If you use display campaigns correctly, they can be profitable. However, the issue is that many people don’t utilize them properly, end up switching them off, and conclude that "display campaigns don’t work." This guide will teach you how to effectively use display campaigns at all stages of the marketing funnel to make them profitable.
Display Campaign: Your Targeting Options
There are two main categories for targeting people with display ad campaigns:
Content Targeting
This method displays your ads to individuals currently viewing specific website content you have identified. The options include:
- Topics: Subject areas of website content.
- Placements: Selected website placements.
- Keywords: Keywords or content "themes" of website content.
Audience Targeting
This option shows ads to individuals regardless of the websites they are currently viewing. The ads follow people like remarketing ads do, but they aren’t strictly remarketing audiences.
- Demographics: Based on Google’s data to estimate demographics, this approach may not be entirely accurate but is worth testing.
- Affinity: Based on interests and habits.
- In-Market and Life Events: Users shopping for certain items or undergoing life events, such as marriage, graduation, or retirement.
- Your Data Segments: Customer lists you uploaded or remarketing to previous website visitors.
- Combined Segments: Combining multiple segments for targeting.
- Custom Segments: Custom audiences created based on recent searches, website visits, or app usage. This option is often profitable.
Integrating display campaigns into your overall advertising strategy is simpler than expected. Below are detailed insights on targeting options organized by funnel stage, ensuring that your expenses are not wasted on irrelevant traffic.
Top-of-Funnel Display Ad Campaigns
Placement Content Targeting Option
Think of this as buying ad space in a magazine popular with your target demographic or, for a modern approach, sponsoring a podcast your audience listens to. You can directly track clicks, time spent on your site, pages viewed, conversions, and micro-conversions like newsletter sign-ups, pricing page views, or video views.
Top-of-funnel ad campaigns can accomplish various conversions beyond just clicks. Sometimes, users move through the whole funnel swiftly, even with a single click.
Case Study Example
Our agency tested display and search campaigns for a client offering services for attorneys. Display ads on attorney news websites, used as lead generators and initial touchpoints, produced more leads at a lower cost than search campaigns. Targeting websites frequented by attorneys was a straightforward success.
Other Example Usages
- Target local news websites for services, events, restaurants, and home goods.
- Advertise health and wellness sites with products like supplements, or fitness programs.
- Promote gaming websites with ads for games.
Topic and Keyword Content Targeting Option
Typically used at the top of the funnel, this approach can also perform well mid- or bottom-funnel. Auto bidding is recommended, as it cycles through multiple related sites. Once the campaign has run for a week or two, you’ll have data to filter out irrelevant results. Desktop-only targeting or blocking apps is advisable, as apps may not always yield the best outcomes.
Example Usages
- Target "Homes and Garden > Home Safety and Security" topics with ads for home security products.
- Target "Pets and Animals > Animal Products and Services" topics with relevant ads.
- Focus on the "accounting software" keyword content with ads about accounting solutions.
Affinity Audience Targeting Option
Ideal for top-of-funnel and awareness campaigns, affinity audiences can serve as a first touchpoint and can be combined with micro-conversions, such as capturing email addresses.
Example Usage
Showing an ad for stock trading software to the Affinity Audience of Avid Investors. Micro-conversions could involve watching a demo video or subscribing to a newsletter. Top-of-funnel prospects may book a demo or enroll in a free trial, not just micro-conversions. If a prospect is ready to buy immediately, facilitate the purchase.
Demographics Audience Targeting Option
Google offers explanations of its demographics data in the help section, although sources aren’t entirely clear. In Google’s words:
"When people are signed in from their Google Account, we may use demographics derived from their preferences or settings, depending on their account status"; "some sites might provide us with demographic information that people share on certain websites, such as social networking sites"; "sometimes we also estimate demographic information based on activity from Google properties or the Display Network."
Targeting or blocking Demographics may yield good results, with understanding that Google makes assumptions about audiences, like being a "homeowner" or ages "18-24."
Example Usage
Target Google’s demographic audience like “Parents of Infants” with ads for baby products or “Homeowners” with insurance ads, recognizing data imperfections; sometimes showing an ad to the wrong person.
Middle and Bottom-of-Funnel Display Ad Campaigns
Custom Audiences Targeting Option: The Most Profitable Display Targeting Option
Targeting options include using keywords and related recent search terms, along with broad matching keywords to reach potentially interested audiences. Custom audiences can also be created based on visited websites like those of competitors.
Tip: Use one custom targeting option at a time. Avoid combining keywords, URLs, and apps in one audience to ensure clear data results.
Auto-bidding, like Max Conversions, often works effectively, tracking users’ activities across websites to determine conversion potentials.
Example Case Study
In our tests for a home services client, we found that display campaigns generated more leads at a lower cost per lead than search campaigns, even with a reduced conversion rate.
Other Example Usages
- Create custom audiences that focus on individuals visiting competitor or related sites.
- Focus on creating a custom audience formed around top-converting search campaign keywords.
‘Your Data Segments’ Audience Targeting Option
"Your data segments" for targeting is commonly used for remarketing to past site visitors or those from an existing customer list. Usually, this is a bottom-of-the-funnel stage since these users are nearing a decision point.
Example Usages
- Target past customers with ads about new products.
- Focus on previous website visitors who explored pricing or viewed multiple products but didn’t purchase.
- Target website visitors who signed up for a trial but haven’t upgraded.
In-Market and Life Events Audience Targeting Option
These audiences can be effective at any funnel stage, primarily in the middle and bottom since they are shopping or have experienced major life events.
In-market targeting effectively reaches active researchers interested in specific products, like vehicles or housing.
Example Usages
- Target the "Retiring Soon" audience with ads for retirement management services.
- Focus on individuals who recently bought a home with ads for furniture or home security.
- Target "In-Market > Luxury Vehicles" with relevant vehicle ads.
Critical Settings and Optimizations: Preventing Money Waste on Display Ads
- Focus on single targeting options per ad group or campaign for clarity.
- Avoid using "Optimized targeting" or "targeting expansion" settings that may widen your scope inattentively.
- You may block all apps or solely show ads on desktops to improve relevance.
- Keep a close eye on app traffic, potentially blocking irrelevant apps.
- Regularly exclude ineffective placements.
- Uncover and filter sites like YouTube.com if they drain traffic without results.
- Exclude unsuitable topics to avoid irrelevant clicks.
- Implement negative keywords and exclude existing remarketing audiences to enhance targeting efficiency.
The Obvious Question: Why Not Just Use Performance Max?
The key drawback of Performance Max is less control. It might not specifically reach prominent sites your audience frequents. Due to its limited data transparency, consider using display campaigns for direct targeting of specific sites and precise tracking of results.
Running separate campaign types offers a profitable alternative that marketers should not overlook. Testing display campaigns can generate insights to optimize Performance Max by integrating successful keywords and strategies.
