The online advertising industry is one of the fastest growing industries as of late. According to an eMarketer report, online ad spending will grow 20% this year to reach $31.3 billion. As a small business owner, that leaves us wondering where all this online advertising success if being found?
Well, the majority of online advertising spending is found in search, with Google and other search engine giants set to take in $14.4 billion. However other advertising methods are growing steadily, and slowly seeing measurable results with small business marketing.
Banner Ads (Display Advertising)
In 2011, banner ads will grow roughly 22%, making online ad spending a $7.6 billion dollar industry. eMarketer is quoted with, “as more people view more pages, banner inventory growth will outpace pricing growth—but the bottom line leads to more overall dollars as more marketers, including local ones, buy more display ads.” Display ads priced on a CPM scale can offer superior value for your small business. Here are 3 tips to follow if you are thinking about purchasing banner advertisements in the near future:
- Always evaluate a potential publisher’s audience and choose quality traffic over quantity.
- Make sure your product is “brandable” and test display ads before investing too heavily in banner.
- Test different landing pages and different ad copy consistently.
Video is seeing success amongst big, corporate companies for its engagement figures however; can this medium translate to small businesses? I think if done correctly video poses a huge opportunity for small businesses in 2011. Video is not only engaging, but it is being leveraged in different placeholders within websites to improve retention.
According to the same eMarketer survey, video ads are set to grow 52% this year to $2.2 billion. For SMBs, video poses somewhat of an uncharted territory. The barriers to entry are high and many small businesses will need to see demonstrated success that this medium works before jumping in. With a targeted ad network of publishers and an engaging message, I think small businesses can really benefit from video. Personally, as a consumer, I would trust a video message from a local business much more than a corporate online commercial.
Both banner and video pose opportunities for engagement. As banner continues to be driven by mobile ad spending and video remains, somewhat of a dark horse; I think that business can successfully leverage these advertising platforms in their marketing mix. All that is needed is a highly targeted publisher, a focused and clear message and bit of faith.
Guest Author – Matt Krautstrunk is a writer on topics ranging from social media marketing to telephone systems at Resource Nation, an online resource providing small business payroll services tips for SMBs and entrepreneurs.