Advertisements: What they are, key elements and examples

Advertisements are messages that aim to promote a brand, product or service, and persuade the public to take a desired action.

Advertisements can be broadcast through different media, such as television, radio, the Internet, social networks, etc.

What are advertisements?

Digital advertisements are those that are displayed on online platforms, such as websites, mobile applications, social networks , search engines, etc.

These ads can take different formats, such as text, image, video, audio, banner, pop-up, etc.

Digital advertising has several advantages, such as:

• They allow you to segment your target audience according to their characteristics, interests, behaviors, location, etc.
• They allow you to measure the performance and impact of campaigns , using indicators such as the number of impressions, clicks, conversions, etc.
• They allow you to optimize and adjust campaigns in real time, based on the results obtained and the objectives set.
• They allow you to create personalized and dynamic ads that adapt to the preferences and needs of each user.

Some relevant data

• Global advertising spending in 2021 was about $657 billion , an increase of 10.2% compared to the previous year.
• The most widely used medium for advertising was internet , with a 59.5% of total expenditure, followed by the television , with a 25.7% .
• Within internet advertising, the most used format was the mobile , with a 75.9% of total expenditure, followed by video , with a 17.8% .
• The countries that invested the most in advertising in 2021 were United States , with about $285 billion , China , with about $110 billion , and Japan , with about $40 billion .
• The sectors that invested the most in advertising in 2021 were: retail , with a 15.9% of total expenditure, the automotive , with a 11.9% , and the technological , with a 10.6% .
• In Mexico, the active population on social networks was 94 million people , representing the 73.4% of the total population.
• The most used social networks in Mexico were Facebook , with a 92.9% of the users, WhatsApp , with a 92.2% , and Messenger , with a 80.3% .
• The average time spent using social media in Mexico was 3 hours and 21 minutes a day, in more than 7 platforms per month.
• The potential reach of Facebook advertising in Mexico was 83.75 million people , representing the 82.7% of the active population on social networks over 13 years of age.
• The potential reach of Instagram advertising in Mexico was 36.70 million people , representing the 36.2% of the active population on social networks over 13 years of age.

Global advertising spending is expected to reach $85 billion by 2024, according to data from Statista.

What are the key elements of a digital ad?

For a digital ad to be effective, it must have some key elements, such as:

• A clear objective : The ad must have a specific purpose, such as generating brand awareness, increasing web traffic, generating leads, increasing sales, etc.
• A persuasive message : the ad must convey a benefit or solution for the user, and motivate them to take a specific action, such as visiting a website, downloading an application, purchasing a product, etc.
• An attractive design : the ad must attract the user's attention through the use of colors, images, fonts, animations, etc. that are consistent with the brand's identity and the tone of the message.
• A call to action : The ad should include a button or link that invites the user to take the desired action , such as “See more,” “Buy now,” “Sign up for free,” etc.
• A landing page : The ad must direct the user to a landing page that is relevant, consistent and optimized, where more information about the product or service is offered, and the conversion process is facilitated.

What examples of advertisements can we find?

Below are some examples of successful digital advertising that you can use as a reference to get inspired and create your own ads.

Spotify

Spotify is a music and podcast streaming platform, offering both a free and a premium service.

To promote its premium service, Spotify created a digital ad campaign, based on its users’ playback data, that showed fun, personalized messages, such as “Did you know that someone listened to ‘Sorry’ 42 times on Valentine’s Day? What did you do?” or “Did you know that someone listened to ‘Bohemian Rhapsody’ 1,567 times this year? Is that you?”

These ads managed to capture the attention and curiosity of users, and generate an emotional connection with them by showing them that Spotify knew their musical tastes and habits.

Additionally, the ads included a call to action inviting users to try the premium service for free for 30 days, which drove conversions.

Netflix

Netflix is ​​a streaming platform for series and movies, offering a varied and exclusive catalog of content.

To promote its content, Netflix created a digital advertising campaign based on the use of memes, gifs and short videos that referenced scenes or characters from its series and films and that generated anticipation, intrigue or humour in users, such as “When you realise that tomorrow is Monday” or “When your crush tells you that they don't like Stranger Things”.

These ads managed to generate engagement and virality among users, and awaken their interest in watching or continuing to watch Netflix content.

They included a call to action inviting users to view the full content on the platform, which increased traffic and subscriptions.

Airbnb

Airbnb is an accommodation and experiences platform that offers unique and original options for travelling and getting to know the world.

To promote its offer, Airbnb created a digital advertising campaign, which was based on the use of high-quality images, showing the most incredible and surprising accommodations and experiences that could be found on the platform, such as a tree house, a cabin in the snow, a surf lesson, etc.

These ads managed to convey Airbnb's differential value and generate aspiration and desire in users by showing them that they could live unique and unforgettable experiences with the platform.

The ads included a call to action that invited users to explore more options on the website, which drove bookings.

To measure the performance of your digital advertising, you must take into account some indicators or metrics that allow you to evaluate the impact and profitability of your campaigns.

Some of the most important metrics are:

• He reach , which measures the number of people who have seen your ad, regardless of whether they clicked on it.
• He CTR (Click-through-rate) , which measures the percentage of people who clicked on your ad among the number of people who saw it.
• He CPC (Cost per click) , which measures the cost you incur for each click your ad receives.
• The conversion rate , which measures the percentage of people who took the desired action after clicking your ad, such as purchasing a product, registering on a page, downloading an app, etc.
• He Customer acquisition cost (CAC) , which measures the total cost of acquiring a new customer, including the cost of advertising and other associated expenses.

What are the 7 types of advertising?

The 7 types of advertising you should know are:

• Brand advertising : seeks to promote the name, image and identity of a company or product, and generate a favorable attitude in consumers.
• Retail advertising : sends communication messages announcing products or offers in a specific geographic area, to encourage traffic and improve the image of stores and shops.
• Direct response advertising : seeks to establish a direct conversation with a potential consumer to achieve a sale, through means such as telemarketing and e-mailing.
• Business-to-business (B2B) advertising : This is directed at other companies that may be potential customers of a product or service, through media such as specialized magazines, trade fairs, etc.
• Institutional advertising : seeks to create or improve the image of an organization, such as a public entity, an NGO, a university, etc., through messages that highlight its values, its mission or its social responsibility.
• Non-profit advertising : seeks to promote a social, environmental, cultural, etc. cause, and mobilize citizens to support or participate in it, through means such as posters, brochures, social networks, etc.
• Public service advertising : seeks to inform, educate or warn the population about issues of general interest, such as health, safety, the environment, etc., through means such as spots, commercials, banners, etc.

Written by Moises Hamui Abadi : I am an entrepreneur, founding partner of Viceversa and SoyMacho. After leading several digital businesses and advising several other businesses, I decided to form MHA Consulting, a digital marketing consultancy dedicated to growing and empowering digital businesses in more than 7 countries and generating more than 1,500 million pesos.