About Paid Advertising
Paid advertising in simpler terms is advertising that you pay for, completely different from owned or earned advertising. With paid advertising, target marketers pay the holder of the ad space for the usage of that space. The fee paid for the ad space is often settled through a bidding process between marketers and holder of the ad space.
Well-organized digital marketing campaigns capitalise on all channels through advertising. Although paid advertising costs more than owned or earned advertising, any paid forms of advertising are much more efficient ways to expose your company’s name to a bigger crowd.
Paid advertising can be broken down into several categories, including pay-per-click (PPC), pay-per-impression (PPI), as well as Display ads. This allow marketers to modify their campaigns one step higher.
Different methods of online paid-for advertising
Sponsorship can give a decent chance to expand brand mindfulness through an online alliance with an association, for example, an industry accomplice or related non-benefit, particularly in the health care industry.
Making sure that clients trust the organisation you sponsor you should receive increase brand exposure.
Text links, banner ads logos are the most common types of sponsorship.
This can be a fantastic way of promoting your products or services through another company’s websites, newsletters, events and competitions.
Pay per click (PPC)
PPC adverts are simple text ads that are displayed on search engine results for example in Google, these are displayed in the right-hand column of the search results). Advertisers bid a certain amount that they’re willing to pay when someone clicks on that ad which determines the position in which that listing will show on the SERPs. The higher an advertiser is willing to bid the higher up the ad will show.
PPC campaigns have become a popular advertising technique in recent years for three main reasons:
1. They are targeted to keywords so only people who are actively looking for what your business offers will be shown the ads.
2. The return on campaigns (or conversion rate) is easily measurable with tracking codes that can be added onto URLs included in the ads.
3. This is the cheapest method of advertising compared to other advertising techniques such as TV commercials, banner ads and print ads simply because you’re only paying a fee when someone clicks on your ad.
Cost per Click (CPC) in comparison to Cost per Impression (CPM)
Cost Per Click (CPC) charges you a fee only when someone clicks on your advertisement whilst Cost per Impression (CPM) is the cost per thousand impressions, this means that every time an ad gets displayed you are being charged a fee whether someone clicks on it or not.
If you ever get caught in making a choice between CPC or CPM the information provided below can be of assistance.
Entirely it depends on your ad and content that follows after, if your sales funnel is especially effective, but your ad isn’t very good, CPC is definitely the way to go. The guaranteed clicks put people into your funnel, and the funnel does a great job of converting those people to customers, so you do end up making a profit.
On the other hand, if your ad is very good but your sales funnel isn’t quite as effective, you end up with a situation where CPM is better. CPM funnels as many clicks as possible into your funnel, and your funnel converts people at whatever rate it works. You need as many opportunities as possible, so you have as many chances to convert as possible.