• Toucan Insights Staff

How do Digital Advertising Agencies Work?

team discussion

Digital advertising can be defined as the strategy of using the internet and its properties to distribute commercial advertisements to customers across different platforms.

These platforms can include social media, search engines, affiliate programs, mobile apps to name a few.

The best digital advertising agencies know how to leverage these online channels to reach the target audience of their clients.

Compared to the traditional form of advertising, digital advertising is much more personalized and data-driven.

It is predicted that by the end of 2021, worldwide spending on digital advertising (including desktop and mobile devices) is expected to reach $335 billion.

This number has been constantly increasing since 2010. This figure shows how important it is to also advertise on digital channels to capitalize on this growing audience.

What is a Digital Advertising Agency?

Digital advertising agencies are specialized in creating digital campaigns that are customized for the needs of the consumer.

The agencies work closely together with their clients to ascertain the correct target audience as well as the right intent that the digital ad campaign should convey to the consumer.

The main goal of digital advertising agencies is to create brand awareness and drive sales from the selected target audience.

It is important for customers to get in contact with a uniform brand image every time they interact with a company.

Digital advertising agencies are experienced in using multiple media channels to share the story of brands in an appealing way.

Why having a Digital Advertising Agency is crucial in the modern age

hook taking a present

The average adult is exposed to 5,000+ brands and their ads on a daily basis, according to the Media Dynamics Report.

In this extremely noisy and crowded marketing space, it is a challenge to reach the minds of the consumer.

By observing your audience’s behaviour and listening to their needs marketers adapt their advertising strategy to include relevant content.

The best digital advertising agencies ensure to nurture their future customers by creating a complete ad strategy that addresses every stage of the customer funnel.

Read on - 6 Digital Advertising Trends you Should Consider for your Business

Here are 3 reasons why hiring a digital advertising agency is critical in today's modern consumer landscape.

1st: The vast majority of people are active on multiple media channels

According to a new Media Dynamics report, an average adult's digital media use has increased by 40% since 1985, reaching 9.8 hours per day in 2014.

Needless to say that we are adamantly immersed in the modern age.

This has the consequence that people consume less offline media like newspapers or magazines, making it less attractive for brands to advertise on traditional channels.

Furthermore, the average person consumes media on different types of smart devices and on more channels than ever.

According to Nielsen, the average American spends an astounding 11 hours a day were spent on electronic media, which included TV, radio, Twitter, tablet, games, and other multimedia devices.

This is where the highly customized ads from digital advertising agencies shine.

2nd: Marketers can target their customers with more precision

When putting advertisements in newspapers or in movies, you have little control over who sees it and the effectiveness of the ads.

With today's advances in digital technology, advertisers can now reach the exact audience who is most likely to buy their product or service.

You may stop delivering messages to users who do not want to see your products by leveraging the strength of marketing automation as well as using multiple advertisement networks or platforms.

Furthermore, there is so much data that you can obtain from your customers. With this information, it is easier than ever to create a detailed customer profile and personalize ad campaigns for your target audience.

Digital advertising agencies increasingly use behavioral data to tailor their ads to their target customers.

This allows marketers to create a meaningful connection between the brand and its target audience.

Creative ideas can be backed with sound data nowadays to create the best results.

Focus on the customer

Nowadays ads have to show more creativity and be bold to get noticed in the noisy market space. It is even more challenging to prompt constant customer engagement.

The best digital advertising agencies are the ones that adapt the best to the fast-changing digital culture.

Marketing through these ad platforms is critical to realizing the full potential of an ever-expanding audience.

Marketing agencies monitor consumer behaviour and keep track of them from different angles.

The rise of social media and digital marketing has altered the commercial media landscape.

New technologies have paved the way for new possibilities like programmatic advertising that has unlimited options and versatility in terms of ad delivery, spacing, and style.

While conventional ads focused on raising visibility through innovative strategies, agencies today must assist marketing departments in developing insightful, practical perspectives from their data in order to have great customer interactions and fuel purchasing behaviour.


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Digital Advertising Agencies: Step-by-Step Strategy

Step 1: Determine your target audience

Study the past and current search behavior affecting your product or service.

Also, take into account the disrupting trends as well as competitors innovations and keywords that are being used to attract prospective consumers.

By understanding these factors you can develop a specific action plan to improve your weak areas and to get the most out of your strong ones.

Finally, do a thorough review of what aspects of the implemented strategy are working.

Could be a set of keywords or a new type of advertising format, to name some.

Also bear in mind the importance of the quality score of your ad, which includes your website performance and design.

Based on the performance of your running ads, you should always adapt your promotional strategy and try different campaign types for your offerings (based on your goals).

Step 2: Define your advertising goals

To determine your advertising targets, you must first decide on a certain set of goals, such as increasing revenue by a certain amount or increasing brand recognition, attracting a different audience to your client base, or some mix of the above.

Having well-established targets on paper makes setting the corresponding metrics for your campaign performance easier.

There are 4 different goals that digital advertising agencies use

Customer Acquisition

This is a more straightforward goal in which the focus lies in gaining leads or increasing conversions.

In a B2B environment, companies plan to get new leads with ads. For B2C companies it is important to prompt purchases or sign-ups for their products.


Digital advertising agencies can also help you to address consumers who are not yet ready to buy from you.

Therefore, you first need to develop a connection between the brand and the target audience.

Marketers leverage advertisements to nurture shoppers through the platforms and pages that your consumers follow by using technologies such as marketing analytics and retargeting.

These are processes that automatically reach out to clients based on their past online habits and marketing automation.

It is crucial to nurture customers in every stage of the buyer's journey funnel on an ongoing process to not lose potential clients.

Customer Loyalty

Digital ads should boost existing relationships as well as build new ones.

Having loyal customers is one of the most important aspects of a successful business.

You can nurture existing consumers based on their habits by using the same technologies discussed previously to maximize their chances of making a repeat purchase.

Over time, you should also strive to improve customer satisfaction.


Important components of your brand should be your unique product offering, the identity that you radiate from every channel, your tagline, to name a few.

Digital advertising is an important component of the branding strategy.

It creates a new desire and demand for your products or services, and it catapults customer interest and loyalty to a whole new level, exceeding conventional media.

Read on - Digital Advertising Companies: Take a Peep into Their Secret Best Practices

Top priorities of digital advertising agencies

team working

The job of a digital ad agency consists of connecting customers with brands through the various online channels that exist today.

Therefore, the best agencies provide their clients with the most essential skills and tools to generate high-quality leads.

The following points are the services that businesses should seek when choosing digital advertising agencies:

Management of Online Campaigns

In order to reach your target audience, your ad campaigns should be properly set up and they have to regularly get updated.

This includes writing enticing ad copy that targets the primary need of the consumer you want to attract as well as placing the right bids on the most relevant keywords.

The best approach to keyword bidding is to try out a wide range of different keywords at the beginning.

This allows brands to see what works and what doesn’t in order to focus their ad spending on the most lucrative ones.

Creative Services

Most ad agencies are also specialized in providing aesthetic graphics that draw the attention of the consumer. Furthermore, the artistic capabilities of digital advertising agencies include more than just creating nice graphics.

This includes designing visual ads, banner design and landing page creation, as well as knowing key campaign elements such as what to do with a tracking pixel or code snippets.

Ad agencies are often hybrids as they offer services that developers and artists can do.

Data Analytics

Being able to harness the most relevant information from your digital marketing metrics is a key skill that agencies should be experts at.

Using a data-driven approach is of great value when brands want to leverage the available data to increase their leads, sales and ROI.

Additionally, with the advances in machine learning technology and A.I., there is no excuse for not using these to your advantage.

Bonus: Social Media Advertising

Even though digital advertising doesn’t include social media in its definition, many agencies offer their clients to produce campaigns on Facebook and Instagram, to name a few.

You'll need someone who knows the complexities of different social media platforms and stays up-to-date with the newest channels like Tik Tok or Clubhouse.

Most brands would benefit from implementing the best practices in social media marketing.

Additionally, ad agencies can create one overall strategy for all ads that they create for your brand.

Final thoughts

Buyers today engage with brands across a variety of platforms and devices. Advances in digital ads have allowed advertisers to develop customized campaigns.

As brands consider the journey that their customers take, digital advertising agencies can nurture the relationship between the company and their target audience.

Digital marketing through various ad channels is the key to tap into an ever-expanding consumer base.


Contact Toucan Insights and Book your FREE Consultation Meeting. Learn how we can help you create a digital advertising strategy to boost your competitive advantage.