Executive Summary Business marketers have always advertised in specialized media such as trade magazines, but their audiences have traditionally been too narrow to use television, radio, and similar mass outlets. This limitation has carried over into the digital world, where business marketers could target ads on search terms and industry Web sites but not buy display ads that reach broad audiences. This has become an increasing problem as buyers do more research anonymously on the Web, making them harder to identify and nurture. Tools such as content marketing and social media have filled some of the gap by offering alternative methods of acquiring new names. But those methods are labor and content- intensive, making them difficult to scale. As a result, business marketers have longingly eyed the “insert coin here” efficiency that lets consumer advertisers reliably increase results by raising their display ad spend. Happily, new methods have now made online display advertising a more effective, higher volume option for business marketers. Improved audience targeting expands the number of prospects marketers can reach and how frequently they can be contacted. Business marketers must learn a few new tricks to take advantage of this opportunity. But in return they gain a greater control over the flow of new names and more precise targeting of the messages for each individual. This Guide will ease your entry to the new world of effective B2B display advertising. Let the journey begin. This brief 11-page How-To Guide is designed to provide practical advice for B2B Display Advertising and outlines the following: What is Display Advertising? Display Advertising For Marketers Challenges Resources Action Plan Bottom Line Demand Metric's How-To Guides are designed to provide practical, on-the-job training and education and provide context for using our premium tools & templates. If there is a topic that you would like to see covered, please contact us at info@demandmetric.com (link sends e-mail) to make a content request.

1. How-To Guide
© 2014 Demand Metric Research Corporation. All Rights Reserved.
B2B Display Advertising
By David Raab, Raab Associates
June 2014
EXECUTIVE SUMMARY
Business marketers have always advertised in specialized media such as
trade magazines, but their audiences have traditionally been too narrow
to use television, radio, and similar mass outlets. This limitation has
carried over into the digital world, where business marketers could
target ads on search terms and industry Web sites but not buy display
ads that reach broad audiences. This has become an increasing problem
as buyers do more research anonymously on the Web, making them
harder to identify and nurture. Tools such as content marketing and
social media have filled some of the gap by offering alternative methods
of acquiring new names. But those methods are labor and content-
intensive, making them difficult to scale. As a result, business marketers
have longingly eyed the “insert coin here” efficiency that lets consumer
advertisers reliably increase results by raising their display ad spend.
Happily, new methods have now made online display advertising a more
effective, higher volume option for business marketers. Improved
audience targeting expands the number of prospects marketers can
reach and how frequently they can be contacted. Business marketers
must learn a few new tricks to take advantage of this opportunity. But
in return they gain a greater control over the flow of new names and
more precise targeting of the messages for each individual. This Guide
will ease your entry to the new world of effective B2B display
advertising. Let the journey begin.

2. How-To Guide
© 2014 Demand Metric Research Corporation. All Rights Reserved.
DISPLAY ADVERTISING BASIC
Web display advertising includes any kind of advertising presented on a
Web site other than a search engine. (Search advertising, such as
Google AdWords, is different enough that it’s best treated as a separate
topic. Search advertising is much simpler to manage than display
advertising, so most business marketers are already familiar with how
to use it.)
Site-based vs. Visitor-based Targeting
The fundamental benefit of display advertising is that it takes
advantage of audiences assembled by Web site owners. Usually the
audience will be attracted by the content of the Web site and thus share
a common interest related to the advertiser’s product: corporate
travelers will go to a corporate travel Web site, steam turbine buyers
will go to a steam turbine Web site, and so on. For this reason,
marketers are often content to show their advertisements to everyone
who visits a site, without knowing anything else about them.
Ads may also be targeted at specific visitors based on information such
as past behaviors or known interests. This requires technology to
identify those visitors. In this case, the contents of the Web site where
the ad appears are largely irrelevant. (Exception: marketers often avoid
ads on Web sites whose content they consider objectionable.) Visitor-
based targeting usually relies on Web browser cookies that associate a
computer with behaviors or interests, even though they may not be
linked to a specific person. Visitor-based targeting is increasingly
available for business marketers. It can be more effective than site-based
targeting and greatly expands the number of opportunities to deliver
targeted advertisements.
Targeting may also be based on other attributes such as the user’s
physical location, their employer, search terms, previously visited Web
sites, or the type of device they are using. This information is derived
from technical data provided during Web interactions. Employer-based
targeting is especially relevant to business marketers.
Purchase Models
Display ads may be sold on basis of cost per impression (cost per
thousand or CPM), cost per click (CPC), or cost per action (CPA),
depending on the publisher and the situation. Most ads are sold at a
fixed price, typically as part of a negotiated contract for large number of
impressions. Others are sold on ad exchanges through real time bidding
on individual impressions. Different approaches serve different needs.

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© 2014 Demand Metric Research Corporation. All Rights Reserved.
Many marketers use several methods to provide the most effective
results. For example, they might make a bulk purchase of site-based ads
and supplement this with visitor-based ads targeted at high value
individuals.
Process Flow
The actual mechanics of Web display advertising can be surprisingly
complex. Indeed, the advertising technology industry sometimes seems
to take a perverse pride in the obscurity of its processes. Still, the basic
steps and related systems can be summarized as follows. See the
Glossary for definitions of boldface terms.
 Advertisers create their messages (banner ads, videos, etc.) and
store them in an ad server where they can later be fed onto
actual Web pages.
 Publishers create Web pages with tags that will display
advertisements when the pages are delivered. The tags may call
the publisher’s own ad server directly or they may call an ad
network which controls what is displayed. The tags can also set
and read browser cookies to identify the user to the publisher.
 Advertisers place orders that determine who will see their
advertisements. They can either purchase ads based on where
they will appear (site- and page-based targeting) or who will see
them (visitor-based targeting). The advertiser can buy directly
from publishers or ad networks, purchase through an agency
trading desk, or enter orders into a demand side platform that
coordinates purchases from multiple sources. When purchases
are based on visitor characteristics, a list of cookies to target is
loaded into the demand side platform from a data management
platform, which in turn gets cookies with the desired
characteristics from data brokers.
 When an individual visits a Web page, the ad tag within the
page either loads a page-based advertisement or sends cookie
information to the publisher or ad network, which may serve an
ad based on the visitor characteristics or let an ad exchange
offer the impression to multiple buyers via real time bidding.
Bidders use cookie data and other considerations to decide what
the impression is worth.
 Once an ad is selected, it is loaded from the ad server and
rendered on the Web page. Tags on the Web page or within the

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© 2014 Demand Metric Research Corporation. All Rights Reserved.
advertisement may later send the publisher or advertiser
additional information used to measure results and optimize
future selections, such as whether the ad is viewed or clicked on,
location of the viewer, and time of day.
Social media networks such as Facebook, Google+, and LinkedIn use
different technical mechanisms but can also deliver targeted advertising
based on either the contents being viewed or characteristics of the
viewers.
DISPLAY ADVERTISING FOR MARKETERS
The main factor limiting business marketers’ use of Web display
advertising has been the relatively small number of impressions
available on business Web sites. This has led to high prices and limited
the volume of business that marketers could generate. Visitor-based
targeting has greatly expanded the inventory of available impressions
by enabling marketers to reach their target audiences on non-business
Web sites. Although marketers are sometimes concerned about the
context of these advertisements, they can be more effective than
content-based ads if the targeting is based on sufficiently precise
information.
One powerful example of visitor-based advertising is retargeting,
which shows ads on other Web sites to people who have visited a
company’s own site. Because the retargeting can be based on browser
cookies placed during the original site visit, the ads can be served even
if the visitor did not identify herself by filling out a form or taking some
other action. This greatly expands the reach available to company
marketers.
Other techniques to improve display advertising results include:
 Frequency caps that limit the number of times an individual is
shown an advertisement. This ensures that ad spending is not
concentrated on a small number of frequent site visitors. It
depends on cookies or other methods of identifying individuals.
 Personalization that tailors ad messages to individual interests
or characteristics, such as company, location, industry, or title.
This information may be inferred from behaviors, provided by
visitors when they fill out forms, or purchased from third parties
and linked to the visitor via cookies, IP address, or other
identifiers.

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© 2014 Demand Metric Research Corporation. All Rights Reserved.
 Content testing that automatically delivers different
advertisements to similar viewers to see which performs best.
Such testing can usually be built into the ad serving process so
the human effort is minimal. Some systems can automatically
construct different ads by combining alternative headlines,
photos, and offers to find which combination performs the best.
This allows marketers to test more options than they could
manage manually.
 Other testing of such variables as audience segments, frequency,
time of day, and placement on the Web page to find the best
performers. Systems can often automatically monitor results and
remove the losing options to improve results over time. Users
select the metric used to define good performance, which may be
page views, clicks on links within the ad, or subsequent
conversions such as filling out a form or making a purchase.
 Budget limits that ensure advertisements are spread over time
by capping the number of ads or amount spent per day. Similar
constraints may limit the cost per impression or cost per action.
Such limits can usually be defined as part of the campaign set-up
and enforced automatically.
 Alternative formats, such as video, animation, or in-ad surveys.
These often attract more attention than static standard
advertisements. They may cost more but marketers can easily
measure performance to determine whether they are worth the
added expense.
CHALLENGES
Some of the challenges that display advertising presents to business
marketers include:
 Visitor tracking – Many audience tracking techniques are
based on browser cookies, which are far from perfect. Privacy-
conscious users often block their browsers from accepting
cookies or periodically delete cookies they have previously
accepted. Many people browse on multiple devices, such as home
and office computers, smart phones, and tablets, which have
separate sets of cookies that are not easily linked to provide a
complete customer view. Some mobile devices will not accept
cookies at all, although advertisers have developed some ways to
at least partially compensate for this.

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© 2014 Demand Metric Research Corporation. All Rights Reserved.
 Privacy – Marketers must limit the data they collect from
visitors and how they use what they gather, both to comply with
legal restrictions and to avoid making visitors uncomfortable.
It’s important to be aware of the rules that govern the use of
individual data, to recognize that these differ in different
countries, and to keep an eye on new regulations and evolving
industry best practices.
 Measurement – Display advertising generates plenty of data,
including impressions, cost per impression, clicks, and
conversions. But those metrics often don’t capture the real value
created by an advertisement, such as customer attitudes or
changes in long-term behavior. One critical issue is that display
advertising often influences future leads indirectly when they
see an ad but don’t click on it. Traditional methods such as
attributing leads to the first or last ad they view are widely
recognized as misleading and often underestimate the impact of
display in particular. More sophisticated methodologies are
available but can be expensive and difficult to understand.
Marketers can gain some insight from simpler analyses such as
correlating changes in lead production with changes in ad spend
or measuring how many new leads viewed a display at any point
in their life cycle.
 Expertise – Creating effective display ads, buying media, and
measuring results are new skills for many business marketers.
The options for purchasing display ads are especially confusing:
content-based vs. viewer-based, fixed price vs. bid, cost per
impression vs. cost per action. Although self-service options are
available, many marketers do best by working with agencies to
provide the necessary skills and experience.

7. How-To Guide
© 2014 Demand Metric Research Corporation. All Rights Reserved.
RESOURCES
Several vendors have developed specialized offerings for B2B display
advertising. Most can provide general information on the topic even if
you don’t use their services. Companies to consider include:
 Bizo. A B2B advertising network with particular strength in
business advertising on Facebook and LinkedIn, supports
cookie-based personalization on company Web pages, and
integrates with marketing automation systems for cross-channel
campaigns.
 DemandBase. Uses the IP address of Web page visitors to
identify their employer and delivers targeted advertising on that
basis. Also supports marketers and sales teams by identifying
Web site visitors by company, auto-filling Web forms with
company information, enhancing lead records, and targeting
messages on corporate Web sites based on the visitor’s
employer.
 Vendemore. A Sweden-based B2B ad network that uses IP
address and cookies to target and retarget display advertising
and to deliver Web site personalization. Particular strength
outside the United States.
 BBN Solutions. B2B ad network that offers site-based ads and
real time bidding on impressions outside its network.
ACTION PLAN
The complexity of creating, buying, and evaluating Web display
advertising can seem overwhelming. But marketers can ignore many of
the technical details and hire experts to handle much of the remaining
work. So getting started isn’t as hard as it looks. Just follow these steps:
 Decide whether Web advertising is worth trying – Is your
company having a hard time finding enough new leads? Do you
have the budget to create new ads and purchase ad impressions?
Is it impossible to reach the complete pool of potential buyers
directly through purchased lists or trade shows? Most
companies would answer, “yes” to all these questions but your
situation might be different. The key benefit of display
advertising is that it reaches potential buyers early in the buying
cycle, well before they are ready to contact you on their own.

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© 2014 Demand Metric Research Corporation. All Rights Reserved.
This expands your audience beyond those people who know
your company already.
 Create a test program – Define specific goals for your initial
campaign, including the types of people you want to reach, the
message you want to convey, and the results you hope to
generate. Much of the creative can be based on existing
marketing materials but bear in mind that display advertising
has its own requirements for effective promotions. Use an
experienced agency to guide you in the right direction for both
ad creation and media buys. The initial program doesn’t have to
be very large: its goal is only to measure potential results. If
budget permits, try a couple of different approaches, such as site-
based and individual-based targeting. If money is very tight,
consider starting with a retargeting program, which nearly
always provides a positive return on investment.
 Measure results – Accurately measuring the results of your test
is critical. Be sure before you launch that you have mechanisms
to capture the names of any leads the advertisements might
generate – typically via landing page forms linked to your ads.
But also recognize that the value from display ads often accrues
over time to people who don’t respond immediately and may
later connect through other channels. So look for indirect
measures such as changes in Web site traffic, contacts from
people or companies you know saw your ads, and recall of ad
messages.
 Expand – The initial test is just a starting point. Assuming
results are promising, you’ll want to refine your display program
by trying different audiences, media strategies, and creative
approaches. This should easily double or triple your original
results over time. One caution: the number of impressions on
high-performing sites is often very limited, especially if you are
chasing a narrow audience. This can limit the volume of
business that display advertising can generate. It’s also why
individual-based targeting and real time bidding are so
important: they let you reach the right people outside of
industry-targeted Web sites.

9. How-To Guide
© 2014 Demand Metric Research Corporation. All Rights Reserved.
BOTTOM LINE
Web display advertising is a new frontier for many business marketers.
Like any frontier, it hides unknowns and presents risks that more
familiar terrain does not. But the paths to success are increasingly well
marked, the rough spots are increasingly paved over, and experienced
guides are widely available. Business marketers should plan an initial
journey to explore the new terrain and find out how they can harvest its
resources.
ABOUT THE RESEARCH ANALYST
With an MBA from Harvard, David is an expert in both B2B &
B2C marketing strategy & technology. He has advised The Gap,
JC Penney, Lowe's, Blue Cross/Blue Shield, Williams-Sonoma,
Scholastic, Unisys, Sprint and Verizon Wireless.
He also publishes the Raab Guide to Demand Generation Systems
and the Marketing Performance Measurement Tool-Kit.

10. How-To Guide
© 2014 Demand Metric Research Corporation. All Rights Reserved.
APPENDIX – GLOSSARY
 Ad Exchange – Organization that offers advertising
impressions from multiple publishers and ad networks for
purchase, including real time bidding. Impressions are
identified by Web site and cookies.
 Ad network – A group of Web sites that sell shared access
for advertisements. Networks place their own cookies which
let them identify and target individual visitors across all
network Web sites.
 Ad server – A system that stores display ads and sends them
to Web pages to be rendered.
 Advertiser – Organization that purchases ads on a Web site.
 Agency Trading Desk – Ad agency system that manages
purchases of Web ads from multiple sources. Unlike a
demand side platform, it does not store lists of cookies.
 Cookie – A small file placed on a computer by a Web page.
Cookies store a unique identifier and sometimes other
information such the date of the last site visit. They do not
usually store personal identifiers such as a name or address.
First party cookies are cookies are created by someone other
than the Web page owner, such as an ad network. Cookies
can only be read with the owner’s permission.
 Data Management Platform (DMP) – A system that stores
cookies and other data related to individuals who are
targeted by advertisements. Cookies are associated with
attributes such as demographics, company information,
buying interests, and recent behaviors. A DMP may hold
multiple cookies from computer or individual. These can be
linked to build a combined profile.
 Demand Side Platform (DSP) – A system that manages the
purchasing of Web ads from multiple ad networks and ad
exchanges. The DSP may contain lists of cookies
representing individuals an advertiser wishes to reach. This
would be loaded from a data management platform. DSPs

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© 2014 Demand Metric Research Corporation. All Rights Reserved.
perform other functions such as monitoring ad costs and
responses to optimize ad purchases over time.
 IP-based Targeting – Use of the Internet Protocol (IP)
address to identify the company where a Web site visitor
works. This relies on the directories that show which IP
addresses are used by which companies. It works best with
employees of large companies that have their own Web
servers. It can be used to identify otherwise anonymous
visitors, although it does not distinguish different individuals
within the same company.
 Publisher – An organization that creates a public Web site
whose pages can include advertisements.
 Real Time Bidding – A method of selling ad impressions
through auction. As Web pages are loaded, a tag on the page
sends the page and cookie information to the ad exchange
hosting the auction. Bidders examine each impression and
decide how much to bid. Highest bidder then sends their
advertisement to the page to be rendered.
 Retargeting – Sending advertisements to individuals who
have previously visited and advertiser’s own Website or
taken other significant behaviors. Retargeting is usually very
effective because it can be tied to specific actions that indicate
the visitor is a high-value prospect.