Paid Advertising Explained by Google


In this article we’ll Answer the basics of paid advertising:

  • How is online advertising different from other types of advertising.
  • What is paid to advertise, Why is important for my business? How does it work? 
  • Keep reading to find out how your business can get started designing a plan for paid advertising.

Basics Of Paid Advertising And Reasons To Adopt It

Imagine Diego owns a small business called Denim by Diego, or DBD for short. Everything he sells is denim, even his shoe collection. 

To promote DBD, Diego has an idea for a print ad that looks like it’s made out of denim. Once the design is complete, he spends a good amount of his marketing budget buying a full-page ad in the local newspaper. 

He’s pretty sure this will help DBD land a high volume of new customers. But, can he really be confident that his ad is working?

Does Diego Know?:

person wearing suit reading business newspaper

How many people saw his ad?

If his target audience sees his ad?

If his ad led to an increase in sales?

Unfortunately for Diego, that’s a no on all questions. While a print ad is a good idea, Diego should also consider doing online advertising. Thus, he would have a better idea of how many people saw his ad and how many visitors or customers it helped him get.

Online advertising is one of the most popular forms of Pay Per Click (PPC). It allows advertisers to bid for ad placement when someone searches on a keyword that is related to their business offering.

If Diego bids on the keyword “Menswear”, his ad is going to appear at the top of the Google results page.

Also, the ability to track ads’ performance is just one of the reasons why online advertising can be a valuable tool for his business. 

Advantages Of Cost-Effective Online Advertising

Online advertising also offers a lot of flexibility and options to help you reach a variety of business goals. Whether you want to sell more products, get potential customers to contact you, or achieve something else altogether. 

With online advertising, you have power over:

Customization: Tweak your paid ads to help them reach the right audiences.

Search term selection: Choose which search terms you want your ad to show up for.

Localization: Target your ad to land on specific geographic areas.

Cost: Adjust how much you’re spending on clicks and views at any time

You can take steps to make sure your online advertising is set up for success. We’ll show you:

  • How to target specific customers
  • Be found by people searching for your products or services
  • Set your budget, and improve your ad’s success and value. 

First, let’s look at how you can use online advertising to target specific groups of customers. 

If you want to reach customers who are active online during certain time periods, make sure your online ads only run at those times. 

You can also target your ads to reach people who live in specific geographies or speak certain languages. 

For example, you can set up campaigns to only serve followers of a specific income level or people living in a particular area. You can likewise create campaigns that only target followers, previous customers, or people who’ve bounced from your website.

Impact Of Paid Advertising

Another targeting strategy is to think about where your ads should appear: in search results, on websites, or a mixture of both. Think about who your ideal customers are and where you can best reach them. 

Let’s say Diego only wants customers near DBD to encourage customers to call his store when it’s actually open and available to help them. 

He can make sure his ads only appear on local websites and in search results for people nearby. He can also show ads with DBD’s phone number during open hours, and then show ads without the phone number after hours. Along with targeting certain customer groups, you can use online search ads to be found by people searching for your products or services. 

You’ve probably already seen search ads while doing your own searches on platforms like Google or Bing. Whenever you search using certain words or questions, you’ll see organic results as well as paid results (AKA online ads). 

When people do searches using terms related to your products or services, you want your ads to show up. To make sure this happens, choose the search words, or keywords. 

You can use tools like Google Trends to create a keyword list. You can also check your business website’s analytics page to see which search terms are sending the most traffic to your site. 

TIP: Some ad platforms let you show ads on websites that have content related to what you sell. In this scenario, Diego might buy online ad space on men’s fashion blogs. This is also known as “Display Advertising”

Display ads are targeted ads for your business, which are either images in the sidebar of the website or links at the top of the page.

These ads work best with a strong Call-to-Action button that will get prospective customers to click and learn more.

Once you have a good idea about whom you’re targeting and how you’re going to be found, start setting your budget. 

Budgeting For Your Advertising

How much money you spend on online advertising depends on your overarching marketing plan.

To grow a company, it is important to understand the various ways to advertise in today’s market. From email marketing and banner advertising to social media and search engine marketing, it is important to understand the different advertising tools available and the different costs associated with each one.

As you might expect, advertising can be expensive and can require a lot of spending on the front end, but once you set a budget, you can get a good return on your investment.

Platforms like Google Adwords or LinkedIn Ads can give you a suggested budget based on the average click volume and location.

After you figure out your online budget, choose how much you want to spend each day.

The good news is you only pay when people click on your ads. And, you can change your budget whenever you want. 

Why would you need to adjust how much you’re spending per click? If you start noticing that clicks from certain customer groups are more valuable than others, you’ll want to spend more money targeting those groups. 

TIP: Landing Page Quality: Create an optimized landing page with persuasive relevant content and a clear call-to-action, tailored to specific search queries.

Measure Your Ad Campaign Results

This leads us to our final point: Online advertising makes it easy to evaluate clicks and measure the success and value of your ads. 

Most ad platforms track and report on the clicks on your ads. While a lot of clicks can be a good thing, some clicks are more valuable than others. 

Clicks that result in customers taking desired actions are the types of clicks you want. Depending on your goals, that might mean click-throughs that result in sales, app downloads, newsletter sign-ups, etc. 

Google Analytics Platform Illustration

Metrics are everything, Here are some key metrics to track within your PPC campaign:

  • Clicks are the number of clicks you receive on an ad. Depending on your keyword selection and the relevance of your ad copy, this metric will change.
  • Click-through rate (CTR) is the percentage of clicks generated by ads. It determines how much you pay (CPC). CTR benchmarks may change by industry.
  • Return on ad spend (ROAS) is the Return on Investment (ROI) of your ad campaign. This metric calculates the revenue received for every dollar spent on ads.
  • Quality Score (QS) determines ad positioning, so it’s an important metric to keep an eye on.

Once you’ve assessed your clicks and know what’s working harder for your business, you can adjust your budget and focus on the best-performing ads. 

Now that you’ve been introduced to the basics of paid advertising, let’s figure out what your next steps should be.

  1. Have you defined your target audiences?
  2. Do you know which keyword your audience searches for that relates to your business?
  3. Does your website content feature those relevant keywords?
  4. How do you set your online advertising budget?

Your next step is to research ad platforms and find the one that meets your business needs.

A lot goes into building a winning PPC campaign: from researching and selecting the right keywords, to organizing those keywords into well-organized campaigns and ad groups to setting up PPC landing pages that are optimized for conversions.

Search engines reward advertisers who can create relevant, intelligently targeted pay-per-click campaigns by charging them less per click, leading to higher profits for your business.

If your ads and landing pages are useful and satisfying to users, Google charges you less per click, leading to higher profits for your business.

So if you want to start using PPC, it’s important to learn how to do it right.

Looking to build brand awareness? Drive sign-ups and sales? The choice is yours.

Understanding the basics of paid advertising is the first step, stay tuned for more advanced articles about advertising and business growth tools.

Get in contact with us for a free consultation to see if we can help you to build a network through online advertising.

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