, what doesn’t, and how you can improve.

Are you ready to capitalise on the endless opportunity that digital advertising represents? If you want to put your name up in lights, Square has the tools and expertise to help you. Get in touch today!

According to App Annie, in-app advertising is set to triple in value in the next few years, going from $72 billion in 2016 to $201 billion in 2021.

So, what are the benefits of in-app ads exactly? Here’s a look at the various types of in-app ad formats, they’re usage, and why in-app advertising is a worthy investment.

Ad formats to consider

There are four commonly-used ad formats for apps. The first is banner ads, which is the oldest and most standard format used on mobile, consisting of text and/or images displayed at the top or bottom of a screen. These ads tend to be the most annoying to users, and can be distracting and intrusive. According to Retale, 60% of banner ad clicks on mobile are accidental – a fact that undoubtedly ramps up the annoyance factor. The creative on these also tends to be poor, contributing to a lack of engagement.

Interstitial ads are full-screen ads (of video or text) that appear during transitions within an app. This makes them feel less intrusive than if they popped up at any time, as they naturally align with pauses or breaks in content. The full-screen nature also makes them more immersive. Relevancy is key, however, as interstitials have proven to generate a flight or fight response. One study found that ad viewers fixated 22% of time spent looking for the ‘X’ button.

Native ads are designed to blend in with the look and feel of an app, so they look less like traditional ads and more like regular (and relevant) content. As a result, they can generate much higher levels of engagement. According to IHS Research, a native ad unit commands between an 18% and 200% higher CPM than a standard banner ad.

Rewarded video is perhaps the newest ad format, and one that is proving to be effective for a number of businesses. These ads offer something to the user in exchange for watching or interacting with an ad, such as prizes or bonuses in a game. This type of ad isn’t just for gaming apps, however. The format can also be used to unlock premium content of any kind. Spotify is one good example of this. Its ‘Sponsored Session’ feature offers (free service) users the chance to watch a brand video in the app in exchange for 30 minutes of free music streaming.

So, while some formats are clearly more effective than others, why should marketers be considering the strategy in the first place?

More time spent in-apps

Flurry’s State of Mobile 2017 report states that time spent in apps grew 6% last year, with users now spending an average of five hours per day on their smartphones.

While this figure is down on the growth of 11% in 2016, it suggests that users are diversifying their behaviour, and shifting attention away from old to new apps (instead of squeezing more time in overall).

Interestingly, it’s not just social media apps like Facebook and Instagram that are taking precedence. Flurry also states that the ‘shopping’ category grew by 54%, suggesting that consumers are feeling increasingly comfortable browsing and making in-app purchases.

Similarly, ‘music, media, and entertainment’ grew 43%, cementing the fact that users are shifting away from traditional viewing habits. Another fact which proves this point: Netflix was named as the top earning app (that isn’t a game) in 2017.

Of course, just because users are spending more time than they used to in-apps doesn’t mean this type of advertising results in higher conversions than mobile web ads.

However, research does suggest that impressions in-app are far more valuable. An Opera Mediaworks study found that apps produce more than double the CTR of web and 13.5x as much revenue.

A unique reach opportunity

Apps can offer a unique opportunity for marketers to reach users at times when other marketing channels can’t. This is largely because apps are used consistently and frequently throughout the day, often in moments when users are unable to consume other media, or in moments of down-time.

For example, as soon as people wake up, on the commute to and from work, or during meal-times.

Ipsos dubs this behaviour as ‘snacking’, as users consumers small amounts on a regular basis, with visits to new apps averaging three visits per day at just eight minutes a session.

Ipsos also suggests that 78% of games app users and 82% of news app users access them every day. This certainly provides food for thought for marketers, especially those who are considering or have considered mobile ads in the past.

In comparison to the mobile web, where browsing and usage might be more infrequent, app usage can often be a daily habit, meaning ads are more likely to reach and engage an already-invested audience.

In terms of what in-app ads are being used for, it’s still the case that in-app advertising is seen as a form of monetisation – generating revenue alongside in-app purchases and pay-to-installs.

However, in a wider sense, the strategy is also being used as part of brands’ cross-channel advertising strategies, with many including the channel alongside others (like social and email) in large scale campaigns. This means investing in in-app advertising in related categories or for a specific target audience. Lastly, in-app advertising can also be enhanced by using location data, with marketers geo-targeting users based on where they are.

They’re more memorable

Recent research by Ipsos also suggests that in-app ads are effective for driving action. One of the main reasons for this is because ads in apps are more memorable than on other channels.

The study found that – while participants are slightly more likely to remember ads if they saw them on a PC than on an app – people are more likely to remember the finite detail of an ad when viewed on apps and mobile websites. 47% of respondents said they could remember ‘a lot’ or ‘some’ of an ad when they saw it on an app compared to 36% who saw it on a PC.

This is likely to be because, while attention is limited overall, users tend to be more engaged in apps from the get-go, with usage attention (especially in games and entertainment) being more focused rather than passive or distracted.

Interestingly, Ipsos also found that people are more positive towards brands in general who advertise on apps. Those who were exposed via an app or mobile website were more likely to say that they felt ‘good’ or ‘very good’ about the brand in question, versus those exposed via a PC or laptop.

Again, this appears to be due to the personal nature of mobile devices, which people using apps regularly, and during leisure time. As a result, users are more likely to feel a closer connection to brands reaching them here, and more open to seeing advertising.

Driving engagement and revenue

Another reason in-app ads tend to resonate is that they are more visually appealing in comparison to ads on other channels. Participants in Ipsos’ study were more receptive of advertising via apps and mobile sites. 50% who saw ads in apps or on mobile websites thought the ads were visually appealing, compared to 44% of PC users.

Meanwhile, fewer said the ads distracted them from the content, compared to 27% of those who saw the ads on a PC.

The level of engagement depends on the format, of course. A study by Adcolony surveyed the world’s top-grossing app developers to determine typical performance levels. The large majority of survey respondents rated rewarded in-app video as the most effective for delivering the best user experience, as well as the most effective monetisation method.

Other than video, the best-performing ad units were reported to be well-integrated with the app UX, short in duration, and highly engaging. The least favorable ads were those that auto-played either before or during app content.

In terms of monetisation, the study also found that the overall greatest contributor to advertising revenue is mobile video ads – accounting for 31% of total publisher revenue. In contrast, display ads make up 20% of total revenue, and native ads generate just 5% of all app revenue.

Another important factor for engagement is the ability to tailor ads according to the user’s behaviour, location, and other key data.

From this, marketers can serve ads that are most relevant to the user, based on real-time products and services.

In-app ads to boost programmatic

According to reports, mobile advertising is projected to account for roughly 70% of all programmatic ad spend, climbing to almost 90% by 2020.

Apps are a hugely important channel for programmatic, and this is due to a couple of reasons.

First, unlike mobile web ads – which rely on cookies to track users –  programmatic uses in-app SDKs to collect device identifiers. From this, it is then possible to track and target users, and to measure impressions, conversions and other important real-time data.

Secondly, thanks to this real-time data, programmatic also allows for real-time campaign optimisation – in terms of inventory, pricing, and creative. Essentially, programmatic is an effective way to ensure that in-app ads reach the right audience at the right moment.

Finally, increased transparency in programmatic is another reason why in-app is becoming more appealing to advertisers. Earlier this year, IAS released a solution that allows buyers to target mobile in-app inventory that promises to be fraud free and viewable. IAS’ tech only targets the apps that meet brand safety expectations, giving advertisers the transparency needed to execute campaigns.

A note on viewability

One problem that has previously plagued in-app advertising has been measurement, and in particular, viewability standards.

Last year, however, IAB’s Tech Lab announced an initiative to allow a unified standard for measuring viewability – eliminating the need for multiple SDKs (software development kits) from third-party viewability companies.

Now, ‘OM SDK’ only requires a single SDK integration, instead of one for each individual provider. Effectively, the measurement process has been made far simpler, with the new OM SDK able to collect a common set of data that can determine performance. It also means that discrepancies among publishers, advertisers and vendors will be significantly reduced.

So, given this, the surge in app usage, and increasingly engaging formats – it’s not surprising why so many marketers are keen to invest.

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