SEM vs Display

Free ebook: SEM vs. Display Advertising: Online Ads and the B2B Marketer

For more than a decade, search engine advertising has been a staple of the B2B marketer’s demand generation arsenal, but it has been reported that marketing spend on display advertising could overtake search by 2015. The adoption of newer targeting and filtering technologies, as well as the availability of better analytics tools have contributed to the growth of display. Buy why has it taken so long for display to take root in B2B?

Table Of Contents

Pg 3 - Introduction Pg 4 - How Online Advertising is Sold (CPC vs. CPM) Pg 5 - Why B2B Likes SEM Pg 6 - Why B2B Didn’t Like Display PG 7 - Why This is Changing Pg 10 - Company-Based Personalization and Targeting Pg 12 - Summary

First 3 Pages

SEM vs. Display Advertising: Online Ads and the B2B Marketer For more than a decade, search engine advertising has been a staple of the B2B marketer’s demand generation arsenal, but it has been reported that marketing spend on display advertising could overtake search by 2015. The adoption of newer targeting and filtering technologies, as well as the availability of better analytics tools have contributed to the growth of display. Buy why has it taken so long for display to take root in B2B? Contents Introduction ................................................................................................................3 How Online Advertising is Sold (CPC vs. CPM) ............................................4 Why B2B Likes SEM .................................................................................................5 Why B2B Didn’t Like Display ................................................................................6 Why This is Changing ...............................................................................................7 Company-Based Personalization and Targeting ..........................................10 Summary .......................................................................................................................12 Introduction Digital is becoming the center of the B2B marketing universe.In a recent study of marketers released by BtoB Online, the only areas where spend is increasing are website, email, search engine marketing (SEM), social and video. The areas where spend was predicted to decrease slightly were webcasts/online events, mobile marketing, sponsorship's and display. This is interesting because display spend, as a marketing tool, has been growing in other industry segments. According to a recent article from Marketing Profs, “...roughly seven in ten (71%) B2B marketers surveyed say they used display advertising during the fourth quarter of 2010, whereas 86% of B2C marketers reported doing so.”It is safe to say that display, in general, has largely been a tactic employed by the bigger B2B brands while SEM has been more widely embraced by the entire spectrum of B2B companies. The cost for high volume keywords and the lack of user targeting capabilities is making SEM a challenging tactic to effectively and consistently succeed in, but the clear and straightforward metrics for success (click to conversion = easily measurable cost per lead) make it a natural choice for most B2Bs as a marketing tactic. This is poised to change. Engagement at the account level, where actual buying decisions take place, is now more easily measureable and is a much more realistic performance metric for B2B success. The development of newer targeting and filtering technologies such as IP-based targeting (or Company-Targeted Advertising), access to in-depth customer data, and large ad inventories at reasonable prices have improved display ad performance and increased the number of B2Bs using display advertising as a B2B marketing tactic.This white paper will compare display advertising and SEM, and discuss new developments in display advertising that allow businesses to increase engagement at the account level and make more sales at lower costs. Engagement at the account level, where actual buying decisions take place, is now more easily measurable and is a much more realistic performance metric for B2B success.