In The Battle of Static Ad vs. Dynamic Ad, Which Wins?

The wonderful thing about adtech is that we have some truly innovative solutions that help us better connect with our audience online. One such example is the dynamic ad. But while it can garner up to 4x the results that static ads do, is it really the best solution for your advertising needs?

To come to a conclusion, let’s look at both static and dynamic ads, as well as their role in Consumer-Powered Marketing.

Static Ads: You’re Probably More Familiar With Them

The ads that have been around since the beginning of online advertising can be considered static, or unchanging. All the consumers you target with the ad see the same fixed ad, or one of a few variations you upload into your ad management platform.

Advertisers like static ads because, once you create them, you don’t have to do much else. They are there, ready and waiting for people to click on your ads. If you work in a highly-regulated industry, where your ad content has to be reviewed by a legal team, a static ad can reduce the headaches and battles you have getting an ad approved. If you have a nonexistent sales and marketing team, you don’t have to sweat at spending a lot of time running your ad campaigns.

The drawback to static ads is that while they may be appealing to someone the first time they see the ad, once that same ad appears over and over across different websites, it can start to become monotonous or even annoying. Viewers may even become immune to the ad, reducing your opportunity to entice them to click.

And given how consumers now expect content to be customized to them, many advertisers find that the static ad, even if the content is tailored to an audience, doesn’t do a great job of creating interaction with potential customers.

Dynamic Ads: “I’m Talkin’ to You!”

Dynamic ads differ from static ads in that they are highly personalized, and can have a much higher conversion rate. Because the content of these ads can change with time and consumer behavior, dynamic ads are more likely to get people to visit and buy from your website repeatedly.

Once you create the ad, you can set the criteria that you want to be dynamic, such as the product displayed, price, or discount. These factors are updated in real time based on a lead’s behavior. For example, if your data tells you that a shopper not only visited your website to view a product, but also visited a competitor’s site, where that same product was cheaper, the dynamic ad displayed after that could offer a discount for that product on your website to that single shopper. You already know she’s interested in that particular product, and you know that she’s compared prices, so you stand a great chance of getting her to buy if you can compete with that price through your dynamic ad.

You can purchase dynamic ads through ad platforms that distribute your ad across various targeted websites. Facebook has also gotten into the dynamic ad game, which is interesting because it assesses consumers’ behavior both in Facebook and elsewhere on other websites to deliver highly-targeted advertising.

Dynamic ads do have a few drawbacks. They are more complicated to create, and involve uploading your product feed, as well as criteria for the dynamic features (such as how low you’re willing to sell a product for). They’re not ideal for smaller eCommerce sites with little traffic, because they play off of the fact that people visit a website and then see the ad elsewhere. If few people are visiting a site, they aren’t going to see the ad.

Dynamic ads also require more ongoing maintenance, since products and pricing will need to continually be updated.

How Retargeting Differs Between the Two

A retargeting campaign can be either static or dynamic. In the case of the static retargeted ad, the instructions are relatively simple: if a shopper looks at this pair of red suede heels on this website, show an ad for those same shoes on different ad channels.

With dynamic retargeted ads, we go one step further: if a shopper looks at this pair of red suede heels, she will then be shown an ad with those shoes…marked down 20%. Dynamic ads take the personalized effort up a notch, resulting in even more conversions.

Bottom Line

If you have a small, low-traffic eCommerce site, you probably are better off investing in static ads, simply because you don’t have enough data from your shoppers to apply to a dynamic campaign.

On the other hand, if your website has a fair amount of traffic and you have the time and willingness to invest in continually tweaking your dynamic ad campaign, give it a shot. The more you can speak to that “audience of one,” the better your sales will be.