Paid Advertising 101: A Beginner‘s Guide

What Is Paid Advertising?

Paid advertising is a marketing model where brands pay to show ads to their target audiences.

And while paid advertising can also refer to TV or radio ads, most people use this term to describe internet-based ads.

Paid advertisements mostly work on an auction system.

Advertisers bid against each other for ad space on platforms like Google Ads or Meta ads. The platforms’ algorithms determine whose ads are shown and when.

Every ad platform has a unique bidding algorithm. But most consider factors such as the bid amount, ad quality, and user engagement to determine which ads are chosen.

This means if two advertisers have equal budgets, the one with more relevant and engaging ads will be shown more.

Paid ads help businesses tell people what they offer. They’re a vital part of a comprehensive marketing strategy.

Benefits of Paid Advertising

Paid ads offer benefits to small and large businesses, including:

• Instant traffic: Traffic can roll in as soon as your ads go live
• Advanced targeting: Brands can target specific demographics, interests, and behaviors
• Performance measurement: Ad platforms offer detailed analytics that advertisers can mine for insights
• Affordability: Even brands with small budgets can launch ads to reach their target audience.

Paid ads enable even small businesses with no brand recognition to reach new audiences. And there are a variety of ads to pick from.

Types of Paid Ads

Paid ads are categorized based on the ad format...