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What are Paid Ads_ 11 Reasons to Consider Paid Advertising

What are Paid Ads? 11 Reasons to Consider Paid Advertising

Are you tired of relying on organic traffic solely to grow your business? Have you considered using paid advertising to increase your reach and drive more sales?

Paid advertising, also known as pay-per-click (PPC) advertising, is a powerful tool that can help businesses of all sizes reach their target audience and achieve their marketing goals. In today’s digital age, businesses must have a strong online presence. But with so much competition, getting noticed and attracting new customers can be difficult. This is where paid advertising comes in, allowing businesses to reach a wider audience and get their message across.

In this article, we’ll dive into paid advertising and explore 11 reasons to consider paid advertising as part of your overall marketing strategy. From boosting brand awareness to increasing website traffic, paid advertising can potentially benefit your business significantly. So, buckle up and get ready to discover the power of paid advertising! Before diving into the deep, let’s start with the basics.

Now, let’s look at what the article has to offer: 

The debate between traditional marketing and digital marketing has been ongoing for a long time. However, it is not about picking a winner between the two but utilizing their strengths to achieve your marketing goals. The key to success is integrating these two marketing approaches and creating a comprehensive strategy leveraging their unique strengths. Ultimately, the best marketing strategy for your business will depend on your target audience, available resources, and specific needs.

In digital marketing, paid advertisement has become a popular tool for businesses to increase brand visibility and attract new customers. It refers to the method of online advertising where companies pay for ad space on search engines, social media, and other websites to reach a wider audience.

When you cannot reach your sales goals through organic reach, targeted and result-driven advertising is the best way to increase traffic to your website and convert visitors into potential leads or sales. This technique can help level up your game and generate more sales while expanding your consumer base. People tend to view a company as a brand only if they have a wide range of paid ads. Therefore, utilizing targeted advertising not only helps you grow your company’s reputation and brand recognition but it also helps you achieve your sales goals.

Henry Ford once said, “The man who stops advertising to save money is like the man who stops a clock to save time.”  

So, any company needs to use free and paid media spaces to increase visibility, improve branding, and drive sales. Studies indicate that 81% of customers conduct internet research before purchasing, with 60% starting with a search engine. So, let’s look at how search engines work and why they are a game-changer for any business.

  • By the end of 2022, total digital paid ad expenditure had reached US $606 billion globally, and it is expected to cross one trillion US dollars by 2027.
  • Facebook had 2.91 billion users in August 2023, while Instagram had 1.25 billion monthly active users that year, with over 29% of all internet users worldwide using it.
  • X, formerly known as Twitter, is used by over 322 million people.
  • LinkedIn is the leading B2B display marketer in the US, with 782+ million members.
  • TikTok users worldwide have spent over $3 billion; US users surged 77.3% to 27 million.
  • Google Ads can generate $8 for every $1 spent. In Q3 2023, Google’s ad revenue was $57.78 Billion.
  • According to a 2022 survey, 59% of consumers base their purchasing decisions on online ads, and 71% of Google Ads clicks originate from mobile devices.

A Brief History of Paid Advertisement

Reasons to Consider Paid Advertising- history of Paid Advertising

Advertising has been used for hundreds of years, but its methods have evolved over time. In ancient Egypt, merchants made posters and flyers out of papyrus to promote their products and services. This was the earliest form of advertising that we know of.

Meanwhile, in ancient Rome, people used hand-painted signs to sell their goods and services. However, with the invention of the printing press in the 19th century, modern advertising began to take on a more structured approach. Therefore, let’s take a quick look at the history of paid advertising:

1994: The online issue of Wired magazine begins selling banner adverts to marketers for a fee.

1996: Double click (now a part of Google) starts gathering information about the effectiveness of paid advertisement. Moreover, it enables advertisers to adjust their advertisements mid-campaign. The popular payment technique was cost-per-impression (CPM).

1999: The first auction and bidding mechanism for sponsored search advertisements was developed by GoTo.com this year. It received criticism since it cluttered SERPs, and people started seeing ads irrelevant to their searches.

2000: Google launches AdWords and immediately takes over the sponsored search industry.

2006: Facebook introduced the first social sponsored advertisements, utilizing its extensive data sets to provide highly focused ads.

Reasons to Consider Paid Advertising-Types of Paid Ads

The paid advertisement comes in various styles and formats in digital marketing. Now, let’s discuss some of the major paid ad types below.

When a consumer inputs a query into a search engine like Google, Yahoo, or Bing, search advertising appears in the search results. For example, the top search results for “best wordpress plugins” are sponsored search ads. We all know that Google dominates the search engine business, holding over 92% of the overall market share.

Businesses bid on keywords they wish to rank and then pay for each click. Some keywords are highly competitive and expensive. To get the most out of search ads, marketers must target keywords with higher buyer interest, which means consumers are more likely to convert.

We automatically think of banner ads when we think of internet advertising since they stick out. They are widespread and come in a range of shapes. These advertisements can be effective, but they target users who do not actively shop for something new.

For instance, a person may be interested in a medical blog but not in an online marketing course. Display advertising is effective if you place it correctly. It can be paid on a pay-per-click basis or displayed for a certain period.

Text advertisements are the most common form on the main Google search page. These ads are often less expensive than display ads and usually target people actively seeking something specific. They can be compelling but rely mainly on solid keyword research and A/B testing.

III. Social media ads

Social media advertising or content marketing for customer retention and loyalty has grown significantly in the past few years. This advertising uses text, graphics, and video to target consumers according to their preferences, demographics, and geography. Depending on the business, Facebook, LinkedIn, Instagram, and TikTok are all potential platforms to explore.

As I said, one of the keys to paid advertising is to be present where your target audience is. They will likely spend much time on social media, so there is no better place to do it. Revenue from social media advertisements on both desktop and mobile platforms has increased significantly in recent years. To select the right social media platform, you must first understand your customer profile and ensure that your brand can create engaging, helpful content and connect with followers.

Email-sponsored advertising refers to the paid ads displayed in users’ inboxes without the need to send an actual email. For instance, Gmail users might have noticed ads consisting of promotional emails bearing an “ad” tag. These email-based ads are highly targeted as they depend on the user’s activity. Successful email campaigns or advertisements are among the most cost-effective and efficient methods that yield the highest return on investment.

V. Google shopping ads

Google Shopping ads are a type of search advertising that appears when users search for keywords related to a specific product and are highly likely to buy it. These ads are highly effective as they provide customers with additional information such as product titles, images, pricing, special offers, seller details, availability, reviews, and more, making them more engaging.

While text ads are displayed below the search bar, Google Shopping ads are more noticeable as they include product information from the feed, which Google uses to choose which products to show for a user’s search query.

In 2020, Google announced that companies could list their products on Google Shopping for free if they formatted their product pages correctly. However, if they fail to do so, each click will cost them money. Additionally, paid listings appear at the top of Google Shopping and function similarly to Google Search, combining organic and paid listings.

VI. Video/Instream ads

Video advertising appears at the beginning of videos, whereas Instream commercials appear in the middle of a video. Adults in the United States spend an average of 103 minutes daily watching online videos; thus, video ads can reach a large population. Customers respond more to video advertising than text, regardless of the medium, because video content utilizes visuals, music, and text to create a fully immersive experience.

Because of Instream video advertisements’ increasing popularity, several social media platforms have modified and expanded their video ad offerings and analytics. Thus, bidding, view counting, and reporting may differ significantly between platforms.

Advertisers must understand how each platform counts and pay for video ad views to effectively assess and exploit video ad results, as they are not all the same. For example, watching a video for three seconds or more on Facebook and Instagram is considered a view. On the other hand, on YouTube advertising, however, seeing a video ad for 11-30 seconds is counted as a view.

VII. Native ads

Native advertising is similar to camouflaging in making your ad seem and feel like the rest of the content on a website or social media. Native advertising is paid adverts relevant to a website’s content. These advertisements do not interfere with the user experience, and people do not tune them out like other advertising. Native adverts resemble content rather than ads.

One thing to remember is that clickbait will not work here; native advertisements convey true tales that the audience needs to hear. Native advertising works so well because its offerings are not forceful or aggressive. Furthermore, the content of your native ad does not have to fit the appearance and feel of your website; instead, it should reflect the makeup of the publisher’s website. 

The goal of native advertising is to engage your audience with exciting tales, ideas, and actual information. Businesses must be ethical to have the genuine impact they want. Your native advertisements must be labelled as sponsored or promoted to be authentic. Remember that native advertising allows you to disguise your advertisements as another piece of content.

VIII. Influencer marketing

Influencer marketing is evolving, with 80% of marketers claiming it is a successful ad approach and almost 90% claiming it provides the same or higher ROI than other marketing channels.

When looking for influencers, knowing what you want and, more importantly, what you can spend is critical. You have to be more specific about your target audience and spending budgets. Celebrity influencers demand high fees and generate significant cash, but they are costly. For many companies, seeking micro influencers — individuals with 10,000 or fewer followers in your business sector is more cost-effective.

However, before any firm uses these marketing strategies, they should be aware that if a social media influencer with whom they have been working becomes famous for the wrong reasons, the brand may also become famous negatively.

Influencer marketing is where social media influencers give endorsements and product placements to their followers. Influencers often fall into one of two categories: they have specialist knowledge about something linked to a company or social influence that allows them to connect with potential consumers effectively. Furthermore, influencers frequently create an amusing and instructive way to increase customer knowledge of a brand’s products or services.

It’s no secret that media owners earn a substantial income from advertisements. Based on recent predictions, their global ad revenue is expected to reach USD 808 billion in 2022, up from the previous year’s estimated 759 billion dollars. This market is anticipated to grow and earn $1 trillion by 2026. North America is likely to remain the most significant regional ad market, followed by Asia Pacific, with Western Europe coming in third place, where ad expenditure is less than half of that in North America.

Although inbound, organic, and SEO marketing are every marketer’s preferred methods, paid advertising should be noticed. It is a fast-growing, high-dollar industry that promises quick and measurable results. While SEO remains a favourite, it cannot guarantee top placement on Google. The top-ranked result is almost always an ad placement with a click-through rate of nearly 8%. Therefore, sponsored ads can provide unrivalled visibility and results.

Reasons to Consider Paid Advertising-Popular Paid Ads Platforms

Advertising has become essential to marketing strategy in the current digital era. As businesses try to get customers’ attention, paid advertising is becoming more popular and influential in reaching the right people. With so many platforms, figuring out which will give your business the best results can be challenging. Let’s discuss some of the popular paid ad platforms below:

I. Google ads

Google Ads is the paid advertisement platform provided by Google. It enables you to reach a large section of the population and precisely target advertisements. Google Ads has various automated features and will take you through the ad creation process, making it an excellent place to begin with paid advertising. Google Ads allows you to build a wide range of ad types, including:

  • Search ads
  • Google shopping ads
  • Mobile app ads
  • Display ads
  • YouTube ads
  • Display ads

Google also provides various targeting choices, such as location, interests, buying intention, income, etc.

II. YouTube ads

YouTube advertising enables you to pay to reach YouTube users. While you may create YouTube advertisements through Google Ads, you can also go straight to YouTube. Because YouTube advertising needs you to create a channel, you’ll need to set up a business account if you still need one. Then, you may make videos and publish ads on the site. YouTube ad formats include:

  • Bumper ads
  • Discover ads
  • Non-video ads
  • Skippable and non-skippable in-stream ads

III. Facebook ads

Facebook Ads enables you to reach millions of users using the site daily. Its ads target system works on likes, demographics, and whether they follow your competitors. You may also establish “lookalike” audiences to target individuals similar to your existing customers. Facebook ad types include:

  • Boosted posts
  • Video ads
  • Image ads
  • Poll ads
  • Carousel ads (multiple images)
  • Slideshow ads (using short videos)
  • Collection ads (for mobile devices to click through to a product or service page)
  • Instant experience ads (users click to view a full-screen ad)
  • Lead ads
  • Dynamic ads
  • Messenger ads
  • Stories ads
  • Augmented reality

As you can see, there are several Facebook ad types. You may also push your Facebook advertising to Instagram to reach a larger audience.

IV. LinkedIn ads

LinkedIn advertisements allow you to access a more professional audience, making them excellent for B2B firms or those targeting business users. LinkedIn advertising may reach people on mobile or desktop and can be targeted based on business title, industry, and other factors. LinkedIn advertisements include the following:

  • Text ads
  • Lead ads
  • Sponsored content
  • Dynamic ads

V. Instagram ads

Instagram is a photo-sharing app with one of the most extensive advertising options. Businesses may use sponsored advertisements to promote Instagram stories and videos to attract followers. Other sorts of Instagram advertisements include:

  • Image ads
  • Carousel ads
  • Collection ads
  • Explore ads
  • IGTV ads (long-form video)
  • Reel ads (Short videos, similar to TikTok)

Instagram is a good platform for almost any business because of the variety of ad formats and targeting choices. Shoppable posts containing links to a purchase page are among the most exciting ad solutions. Users may convert without ever leaving the app. When consumers click on a single item or the entire image, they are taken to the brand’s Instagram store, where they may purchase directly from Instagram.

VI. X (Twitter) ads

X, formerly known as Twitter advertisements, maybe a suitable fit for your marketing strategy if your target audience is between 25 and 34. Almost three-quarters of all X users are between 25 and 34. X provides numerous ad formats, including:

  • Promoted advertisements with photos, video, carousel, moment, or text ads to achieve success
  • Follower advertisements to enhance your follower count 
  • X takeover, which positions your brand in the frontline of trending topics.
  • X Live ads promote your live videos.

X advertising can also show genuine tweets in users’ timelines. Make your advertising more engaging by including polls, chat buttons, website links, apps, and branded notifications.

VII. Pinterest ads

If you work in the service or creative industries, Pinterest Ads could be worth a look. According to the survey, it is the 14th most popular social networking app in the world, ahead of X (Twitter) and Reddit. Pinterest ads are highly graphical and fit very well with organic content. Pinterest Ads come in a variety of formats, including:

  • Standard pins
  • Carousel ads
  • Video pins
  • Shopping pins (similar to Instagram’s shopping ads that link directly to products)
  • App installs

Pinterest also provides flexible tools and customizable targeting choices, allowing companies to develop ads that push users to do a specific action, such as installing an app or increasing brand recognition.

VIII. TokTok for business

TikTok is known for being for youngsters, but their viewership may be slightly older than you think. While 25% of TikTok users are aged 10 to 19, over 43% are aged 20 to 39. TikTok advertising appears more natural, which can increase its effectiveness. TikTok is perfect for influencer marketing, but it also provides various direct ad formats, including:

  • In-feed ads
  • Top-view ads
  • Brand takeovers
  • Branded hashtags
  • Branded effects
  • Promoted
  • Video ads

IX. Amazon ads

You must recognize Amazon if you offer physical goods. The leading e-commerce giant earns over 380 billion USD yearly and is the largest e-retailer in the United States. 

Remember that Amazon is much more than simply an online shopping site. They also provide a streaming service, web hosting, a music platform, and Alexa. It helps businesses to reach a broader audience. Ads on Amazon might have a more significant ROI since they target customers ready to buy. Other ad types available on Amazon include:

  • Product ads
  • Store ads (promote your Amazon store)
  • Audio ads
  • Video ads in streaming services
  • Programmatic advertising

In today’s fast-paced digital world, advertising is no longer a choice but a necessity for any business to succeed. The online marketing landscape offers various avenues to connect with your audience, from social media to content marketing. Although organic methods and content marketing can gradually improve traffic and engagement, paid advertising is the quickest way to reach your target audience. This article outlines 11 compelling reasons why businesses should consider paid advertising seriously. Whether you’re a small business owner or a marketing expert, you’ll gain valuable insights into the benefits of paid advertising and why it should be a top priority for your organization.

1. Boost brand awareness and foster loyalty

In today’s digital world, advertisements are everywhere and greet virtually every online user, whether actively searching for products or just browsing. Paid advertising is an effective way to establish your brand’s presence and can quickly foster organic brand loyalty among potential customers. When users endorse a brand, they are likelier to engage with it. This affinity can lead them to follow their favourite brands on social media, which enriches the overall user experience. 

Paid advertising is superior to free methods in terms of speed and effectiveness when creating brand awareness and loyalty. Unsurprisingly, companies of all sizes allocate substantial budgets annually to achieve this goal.

2. Maximize ROI through extended reach

Google and Facebook, two of the biggest advertising platforms, continuously refine their systems to provide advanced audience targeting capabilities. This empowers brands who understand the game’s rules to significantly improve their visibility and sales.

Regarding financial benefits, popular paid advertising channels offer a cost-effective way to generate substantial revenue. Paid ads are highly efficient in assessing your marketing expenditure’s return on investment (ROI). Additionally, paid ads have an edge over free advertising channels in reaching potential customers.

3. Access raw customer insights and purchasing patterns

Almost everything can be a source of valuable insights in the digital world. Paid media advertising can provide unfiltered data regarding your customer’s buying preferences and trends. This information can help you target your audience more precisely, leading to increased sales.

Consumer insights and buying patterns are highly sought-after by marketers as they are fundamental in creating effective marketing and promotional strategies. Therefore, sponsored ads are vital in improving an organization’s understanding of its customer base.

4. Maintain competitiveness in a crowded arena

In today’s highly competitive market, relying solely on free media advertising is a recipe for being overlooked by competitors. While I am not suggesting that accessible advertising channels be abandoned, any organization needs to incorporate paid media advertising, such as through Google or social media platforms, into its marketing strategy.

Since social media platforms are ubiquitous in almost every aspect of life, from work to leisure, paying attention to social media promotion is crucial to avoid long-term revenue loss. Whether your objective is to improve engagement, increase website traffic, promote app usage, or drive online sales, paid media advertising provides unparalleled online visibility compared to organic posts alone. To remain competitive, organizations must remain visible to potential customers.

5. Witness the decline of organic social media reach

Organic reach on social media refers to the number of people who see your content without you spending money on targeted promotion. However, in recent years, social media platforms have experienced a decline in organic reach due to evolving algorithms. 

Nowadays, most platforms work on a pay-to-play model for businesses and brands, so investing in sponsored social ads is crucial. Paid advertising lets you precisely target your audience and leverage your content for brand enhancement and lead generation. That being said, it’s important to remember the value of organic marketing, as it lays the foundation for any successful paid ad campaign.

6. Precision in audience targeting

Paid advertising is an effective way to reach your ideal customers with precision. It allows you to tailor your outreach based on demographics and specific geographic locations. For example, if you run a restaurant, you can focus your advertising efforts within a 2-3 mile radius of your establishment. This level of targeting cannot be achieved with organic SEO or social media.

To ensure that your paid ad targeting is on point, you can analyze audience insights across your digital platforms. This includes keywords, geographical data, demographics, interests, and common topics. Doing so can attract high-quality leads and customers to your business.

7. Leverage remarketing and retargeting

It has been reported by Google Support that an average user visits a website six times before deciding to make a purchase. Furthermore, 75% of shoppers who leave their shopping carts return to complete their purchase later.

How can you contact users who have visited your website but have not made a purchase? The answer lies in the use of remarketing or retargeting ads.

Remarketing and retargeting ads allow you to target potential customers based on online behavior rather than traditional demographics like age, location, or income. For example, if someone browses AirPods Pro on Apple’s website, they may see related ads on platforms like Instagram, thanks to small tracking codes called “cookies” placed on the user’s website. Retargeting ads are specifically aimed at people who have interacted with your website. These cookies store user preferences and behaviors.

Interestingly, only 2% of website visitors convert into actual customers during their first visit. Retargeting ads enable you to convert the remaining 98% of potential customers. Additionally, retargeted visitors are three times more likely to engage with your ads than new prospects, which can boost ad interactions by up to 400%.

8. Secure immediate visibility while building organic rankings

If you’re launching a new business or website, or if your existing website needs help to achieve organic rankings on Google, you can do a few things. Getting on the first page of Google can be a long process that requires time and resources. While you work on crafting content and accumulating Google reviews for your Google My Business profile, consider supplementing your efforts with sponsored advertisements. 

Paid advertising offers a way to advertise for specific keywords and attract high-quality traffic. However, it’s important not to become solely reliant on paid ads. It’s better to develop organic search rankings concurrently with sponsored ads to ensure your website remains independent of advertising spend.

9. Paid ads deliver fast results

Paid advertising is a great option to launch a new product or service and grab immediate attention. Unlike SEO, social media, and email marketing, which take time to yield results, paid advertising delivers outcomes as soon as you create your ad.

However, the use of AI in content generating for fast ad delivery has become a popular trend. Still, it has also raised concerns about its impact on Google rankings and how to use it effectively. Google endorses using AI tools for content generation to drive traffic and improve search engine rankings. The important thing is to ensure that the content is optimized and of high quality. The specific methods used are no longer a significant concern.

While SEO can offer long-term benefits, paid advertising is a powerful tool to quickly and efficiently kickstart your business, helping you generate revenue. At the same time, your SEO strategy gradually gains traction. Think of it as a complementary asset to SEO, not a replacement. SEO offers results for the future, while paid advertising propels your performance in the present.

10. Track and measure your paid ad campaigns

Investing in paid advertising requires the ability to monitor the performance of each ad. Luckily, online paid advertising provides comprehensive tracking capabilities. Google Analytics is an indispensable tool for online advertising. It is a free and user-friendly analytics tool for setting up and tracking campaigns.

Once Google Analytics is in place, explore its Custom Campaigns feature. This feature allows you to create unique URLs for each ad, making it easier to assess the overall performance of your advertisements. Different paid advertising platforms, such as Google, provide analytics systems that are included when you purchase their packages. These platforms meticulously track your campaign’s insights and outcomes.

For instance, Facebook, a leading social media platform for paid advertising, offers valuable insights ranging from user engagement to campaign outcomes. Ultimately, it’s up to marketers to leverage this data for informed decision-making and charting the future course of their marketing strategy.

11. Informed decision-making and future planning

When it comes to paid advertising, data plays a crucial role. The information and insights from your campaigns equip you to make informed decisions and map a future path. By understanding your audience, their preferences, and the performance of your ad campaigns, you can fine-tune your marketing strategies and optimize your ROI.

Paid advertising is essential in today’s digital landscape, offering numerous benefits beyond visibility. It lets brands quickly connect with their target audience, build brand loyalty, and gather invaluable customer insights. Embracing paid advertising can help businesses stay competitive and pave the way for sustained growth and success in the dynamic world of online marketing.

Final Words

Paid advertising is critical for sales and marketing funnels. Focus on one or two media options for optimal results. Results may take time, so refine your strategy and gather data for better insights on conversions.

Start by initiating a small daily budget to evaluate how well your advertisements perform, and experiment with different wording, pictures, or videos to determine which ads produce the best results. If you stay focused on your goals and start small, you’ll notice the power of paid advertisements in just a few weeks.

Although it may seem overwhelming, with proper research and planning, you can create a paid ad campaign that delivers measurable results. Ultimately, all we want to know is the impact of our advertising on our revenues and business growth.

If you have any questions or want to share your thoughts on paid advertising, don’t hesitate to comment; we’ll get back to you as soon as possible.

Written by

AKM Aminul Islam

Meet AKM, a skilled professional who drives business growth and creates impactful marketing & technology content. He also enjoys exploring and discovering new destinations and engaging himself in literature. He values spending time with his loved ones and building connections with friends in his free time.

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