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Digital Advertising Principles

Alejandro Trinidad-Flores

Dec 1, 2023

Your Guide to Effective Communication Campaigns

Welcome to the latest edition of the Biotech & Pharma Consulting newsletter! In this issue, we delve into the exciting world of digital advertising, exploring key channels and strategies that can help you achieve success as a marketer.

Digital Advertising Mix

Let’s take a look at the digital advertising landscape. We aim to provide you with a solid understanding of the essential channels for paid advertising in the digital realm and the primary focus is on how these channels can work harmoniously to help you achieve your marketing goals.

Three Key Principles for Success

To maximize the impact of your digital advertising efforts, let’s explore three core principles: targeting, personalization, and optimization. Unlike traditional advertising, digital advertising is a dynamic field that requires continuous iteration, testing, learning, and improvement. It is important to refine your approach throughout your campaign, from defining your goals and budget to measuring results and optimizing your strategy.

Digital Advertising Trends

Digital advertising is on the rise, with an increasing share of advertising spend shifting to digital channels. This trend is evident across different markets, including the United States. Digital advertising dollars are being invested, with a focus on search engine marketing, display marketing, video advertising, and the rapidly growing social media advertising sector.

Versatility of Digital Advertising

Digital advertising has proven its effectiveness in supporting a wide range of marketing objectives. Unlike traditional advertising vehicles that excel in specific tactics, digital advertising offers versatility. Marketers have reported success in creating awareness, driving interest, influencing consideration, spurring purchases, and triggering direct response advertising through digital channels.

Let’s examine various Digital Channels and how to integrate them effectively.

Email Marketing: Email marketing is a pivotal channel in the digital advertising landscape. We all receive business emails in our personal inboxes, and it has some unique benefits, including reaching your core audience, high measurability, and its role in building targeted customer databases. It is important to learn how email marketing automation tools and email cadences can enhance your campaigns.

Search Engine Marketing (SEM): Search engine marketing (SEM) is a cornerstone of digital advertising. SEM allows you to connect with customers at the precise moment of intent, making it an invaluable tool for marketers. Gain insights into the bidding system, cost per click (CPC) pricing model, and factors influencing ad placement. Understand the significance of relevant ad content and how customer intention drives the demand for SEM. Also, SEM has some emerging search formats, such as "click to call," tailored for mobile device users.

Display Advertising: Our exploration of digital advertising channels continues with a deep dive into display advertising. These are the ads you encounter on websites and in apps, presented in various sizes and formats. Learn how standardized ad shapes enable advertisers to reach diverse audiences across different platforms. Additionally, the pricing models, such as cost per impression (CPM), and the role of ad networks in connecting advertisers with publishers, play an essential role.

Video Advertising: Our next crucial digital advertising channel to explore is video advertising. Video ads captivate audiences with their combination of visuals and sound, making them highly engaging. Some of the video ad formats include preroll, post-roll, and mid-roll, as well as promoted or suggested videos. Additionally, video advertising offers the potential for interactivity and video ad networks. Advertisers have the option to pay based on user engagement, as seen with TrueView ads on platforms like YouTube.

Principles of Effective Digital Advertising

Targeting: One of the fundamental principles of effective digital advertising is targeting. This principle allows advertisers to reach specific individuals or audience segments most likely to be interested in their products or services. There are various targeting methods, including cookies, device IDs, social logins, and behavioral targeting. Furthermore, targeting benefits not only advertisers but also publishers and consumers by ensuring more relevant and engaging content. Effective targeting in digital advertising allows you to reach people in specific and interesting ways, one of which is retargeting. Retargeting is a common approach where you reconnect with customers who have previously visited your site. For instance, you might notice advertisements from a website you visited following you around as you browse the web. This is a process called retargeting, and it can be highly effective.

Companies use retargeting because it often yields better results than showing ads based on other user information. For example, if you've purchased a product from Amazon in the past, they may use that information to show you ads for related products. This personalized approach can be very effective in driving sales and maintaining customer relationships.

Another important principle is the use of look-alike audiences or similar audiences, as Google calls them. Instead of targeting only known customers, you can start with a defined audience and use data to find people who closely resemble your existing customers in terms of behavior and preferences. This approach allows you to expand your reach to a larger, similar audience at a lower cost.

Combining retargeting and look-alike audiences can be powerful. Retargeting helps maintain relationships with past visitors, while look-alike audiences help you acquire new customers who share characteristics with your existing ones. This approach enables you to personalize ad experiences for different customer segments, making your advertising more effective.

This shift in targeting represents a move from traditional demographic-based advertising to behavior-based targeting in the digital era. Instead of creating fictional personas based on demographics, you're now targeting specific individuals based on their behaviors and interactions with your brand.

Personalization: Personalization is the second principle of effective digital advertising. Instead of using the same message for all customers, personalization involves tailoring your messages to different individuals or groups of customers based on their specific interests, behaviors, and needs.

For example, Kimberly-Clark, a paper goods company known for its diapers, uses personalization to target customers at different stages of the customer lifecycle. They customize their communications to customers based on whether they are new parents using infant diapers, transitioning to toddler products like Pull-Ups, or needing swim diapers like Little Swimmers. By personalizing messages to where customers are in their journey, they can increase the effectiveness of their advertising.

Personalization can also extend to customers' interests. For instance, Coca-Cola used data from social networks to segment customers based on their interests in fashion, music, or travel. They then created different versions of their ads tailored to these interests. This approach led to higher engagement and a more personal connection with their audience.

Optimization: Optimization is the third principle of effective digital advertising. It involves continuously measuring, learning, and adjusting your advertising efforts to improve results. You can optimize at different levels:

  • Channel Optimization: Test and learn which channels (e.g., display, video, search) work best for your goals and audience. Adjust your channel mix accordingly.

  • Media Optimization: Determine which specific publications or platforms within a channel are most effective for your ads. Focus your advertising efforts where they yield the best results.

  • Creative Optimization: Use A/B testing to experiment with different ad elements, such as text, images, calls to action, and offers. Identify what resonates most with your audience and refine your creative accordingly.

By optimizing your digital advertising strategy, you can make data-driven decisions to maximize your advertising's impact and efficiency. Remember to define clear metrics for success from the beginning and continuously measure your performance against those metrics. Adapt your strategy as needed to achieve better results.

In summary, effective digital advertising involves setting clear goals, defining metrics, allocating budgets, choosing appropriate channels, and continuously optimizing your campaigns. It also emphasizes targeting based on behavior, personalizing messages, and using data-driven optimization techniques to improve outcomes. Digital advertising has evolved from demographic targeting to behavior-based targeting, offering advertisers more precise and effective ways to connect with their audience.

Join forces with Biotech & Pharma Consulting to develop a digital communication campaign that embodies the core principles of targeting, personalization, and optimization. Together, we'll utilize the full potential of digital advertising to create tailored and highly effective campaigns exclusively for the pharmaceutical sector.

Stay connected for the forthcoming editions of the Biotech & Pharma Consulting newsletter with more Digital Advertising Insights, where we will persistently investigate the dynamic digital advertising landscape.

Warm regards,

Biotech & Pharma Consulting, LLC

611 Gateway Boulevard

South San Francisco, CA

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