🖥️ Display ads: Trends, challenges, and winning tactics

Hello! Hope this newsletter edition finds you well:

Today, we're unlocking the power of display ads and how brands are killing it with fitness app collabs. Let’s dive in…

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Unlocking the power of display ads: Trends, challenges, and winning strategies

Display ads remain a cornerstone of digital marketing, with the online ad market expected to hit $225 billion. Digital banners are set to grow by 9.4% on mobile and 3.8% on desktop this year, with 75% of marketers utilizing them, up from 61% last year. Their accessibility and effectiveness keep them in high demand.

Insights from marketers

Digiday surveyed 174 marketing professionals to explore their digital strategies, investments, and challenges.

Programmatic ads: Still going strong

Despite challenges like the end of third-party cookies and MFA sites, 77% of marketers use programmatic ads, up from 64% last year. Programmatic ads are valued for their cost-efficiency and high ROI. However, brand safety remains a concern, with 25% of marketers highlighting it as a significant issue.

AI and hyper-personalization

AI is transforming ad targeting, enabling hyper-personalized experiences and rapid content generation, though it brings its own challenges, especially around brand safety.

The resurgence of email ads

Email newsletter sponsorships have surged to become the second most-used display ad format in 2024. Marketers are leveraging first-party data to engage audiences directly, building trust and fostering personalized interactions.

Budget and creative challenges

Cost is the top challenge for display ads, particularly for direct-sold formats. Despite this, marketers appreciate the budget optimization and reach programmatic ads offer. Creative flexibility and ad placement issues are also significant hurdles.

Key takeaways

• Rising programmatic use: 77% of marketers now use programmatic ads, up from 64% last year.

• Brand safety concerns: 25% of marketers cite brand safety as a major challenge.

• Surge in email ads: Email newsletter sponsorships are now the second most popular display ad format.

• Cost challenges: Media costs remain a top barrier for all display ad types.

• Creative Constraints: Overcoming creative and placement limitations is crucial for maximizing ad impact.

Display ads continue to play a vital role in digital marketing. For DTC and e-commerce marketers, understanding these trends and challenges is essential to leveraging display ads effectively. Embrace new technologies and optimize your strategy to stay ahead in the digital landscape.

^{DIGITAL MARKETING}

Brands partner with Strava for branded workouts

Chipotle, Duer, and Hoka are tapping into the power of fitness tracking and activity-sharing app Strava to create branded workout challenges, attracting new customers with product discounts.

Last year, CamelBak’s “Redefine Limits” running challenge drew 149,000 participants, while their biking challenges engaged over 400,000 users. Hoka’s July running challenge offered the chance to win shoes, attracting 175,000 participants.

Strava for Business director Evelina Jarbin highlighted the growing interest in branded challenges as brands aim to engage more with health-conscious users. Strava’s research shows a higher Gen Z engagement, making it an ideal platform for reaching young, active audiences.

“By partnering with brands that share our values, Strava connects them with an active, engaged community, boosting brand awareness and sales,” Jarbin said.

How branded challenges work

Strava offers sponsored challenges and segments. Sponsored challenges can be customized by duration, distance, altitude, streak, collective, or days-active, while sponsored segments add gamification elements to runs. Chipotle’s January sponsored segments in six cities rewarded winners with free burritos or bowls for a year.

Challenges are promoted within Strava, which boasts over 125 million users. Participants are directed to the partner’s site to redeem rewards. Campaign fees start at $20,000, varying by targeting, duration, and promotion.

Success stories: Duer's bike to work challenge

Apparel brand Duer hosted its first Strava challenge in May, encouraging about 59,000 people to bike to work. Inspired by founder Gary Lenett’s switch from car to bike commuting, the challenge promoted Duer’s performance jeans, designed for active lifestyles.

“We look for partnerships that align with our brand ethos and customer base, which is why Strava was a perfect fit,” said Nadia Gillies, Duer’s director of brand and creative services.

Participants who cycled to work twice a week for two weeks received a 30% discount. The challenge exceeded expectations, with 42,000 completions against a goal of 27,000. This success is helping Duer identify potential new store locations, including Portland, Seattle, and additional Canadian cities.

“Our community lives on Strava, so partnering with them was an easy decision. It allowed us to engage deeply with our community and gather critical data for future expansion,” Gillies said.

Future prospects

While Duer plans another Strava challenge later this year, they are also sponsoring the RBC GranFondo Whistler race. Strava partnerships are proving invaluable for brands looking to connect with active communities and leverage data for strategic growth.

Engage with your community, boost brand loyalty, and drive sales with Strava’s innovative branded challenges.