What are Paid Ads?
It is safe to assume that you have come across the phrase paid ads one time or another. It is thrown around a lot and can mean any form of advertising that you have to pay for. This could be owned or earned advertising.
When you choose paid advertising, marketers are then required to pay the owner of the ad space in exchange for the space that is being used. The process of negotiating for ad space is usually strictly between the marketer and the owner of the ad space. To completely understand paid ads, we have to understand its several categories. These include:
- Pay-per-click (PPC)
- Pay-Per-Impression (PPI)
- Display Ads
Importance of Paid Ads
Every marketer understands the importance of paid advertising in marketing. For advertising, it is important that you use all the channels available to you. Paid ads are of course more expensive than its counterparts of owned or earned advertising, paid ads are however very important in exposing your business to a larger audience.
Where do paid ads usually appear? They could appear at the top, center, sides or bottoms of web pages. To increase traffic, marketers can pay to have their ads on very popular sites with more readership.
Paid ads also allow you to customize your campaigns. With the growing reach of social media platforms, paid ads have become a distinct feature on platforms like Facebook and LinkedIn.
Display ads are also referred to as banner ads. They are a form of paid advertising which usually involves a designed image and a copy. This image usually contains a link that leads to the landing page of the business involved. Display ads usually do not appear in search engines like text ads. However, they can easily be spotted on websites because of the image or animation which immediately attracts a website visitor.
The PPC is a paid advertising model that requires advertisers or marketers to pay each time a user clicks on any of their online ads. PPC ads are broken into several categories, however the most common of all these categories is the paid search ad. This refers to ads that appear when people search for certain things using a search engine — commercial-related searches. It could be that they are looking for a product or a service. All these searches are what trigger the pay-per-click.
In PPC, businesses pay only when a user clicks on their ad, hence the name.
This can also be referred to as Cost-Per-Impression (CPM), and is a form of paid ads which requires advertisers to pay for an ad according to the number of times it was shown, regardless of clicking or not. This means that marketers or advertisers have to pay for an ad whether it was clicked on or not.
CPM can be said to be effective because it allows a business to determine how effective an ad campaign is; it is an important metric that can be used to monitor the effectiveness of your ads. It is also important in helping marketers prove their ROI (Return On Investment) needed for the campaign, and even for the cost per lead.
It is now up to you to decide if paid ads are necessary to advertise your business to a larger and wider audience. Also, the importance of search engines and social media cannot be overemphasized. It is therefore up to you to decide if this is the right choice for your business.