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0% found this document useful (0 votes)
39 views45 pages

Unit V

Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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DISPLAY ADVERTISING

What Is Display Advertising?

Display advertising is a type of advertising that helps you visually showcase your brand or product on
various online platforms. It encourages users to take specific actions. Such as clicking to visit a
landing page, filling out a form, or making a purchase.

Display advertising allows you to use a mix of text, images, and videos to get your message across.
It’s also highly scalable. You can reach a broad audience. Or focus on a niche market by customizing
your display ads to show up for specific groups of people based on what they like, where they browse,
and who they are.

Display Ads vs. Search Ads

Display ads appear online when users are already browsing. They show up based on topics and users’
interests.

On the other hand, search ads target users looking for products, services, or information similar to
what you offer. They appear based on users’ search queries.

This fundamental difference allows display ads to nurture long-term brand recognition. While search
ads help achieve immediate conversions.

Here’s an overview that explains what display ads are and how they differ from search ads:
Benefits of Display Advertising

Enhanced Brand Visibility

Display advertising puts your brand in front of a large audience. By strategically placing your ads on
websites that align with your target market.

This can help you increase brand awareness.

Targeted Reach
Display ads let you target specific demographics, locations, and behaviors.

This means you can focus your advertising spending on audiences most likely to convert. You’re not
just throwing your ad into the digital abyss but placing it where it counts.

Engaging Creatives

Display ads offer a range of creative formats—from simple text and images to interactive elements
and videos.

These diverse options allow you to capture your audience’s attention in a way that resonates with
them.

Whether it’s a short video clip or an interactive quiz, these formats can make your brand memorable.

Cost Effective

Display ads often have a lower cost per impression. You can set your budget and even opt for
different pricing models based on your needs.

This level of flexibility and the added benefit of efficient targeting makes display ads relatively
affordable.

Real-Time Analytics

You get access to real-time analytics with display advertising.

You can track metrics like click-through rates, impressions, and conversions to make data-driven
decisions. This helps you to optimize your campaigns for better performance over time.
Note: While display advertising offers numerous advantages, it’s essential to consider potential
challenges. These could include ad fatigue, in which your audience becomes desensitized to your ads
if they see them too often, or the risk of your ads appearing on irrelevant or low-quality websites. You
can avoid these issues with proper targeting and regular monitoring.

TYPES AND FORMATS OF DISPLAY ADS


There are many types of display ads—from broad categories like contextual and mobile ads to
specific ones like pop-up and infographic ads. Each type can be of a specific format.

Ad FORMATS:
Let’s first look at common ad formats:

 Static ads: Simple, non-moving ads that can consist of text and images. Usually saved as JPEG or
PNG files, these ads are quick to load and easy to create.
 Animated ads: Use motion to capture attention. Created as GIFs or HTML5 files, they can display
multiple frames, which allows for more complex messaging or storytelling.
 Video ads: Use moving visuals and sound to engage the audience. They can be added to websites
and social media feeds or appear as pop-ups.
 Interactive ads: Engage users through clickable elements, forms, or other interactive features.
Often built using HTML5, these ads encourage user participation.

DISPLAY Ad TYPES:

Now, let’s look at some of the common display ad types:

Banner Ads

Banner ads are graphics that can appear at the top, bottom, or sides of webpages. They leverage a
combination of texts and visuals (either static or animated).

Here’s a banner ad example from Investopedia:

The strategic placement on webpages ensures a large audience sees your banner ads. Which is why
they’re suitable for driving traffic to specific pages or building brand identity.

When clicked, the ad’s call to action (CTA) can lead users to your chosen landing page to learn more
or to make a purchase—depending on your campaign’s goal.

Interstitial Ads

Interstitial display ads are full-screen ads that cover the interface of a website or app.
They usually appear during natural transition points. Like when you’re moving between app screens
or waiting for a webpage to load.

Here’s an interstitial display ad example from a mobile gaming app:

These ads can be images or videos.

They’re hard to ignore, which makes them highly effective for capturing immediate attention. This is
why advertisers often use them for promotions or announcements that require quick action.

Pop-Up Ads

Pop-up ads are small windows that appear over a website’s content. They can be in the form of static
images, text, or even interactive media.

You can set the rules to trigger them. For example, you can set them to appear when a user scrolls
halfway down a page or after they’ve been on the site for a certain amount of time.

Here’s an example of a pop-up ad from Search Engine Journal:


Unlike interstitial ads that cover the entire screen, pop-up ads are smaller. Interstitial ads usually
appear during transitions, like when a page is loading. In contrast, pop-up ads can show up at specific,
predefined moments.

This makes them effective for capturing immediate attention. They even have a good conversion rate
of around 11%.

However, because they can interrupt and even harm the user experience, it’s important to use them
sparingly to avoid annoying website visitors.

Rich Media Display Ads

Rich media display ads are interactive ads that can include video, audio, and clickable elements—
offering a multilayered experience for your audience.

These ads can do things like expand when you hover over them or play a video when clicked. This
makes them more engaging than standard ads, which are usually just static images or text.

Here’s an example of a rich media ad where the user can slide a bar across the ad to reveal the
function of the product:
With rich media ads, you can incorporate features like forms or quizzes directly within the ad. Which
allows you to gather data or even make sales without requiring the user to leave the page they’re on.

Retargeting Display Ads

Retargeting display ads help you re-engage individuals who have previously interacted with you on
your website or app but didn’t make a purchase or take a desired action.

These dynamic display ads remind them of your brand by displaying relevant products or content
they’ve previously viewed.

Here’s an example:
So unlike standard display ads, retargeting ads are not aimed at a broad audience but are specifically
targeted to individuals familiar with your brand.

They can take the form of banner ads, video ads, or even rich media—depending on your campaign
goals.

Native Display Ads

Native display ads look and feel like the content around them. Which allows you to advertise in a way
that feels less like an ad and more like part of the content.

Here’s an example from Pinterest:


You may often hear the native ads vs. display ads comparisons. However, it’s important to note
that native ads with visual elements actually fall under the category of display advertising.

They are usually labeled as “sponsored” or “promoted” to maintain transparency. And can take the
form of images, videos, or interactive pieces.

Since native display ads integrate seamlessly into the user experience, they can be more likely to
engage your target audience—especially those who are averse to disruptive advertising.

This makes them ideal for campaigns aiming to build a deeper connection with your audience rather
than just capturing immediate attention.

How Does Display Advertising Work?

To get your display ads in front of your target audience, you’ll work with ad networks like the Google
Display Network (GDN). These platforms handle the distribution and targeting.

Let’s take an in-depth look at how display advertising works. And how you can plan and execute your
campaign.
Define Your Target Audience

Defining your target audience ensures your display ads reach people genuinely interested in your
product or service, maximizing your return on investment (ROI).

For example, if you’re a fitness brand targeting young adults, you’ll want to place your ads on health
and wellness websites. Or other websites where this demographic spends their time.

Conversely, if you’re a B2B software company, industry-specific websites and forums might be more
effective platforms for your display ads.

This targeted approach not only increases your ads’ visibility but also improves the likelihood of
conversion.
You can use Semrush’s One2Target to define your target audience.

Open the tool and enter up to five of your competitors’ domains.

The tool will gather information about their audience’s demographics, socioeconomics, and behavior.

You can use this data to create customer personas—a representation of your ideal customer. These
personas will serve as a blueprint for selecting the right platforms and crafting messages for your
display ads.
Here’s an example of a persona built with the Semrush Persona tool:

Choose Your Campaign’s Goals

Setting specific goals will help you allocate your budget and tailor your display ads more effectively.

For instance, if your goal is to increase brand awareness, you’ll likely focus on platforms with a broad
reach and design ads that are visually striking.
On the other hand, if you’re aiming for immediate sales, retargeting ads on platforms with high
conversion rates might be your go-to option.

So, a goal-driven approach will ensure that every decision you make aligns with your goal.

To choose your campaign’s goals, you should start by evaluating your business needs and what you
ultimately want to achieve. Discuss it with your team.

Are you looking to attract new customers? Is your focus more on retaining existing ones? Are you
launching a new product and want more awareness?

Once you’ve identified your overarching objectives, break them down into measurable targets.

Remember, your goals should be specific, measurable, achievable, relevant, and time-bound
(SMART).

Here’s an example of a SMART goal: Increase website traffic from display ads by 15% in the next
three months.

 Specific: The goal clearly states the desire to boost website traffic from display ads
 Measurable: The target is a 15% increase, which can be tracked
 Achievable: Assuming current trends and resources, a 15% increase is a realistic target
 Relevant: The goal aligns with broader marketing objectives to drive more website visits
 Time-bound: The goal is set to be achieved within a three-month time frame

Do Competitive Analysis

Understanding your competitors’ display ad strategies can help you identify the most effective ad
placements, designs, and messaging. Which can not only guide how you allocate your budget but also
allow you to strategically place your ads where your competitors are advertising.

This way, you can potentially capture some of their audience’s attention.

(This tactic can be especially effective if your ads offer something unique or more compelling than
your competitors.)

So, start by listing your main competitors and examining their display ads.

Look at where they’re placing their ads, the types of designs they’re using, and the messaging in their
copy and CTAs.

This will give you a sense of what’s already working in your market.

You can use Semrush’s AdClarity tool for this. It’s an advertising intelligence solution that can help
you:
 Analyze competitors’ ad campaigns
 See where they are spending their ad budget
 Compare their ad strategies with your own
 Understand what the best-performing advertisers are doing

Open the tool and enter your competitor’s domain. You’ll see a dashboard like this:

Scroll down and you’ll find the “Top Ads” widget.

This shows all the top display ads of your competitor and other competing advertisers in the selected
period. Sorted by the highest number of impressions, duration, or recency.
Click on any ad to find its landing page and full campaign report.

In addition, you will find various other insights. Including the advertiser’s estimated expenditure on
display ads, display ads placement, top advertisers in your market, and ad buying methods.

You can use details from that competitive analysis to fine-tune your own display ad campaign for
better performance.
Finalize Display Ad Placement, Type, and Format

Choosing the right websites for your display ads ensures that your message lands directly in front of
people most likely to be interested in your product or service.

When deciding where to place your ads, you should consider these three factors:

 Audience relevance: Make sure the website or platform aligns with your target audience’s interests
 Traffic volume: A website with high traffic increases the visibility of your ad but may also be more
expensive
 Ad space quality: Look for websites that offer prime ad space, ensuring your ad is easily visible
and not buried at the bottom of the page

Now, you can directly approach websites to place your ads. But this method is often time-consuming
and may not be cost-effective.

A more efficient route is to use ad networks.

An ad network acts as an intermediary that connects advertisers with multiple websites, streamlining
the placement and tracking of your ads.

It handles ad distribution—whether it’s across various websites on the internet or within its own
ecosystems.

Google Display Network and Meta Audience Network are two of the most popular ad networks.

GDN reaches over 90% of internet users worldwide. It can serve your ads on more than 2 million
partner websites, apps, or videos based on your business type and the users who match your specific
criteria.

Let’s say you choose GDN as your ad network.

There are two types of Google display ads you can opt for:

 Uploaded display ads: These are ads you design from scratch and upload in various sizes. You
have full control over the design, but you’re also responsible for ensuring each ad meets the Google
display ads specs for its intended placement. In this case, here are some common Google display ad
sizes you can go for:

 Responsive display ads: This is a more automated option. It’s also the default. You provide the
basic elements like images, logos, and text. Google then automatically generates different
combinations and sizes to fit various responsive display ads specs, optimizing for performance
along the way.
You can build your Google display ads campaign by going to your Google Ads account. First, click
“Create.”

Then, select your campaign objective and “Display” as the campaign type.
You will then have to configure your campaign settings. Which would include:

 Choosing target locations and languages


 Setting your budget and bidding strategy
 Selecting your targeting strategy

Next, you’ll create responsive display ads where you can upload your images, logos, headlines,
descriptions, and videos (pictured below). Google will automatically generate the best ad
combinations for your target audience.
The final step is to review your campaign.

If everything looks good, hit “Publish campaign,” and your ads will go for approval. It typically
takes one day to get the approval before your ads are live.

Generally, once you’ve chosen an ad network, you’ll need to decide on the type and format of your
display ads.

For example, GDN offers options like banner ads, interstitial ads, and video ads. So, you will find
various Google display ads specs in the network.

When considering your display ad type and format, follow these tips:

 Alignment with goals: Choose a type and format that directly supports your campaign objectives
 Audience preference: Take into account which formats are most engaging for your target audience
 Resource availability: Be mindful that some formats, like video or interactive ads, may require
more resources to create than others
 Platform limitations: Different ad networks may have restrictions on ad types or formats. For
instance, GDN allows various formats, including banner and interstitial ads. While a platform like
LinkedIn doesn’t offer the options for interactive display ads. So, choose a platform that
accommodates your needs.
By this point, you should have a comprehensive understanding of where your ads will appear, what
they will look like, and who they will target.

Allocate a Budget

A well-allocated budget allows you to scale your display ad campaigns effectively and maximize
ROI. While a poorly planned one can lead to overspending without returns or insufficient reach.

When setting your budget, you should consider the platforms you’ll be using.

Different platforms have different pricing models, like cost per click (CPC) or cost per 1,000
impressions (CPM). Choose the one that aligns with your goals and budget.

For example, with a Google display ad campaign, you can choose how you want to pay—based on the
number of impressions your ad receives or the actual conversions like signups or sales.

They even suggest bidding strategies to help you meet your online advertising goals.

You should also think about the duration of your campaign. A short-term campaign aimed at boosting
seasonal sales will have a different budget requirement than a long-term brand awareness campaign.

Here are some other factors to consider when allocating your budget to display ads:

 Campaign goals: Your budget should align with what you aim to achieve. If you’re looking for
quick conversions, you might allocate more toward retargeting ads.
 Audience reach: Consider the size and demographics of your target audience. A broader audience
might require a larger budget.
 Ad format and type: Some formats are more expensive to produce and run. For instance, video ads
generally cost more than static image ads.
 Frequency: How often do you want your ads to appear? More frequent appearances will require a
higher budget.

If you plan your budget carefully, you’ll be better positioned to run a successful, cost-effective display
advertising campaign.

Design a Compelling Visual

Your ad’s visual design is your first opportunity to engage your audience. A poorly designed ad can
turn potential customers away, while a compelling one can boost your click-through rates.

When selecting colors, you should consider the emotions you want to evoke.

For instance, blue instills trust, while red catches the eye but can signal anger. So, align your color
choices with your campaign’s objectives.

Here’s a list of popular colors and their meaning:


You should also focus on font selection. Pick a font that’s easy to read and reflects the essence of your
brand.

For example, a playful font might work for a children’s product. But it would be inappropriate for a
law firm.

Incorporate your brand elements like logos and taglines in a way that complements your ad’s primary
message. Rather than overshadowing it.

Here are some other tips for designing a compelling visual for your display ads:

 Visual balance: Maintain a balanced layout where text and images complement each other instead
of competing for attention
 Call to action: Make your CTA stand out, but ensure it aligns with the overall design and message
of your ad
 Consistency: Keep the design consistent with other marketing materials for brand recognition
 Simplicity: Less is often more. Avoid clutter and focus on one primary message per ad.
 Local elements: If your campaign targets a specific location, consider incorporating local elements
or languages

Craft Effective Ad Copy and CTAs

The right ad copy and CTA can directly influence your conversion rates by engaging the viewer and
guiding them through decision-making. This could mean turning a casual website visitor into a lead or
long-term customer.

When crafting your ad copy, focus on the unique value proposition your product offers. It should
speak directly to the pain points of the target audience.

The copy should be simple, straightforward, and clear in its message.

Here’s an example of great ad copy from Canvas Factory:

Similarly, your CTA should be a clear directive that aligns with your ad copy.

Specific action-oriented phrases like “Request a Demo,” “Get a Free Quote,” or “Learn How We Can
Help” can be more effective than a generic “Click Here.”

Here are some other tips you should follow for creating compelling ad copy and CTAs:

 Speak to pain points: Your ad copy should address specific challenges your audience faces and
how your product or service provides a solution
 Concision is key: You have limited space in a display ad. Make every word count. Your message
should be concise—yet persuasive—and align with your visual elements.
 Create a sense of urgency: Phrases like “Offer Ends Soon” or “Limited Spots Available” can
prompt quicker decision-making
 Include social proof: Testimonials, ratings, or mentions from existing customers can add
credibility to your ad copy
 Consistency across channels: Ensure that the language, tone, and messaging in your display ads
are consistent with your other marketing channels

Monitor and Optimize the Campaign

Continuous monitoring and optimization are essential to ensure you get the best ROI. By tracking
your ad’s performance, you can identify what’s working and what needs tweaking.

For instance, if you notice that a particular ad is getting a lot of clicks but few conversions, it might
indicate an issue with the landing page or the ad’s messaging.

On the other hand, an ad with few clicks might need a design or placement adjustment.

Most ad platforms offer built-in analytics that provide real-time data on your display ad’s
performance.

Here’s how the insights dashboard of Google Ads typically looks:

Keep an eye on your analytics to track key performance indicators (KPIs) like click-through rate,
conversion rate, and cost per conversion. These metrics will help you understand how well your ad is
performing and where you need to make adjustments.

Here are some other tips to effectively monitor and optimize your display ads:
 Conduct A/B testing: This involves running two slightly different versions of an ad to see which
one gets better results. It helps you understand what elements are resonating with your audience.
 Refine your targeting: If you’re not seeing the expected engagement, you may need to adjust who
you’re targeting. Look at metrics like audience demographics and behavior to make more informed
decisions.
 Check your landing pages: Make sure the landing page your ad directs to is doing its job. It should
be user-friendly and aligned with the ad’s message to encourage conversions.
 Do cost analysis: Regularly review your spending to ensure you’re getting good value for your
investment. If certain ads are draining your budget but not delivering results, it might be time to
pause or adjust them.

INTERACTIVE ADVERTISING

What is interactive advertising?

Interactive advertising is a type of advertising that encourages consumers to engage and


interact with an ad. It allows brands to establish and develop communication with their clients.

Why use interactive advertising?


The main advantage of interactive advertising is the personalized experience it provides to
users. You can control what is shown to different customers and stand out from the crowd
of traditional ad campaigns.

The Journal of Interactive Advertising 2001 states that interactive ads also have some features
that improve their effectiveness. You can gather customer data via cookies to create each consumer's
profile and show the most relevant ads to them.

Interactive advertising also decreases the possibility of overspending your budget due to
poorly coordinated advertising. You can communicate your advertising message to different
audiences more clearly by using varied ads.

Like any other type of advertising, interactive ads have their benefits and drawbacks. You
need to keep them in mind and know how to deal with them to promote your business successfully.
Read more about the pros and cons of interactive advertising in the next section.

Advantages and Disadvantages of Interactive Advertising


Interactive advertising is a great way to develop two-way communication with your clients. On the
other hand, it is often costly and time-consuming.

Have a look at the advantages of interactive ads below.

 They encourage potential customers to become a part of a brand. These ads require
feedback and let users provide it, so people interact with them much more than
with traditional ads.
 These ads boost social interaction between businesses and their potential
clients. Interactions are crucial when establishing healthy long-term relationships with
consumers. Interactive advertising helps you outperform competitors, improve brand
awareness, and increase clients' loyalty.
However, there are also some disadvantages of interactive ads.
 Creativity might be distracting. Interactive ads have greater benefits if you need to capture
customers' attention and encourage them to engage. However, it is crucial to avoid the
excessive use of creativity and focus on communicating your brand messages to clients.
 Preparation can take a long time. If you want to succeed in interactive advertising, you
need to prepare before launching your campaign. Analyze your competitors, gather data to
build potential clients' profiles, and ensure that your ads target the right audience.
 Interactive advertising may be expensive. High costs are associated with the need to gather
consumer data and create ads. Moreover, it is rather challenging to create these ads
independently, and you may need to hire an ad setup specialist, which will require additional
expenditures.
Now you know the advantages and disadvantages of interactive ads. Let's take a look at different
types of these ads to choose the most suitable ones for your business.

Types of Interactive Advertising


New interactive advertising forms are being developed all the time. This type of advertising can take
many forms, but we will consider the most widespread ones in this section.

1. Interactive Facebook ads


According to Pew Research, the user base of Facebook includes 69% of US Adults, which means
there is a high chance that you will succeed in promoting your business there. The most popular
interactive ads on Facebook and other social media are virtual tours, gaming ads, interactive PDFs,
and promoted stories with polls, quizzes, and other similar elements.

Create interactive posts, stories, or reels to reach and engage more people. You can interact with your
audience and get more feedback using different polls and quizzes. You can also use live videos to
communicate more with your clients in real time and increase brand loyalty.

Lady Gaga's Instagram Story is an excellent example of such an ad. She promotes her new album,
"Love For Sale," recorded with Tony Bennett. The story is interactive because you can tap the link
and listen to the album.
2. Augmented reality
Augmented reality (AR) is a changed version of the real world achieved using digital elements.
Customers like this type of advertising because it lets them create content with the products they need
and want to buy.

Today you can find Augmented Reality ads on Instagram, Facebook, TikTok, and many other social
media platforms. You can use AR in your ads to give people an opportunity to try on your apparel or
view what your goods will look like in their homes. Customers can interact with certain products,
choose the ones they like the most, and buy them from your company.

For example, look at Ikea's design lab, Space10. It enables users to redesign their entire 3D room
plans with Ikea's Studio app using LiDAR sensors.

3. Playable in-app ads


According to eMarketer, people spend over 3.5 hours a day on their mobile phones. Consequently, it
would be easy to find your audience here.

Playable ads allow your audience to try a product without buying it. Games and entertainment
apps enable their audiences to use certain features available only after purchasing a subscription.
Fashion brands and other companies often promote their goods in collaboration with existing
applications.

Check out an example. In a recent campaign, New Balance partnered with TreSensa to create an app
called 'Fresh Foam Cloud Jumper,' where people bounced from cloud to cloud. At the end of the
game, there was a call to action to shop for sneakers or play again.
4. In-game advertising
Many people are fond of eSports, so in-game advertising is another great opportunity to promote your
company. There are several ways to use interactive game ads, such as creating sponsored features,
promoting billboards, and organizing events.

Find out more about your audience through partnerships with digital games or streamers if there are
lots of gamers among your clients. Keep in mind that you need to prepare for these campaigns
extra carefully because your ads should fit the interface of the chosen game and convey your brand
message.

Let's look at an example. In April 2020, Travis Scott, a hip-hop singer, collaborated with the game
'Fortnite' and held a virtual concert. Travis's giant hologram on the main screen and posters within the
game promoted his future event and created a unique atmosphere.

5. Display ads
Display ads and banners are one of the most popular types of paid media, so they are almost
everywhere on the Internet. It is a great idea to make them interactive to get greater engagement and
increase ROI. Banners can open up and show your product in the form of a video, game, poll, or quiz.

The advantage of this type of advertising is that you can use them for contextual targeting. Choose
your keywords, and find websites to place your ads on. To choose a site, you can use ad networks that
buy and sell ad space to advertisers or find ad exchanges where you can buy ad inventory from ad
networks.

This example shows a sports villa banner ad that expands when users hover over it. This feature helps
the ad attract more attention.

Here is what this banner looks like when it expands to full screen.

Source: Instapage

6. Interactive videos
Video ads include interactive elements that show certain product details and lead viewers to
your product page. According to MarketingProfs, interactive videos convert more than 11% of users,
which is a stellar result, especially compared to other types of video advertising.

This is an excellent alternative to regular ads, as it prevents users from skipping the ad thanks to its
engaging content. Moreover, interactive videos are much more memorable. Make your potential
clients a part of the story to engage them and provide positive emotions during their buyer journey.

Look at an example from Boursin that takes viewers on a journey through their refrigerator. Users
need to move their phones around to interact with this ad.
The most popular types of interactive advertising are Facebook ads, augmented reality, playable in-
app ads, in-game advertising, display ads, and video ads. Now that you know more about the types of
interactive ads, let's proceed to discover more examples of these ads.

Examples of Interactive Advertising


To succeed in interactive advertising, you need to be creative and test different types of content. Here,
we will provide more examples of interactive ads for different industries. Read this section to get
some fresh ideas.

The first example is a J & J ad where the brand promotes its new product line. The first banner
encourages us to scratch the card and reveal the second picture. This interactive element makes
people want to see the picture and encourages more customers to interact with the ad.

The second example is a lookbook for Hector&Karger FW collection called RE_ALITY. It was
created in 2015 and was the first interactive fashion lookbook in the world. You can use an app to see
the RE_ALITY collection in the form of 3D images. Later on, famous fashion brands like Khaite,
Hermes, Gucci, and Carlings also started using AR in their collections.
Third example includes different Facebook ads that use interactive elements. The first company uses
polls in its ad to encourage customers to choose what they want in their Mac' N' Cheese. The second
ad is a game where Vans asks clients to help a character collect gifts as quickly as possible. There are
augmented reality elements in the third ad. You can choose your lipstick color by trying different
ones using a photo of your lips.

CREATIVE ADVERTISING
What is Creative Advertising?
Creative advertising is a dynamic and innovative approach to marketing that aims to break
through the clutter and capture the audience’s attention in unique and compelling ways. It
transcends traditional, formulaic advertising by employing originality, imagination, and
unconventional strategies to deliver messages that resonate with consumers on a deeper level. This
form of advertising is not merely about selling a product or service; it’s about telling a story,
creating an experience, and building a memorable brand presence.
Creative advertising leverages various mediums, from traditional channels like print and
television to digital platforms, social media, and guerrilla marketing techniques. Its essence lies in
pushing boundaries, sparking curiosity, and establishing an emotional connection with the audience.
Through inventive concepts, captivating visuals, and engaging narratives, creative advertising seeks
to stand out in a crowded marketplace and leave a lasting impact on consumers.

Why are Creative Ads Important?


1. Capturing Attention in a Crowded Landscape: One of the primary reasons creative
ads are essential is their ability to capture attention effectively. In today’s saturated media
landscape, consumers are constantly bombarded with advertisements. Creative advertising provides
a means to cut through the noise and grab the audience’s attention through innovative concepts,
eye-catching visuals, and compelling storytelling.
2. Building Emotional Connections: Creative ads have a unique power to build emotional
connections between brands and consumers. By tapping into human emotions such as joy,
nostalgia, or empathy, these ads create a memorable experience that goes beyond the features of a
product. Emotional resonance fosters a deeper connection, leading to increased brand loyalty and
positive associations in the minds of consumers.
3. Differentiation and Brand Identity: In highly competitive markets, where products and
services can seem interchangeable, creative advertising becomes a key differentiator. It allows
brands to carve out a distinct identity by showcasing their unique personality, values, and offerings.
This differentiation is crucial for attracting and retaining customers, as it helps a brand establish its
own niche in the market.
4. Increasing Brand Recall: The memorability of an advertisement is heightened through
creativity. Creative ads, with their imaginative and visually appealing elements, are more likely to
be remembered by the audience. This increased recall is essential for brand visibility and positively
influences purchase decisions when consumers are faced with choices in the market.
5. Adapting to Changing Consumer Behavior: Consumer behavior is constantly
evolving, and creative advertising allows brands to stay agile and relevant. By adapting to new
platforms, technologies, and formats, creative ads ensure that brands remain in tune with shifting
consumer preferences, staying at the forefront of the market.

FEATURES OF CREATIVE ADVERTISING


1. Innovative and Originality: Creative advertising is characterized by its commitment to
innovation and originality. It seeks to go beyond the ordinary, introducing fresh ideas, concepts and
approaches that stand out in the minds of consumers. Whether through cutting-edge technology,
unconventional storytelling, or avant-garde design, creative ads embrace the spirit of innovation.
2. Storytelling as a Core Element: Effective storytelling is a hallmark of creative
advertising. It goes beyond a simple presentation of features and benefits, delving into the audience.
Through storytelling, brands can communicate their values, mission, and product benefits in a
compelling and memorable way.
3. Visual Appeal: Creative advertising places a strong emphasis on visual appeal. Whether
through stunning graphics, captivating images, or innovative video content, the visual component is
carefully crafted to grab attention and enhance the overall impact of the advertisement. The goal is
to create an aesthetic experience that stays with the audience.
4. Audience-Centric Approach: Unlike one-size-fits-all strategies, creative advertising
takes an audience-centric approach. It considers the preferences, interests, and behaviors of the
target audience, tailoring creative elements to resonate specifically with them. This personalized
approach enhances the relevance and effectiveness of the advertising campaign.
5. Integration Across Channels: Creative advertising is not confined to a single medium.
It seamlessly integrates across various channels, leveraging the strengths of each. From traditional
avenues like television and print to digital platforms, social media, and experiential marketing,
creative ads create a cohesive brand experience across diverse platforms.
6. Measurement and Analytics: While creativity is paramount, the effectiveness of
creative advertising is often measured through analytics. Brands use metrics such as engagement
rates, click-through rates, and conversion rates to assess the impact of their creative campaigns.
This data-driven approach allows for continuous improvements and optimization of future
advertising strategies.

What do Creative Ads include?


1. Compelling Visual Elements: Creative ads feature visually appealing elements designed
to capture attention and communicate the brand’s message effectively. Whether through stunning
graphics, captivating images, or innovative video content, these visual elements play a crucial role
in creating a memorable and engaging ad.
2. Unique and Memorable Concepts: Creative ads are built on unique and memorable
concepts that set them apart from the mundane. Whether it’s a clever twist on a familiar theme, an
unexpected juxtaposition, or a novel approach to storytelling, these concepts leave a lasting
impression on the audience.
3. Emotional Resonance: The inclusion of emotional elements is a common feature in
creative advertising. By tapping into human emotions such as joy, nostalgia, or empathy, ads
become more relatable and leave a lasting impact on the audience. Emotional resonance contributes
to brand loyalty and positive associations.
4. Effective Copywriting: Words matter in creative advertising. Compelling and
persuasive copywriting is essential for conveying the brand’s message, value proposition, and call
to action. Whether witty, poignant, or informative, the written content complements the visual
elements to create a holistic ad experience.
5. Interactive and Experiential Elements: Creative ads often incorporate interactive or
experiential elements to engage the audience actively. This could involve immersive online
experiences, augmented reality activations, or real-world events that allow consumers to interact
with the brand in a memorable way.
6. Consistent Branding: While pushing creative boundaries, successful creative ads
maintain consistency in branding. The use of brand colors, logos, and messaging ensures that the
audience can easily associate the creative content with the brand, contributing to overall brand
recall and identity.

CREATIVE ADVERTISING STRATEGIES:


1. User-Generated Content Campaigns: Encouraging consumers to create content related to the
brand can be a powerful creative strategy. Brands can run contests or challenges, asking users to
share their experiences, testimonials, or creative interpretations of the brand. This not only fosters
engagement but also generates authentic content.

2. Augmented Reality (AR) Experiences: Incorporating AR into advertising campaigns provides


an interactive and immersive experience for users. This could involve AR filters on social media,
allowing users to engage with the brand in a fun and personalized way. AR experiences enhance the
overall creativity and memorability of the campaign.

3. Storytelling Across Multiple Platforms: Tell a cohesive story that unfolds across various
platforms, creating a narrative that evolves with each interaction. This could include teaser
campaigns on social media, followed by a full-length video on YouTube, and culminating in an
interactive website experience. The multi-platform approach adds depth and intrigue to the
campaign.

4. Limited-Time Offers with a Creative Twist: Create a sense of urgency and excitement by
introducing limited-time offers with a creative twist. This could involve gamifying the purchasing
process, offering exclusive rewards, or creating a countdown that builds anticipation. The
combination of creativity and scarcity can drive consumer interest.

5. Collaborations and Partnership: Partnering with influencers, artists, or other brands can inject
freshness and creativity into advertising campaigns. Collaborations bring diverse perspectives and
audiences together, creating unique content that resonates with a broader demographic.

Examples of Creative Advertising Campaigns


1. Apple’s “Think Different” Campaign: Apple’s iconic “Think Different” campaign celebrated
innovators and creatives who change the world, featuring influential figures like Albert Einstein,
Mahatma Gandhi, and Martin Luther King Jr. This campaign not only showcased Apple’s brand
ethos but also inspired a sense of creativity and individuality consumers.

2. Old Spice’s “The Man Your Man Could Smell Like”: Old Spice’s humorous and
unconventional campaign featuring “The Man Your Could Smell Like” became a viral sensation.
The character interacted directly with the audience, showcasing the product in a humorous and
memorable way. The campaign revitalized the brand and garnered widespread attention.

3. Nike’s “Just Do It”: Nike’s “Just Do It” campaign is a testament to the power of simplicity and
inspiration. Featuring the iconic swoosh logo and motivational slogans, the campaign resonated
with consumers on a personal and emotional level. It has become one of the most enduring and
successful advertising campaigns in history.

4. Coca-Cola’s “Share a Coke”: Coco-Cola’s “Share a Coke” campaign personalized the brand
experience by featuring individual names on Coke bottles. This creative approach encouraged
consumers to find and share a Coke with friends and family, fostering a sense of connection and
social sharing.

5. Red Bull’s Stratos Space Jump: Red Bull’s Stratos Space Jump was a groundbreaking event
that seamlessly integrated advertising with an extreme sports spectacle. Felix Baumgartner’s
record-breaking freefall from the edge of space not only showcased Red Bull’s brand ethos but also
generated widespread media coverage and public attention.

Best Creative Advertising Campaigns

1. Dove’s “Real Beauty Sketches”: Dove’s “Real Beauty Sketches” campaign challenged
conventional beauty standards by portraying women as more beautiful than they perceive
themselves. The emotional and thought-provoking content sparked conversations about self-esteem
and body image, aligning with Dove’s commitment to promoting real beauty.

2. Always’ “#LikeAGirl”: Always’ “#LikeAGirl” campaign tackled gender stereotypes and


societal expectations associated with the phrase “like a girl”. The campaign aimed to redefine the
phrase, empowering girls and challenging stereotypes. It gained widespread acclaim for its positive
message and impact on cultural perceptions.

3. Airbnb’s “We Accept”: In response to political controversies, Airbnb launched the “We
Accept” campaign, promoting inclusivity and acceptance. The campaign featured a powerful Super
Bowl ad and a commitment to providing short-term housing for 100,000 people in need. It
showcased Airbnb’s values and commitment to social responsibility.

4. Burger King’s “Moldy Whopper”: Burger King’s “Moldy Whopper” campaign took a bold and
unconventional approach by showcasing the natural decay of its signature Whopper over time. The
campaign aimed to highlight Burger King’s commitment to using no artificial preservatives. The
visually impactful and unexpected concept sparked conversations about food quality.
5. Ikea’s “The Room”: Ikea’s “The Room” campaign leveraged the popular escape room trend by
creating an interactive online experience. Users could explore a virtual room filled with Ikea
products and had to find hidden clues to “escape”. The campaign combined gamification with
showcasing Ikea’s product range in a creative and engaging way.

ONLINE ADVERTISEMENT

Online ads have become a daily part of internet life. For new marketers, it can be confusing getting a
grasp on the scope and variety of online ads available.
1. Google Search Ads
2. PPC Ads
3. Bing Ads
4. Facebook Ads
5. Twitter Ads
6. Banner Ads
7. Google Display Ads
8. Retargeting Ads
9. Mobile Ads
10. In-Game Ads
11. In-App Ads
12. Email Ads
13. Gmail Ads
14. Video Ads
15. YouTube Ads
16. Pinterest Ads
17. Instagram Ads
18. TV Ads
19. Newspaper Ads
20. Radio Ads
21. Urban Ads

Google Search Ads


Google search ads are online ads that appear alongside the search engine result page when users
search a keyword query on Google. These ads are PPC, or pay-per-click ads, in which advertisers pay
for each ad click. Google’s PPC search ads are managed through the Google Ads advertising
platform, which allows advertisers to bid on keywords, craft ad text, set budgets, and more.

PPC Ads
PPC ads, AKA pay-per-click ads, are advertisements in which the cost of advertising is determined by
the number of clicks an ad receives. Google Ads and Bing Ads both use a pay-per-click model.
Bing Ads
Microsoft Ads (formerly known as Bing Ads) are similar to Google ads in that they work on a pay-
per-click basis. Advertisers can manage their ads through the Microsoft Ads platform. You can get
started with creating Microsoft Ads once you have a Microsoft Ads Account.

Facebook Ads
Facebook ads exist in many different forms, each offering unique pros and cons for advertisers
looking to market on Facebook. To learn all about Facebook advertising, read our Facebook
Marketing blog post, or check out our list of 45 Facebook advertising tips.
Marketplace ads appear in the side columns of the Facebook website with a headline, copy, and an
image.

Boosted Posts are Facebook ads that let advertisers pay a flat rate to promote a single organic post on
their Facebook business page. The promoted post reaches more fans and friends of fans than a regular
post.
Twitter Ads
Twitter ads refer to the paid boosts that brands on Twitter can use to extend the reach of their tweets,
promote a chosen hashtag, or gain more followers.

Promoted Tweets lets advertisers’ tweets reach more people’s home feeds, and offer a healthy batch
of targeting options. Twitter ads also include Promoted Accounts, letting advertisers show up more
often in Twitter’s Who to Follow recommendation feature. Promoted Trends gets your custom
hashtag in the Trends bar, earning additional attention and notice from the Twitterverse.
Banner Ads
Banner ads are image-based advertisements that often appear in the side, top, and bottom sections of
websites. They can range widely in terms of size, design, and function. You’ll typically find them in
all sorts of news-based websites, blogs, and specialized web communities. Many websites brokerage
their ad space with ad exchanges such as Google’s Display Network, or you can buy the ad space in
the same manner you’d buy an ad on a newspaper.

Google Display Ads


Google Display Ads are a form of contextual banner ads used in the Google Display Network,
Google’s collection of network sites that agree to host display ads. The Google Display Network also
includes Google properties such as YouTube, Gmail, Blogger, etc. Google Display ads can be text,
images, and even video based. To serve online ads on the Google Display Network, you need to start
by using Google AdWords.
Retargeting Ads
Retargeting ads (see similar, Google Remarketing) entice a user to visit a site by taking into account
the user’s past web history. When a user visits a website, a retargeting campaign cookie is attached to
the visitor, taking note of what pages and products the user visits while browsing the site.
Once the user leaves the advertiser’s site and begins journeying to other websites, targeted ads can be
made to appear in certain ad spaces, displaying ads that specifically call out what the user was looking
at on the advertiser’s site earlier.

Retargeting ads tend to perform drastically better than regular banner ads, with higher click-through
rates and conversions. If you’re already using Google AdWords, we have a step-by-step tutorial on
creating your own Google Ads remarketing ad.

Mobile Ads
Mobile ads are ads that appear on smartphones, tablets, and any other mobile device. Many social
media platforms, websites, and apps offer their own unique mobile ad options. If you advertise on
Google Ads, you can advertise to mobile devices.

In-Game Ads
In-Game ads are advertisements that exist within computer or video games. One of the most common
examples of in-game advertising is billboards appearing in sport games. In-game ads also might
appear as brand-name products like guns, cars, or clothing that exist as gaming status symbols.
In-App Ads
App Ads are advertisements that appear within mobile apps. Google’s mobile advertising platform
enables app creators to make revenue off of free games by offering ad space, and allowing advertisers
to get ad spots in the most popular mobile games and apps.
App ads can appear as mobile-optimized text ads, image-based banner ads, or even interstitials ads,
which use rich HTML5.

Email Ads
Email ads are advertisements sent to users via web mail. Email ads can be used to notify subscribers
of certain promotions, discounts, or new features, among other uses.

Most email advertisements feature a large image with minimal text; users will not waste large
amounts of time reading email ads, so it’s important to make your message as clear and concise as
possible. Email ads also rely on a compelling subject line to ensure that a user will open the email.

Email ads have specific rules – the CAN-SPAM Act of 2003, created to prevent email spam for users,
authorizes a $16,000 penalty per violation for spamming individuals, which is why many email
marketers in the US use an email service or software to make sure they are in compliance with the
Act.

Gmail Ads
Gmail ads in Google’s online email service are contextual ads that are generated by an automated
process that scans a user’s emails to discover interests and topics that are relevant to the user. If a user
is writing and receiving many emails about air conditioners, that user may see ads about air conditions
appear within the Gmail inbox. Gmail ads are created using Google Ads Discovery campaigns.

Video Ads
Video ads are growing in popularity as better internet speed performance and online advancements
make it fast and easy to watch videos on the web. The most successful video ads avoid blatant
advertising, opting instead for educational, how-to video content that naturally appeals to users, with
some (if any) product suggestions discreetly integrated. Humorous video ads also perform well, with
some funny video ad network campaigns finding enormous success, especially when an interactive
element is added.

YouTube ads
YouTube ads are ads that appear on Google’s video-sharing site. Since Google obtained ownership of
YouTube, advertising on YouTube has become nearly as easy and customizable as advertising on
AdWords.
YouTube ads provide a number of targeting options and several different ad formats. YouTube
advertisements can appear as banner ads, in-video overlay ads, in-stream video ads (which are video
ads that appear before or during another YouTube video), as well as several other setups.
Pinterest Ads
Pinterest ads are simply pieces of content pinned by brands and advertisers. When marketing a
specific product, marketers create Pinterest advertisements by adding a dollar sign before the price
amount to the description. This tells Pinterest that this item is for sale at that specific price. Pinterest
marketers can then link the pinned item to the official product page to drive retail traffic.

Some marketers also implement their own form of Pinterest advertising by hosting contests on
Pinterest. While this doesn’t result in direct sales, contests are a great way to drum up user attention,
engagement, and boost site traffic, depending on how the contest is organized. Take note that while
you do not have to pay Pinterest to create ads, you will have to spend significant time and effort to
create beautiful online ads to attract lurking buyers on Pinterest. Note that Pinterest ads work best on
tangible B2C products.

Instagram Ads
Instagram ads are photos or videos that can be found throughout the platform in places like the News
Feed, Explore page, Reels feed, Stories, and Instagram Shops.
OTHER FORMS OF ADVERTISING
While we’re primarily concerned with showing online ad examples, it’s worth giving a quick
overview of other more common, offline forms of advertising as well!

TV Ads
TV ads are a very expensive but still well-regarded form of advertising that’s as old as television
itself.

TV ads are a form of outbound marketing, also known as interruption marketing, which relies on
interrupting viewers in an effort to get their attention. In order to avoid being received as obnoxious
by viewers, many television ads now make an effort to appeal to a viewer’s emotions through humor,
a sense of goodwill, nostalgia, or even sometimes anger or sadness. For many TV ads, the main
objective is to be emotionally powerful and memorable.

Newspaper Ads
News ads are thought by many to be a thing of the past, but they still offer value, especially when
targeting audiences who may not be online often. News ads can build brand awareness, although
tracking the performance of newspaper advertisements is nearly impossible. Online ads, on the other
hand, offer audience targeting options, performance measurement analytics, and a wealth of other
advantages against classic news ads.

Radio Ads
Radio ads are similar to TV ads and newspaper ads in that they too are a form of outbound marketing
that seeks out attention through interruption. As with other forms of advertising that don’t operate
online, radio ads can be difficult to measure and track.

Urban Advertising
Urban advertising is advertising that, at its most basic, exists in densely populated cities. Urban
advertising often takes advantage of setting to shock or inspire awe in viewers. Urban advertising also
often exists as a form of alternative advertising, using unconventional or unique methods of spreading
a message.
CPA Marketing

What Is CPA Marketing?

Cost Per Action (CPA) Marketing is a affiliate model where a commission is paid when a
user takes a specific action. These actions include filling out a form, getting a quote, signing up for a
trial, or making a purchase.

What Are the 3 Categories of CPA in Digital Marketing?


The CPA advertising model can be categorized into three types:

1. Pay Per Action

In this category, the publisher receives a commission only when the customer takes a particular
action, such as visiting the advertiser’s website, signing up for a trial, or subscribing to a newsletter.

2. Pay Per Sale

In this model, the advertiser pays the publisher a commission or percentage of the product’s sale price
after a customer makes a purchase.

3. Recurring Payments

In this model, the publisher receives a commission not just for the initial purchase, but for every
repeat purchase the customer makes.

Digital Marketing Basics: CPM, CPC, CPA

When an advertiser would like to run an online banner campaign they need to understand how they
will be billed for the advert. There are 3 standard costing models for online static banner advertising
namely: Cost Per Mille (CPM), Cost Per Click (CPC) and Cost Per Acquisition (CPA).

CPM
Cost per mille (CPM), also called referred to as “cost per thousand” (mille means one thousand
in Latin, French and Italian) is a common costing measurement in online advertising. It is the cost an
advertiser pays for one thousand impressions (views) of an online banner advertisement. For example
if an advertiser sees a CPM rate of R200 it means that the advertiser will pay R200 for their banner ad
to be viewed 1,000 times.
Above is an example of how to work out a CPM rate.

CPC
CPC is another costing model in online marketing and advertising and stands for “cost per
click”. It is the cost an advertiser pays everytime one of the online banners adverts is clicked. For
example if an advertiser sees a CPC rate of R10 it means that the advertiser will pay R10 every time
that their banner ad is clicked.

Above is an example of how to work out a CPC rate.

CPA
Cost per acquisition (CPA), also referred to as “Cost per action” is an online advertising
costing model where the advertiser pays for a specified acquisition. An acquisition can be described as
a sale, lead, sign up or form submission (e.g. contact request, newsletter sign up, registration etc...).
The way in which the acquisition is tracked is when a user clicks a specific action button — for
example if a customer signs up for an advertiser’s service, once they click the “submit” button, that
click is considered as an acquisition because the user clicking onto that button represents a real lead for
the advertiser.

An acquisition would occur every time that a user clicks the orange “sign up” button after having
completed the form.
Above is an example of how to work out a CPC rate.

COMPARING EACH COSTING MODEL

1. CPC
Assume that you bid R1.00/click for your CPC ad and commit to a R2,500 budget. You are
guaranteed 2,500 clicks.

2. CPM/CTR
Now assume that you agree to pay a R15 /cpm for the same ad and commit to the same R2,500
budget. You are guaranteed that your ad will be seen 166,667 times. To get the same number of clicks, 1.49%
of the people who see the ad would have to click on it. (also known as a Click Through Rate “CTR”).

To break it down:

1. CPM Rate: The CPM rate is R15, which means you are paying R15 for every 1,000 times your ad is
shown.
2. Total Budget: Your total budget is R2,500.
3. Impressions Calculation:
o Since R15 buys 1,000 impressions, you can calculate how many 1,000-impression units your
R2,500 will cover: Number of units=R2,500R15=166.67 (thousand impressions)\text{Number
of units} = \frac{R2,500}{R15} = 166.67 \text{ (thousand
impressions)}Number of units=R15R2,500=166.67 (thousand impressions)
o This means, for a R2,500 budget, you can buy 166.67 "thousands" of impressions, which is
166,667 individual impressions (since 166.67 x 1,000 = 166,667).
4. Result: You are guaranteed 166,667 impressions with your R2,500 budget at the R15 CPM rate.

So, at a rate of R15 per 1,000 impressions, you will get your ad displayed 166,667 times for the R2,500
investment.

“If the advertiser used the CPC model, they would only ever get 2,500 clicks but if the advertiser used
the CPM cost model, they would have gotten 33,333 clicks (30,833 additional clicks than the CPC
model).”
COMPARING THE CPC (COST PER CLICK) MODEL AND THE CPM (COST PER
THOUSAND IMPRESSIONS) MODEL
In this scenario, we are comparing the CPC (Cost Per Click) model and the CPM (Cost Per
Thousand Impressions) model, using a 20% click-through rate (CTR) to illustrate the difference in
the number of clicks the advertiser would get under each model.

Key Concepts:
 CTR (Click-Through Rate): This is the percentage of people who click on your ad after
seeing it. In this case, the CTR is 20%, meaning 20% of the people who see the ad will click
on it.
 CPC (Cost Per Click): In the CPC model, the advertiser pays only when someone actually
clicks on the ad.
 CPM (Cost Per Thousand Impressions): In the CPM model, the advertiser pays for every
1,000 times the ad is shown, regardless of whether people click on it.

Step-by-Step Explanation:
1. Using the CPC Model:
 Budget: R2,500
 CPC Rate: The CPC rate isn't directly mentioned, but we can infer it. With a 20% CTR, the
total number of impressions the advertiser would get for R2,500 is the same as in the CPM
model (i.e., 166,667 impressions), since the total budget is the same.
 CTR of 20%: This means that 20% of the 166,667 impressions will result in clicks:
Number of clicks=166,667×20%=33,333 clicks.\text{Number of clicks} = 166,667 \times
20\% = 33,333 \text{ clicks}.Number of clicks=166,667×20%=33,333 clicks.
 Clicks in CPC Model: In the CPC model, you only pay for the actual clicks. If the CPC rate
were set such that you'd only spend R2,500 for 2,500 clicks, then the cost per click would be:
CPC rate=R2,5002,500 clicks=R1 per click.\text{CPC rate} = \frac{R2,500}{2,500 \
text{ clicks}} = R1 \text{ per click}.CPC rate=2,500 clicksR2,500=R1 per click.
So, under the CPC model, you'd get exactly 2,500 clicks for the R2,500 budget because you
pay for each click at R1.
2. Using the CPM Model:
 Budget: R2,500
 CPM Rate: R15 per 1,000 impressions (as given in the previous example).
 Impressions: For R2,500, you get 166,667 impressions.
 CTR of 20%: With a CTR of 20%, you can expect 20% of those 166,667 impressions to
result in clicks: Number of clicks=166,667×20%=33,333 clicks.\text{Number of clicks} =
166,667 \times 20\% = 33,333 \text{ clicks}.Number of clicks=166,667×20%=33,333 clicks.
 Clicks in CPM Model: Even though you are paying per 1,000 impressions, not per click, you
still receive 33,333 clicks because of the 20% CTR.
3. Comparison:
 CPC Model: For a budget of R2,500, you would get 2,500 clicks (since you are paying per
click, and each click costs R1).
 CPM Model: For a budget of R2,500, you would get 33,333 clicks because you are paying
for impressions, and with a CTR of 20%, 20% of those 166,667 impressions lead to clicks.
4. Why More Clicks in the CPM Model?
 The CPM model is designed to optimize for impressions rather than clicks. Even though you
are paying for impressions (not clicks), you still benefit from the high CTR of 20%. This
means that with the same budget (R2,500), you are getting significantly more exposure
(impressions) and, therefore, more clicks.
 Additional Clicks: 33,333 clicks (CPM)−2,500 clicks (CPC)=30,833 additional clicks.33,333
\text{ clicks (CPM)} - 2,500 \text{ clicks (CPC)} = 30,833 \text{ additional
clicks}.33,333 clicks (CPM)−2,500 clicks (CPC)=30,833 additional clicks.

Conclusion:
 CPC Model: You pay for clicks, and at a budget of R2,500, you would only get 2,500 clicks.
 CPM Model: You pay for impressions, and at a budget of R2,500, you would get 33,333
clicks (because you are paying for impressions and benefiting from the high CTR of 20%).

Thus, using the CPM model in this case results in 30,833 additional clicks compared to the
CPC model, because you're paying for exposure (impressions), and the 20% CTR works in your
favour.

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