Advanced Pay Per Click (PPC) Program

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PPC:Introduction to Display Advertising Tutorial

1.2 Introduction

Hello. This is Brad Geddes, the author of Advanced Google AdWords, the founder of Certified Knowledge, and the PPC Faculty Chair for Market Motive. In this video, we're going to introduce the display network and look at some of the contextual advertising options available to you.

1.3 Search Vs. Display

Now first, we need to just define the search and display network to make sure it's completely clear. So with the search network whether it's advertising on Bing, or Google, or their search partners, a user has to input a search query into a search box. And then they get results based upon the search query. So this is less than 5% of Internet time is spent on search pages. Now with the display network what happens, if someone's not conducting a search, they're reading an article on the web. In this case it's New York Times. And then based upon your targeting options, which are often based upon the content of the page, Google will then look at the page's content, your targeting options. And then show ads which are contextually relevant to the article's information. So, with the content network, or the display network, the ads are based often on page content. There are some other options that we will get into. Now this about 95% of time spent on the web is spent on content sites. So the display network is really good for increasing total conversions, increasing your reach, and expanding your buying funnel entrances because there is so much more volume on display than search. But it's a different user experience. Search, someone's actively looking for you. With display targeting you're often interrupting their current process of reading an article to redirect them to your ad in your website. So when we look at some of the differences, search is based upon your actual keywords you're advertising on, less than 5% of the web. And the cost structure based upon Ad Rank, your Quality Score x Max CPC, discounted to be one penny higher than that next Ad Rank below you. Now with the content network, or the Google Display Network, the pages are based on the article of the content and some other options we'll get into. It's about 95% of web page views. And the cost is based upon your ad rank, which is still somewhere to search. However, smart pricing also kicks in, which can discount how clicks are paid for on Display Network. And we'll get into smart pricing in some detail. Now in addition with search your ads are mostly text based. With product listing ads and a few varieties you may have a simple picture in the ad. With the display networks you can use video ads and image ads, rich media, which have much higher recall rates then basic text ads do. So when we just look at Google DIsplay Network, from a reach standpoint, there's more than a million websites participating in their network, which is approximately 70% of all Internet users in the entire world, so more than 20 languages and 100 countries. You can use rich media and text ads for the display network. So it's great for increasing product awareness, and it's good for reaching users throughout the entire buying cycle. And we'll come back to the buying cycle again after we walk through all the targeting types. Now because search, a user is explicitly looking for your products based upon keywords or your services, you want a campaign that's only on the search network. With display, you're interrupting a user's process with your various targeting types to redirect them to your site. Different user interaction, so you want to campaign them as Display Network only when you do display advertizing. You don't want to combine search and display together. You really want to keep them segmented into multiple campaigns.

1.4 Smart Pricing

So as I mentioned earlier, clicks may not cost the same, search versus display, due to smart pricing. So I'm going to use a very simple scenario here with some easy round numbers. So let's say you're advertising for camcorders and your max CVC is set at $1. Then what happens is a user's on a site, in this case it's a blog site where someone wrote a blog article about how they use their camcorder on a vacation somewhere, so we look at this type of site up, a blog based site. It's a non commercial site. It's not a super high quality site. So then maybe Google says well you might have a dollar CPC but due to it being a non commercial site and not a really high quality site we're only going to charge you $.25 CPC on this site and, for nice easy number reasons, let's just say we have a 5% conversion rate from this site. Now, but we have other types of sites. So in this case,, it's a review site. So it's very highly commercial. The exact same ad is shown on this particular site. Now in this case, Google says wow, it's a commercial site. Review sites are highly commercial. It's a high quality site. There are pages and pages of reviews, we're going to take that entire dollar. This is a fantastic click. And then again for nice easy round stats, let's say you have a 10% conversion rate on this particular site. Now with display, conversion rates are not the number you want to obsess over. It's cost per conversion or cost per action. And this is why so for this blog site our CPC was $0.25, our conversion rate was 5%. That means our cost per conversion is $5. Now for this review site, it was a gray click so our CPC was an entire dollar. Our conversion was better it was 10% it was double the blog site. Except a dollar CPC and a 10% conversion rate, leads to a $10 cost per conversion. So even though our conversion rate's higher on the review site, our cost per conversion's actually higher as well, due to smart pricing. So when you really get into display, setting CPA based targets can help you pick what sites are doing better or worse than other sites, due to smart pricing.

1.5 Campaign Settings and Bidding

Now with the display, all your campaign settings apply just like search. So your bid modifiers for devices, your location targeting, your bid types etc. All work the same- display and search. Now with display you can still do manual bidding based upon CPC, you can do CPA bidding, and if a campaign is only on display you will have another bid option. Which is CPM bidding or Focus on Impressions. With CPM bidding, it stands for cost-per-thousand impressions, so this is what you want to pay on an impression basis, not a click basis. If you're newer to display advertising, you haven't bought CPM before, it's not a good place to start because most of search marketing is based upon paying for a click, paying for actual traffic. And so then measuring display and search simile, based upon CPA, is a good idea. If you're really focused on brand awareness, service awareness, so forth, and you're using a rich media ad, so video or image ads, CPM can be a very useful bid type but it is very different. So make sure you're willing to pay for the impression, and not for the click, and do the impression measurements.

1.6 Keywords for Display Targeting

So, there are several different targeting types for display. The most basic one and easy one for people to grasp doing search-based advertising is keywords. So you can input keywords into the display network, and then based upon the article content or the page content matching your keywords, your ad can be shown. Now, there are some very specific rules for keywords of how Google uses them in display. It's not quite the same matching as in search. So, number one, Google does not look at match types. So putting the same keyword into a display campaign and three different match types is redundant. Google treats all words as not truly a broad match, but a close variation match to your word to the page's content, itself. Now, negative keywords are used, but it's not like search, it's not like on display. You can pick a keyword with a specific phrase match and then an exact negative keyword and only show in these conditions. Negative keywords on display are usually big, negative keywords of just entire topics you don't want to be shown for, or very specific-based words. So importing your search campaigns with thousands of negative keywords is not going to help your display campaigns. It's really going to confuse an algorithm which is trying to match based upon overall theme concepts, and not on individual match types. So Google usually focuses on about 50 words from an ad group for this. So if you have an ad group of thousands of keywords in it, usually you get poor results with your keywords. Usually, eight to twelve keywords is plenty for a display campaign, for an ad group. That's a decent number for search, as well. Now just like search, you do want granular ad groups. Here's my keyword, here's my landing page, here's my ad. They're all closely related. So you still want the same types of relationships of keyword to ad to landing page for display, you're just not going to focus as much on all the match types or positive or negative words. You're going to pick words that are a little bit broader, but based upon the words that match the articles and match the words you're advertising on. Now, so it's also important, as you move around different geographies, to make sure you're matching to the words used in articles based upon the country or geography you're advertising in. So, for instance, in the United States when we talk about phones, we use the word, cell phone. Mobile phone is used a little, bit but not nearly the volume of cell phone. Now, in the UK it is completely backwards. UK uses the word mobile phone, not cell phone. And so, if you were to go to the UK, and you were using the word cell phone and you didn't use mobile phone, you would have a lot less impressions than using the keyword, mobile phone. Now this gets into how people write articles and what words they're using when you do your research. So, for instance, this is a review for one of the Droid phones. And on PC Mag, which is a US-based site, the word cell phone was used nine times in the article, the word mobile phone, zero. Now, similar type of review, same phone, but in CNet UK, so different country, the word cell phone was never used in the article. The word mobile phone was used 11 times. So this is why when you're picking these words for display, and it's important for search as well, to make sure you're using the words that the journalists or the article writers are using In those countries. So with keywords, you can be pretty specific on the keywords you're advertising on. And based upon the keywords you're using being in the articles, then your ads can be displayed.

1.7 Topic Targeting

Now there are other ways of doing targeting for display such as topic targeting. So, topic targeting, what happens is Google has a big list of pre-created topics so and they go, and they call the web and they index all these pages on the web. And as they find a page if it fits in one of their topics they assign a topic to that particular page so then you can go and just advertise on topics and not keywords. So what happens then is topics have a lot more traffic than keywords because every page, on most pages on the web, are classified into a topic. But, your keywords might not be on that page, but you're still in that particular topic. So because there's a lot more traffic because it's based upon big varieties of topics that have individual keywords, it is more traffic. But also what usually marketers find, it's a higher CPA than keywords. Because you may be advertising on a page that's about your topic but it's not about your specific products and services. It's just in the general topic of what you're advertising. So topic targeting more traffic than keywords, usually higher CPA than keywords. And that's that huge balance between the lower the CPAs you want, usually the less traffic you get. The more traffic you want, usually the higher the CPAs are in general.

1.8 Interest Targeting

Now with keywords and topic targeting, they're based upon the page's content. We also have Interest Targeting, and Interest Targeting is based upon what the user has shown an interest in. So we're no longer targeting based upon page content, we're targeting based upon user Interest. So it's a very different way of targeting a person, because we're no longer just looking at matching articles to pages. Now the page doesn't even matter. We're targeting a user. So what usually happens then is interests have fewer impressions than topics. And usually lower CPA than topics, because you're targeting something a user has shown a propensity to be interested in. But it's usually still higher CPA than keywords. Keywords are pretty specific. But also lower volume. Now if you're wondering how does Google figure out interests. If you have your search history turned on, or you're using Chrome browser you haven't changed your privacy setting so forth. Google knows what pages you are going on the web. So then based upon websites you visited. In this also is from search results. Google classifies you as a user as being in certain interests. And you can view this on your profile. So now based upon what people have searched for before, based upon pages they've visited, etc. Users are classified into specific interest types. And then use an advertiser can advertise to user based upon their interest, regardless of the page type they are on.

1.9 Remarketing

There's also another type of interest targeting. It's a specialized type known as remarketing. So with remarketing, you're marketing to users based upon them having visited your website and done certain actions on your website. So the way this works is, you first make a list, and a list is essentially a way user has behaved on your site. Whether it's time spent on your website, hitting a specific goal on your website, visiting a specific page or set of pages on your website. So you define these audiences and you put this color on your site or if you're using Google Analytics, you can define this in Google Analytics as well. So what happens is a user gets to your site. This can be through any targeting means, it could be from an email, organic search, social, Twitter, or of course AdWords or Bing. And so a user comes to your site based upon you attracting them through some means, and then a cookie is placed upon their browser if they hit the criteria you've defined in your list. And let's say the user doesn't convert, they just leave your site. So now what happens is that user's on some page in the Google display network. And because you have that user defined in this list, they can then see your marketing ad. So then, user clicks the ad, they come back to your site again. And this is another chance for you to try to convert this particular user. So, remarketing does not attract new traffic to your site. Remarketing is taking people who have been to your site, segmenting into lists, and trying to get them to return to your website again. So in AdWords, and you can define all types of different audiences based upon they did a trial on your site. They actually converted, they went to your shopping cart but didn't convert. They just visited your site for more than five minutes. So you can define your audiences and how long these cookies last in AdWords, and then show ads based upon all these various segments. So what we usually see then, is because you're marketing back to a user, who's already been to your site, understands your offers, for whatever reason that they didn't convert. Usually remarketing is the highest conversion of all the Google Display Network options. But from a traffic standpoint, it's hard to tell how much traffic you can get. If you have a low traffic site, it's not going to be a lot. If you have a very high traffic site, then you could get a lot of conversions through remarketing. So remarketing isn't new traffic, it's bringing old traffic of yours back to your site yet again so it's the second chance to sell a user.

1.10 Automatic Placements

Now when you use one of these targeting types: remarketing, topics, interests are keywords. Your ads are shown on specific websites and specific placements around the web and so these are known as automatic placements in Google. When you can see the actual site you can even see the URL's where a user saw your specific ad. But because you didn't target the site specifically, you let some other channel type target the user. Their automatic placements because your ad was automatically placed on this site based upon your other targeting type. So then you can see how you're doing on every single placement on the web which is a website or an ad slot within a website. So automatic placements are based upon keywords, interests, topics, re-marketing where the ad was displayed when you did not pick the site for your ad to be displayed explicitly.

1.11 Managed Placements

Now, we have something known as managed placements. With managed placements you can pick the actual site where your ad is being displayed. And beyond site, which we're really talking about, is a placement is an ad slot. So a lot of sites have multiple ad slots on them. So you could be on the New York Times business section bottom left ad slot as opposed to the New York Times business section top leaderboard ad slot. So when sites have multiple ad slots, you can pick the ad slot, in some cases, and not just the site as a whole. But because you're explicitly picking this site where your ads are being displayed, these are managed placements. So automatic is when you chose a non-placement targeting type. Your ad was displayed based upon keywords or interests, and that was the site your ad happened to be shown on. With managed, you're picking the actual sites where your ads are being displayed. So this is a great way to start with Display Network because you can pick the actual websites for your ads to be displayed, and you can do research such as using the AdWords placement tool to find sites that explicitly match your offers. And then if those offers aren't converting, it's usually not the site because you explicitly chose sites that really house your traffic. It's often the landing page or it's the ad, and you want to refine the landing or the offer first before you expand to other types of keywords, and interest targeting, larger targeting areas. So placements is a really good way to have lots of control for testing out your initial ads. They're easy to find with the Placement Tool. The tool is very similar to the AdWords keyword tool. You can use words or phrases, you can input certain web sites, you can see placements by category, you can look at the data by different locations and languages and devices, so it's very similar to the Keyword Tool. Your results just aren't keywords, they're placements or ad slots you can advertise instead. And, as mentioned, some sites have a lot of placements. New York Times has 156 different placements you can advertise on. So you could be on all the New York Times, or just the US World News bottom right ad slot pages. So you can be very specific of where your ads are shown with Placement Targeting. [BLANK_AUDIO

1.12 Buying Cycle Based upon Targeting Types

So now when we look back at the bond cycle we talked about a while ago, we have our awareness and interest phases, our consideration phases, our buy, and then our post buy, which is retention and working on lifetime visitor values. When you look at display network, all these different options of targeting can help you out in various parts of the display network. So for awareness interests, you want lots of people to see your ad and lots of traffic initially, topics and interests are really good for this. When you get into consideration phase, people who are doing very specific research, placements and keywords are really good. When you get to the buy phase where someone's just about ready to buy, they're doing some last second comparisons or they've thought about this for a while, then placements remarketing are really good. When you get into post buy phases, you want to bring users back for a secondary purchase or sell them an ancillary type of item, remarketing is great. Now this doesn't mean that all the options can't be used in various types of the funnel. This is usually where they fit best in the funnel. So for instance, if we were to re-examine awareness and nterest phase, image and video ads are better than text ads here because you want recall value as much as you want visits. So placements are really good, but it's a small reach. Where if you want larger reach, topics and interests are really good. But keywords, since they're more specific, they don't have a huge reach, not compared to topics and interests. So not quite as good in awareness and interest phases. So when you look at the various parts of the buying funnel and what you're trying to accomplish, what are your CPAs? What are your specific goals? How are you measuring your goals? Looking back to the buying funnel of where you want to add more users, and then look at the targeting types on display that fit that section, let's you really use the display network to funnel more people into your site based upon where they fit in the buying funnel.

1.13 Flexible Targeting

Now, we'll get into this more in some future videos. But you don't have to do just interest targeting, or just topic targeting, or just placement targeting. You can combine them together. So you can make an ad group where a user has to be on a placement you've explicitly chosen. And on the placement, the article has to match your keywords for your ad to be displayed. Or you could choose a specific interest that a user has to have shown an interest in this particular interest targeting in the past, and the article of the page matches your keywords only in those two conditions show an add. So, with Flexible, it gets very powerful and a little confusing in how many different ways you can combine all these options together before a user can see your bed.

1.14 Recap

So to recap our introduction to display targeting and how this works, your display advertising, is advertising on non-search sites. So if someone had to do a search, they're in the search network. If someone's reading an article on the web and they're seeing contextual based ads, ads based upon the content of the page, then they're in the display network advertising. When you look at the targeting types, keywords are based upon those words being used in an article or very similar words being used in an article on an explicit page. Topic targeting, targets pages that have been classified into specific sets of topics. So topic targeting, more volume than keywords, but often with more volume comes slightly higher CPAs. Now, interest targeting is not based upon page content. Interest targeting is based upon the user's interest based upon their past behavior. And then remarketing is based upon behavior on your website. Your marketing based upon what they did on your site and then you want to show them an ad to bring that user back a second or third time to your site. And then placements are the actual sites where your ads were shown. So every targeting type results in a placement. However, automatic placements are when you don't choose the actual site itself you choose a different targeting method. You choose keywords or topics or interests or re-marketing, and then Google automatically places you on those sites based upon your targeting type. Those automatic placements are then the sites and the URLs where those targeting types were displayed. Managed placements are when you select the actual website where your ads are displayed. And then flexible targeting lets you combine them together. So you could do a placement and a keyword. So only if the user is on this specific site and the article matches your keywords, then will your ads be displayed. So when you're looking to expand your reach beyond search, display is a great place to go because it's so much more volume than search. However, there's a lot of different ways you can target users, obviously across the display network. So what you want to do is look back to your goals for advertising. Look at the buying funnel and say where do we want to reach more of these people? And then choose a targeting type that lets you reach users based upon where they are in their buying funnel, so that you can then bring more people to your website from the displayed network, and get more total conversions and new customers.

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