Marketing Monday: Direct Response vs. Branding in Online Advertising
Monday, February 6th, 2012One of my favorite activities as a kid growing up in Alaska was fishing with my family. We fished to put food on the table – mostly halibut, salmon and trout. But, there was something exciting about throwing your line in the water and waiting for that first nibble. Sometimes you got bites if the fish were hungry and you had the right bait, and more often than not a fish would get snagged on the hook as it tried to swim upstream because the hook was too big. We threw the snagged fish back in the water but when you landed that beautiful, biting, fighting fish on land, it was all worth it!
Do you ever feel like you’re fishing for customers? Sometimes they bite because they’re actually looking for your services, and other times you snag ‘em through the power of suggestion — a.k.a. advertising.
Let’s take a look at two main categories in online advertising: direct response and branding. Knowing which one to use in your business can mean the difference between a client ready to buy/purchase (direct response = hungry fish) and one who is only aware of your business (branding = snagging fish).
Direct Response Direct Response Advertisers are primarily trying to drive a high number of conversions at the lowest possible price. A conversion is an action undertaken by a user that is deemed valuable by the advertiser, such as a sale, purchase, or sign up. Using cost-per-click (CPC), you only pay when a customer clicks on your ad. A customer searching for your product/service through a search engine (like Google Search) will click on the compelling ad copy which will take him directly to the relevant web page. A customer searching for your product/service is generally further along in the buying process and therefore ready to make a sale. Branding If you are trying to raise the awareness and visibility of your product, service, or cause, you want to place your ads in front of as many people as possible within your target audience. This is called branding. Using cost-per-thousand impressions (CPM) means you set a designated amount (what is it worth to you) on how much you are willing to pay per thousand impressions and then are charged only for every thousand impressions, not the clicks. Utilizing Google’s Display Network allows you to show ads on other relevant websites using contextual keywords from your keywords list. The Display Network uses various ad formats to achieve this: text ads, banner/image ads, mobile ads, and video ads. And of course, don’t forget to sign up to advertise on GoHuman…for free! You can’t beat free! So next time you’re fishing for customers, use the online advertising option above that is right for YOUR unique business. Happy fishing!









