What is paid advertising? A brief guide

Wondering how to effectively reach your target audience and boost sales? Heard of paid advertising but aren't quite sure what it's all about – or if it's worth the investment?

When you're up against such strong competition, capturing potential customers' attention can feel like searching for a needle in a haystack.

But paid advertising offers a powerful way to amplify your message and gain visibility where it matters most.

From Google Ads to social media campaigns, there are various avenues to explore that can drive traffic to your business and increase brand awareness.

In this blog, we demystify the world of paid advertising and explain how to start using this marketing technique effectively.

What is paid advertising?

Paid advertising is a marketing strategy where businesses pay to promote their products, services or brand on various platforms.

This can include:

• search engines

• social media networks

• websites

• other digital and offline channels

Unlike organic marketing – which relies on unpaid methods like search engine optimisation (SEO) or word-of-mouth referrals – paid ads guarantee visibility by placing your message directly in front of your target audience.

How paid advertising works

At its core, paid advertising revolves around paying for placement.

For example, when you see an ad at the top of a Google search results page or a sponsored post on Facebook (Meta), that's paid advertising in action.

Businesses bid for ad placements and pay for either the number of views (impressions), clicks, or conversions their ads generate.

Popular platforms for paid advertising include the following:

• Search engines like Google Ads and Bing Ads

• Social media platforms like Facebook, Instagram, LinkedIn and TikTok

• Display networks that show banner ads on websites

• Video platforms like YouTube

• Offline channels, such as TV, radio or billboards

VIDEO: Developing a PPC and paid social media strategy

Marketing expert Amy Atkinson helps you formulate a plan to manage a successful paid advertising campaign:

The benefits of paid ads

As a small business owner, you may wonder if paid advertising is worth the money.

While it does mean paying out upfront, the benefits of paid ads can significantly outweigh the expense when executed properly.

Here are the key advantages:

1. Immediate results

Unlike organic strategies, which can take months to show results, paid ads deliver almost instant visibility.

For example, a Google Ads campaign can place your business at the top of search results within hours, helping you attract potential customers quickly.

2. Targeted reach

Paid advertising allows you to define your audience with precision.

Whether you want to target people based on their location, age, interests or online behaviour, platforms like Google and Facebook offer advanced targeting options to make sure the right people see your ads.

3. Cost-effective options for small budgets

Contrary to popular belief, you don't need a massive budget to start with paid ads.

Platforms like Google Ads or Facebook allow you to set daily spending limits, making it possible to run small campaigns that suit your finances.

4. Measurable performance

One of the most significant benefits of paid ads is being able to track and measure your campaign's success.

With tools like Google Analytics and Meta Ads Manager (formerly Facebook Ads Manager), you can monitor clicks, impressions, conversions and ROI, helping you fine-tune your strategy for better results.

5. Stronger brand awareness

Even if users don't click on your ads, seeing your brand repeatedly can increase awareness and familiarity.

This helps keep your business in customers' minds when they're ready to make a purchase.

6. Flexibility across platforms

Paid advertising isn't restricted to one channel. Whether you want to advertise on Google, reach users on Instagram or create engaging video ads for YouTube, the options are virtually limitless.

This flexibility allows you to choose platforms that fit your business goals and audience.

Types of paid advertising to consider

Understanding paid advertising means knowing the different types of ads available to you.

Each type has its unique strengths, and choosing the right one depends on what you're looking to achieve and who you want to reach.

1. Search engine advertising (pay-per-click or PPC)

• Platforms: Google Ads, Bing Ads

• How it works: Businesses bid on keywords, and their ads appear at the top of search engine results. You pay only when someone clicks on your ad.

• Best for: Driving immediate traffic and targeting users who are actively searching for your products or services.

2. Social media advertising

• Platforms: Facebook, Instagram, LinkedIn, TikTok

• How it works: Sponsored posts, videos and stories appear in users' feeds. Ads are targeted based on demographics, interests and behaviour.

• Best for: Engaging visually with potential customers and building brand awareness.

3. Display advertising

• Platforms: Google Display Network, third-party websites

• How it works: Banner or image-based ads appear on websites on which your audience spends time.

• Best for: Increasing brand visibility and retargeting people who have visited your website in the past.

4. Video advertising

• Platforms: YouTube, Facebook, TikTok

• How it works: Video ads appear before, during or after videos on platforms like YouTube or as standalone ads on social media.

• Best for: Creating engaging content that tells a story or showcases your products.

5. Local advertising

• Platforms: Google Business Profile, local directories

• How it works: Ads are targeted to people in specific geographic areas, such as your town or city.

• Best for: Attracting nearby customers to your physical location.

How to start paid advertising

If you're new to paid ads, you might not know where or how to begin. Follow these easy steps to set up a successful campaign:

1. Define your goals

What do you want your paid advertising to achieve? Common goals include:

• driving website traffic

• generating leads

• increasing sales

• boosting brand awareness

2. Choose the right platform

Select a platform that you know your audience uses. For example:

• use Google Ads if you want to target users searching for specific products or services

• choose Facebook or Instagram for visually engaging content and social interaction

3. Set a budget

Determine how much you're willing to spend. Start small to test the waters, and increase your budget as you see positive results.

4. Create compelling ads

Write clear and engaging ad copy and use high-quality images or videos. Highlight what makes your business unique and include a strong call-to-action (CTA).

5. Monitor and optimise

Regularly track how your ads are performing. Look for metrics like click-through rate (CTR), conversion rate and cost-per-click (CPC) to assess whether your campaign is meeting its goals. Make adjustments to improve results.

Real-life examples of paid advertising success

Here are two examples of how small businesses in the UK have used paid advertising to grow:

Example 1: A local cafe in Birmingham

A small cafe used Google Ads to target local keywords like "best coffee shop near me". By bidding on these terms, the cafe saw a 30% increase in foot traffic within two months.

Example 2: An online clothes boutique

A fashion boutique ran Facebook and Instagram ads featuring their latest collection. By targeting women aged 25 to 40 in the UK, they boosted website traffic by 50% and doubled sales during their promotion.

Common mistakes to avoid

While paid advertising offers a number of benefits, watch out for these pitfalls:

• Failing to set clear goals: Without specific aims, your campaigns may lack focus.

• Ignoring analytics: Regularly monitor your ads' performance to be sure your investment is paying off.

• Over-targeting: While targeting is really important, being too specific can limit your audience reach.

• Neglecting ad quality: Poorly designed ads can fail to grab attention, giving you less ROI.

Is paid advertising right for your business?

By investing in the right platforms, crafting compelling campaigns and monitoring performance, paid ads can deliver measurable results that boost your bottom line.

If you're feeling ready to take the plunge, paid advertising is an exciting opportunity to compete in a crowded market. Start small, learn from your campaigns and watch as your business grows.

Ready to begin? Take the first step by exploring platforms like Google Ads or Facebook Ads today. The world of paid advertising is waiting to help your business succeed.

Relevant resources

• Paid ads: How to make them effective – on a budget

• Lunch and Learn: Master your marketing with PPC advertising

• Lunch and Learn: How to use PPC and paid social to grow your business