Why is paid advertising important in marketing?

Why is paid advertising important in marketing?

What is paid advertising?

Paid advertising is any kind of advertising that you have to pay for, versus owned or earned advertising.

With paid advertising, marketers pay the owner of ad space in exchange for use of that space. The price paid for the ad space is often settled through a bidding process between marketers and the ad space owner.

There are several categories, including pay-per-click (PPC), pay-per-impression (PPI), and display ads.

Why is paid advertising important in marketing?

Efficient marketing campaigns capitalize on all channels for advertising. Although paid advertising costs more than owned or earned advertising, paid forms are an effective way to expose your company’s name to a large audience.

Paid ads are usually displayed to users on the sides, tops, or bottoms of web pages. Marketers can pay more to have their ads featured on more popular websites to increase traffic.

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.

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.

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 Ads

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

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.

Popular 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.

Google Ads

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.

Bing Ads

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.


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.

The different categories of paid ads — PPC, PPI, and display ads — allow marketers to further customize their campaigns. The growing popularity of social media has recently turned sites such as Facebook and LinkedIn into effective platforms for paid ads.

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