Outsmarting the Algorithms

Read time: 7 minutes

It’s a mess when you just dive into digital advertising, and with the wide array of options, you either overspend on a CMO or you just burn out your marketing budget on the test.

Well today on Bedrokk, we’ll briefly glance over some basic concepts you should know when approaching the online advertising landscape in order to understand how it works.

In today's digital age, online advertising has become an integral part of marketing strategies for businesses and startups worldwide, especially if you’re performance oriented. With the ever-increasing volume of data and complexity in user behavior, startups face the challenge of efficiently reaching their target audience while optimizing campaign budgets. Not to mention that the entire ad landscape is currently opening up and becoming more democratic than ever.

It’s important to understand the mechanics that undergo online advertising algorithms in order to take advantage of them. Online advertising algorithms leverage advanced machine learning techniques to enhance campaign performance and allocate budgets effectively.

Let’s delve into the mechanics of how these algorithms work, their key optimization techniques, and their role in maximizing the return on investment (ROI).

1. A Conversation About Ad Formats

1.1 Display Ads

Display ads are one of the most common and recognizable forms of digital advertising. These graphical ads are typically placed on websites, apps, and social media platforms, aiming to capture the user's attention and drive them to take action. Display ads come in various formats, including:

- Banner Ads: These are rectangular or square ads displayed at the top, bottom, or sides of a webpage.

- Skyscraper Ads: Tall and narrow ads that typically appear on the sides of a webpage.

- Pop-up and Pop-under Ads: These ads appear in new browser windows or beneath the current window, respectively.

Display ads are versatile and can effectively generate brand awareness and drive traffic to your website. However, they may be perceived as intrusive by some users, so careful targeting and creative optimization are essential.

1.2. Video Ads

Video ads have gained immense popularity due to the rise of video consumption across digital platforms. They come in various formats, such as:

- In-Stream Ads: Video ads that play before, during, or after online video content.

- Out-Stream Ads: Autoplay videos that appear within the content of a webpage or app, without being directly tied to video content.

- Social Media Video Ads: Video ads designed for specific social media platforms, allowing for higher engagement and shareability.

Video ads provide an immersive storytelling experience, making them ideal for brand awareness, product launches, and engaging your audience emotionally.

1.3. Native Ads

Native ads seamlessly blend into the content of the platform, providing a non-disruptive and organic user experience. These ads match the look and feel of the website or app they appear on, increasing their relevance and effectiveness. Native ads can be in the form of:

- In-feed ads: Sponsored content displayed within the user's social media or news feed.

- Recommended Content: Ads that suggest related articles or products based on the user's interests.

- Promoted Listings: Sponsored products featured within online marketplaces.

Native ads resonate well with users because they offer valuable and relevant content, making them more likely to be clicked and shared.

1.4. Search Ads

Search ads appear on search engine results pages (SERPs) when users enter specific keywords or phrases. They are highly targeted and contextually relevant to the user's search intent. Search ads include:

- Text Ads: Short, text-based ads displayed on top or bottom of search results pages.

- Shopping Ads: Product-based ads that showcase images, prices, and descriptions of products.

Search ads are excellent for capturing users at the point of intent and driving qualified traffic to your website, making them effective for lead generation and conversions.

1.5. Social Media Ads

Social media platforms offer a diverse range of ad formats, catering to different marketing objectives. Some popular social media ad formats include:

- Sponsored Posts: Promoted posts that appear in users' feeds on platforms like Facebook, Instagram, Twitter, and LinkedIn.

- Carousel Ads: Slideshow-like ads that allow multiple images or videos within a single ad unit.

- Stories Ads: Full-screen vertical ads that appear in between users' stories on platforms like Instagram, Snapchat, and Facebook.

Social media ads are highly targeted and offer advanced audience segmentation options, enabling businesses to reach their ideal customers and drive engagement.

1.6. Rich Media Ads

Rich media ads incorporate interactive elements such as animation, audio, and video to engage users more effectively. These ads often expand or float across the screen to capture attention. Rich media ads can include:

- Interactive Banners: Ads that respond to user actions like hovering or clicking.

- Expandable Ads: Banners that expand into larger formats when clicked.

Rich media ads are ideal for creating memorable brand experiences and can significantly improve click-through rates and engagement.

2. How do Online Advertising Algorithms Work