Computer with AD popping out Computer with AD popping out

Digital Advertising: Ads, Traffic Buying, and Real-Time Bidding

Advertising technology moves forward at an incredible pace. Every year, there are new platforms, ads, techniques and trends. However, there are tried-and-true methods that are still the cornerstones of digital advertising. Understanding the types of ads, traffic buying methods, and the intricacies of real-time bidding is crucial for an effective online advertising campaign. 

Here’s what you need to know:

Types of Ads

Native Ads: These ads match the look, feel, and function of the media format in which they appear. They are less intrusive than regular banners and blend in naturally with the website or platform, providing a smoother user experience.

Banners: Banner ads are image-based ads that appear prominently on web pages. They are one of the oldest forms of digital advertising and can be very effective if designed creatively and placed in a smart way. Old school? Sure. But still a common way to advertise.

Search Tiles: Often seen in search engines, these are ads displayed above or beside the organic search results. They are targeted based on the user's search query, making them highly relevant. These tiles rely on the fact that the user has a purchase intent.

Video Ads: With the rise of streaming platforms and social media, video ads have become increasingly popular. They range from short clips to longer segments and can be skippable or non-skippable, depending on the platform.

How to Buy Traffic

Traffic buying in digital advertising refers to the process of purchasing ad space to display ads to potential customers. Here are the common methods:

Direct Purchase: Buying ad space directly from a website or a network. This method is straightforward but can be time-consuming and less flexible.

Ad Networks: Ad networks connect advertisers with publishers. They get ad space from various publishers and offer it to advertisers, usually with added targeting and optimization features.

Real-Time Bidding (RTB): RTB is a dynamic method where ad impressions are bought and sold on a per-case basis through an instantaneous auction, which takes place in the time it takes for a web page to load.

Real-Time Bidding is a significant leap in buying ad traffic. In this system, when a user clicks on a webpage, the information about the page and the user is sent to an ad exchange. Advertisers bid in real time for the opportunity to serve an ad to that particular user. The highest bidder wins the right to display their ad. This method allows for precise targeting and optimal use of the advertising budget, as advertisers pay only for effective impressions.

Supply-Side Platforms (SSP)

A Supply-Side Platform is used by publishers to manage, sell, and optimize available inventory (ad space) in an automated and efficient way. SSPs are designed to maximize the prices their inventory achieves through real-time bidding and direct sales. They provide publishers with tools to manage the ad inventory and integrate with multiple ad exchanges and demand-side platforms to increase competition for the inventory, while also increasing revenue.

Demand-Side Platforms (DSP)

A Demand-Side Platform is a system that allows buyers of digital advertising inventory to manage multiple ad exchange and data exchange accounts through one interface. DSPs enable advertisers to purchase ad space from many publisher sites but targeted to specific users, based on information such as location and browsing behavior. This way, advertisers can reach their target audience more precisely and at scale.

Influencer marketing

Influencer marketing is a powerful strategy in digital advertising, using the trust and authenticity of social media personalities to promote and sell. This is especially relevant to niche targeting, and offers high engagement rates. Additionally, the rise of micro and nano-influencers provides cost-effective options for brands, while advancements in analytics allow for more accurate measurement of campaign impact.

Current trends in influencer marketing include a shift towards long-term partnerships, an increased focus on video content, and the innovative use of AI-generated virtual influencers.