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What is paid advertising?

What is paid advertising?

Paid ads, PPC, Facebook ads, Instagram ads, and more….

There are a lot of activities that fall under the category of paid advertising using the internet. Sometimes they are all lumped under the category of PPC, Pay-Per-Click advertising. In other words, the type of ad where you pay when people click on your ad after seeing it online.

There is a huge body of technology on advertising and there are specialists in all of the different types.

There are many different types of advertising and no really clear summary of them, but we’ve grouped them for you below as best we could.

  • Non-specific Display Ads. This includes any advertising that shows up regardless of what is being searched for or viewed by the person being advertised to. This would include the following:
    • Ads that show up on websites that you visit, not specifically based on your search or websites you’ve visited.
    • Ads that show up in your social network news feed, this could be Facebook, Instagram or any other platform
  • Targeted Display Ads. These ads also show up in your social media feed or on websites that you visit, but they are specifically targeted to you based on your past search history or your demographic information. This would include the following:
    • Remarketing/retargeting ads. This means that the ad starts after you visit a website or click on a link. They are targeted to a specific set of people based on past data. Because the people have typically expressed interest in the subject being advertised these ads are typically cheaper than traditional pay-per-click ads.

These are the ads that seem like someone is watching your search history and tailoring your ad experience based on sites you’ve visited.

  • Targeted Display to get new visitors. You can also target a particular demographic and set up a campaign that will only show to “male teenagers with an interest in cars”, or “men and women between the age of 35 and 65 who have a job title of Chief Marketing Officer”.

You can combine this type of ad with the remarketing/retargeting ads to continue to show the ad to people who respond and get more exposure to your prospects.

  • Pay-Per-Click/Pay-Per-Action. This is the type of advertising that most people are familiar with. There are a number of different ways to set up the campaign but the basic principle in each is that you only pay when someone clicks on your ad or performs a certain action (like filling out a form). Some of the differences are laid out below:
  • Pay-Per-Click on search engines. You start this type of advertising by determining a particular search term that you would like to target. You create an ad you want to show to people searching for that term. You set a maximum amount (bid) you are willing to pay each time someone clicks on your ad. If your bid is higher than the others also trying to advertise for this search then your ad will show up. You don’t pay unless someone clicks on it.
  • Pay-Per-Click/Action on social media. The advertising on social media is set up differently even though it is usually called by the same name. In social media you aren’t targeting people by searches. You target them by the detailed personal information contained in their social media profile. So instead of showing ads to people based on their search history, you can show them ads based on their job titles, their interests, income level, location, etc. Otherwise it is very similar to the PPC ads on the search engines. You set up a budget that you are willing to spend to get a certain number of clicks and then the ad campaign will run and you will be charged based on the number of people who actually click on the ad (or fill out the form, like your Facebook page or any number of other actions) depending on the type of goal you set up for the campaign.

There are a lot of different terms and names for the different types of ads and the different platforms and tools you can use to manage the advertising.

The bottom line is that there is a tremendous amount of strategy and knowledge that goes into running an effective ad campaign. If you don’t know what you’re doing you can waste a lot of money in a very short amount of time.

A good campaign will incorporate several different types of advertising and will include a lot of testing of different ads, different platforms and different publics to see what the response is with each of these different factors.

After about a month or so you should review to see what the return has been in terms of sales closed versus money spent on advertising.

If you are just barely breaking even or if you are losing money, you’ll need to work on your ad strategy to lower the cost per lead and get more targeted so your leads turn into actual sales.

If you are generating sales and getting profit after factoring in the cost of the advertising, that’s great! Keep going or increase your budget how much you’re spending on the overall campaign to increase your results.