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  • Writer's pictureToucan Insights Staff

How do Digital Advertising Agencies Work?

Table of Content

  1. How does Online Advertising work?

  2. What does a Digital Advertising Agency do?

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

  4. 3 reasons why you need a marketing agency

  5. The vast majority of people are active on multiple media channels

  6. Marketers can target their customers with more precision

  7. Focus on the customer

  8. Digital Advertising Agencies: Key Strategic Tips

  9. Determine your target audience

  10. Define your advertising goals

  11. 4 types of Digital Advertising Agencies Goals

  12. Customer Acquisition

  13. Nurturing

  14. Customer Loyalty

  15. Branding

  16. Top Priorities of Digital Advertising Agencies

  17. Management of Online Campaigns

  18. Creative Services

  19. Data Analytics

  20. Bonus: Social Media Advertising


Online advertising agency

1. How does Online Advertising work?

Digital agencies use digital advertising as a strategy to use the internet and its properties and distribute commercial advertisement services to customers across different platforms.

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

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

Compared to the traditional form of advertising, online 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.

2. What does a Digital Advertising Agency do?

A Digital agency specializes in creating digital campaigns that are customized for the needs of the consumer.

The operation of a digital agency works closely together with their clients to ascertain the correct target audience as well as the right intent that the advertising campaign should convey to the consumer.

The main goal of a digital agency 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 agencies are experienced in using multiple media channels to share the story of brands in an appealing way.

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

online advertising

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 services to include relevant content.

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

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

4. 3 reasons why you need a marketing agency

a. 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.

b. Marketers can target their customers with more precision

When putting advertising campaigns 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.

A digital agency increasingly uses behavioral data to tailor their advertising services 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.

c. Focus on the customer

Nowadays, digital agencies 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 agency is the one that adapts the best to the fast-changing digital culture.

Making the most out of marketing by using advertising services through these ad platforms is critical to realizing the full potential of an ever-expanding audience.

Digital agencies monitor consumer behavior 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, a digital agency today must assist marketing departments in developing insightful, practical perspectives from their data in order to have great customer interactions and fuel purchasing behavior.


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5. Digital Advertising Agencies: Key Strategic Tips

a. 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 advertising services, you should always adapt your promotional strategy and try different advertising campaign types for your offerings (based on your goals).

b. 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.

6. 4 types of Digital Advertising Agencies Goals

a. 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.

b. Nurturing

A digital agency 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 advertising 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 and funnel on an ongoing process to not lose potential clients.

c. Customer Loyalty

Advertising campaigns 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.

d. Branding

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.

Advertising campaigns are 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

7. Top priorities of digital advertising agencies

team working

The job of a digital advertising 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 agencies:

a. Management of Online Campaigns

In order to reach your target audience, your advertising 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.