Conversion Funnel: how to choose the right advertising format at each stage

When you enter the world of programmatic advertising, you realize the wide range of advertising formats available. These formats can be leveraged to achieve a variety of goals, both related to branding and conversion. But how do you choose the right format for each stage of the funnel?

The Conversion Funnel

Before looking at the suitable advertising formats for each stage of the funnel, it is essential to understand what a conversion funnel is and what steps make it up.

The conversion funnel traditionally breaks down into four parts, based on where the user is:

1. Awareness

In this stage, you may not yet know the brand or offer details. The marketer's task is to bring the user closer to the brand by showing not only the products, but also the history and values ​​of the brand in order to involve him. A captivating narrative is essential.

2. Consideration

In this stage, the user is aware of the need for a certain type of product and is evaluating different options. The marketer must keep the brand at the top of the user's mind and show the advantages of their product over the competition. It is important to involve the user.

3. Conversion

When you get to this stage, the user is ready to purchase the product. The marketer's job is to streamline the buying process and remove any obstacles. It's time to convince the user.

4. Loyalty

At this stage, the user has already had contact with the brand through a conversion, such as a purchase or subscription to a newsletter.
The goal is to retain existing customers and show them appreciation through personalized offers or discounts.

Since goals vary at different stages of the funnel, it is clear that there is no one-size-fits-all approach.

Instead, it is advisable to use different advertising formats at each stage to best achieve the marketer's objectives.

Choose the right format for each stage of the funnel

Formats to Generate Awareness

In the awareness phase, the relationship between the brand and the user is still in its infancy or non-existent.
The user may not be searching for the product at the time and is exposed to various advertisements while performing other activities.

In this stage, many brands compete for the same user's attention. How to get noticed in the midst of this competition?

It is essential that the brand clearly identifies its Unique Selling Points (USP). But even more important is communicating these USPs. Therefore, advertisers should tell a story before introducing the product. Video or audio formats are suitable, as they can tell the brand story and engage users better than static formats.

In an environment where websites and apps are saturated with ads, it's wise to focus on high-impact formats that capture users' attention with images, sounds and animations, such as skins.

The space the format occupies on the screen is crucial: the more space there is, the more likely the user is to notice the ad. Interstitial and in-feed formats are valid options.

If you can't use high-impact formats, you can place ads in premium locations within sites and apps. In this case,
standard display formats or rich media can work well, as long as they provide good visibility. Recommended formats include masthead (970x250), half page (300x600), and MPU (300x250).

Formats to Facilitate Consideration

In the consideration stage, the goal is to convince the user that their product is the right choice. What formats are suitable for conveying this message?

- Custom formats can show the detailed characteristics of the product.
- Showcase or carousel formats allow you to present a range or collection of products.
- The 3D effects can allow the user to experience the product virtually.

If you want to provide additional details, an effective strategy is to drive traffic to the product page on the website. In this context, the native advertising format represents a solution to consider. 
Alternatively you can opt for rich media display formats with custom animations and eye-catching text that can showcase the product or collection in full.

Formats to Increase Conversion

In the convert stage, the user is ready to buy, but the process needs to be streamlined.
Remarketing is an effective strategy, but format also plays a role.

- Dynamic Creatives can customize the advertising banner based on the products viewed by the user or suggest related products.
- Display or rich media formats that are clear about product benefits and price can encourage the user to buy.
- If the sector you work in has a strong video or audio component, you can evaluate these formats to give the user a taste of what they will buy. For example, a record company can greatly benefit from using audio formats that give a taste of the songs contained on an LP, perhaps with an eye-catching CTA that invites the user to "find out the rest" on the site.
- For products that require high user engagement (such as cars or houses), you can use display formats with built-in forms to remove barriers to conversion.

Formats to Enhance Loyalty

In the loyalty stage, the goal is to retain existing customers and encourage them to make repeat purchases.

- Personalized offers through standard or dynamic banners with discount codes can boost loyalty.
- Dynamic Creatives can suggest related products based on previous purchases, encouraging cross-selling and up-selling.
- Social media usage can be extended through display formats based on social content, allowing you to communicate with customers even outside the social platforms.

Choosing the right format at each stage of the funnel can be complex, but by taking advantage of programmatic advertising's variety of formats and advanced targeting techniques, you can optimize the conversion process.