What Is Online Paid Advertising? (Plus 6 Things to Know)
Organic search engine optimization and content marketing can get the word out about your business, but growth takes investment, too. Online paid advertising is a rewarding method for bringing in traffic to your website and rallying leads. To put online paid advertising into action, check out this explanation and guide through paid advertising basics.
To get started on your paid advertising campaign or learn more about paid advertising platforms, our team at WebFX is ready to help. Contact us online to begin generating valuable traffic to your website. Find out about our pay-per-click (PPC) management services today.
What Is Online Paid Advertising?
In contrast to earned and owned advertising, online paid advertising requires the purchase of ad spots to attract internet traffic. The featured ads show up on designated websites, and marketers or companies bid against their competition for keywords that pertain to their services or products. The bidding is dependent on a certain amount of responses or there’s a fixed price for impressions.
6 Things Every Future Advertiser Should Know About Paid Online Advertising
As the Internet has developed, paid advertising has become detailed and diverse. Navigating the right platforms with useful strategies requires background knowledge on how paid online advertising works. Let’s break it down into the following six elements.
1. Bidding Strategies
Paying for online advertising is more complex than typical transactions because customer actions play a role in the price. The two predominant bidding avenues are PPC and CPM.
Cost-Per-Mille or Cost-Per-Thousand
Cost-per-mille (CPM) bidding has a one-time price for the number of impressions you buy. Mille, or “thousand” in Latin, is the number of impressions you get, and impressions happen when the ad shows up on a page. CPM doesn’t guarantee clicks or conversions, but it does position your ad for visibility.
Pay-Per-Click or Cost-Per-Click
PPC bidding only requires payment when people click on your ads, and it’s also referred to as cost-per-click (CPC). The price of each click is based on the demand for your desired keywords and the quality of your ad.
Paying directly for these positive actions gives you a greater likelihood of conversions, and you can place a limit on the number of clicks you want to maintain a budget.
2. Formats of Paid Ads
Paid ads are split into two formats that determine how viewers see them. You can choose between display and search ads for your unique purposes.
Search or text ads show up on search engine results pages, and most blend into the search results, distinguishing themselves by a small message that reads “ad” or “sponsored.” Because text ads are linked to search queries and keywords, they normally fill a need.
Display ads appear around content on a variety of website pages rather than on search results pages. To fit into ad spaces, they come in several sizes and orientations. As a worthwhile brand awareness tool, display ads offer exposure, and their images and text are customizable.
3. Available Ad Networks
To get the most out of ads, they need a substantial presence on widely used websites. The most popular locations for your search and display ads are Google, Bing, and social media platforms.
As the leading search engine, Google is a lucrative place for both display and search ads. The Google Display Network distributes your display ads across their partner websites like Youtube and Google-related apps. Google also includes search ad bidding, but the keyword auctions are generally competitive.
Although Bing isn’t as sought-after as Google, it still has a following. Your search ads can line organic searches — plus Bing partners with Yahoo and AOL to exhibit ads.
Social Media Ads
Facebook is the primary social media platform for paid ads, as they have a thorough targeting system. Your display ads can turn up in columns, on newsfeeds, and in stories. Instagram is under Facebook, so they function similarly, but with an emphasis on images. Also, Twitter and LinkedIn have their own ad platforms.
Companies can also use online paid advertising on the world’s biggest ecommerce platform: Amazon.com. You can even advertise off Amazon.com and on Amazon-owned websites and devices, like IMDb.com and Amazon Kindles.
Don’t sell on Amazon.com? Not a problem, Amazon offers advertising options for companies like yours.
4. Head vs. Long-Tail Keywords
Uncovering useful keywords for your company is a major component of online paid advertising. Relevant keywords have separate lengths that affect their desirability.
When you type in a search, you tend to enter more words if you’re looking for something specific. For instance, looking up “search engine optimization tutorial for beginners” is more precise than “search engine optimization.” A drawn-out search phrase — referred to as long-tail keywords — can pinpoint the specialized group that you’re trying to pull in.
While head keywords generate a broad range of viewers, they also have a large number of people trying to attach their ad to them. A chain of concentrated terms can decrease the chance that other companies are contending in the auction. Long-tail keywords have less competition, are more affordable, and extremely effective.
Understanding your target audience is important, especially for platforms that offer multiple demographic options as you create ads. Reaching the individuals that are likely to want your services means you have to examine what groups your potential audience fits into.
For instance, Facebook allows you to target by users’ location, age, gender, language, interests, and behaviors. If you’re setting up ads for children’s clothing as a retailer, you might choose females between 22 and 40 to zero in on mothers. You can isolate the demographic that can profit your company from the start.
Online paid advertising can bypass the people who don’t typically respond to your product and deliver your message to prospective customers. Selecting appropriate groups to target can increase the click-through rate and improve your revenue.
6. Landing Pages
Your online paid advertising needs to lead to clear progress for your company, and arranging your landing pages for optimal conversion is essential. Landing pages capture the attention of incoming visitors and connect them to your website. Rather than your ads directing them to your main website page, their first-time experience is set apart with a landing page.
Prime landing pages contain a headline that can hook visitors, a simple layout, and a call to action.
Your headline needs to grab a potential customer’s interest and inform them about your company. The focus of the landing page should be evident in the page’s text.
Moving through the page to the intended action shouldn’t be confusing. An organized landing page with clean visual elements can keep visitors on the website for longer.
Call to Action
A constructive call to action (CTA) turns your clicks into more than a number. You want your visitors to carry out an action, like filling out a contact form or downloading a resource, before leaving.
Give Your Online Paid Advertising Campaign a Boost
As you dive into online paid advertising, you can observe healthy growth in your marketing campaign. Qualified assistance can catapult your paid advertising even further, and at WebFX, we have our advertising processes down to a science.