How Digital Advertising Fits in with Customer Value Optimization

We teach another system here at DigitalMarketer. This one provides a 10,000-foot view of how the marketing process works (when it’s done right).

We call it Customer Value Optimization.

Here’s what it looks like:


The Customer Value Optimization process gives you a tested and reliable roadmap to build an unstoppable business in any niche, market, or industry.

So where does digital advertising, AKA paid online media fit in?

At the very top, as one of the traffic sources that send people into this whole process in the first place:

The beauty of the Customer Value Optimization process is that you only have to pay for traffic at the beginning. Once a visitor has subscribed to your newsletter, you can continue to follow-up with them for free.

The Most Important Digital Advertising Platforms

OK, now you should have a pretty good idea of what digital advertising is, why it’s such an important part of your overall digital marketing strategy, and how it fits into the big picture.

Next, let’s dive into some of the specific platforms available.

Remember that the concept of paid advertising is nothing new. It’s just the channels, or mediums, that have changed with the rise of the internet.

You can actually think of many of these platforms as a newer “digital equivalent” of an older advertising medium. For example:

  • Google is like the Yellow Pages
  • Facebook is like a billboard
  • Pandora is like radio
  • YouTube is like TV

Depending on your industry, different platforms may make more (or less) sense for your business.

Here’s a brief overview of some of the biggest digital advertising platforms online today:

Facebook & Instagram

Facebook has grown to become one of the biggest and most valuable digital advertising platforms online today. We’re lumping it together with Instagram since both platforms are owned by Facebook and use the same ad platform (Ads Manager).

Facebook & Instagram are incredibly effective channels for paid ads. A big part of the reason why is because they have a lot of data on their users, which the Facebook algorithm uses to optimize ad delivery for the best results.

Here are some basic facts…

Facebook Stats:

  • 2.41 billion monthly active users
  • Users by age range:
    • 18–24: 76%
    • 25–29: 84%
    • 30–49: 79%
    • 50–64: 68%
    • 65+: 46%
  • Users spend 38 minutes/day on the platform
  • 74% of users log in daily
  • 94% of Facebook’s ad revenue comes from mobile

Instagram Stats:

  • 1 billion monthly active users
  • Users by age range:
    • 18–29: 67%
    • 30–49: 47%
    • 50–64: 23%
    • 65+: 8%
  • Users spend 28 minutes/day on the platform
  • 63% of users log in daily
  • 73% of US teens say Instagram is the best way for brands to communicate about new products or promotions

Another great thing about Facebook & Instagram ads is that they support a wide range of formats, such as…

Image Ads

Video Ads

Carousel Ads

Instant Experience Ad (Mobile Only)

Shop-able Ads (Instagram Only)

Facebook and Instagram are frequently testing and rolling out new ad types, which means you have a wide range of options for engaging people on these platforms.


Google Ads are separated into 2 different networks: the Google Search Network and the Google Display Network.



While YouTube is owned by Google and uses the same ads manager as Google Ads, we’re separating them here since they’re such different platforms.

YouTube is the video site. But it’s more than that: it’s one of the biggest search networks, and one of the biggest websites in general, in the world. And for marketers looking to reach new customers, it’s a goldmine of a digital advertising platform.

Here are some of the basic deets…

YouTube Stats:

  • 2 billion monthly logged-in users
  • Users by age range:
    • 15–25: 81%
    • 26–35: 71%
    • 36–45: 67%
    • 46–55: 66%
    • 56+: 58%
  • Users spend 11 minutes/day on the platform
  • Over 70% of YouTube views come from mobile
  • 70% of what people watch on YouTube is determined by its recommendation algorithm

Like any other paid online media platform, YouTube offers a variety of ad formats and options. For instance:

TrueView In-Stream Ads are a form of video ad that plays before a viewer’s chosen video. The cool thing about TrueView ads is that you only pay when the viewer watches or interacts with your ad.

Video Discovery Ads are displayed on the YouTube homepage and search results pages (the concept is similar to Google Search Ads).

Bumper Ads are short (6 seconds), non-skippable video ads that play before a viewer’s chosen video.

Pre-roll Ads are longer non-skippable ads that play before a chosen video.

Video is a tremendously powerful way to reach new customers online. If you leverage video in your business, you probably want to be on YouTube.

Other Digital Advertising Platforms

While Facebook, Instagram, Google, and YouTube are the biggest online media platforms on the block, they’re by no means the only options.

Depending on your industry, these platforms might also be a good fit for your business:


Amazon has become an important digital advertising platforms for ecommerce companies. A whopping 59% of consumers start their product searches here, which makes it a great place to buy traffic.

Amazon ads can show up in a variety of places, such as the search results:

Or the “Sponsored Products” section:


Pinterest Ads can be a great way to help users discover and buy your products. Ads appear as “Promoted Pins,” such as these 2 ads by Target and Casper:

People often use Pinterest to find new products, making this a valuable network for ecommerce companies. (Especially if you sell visual products that would lend themselves to a cool-looking picture.)


LinkedIn is a social network for professionals, which means it’s potentially an important source of traffic for B2B businesses and anyone targeting professionals.

They offer several types of ad formats, such as Sponsored Content, Text Ads, and Sponsored InMail.

Here’s an example with Sponsored Content (on the left) and Text Ads (on the right):

But the most important part of deciding where to run your ads is to know where your audience is most likely to be. If your ads are placed where your target audience is most likely to see them, you’ll get the best chance at conversion and the best ROI.

Ad Targeting

Choosing a digital advertising platform is just the first step. Once you’ve decided on where you want to run your ads, the next thing you’ll need to do is decide WHO you want to show your ads to.

We call that targeting.

Different networks have different options for targeting. For example:

  • On the Google Search Network you have to choose which keywords you want your ads to appear for.
  • On LinkedIn, you can target specific job titles.
  • And on Facebook, you can show ads to people based Mexico Phone Number on their interests.

Most ad platforms also allow you to further refine your targeting by demographics, giving you the ability to focus on (or exclude) people based on their age, gender, location, and so on.

There are 2 more concepts related to ad targeting that you’ll want to be familiar with. Those are traffic temperature and retargeting.

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