Brands are like signposts for consumers and digital media is at the centre of information gathering where supply and demand intersect. The findings of the International Interactive Advertising Association's (IAB) latest AdEx 2022 study reaffirm the key role of digital advertising, particularly display advertising, in enhancing brand visibility and establishing brands in a competitive marketplace. Despite the overwhelming volume of communication on the internet, advertisers are steadily increasing their investments in digital media, especially in display advertising based on first-party data. They have recognized the potential of this form of advertising for the long-term effectiveness of advertising efforts, the accurate targeting and the long-term consolidation of brand strength, ultimately resulting in increased sales.
Investment in digital advertising is on the rise, while display advertising remains the most important form of digital advertising
The results of the AdEx 2022 survey highlight a robust growth in investment in digital advertising. The European market witnessed a 10% increase in digital advertising investments compared to the year before last. This trend shows that European companies continue to recognize the advantages offered by digital media to precisely reach the target audience and amplify brand awareness.
The AdEx 2022 study results also reveal that display advertising also achieved significant growth last year with nearly 10% growth in Europe. In Europe, display advertising in digital media accounted for as much as half of the total digital advertising spend. Advertisers choose this form of advertising because of its many advantages, including long-term effectiveness, measurability, brand protection, and the ability to improve targeting with their own first-party data from companies and brands.
IAB forecasts that display advertising will continue to solidify its position as a key element of brands’ successful marketing strategies in the future. Investments in this form of digital advertising are expected to grow, confirming that this form of digital advertising remains an important choice for advertisers thanks to its ability to optimise of advertising investments and effectively execute online advertising campaigns aimed at branding and strengthening brands.
The importance of display advertising for branding and brand recall
In today’s competitive business environment, building a strong brand is critical to a company’s success. Display advertising has proven to be one of the most effective strategies for branding and brand recall. It allows advertisers to effectively reach their target audience online and forge enduring connections with consumers.
One of the main advantages of display advertising is the ability to use advanced ad formats that can create strong impressions and an emotional connection with the audience. By leveraging well-crafted display ads, a company can effectively showcase its brand, values, products, or services and improve recognition while fostering identity.
In addition to visual effectiveness using advanced ad formats, display advertising also enables precise targeting based on behavioural patterns and purchase intent. By harnessing data-driven marketing, advertisers increase the likelihood that promotional messages will be displayed only to those users most likely to be interested in the company’s products or services. Targeted display advertising allows companies to optimize their advertising spend, minimise media waste, and increases the likelihood that advertising will be perceived by consumers as a brand reminder.
Reputable brands want to shine with relevant and high-quality editorial content
By constantly running relevant display ads tailored to the target audience, companies can ensure that the brand is engrained and embedded in the minds of consumers. Regularly running ads that meet brand guidelines protects the brand’s reputation by placing it alongside vetted, editorially crafted media content that consumers trust more, and strengthens the brand’s visibility and presence.
The Internet is now the primary tool for consumers to search for, store and engage with information and brands are like traffic signs to them. When placed in the right place at the right time in the right trusted digital medium, display ads enable companies to reach large numbers of potential customers, generate interest in their brand, and build brand recall and trust.
The success of display advertising for branding and brand recall depends not only on the advertising technology itself but also on the supporting infrastructure that enables effective data-driven advertising. This includes ability to target audiences precisely and place ads in a media context that supports and reinforces the brand message and elicits a positive response from consumers.
The future of display advertising is based on proprietary data that is not accessible to competitors
Pioneering brands looking beyond walled gardens and established digital strategy development practices are realizing that to strengthen their own competitive advantage in the market, build their own audience base and segment it, they need their own first-party data to target loyal customers and prospects who share behavioural patterns and purchase intent.
By leveraging their own first-party data, brands gain unique insights into their customers’ deepest wants and needs. They can use this knowledge to deliver tailored messages to them by buying ad space on the open web and placing their ads in the context of relevant and trusted media content to create customized customer experiences. The ability to tailor campaigns to consumers’ purchase intent increases engagement, drives conversion rates, and builds lasting brand loyalty among consumers.
Proprietary first-party data, as a core business marketing asset, must be securely stored in private and independent data management platforms such as iPROM Private DMP. These dedicated data warehouses give brands complete control over their data and ensure compliance with European ePrivacy laws. User privacy has become an extremely important value that strengthens the bond between consumers and brands and consequently increases the power of the brand.
At iPROM, we believe in the power of independent Ad-Tech solutions that empower advertisers to take control of their audience and collect their own first-party data, which in a world without third-party cookies becomes the key to effective data-driven display advertising.