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Writer's pictureNiclas Jansson

How Paid Ads Pay Off

Paid advertising has come a long way since it was discovered. From traditional print and television ads to the digital age, paid advertising has become a crucial part of any business's marketing strategy. In this blog, we'll explore the world of paid ads and how they can pay off for your business.


Paid advertising has been around for decades, with the first paid ad appearing in 1833 in the New York Evening Post. However, it wasn't until the advent of the internet that paid advertising truly took off. Today, paid advertising is a multi-billion dollar industry, with digital ads accounting for the majority of ad spend. In fact, it’s growing rapidly that it is projected to have an ad spend of $876.1 billion by 2026, up from $521 billion in 2021. 


Google Ads, Meta Ads, and LinkedIn Ads are prominent platforms that have revolutionized the way businesses reach their target audiences. Google Ads, for instance, offers precise targeting through keywords and demographics, allowing businesses to reach users actively searching for their products or services. Meta Ads, on the other hand, leverages social media platforms like Facebook and Instagram to target users based on their interests, behaviors, and demographics. LinkedIn Ads, a professional networking platform, enables businesses to target professionals based on their job titles, industries, and company sizes. These platforms provide robust analytics tools to track the performance of ad campaigns, ensuring that businesses can optimize their strategies for maximum ROI.



pay per click ads

Google Advertising


Google dominates the search engine market with an impressive 81.95% share, making it the number one search engine globally. The top three results on Google capture over 75% of all organic search traffic, highlighting the importance of ranking high in search engine results.


If you are new to Google Ads, understanding the various ad types is crucial to effectively reach your target audience and achieve your marketing goals. Google Ads offers a range of ad types, each designed to cater to specific marketing objectives and platforms. Here's an overview of the key ad types you should know:


Google Search Ads


Google Search Ads are the most common type of Google Ads. These ads appear at the top and bottom of search engine results pages (SERPs) and are triggered by specific keywords. For example, if a user searches for "best coffee shops in New York," a coffee shop in New York could create an ad that appears at the top of the search results.


google search ads
Photo grabbed from Google

Google Display Ads


Google Display Ads are visually engaging advertisements that appear on various online platforms, including websites, blogs, and mobile apps. These ads can be targeted to specific websites, blogs, or apps based on their content, audience demographics, or interests, and are designed to capture the user's attention. Key features include visual appeal, targeted placement, responsive design, and AI-powered optimization, which allows for continuous improvement in performance and ROI.


google display ads
Photo grabbed from Google


Google PMAX


Google PMAX (Product Listing Ads eXtended) is a powerful advertising solution that enables businesses to showcase their products directly on Google search results pages. PMAX ads are designed to mimic product listings, providing users with a comprehensive overview of the product, including its price, reviews, and high-quality images. This format allows customers to quickly and easily find the products they are looking for, making it an effective way to drive conversions and sales. For example, a fashion brand like Zappos could use PMAX ads to promote a specific pair of shoes, including its price, customer reviews, and high-quality images, making it easy for customers to find and purchase the product directly from the search results page.


google PMAX ads
Photo grabbed from Google

Google Shopping Ads


Google Shopping Ads are a type of Google Ads that allow businesses to promote their products Google Shopping Ads allow businesses to showcase products directly on Google search results. These ads display product information, such as price, reviews, and images, making it easy for customers to find and buy products directly from the search results page. For example, Zappos could use Google Shopping Ads to promote a specific pair of shoes, including its price, reviews, and images, making it easy for customers to find and purchase the shoes directly from the search results page.


The average conversion rate of Google Shopping Ads is over 1.91%. The average cost per click (CPC) is $0.66, which is lower than the average CPC for Google Ads. Google Shopping Ads drive over 75% of all retail search ad spend in the United States. The average click-through rate (CTR) is around 0.86%.


google shopping ads
Photo grabbed from Google

YouTube Ads


YouTube ads are video ads that run on YouTube and partner sites, designed to capture viewers' attention and drive conversions. YouTube offers various ad formats, including video, display, and sponsored cards, and uses Google's user data for precise targeting. With over 2.7 billion monthly active users, YouTube generated $31.5 billion in global ad revenue in 2023, making it a powerful and flexible platform for businesses to reach their target audience effectively.

youtube ads

Meta Advertising


How Does It Work?


Meta Advertising is a powerful tool for businesses looking to reach their target audience. With over 3.98 billion monthly active users, Meta allows businesses to reach potential customers at the exact moment they're most engaged.


Campaign Structure


A campaign is the top-level entity in Meta Ads Manager. It defines the overall objective, budget, and targeting for a set of ads.


  • Ad Sets: Ad sets are groups of ads that share a common targeting, budget, and schedule. They are used to organize and manage multiple ads within a campaign.

  • Ads: Ads are individual creatives that are displayed to users. They can be image, video, carousel, or collection ads, each with its own unique format and features.

  • Targeting: Meta Ads use various targeting options to reach the desired audience:

  • Automated Targeting: Meta's algorithms automatically target users based on their interests, behaviors, and demographics.

  • Custom Audiences: Businesses can target specific groups of users based on their interactions with their website, app, or other platforms.

  • Lookalike Audiences: Advertisers can target users who resemble their existing customers or website visitors.


Ad Placements


Meta Ads can appear in various locations across Meta platforms:


  • Facebook Feed: Ads appear in users' news feeds.

  • Instagram Feed: Ads appear in users' feeds on Instagram.

  • Instagram Stories: Ads appear in between stories.

  • Facebook Stories: Ads appear in between stories on Facebook.

  • Messenger: Ads appear in Messenger conversations.

  • WhatsApp: Ads appear in WhatsApp conversations.

  • Audience Network: Ads appear on third-party websites and apps that partner with Meta.


Ad Formats


Meta Ads offer various formats to suit different business goals:


  • Image Ads: Image-based ads with text and links.

  • Video Ads: Video-based ads that can be displayed in-stream or as standalone ads.

  • Carousel Ads: Ads with multiple images or cards that users can scroll through.

  • Collection Ads: Ads that showcase multiple products or variations of a product.


Budget & Scheduling


Advertisers can set budgets and schedules for their campaigns, ad sets, and ads to control when and how much they spend.


Performance Tracking


Meta Ads provide detailed performance tracking and analytics to help advertisers optimize their campaigns:


  • Ad Insights: Detailed reports on ad performance, including clicks, conversions, and cost.

  • Campaign Insights: Insights on campaign-level performance, including reach, impressions, and engagement.


Training and Support


  • Meta offers various resources to help advertisers get started and improve their ad performance:

  • Meta Blueprint: A certification program that teaches advertisers how to use Meta Ads Manager effectively.

  • Courses and Tutorials: Online courses and tutorials that cover various aspects of Meta Ads, such as ad creation and targeting.

  • Support Resources: Documentation, FAQs, and community forums that provide additional support and guidance.


By leveraging these features and resources, businesses can effectively use Meta Ads to reach their target audience, drive conversions, and grow their online presence.

facebook ads

Important Things to Know


When creating Facebook Ads, it's important to keep the following in mind:


Objective

Determine what you want to achieve with your ad campaign. Do you want to drive website traffic, generate leads, or increase sales?


Target Audience

Identify your target audience based on demographics, interests, behaviors, and more.


Ad Creative

Create eye-catching advertising creative that resonates with your target audience.


Budget

Set a budget for your ad campaign and track your spending.


LinkedIn Ads


linkedin ads
Photo grabbed from LinkedIn

LinkedIn Ads are a powerful tool for businesses looking to reach professionals and decision-makers. With over 700 million users, LinkedIn Ads allow businesses to target their ads based on job title, industry, and more.


The average Cost-Per-Click (CPC) ranges from $10 to $50, which is higher than the average Meta benchmark for B2B brands. Additionally, LinkedIn has a record high level of Invalid Traffic (IVT), which can negatively impact ad performance and budget. However, the LinkedIn Ads Library provides a publicly available database of ads that have run on the platform, allowing for competitor analysis and optimization to improve ad performance.


LinkedIn Ad Structure


The campaign structure for LinkedIn Ads consists of three levels:

  • Campaign Groups (Paid Initiative): This is the top-level where you define your campaign objective, budget, and schedule. You choose the type of ad you want to create and set targeting options based on your desired audience.

  • Campaigns (Ad Sets): At this level, you create specific ads and set bid amounts for each ad. You can create multiple variations of ads to test different messages, images, or targeting options.

  • Ads: This is where you create individual ads, choosing from different formats such as images, videos, and carousel ads. You write the ad copy, select the landing page URL, and upload creative assets.


Ad Formats


LinkedIn offers 11 different ad formats to help you achieve various goals:

  • Single Image Ads: These appear on LinkedIn's home page and are marked as "promoted" to distinguish them from other unpaid content.

  • Carousel Ads: These allow for greater creativity with ads, featuring multiple pages to communicate your brand story.

  • Video Ads: These are great for grabbing attention quickly and increasing brand awareness.


Targeting


LinkedIn Ads use various targeting options to reach the desired audience:

  • Demographics: Target users based on demographics such as age, location, and job title.

  • Interests: Target users based on their interests and skills.

  • Behavior: Target users based on their behavior on LinkedIn, such as job changes or new skills.


Performance Tracking


LinkedIn Ads provide detailed performance tracking and analytics to help optimize campaigns:

  • Ad Insights: Detailed reports on ad performance, including clicks, conversions, and cost.

  • Campaign Insights: Insights on campaign-level performance, including reach, impressions, and engagement.


Roles


The following roles are involved in LinkedIn Ads:

  • Account Owner: The person who creates the LinkedIn Ads account and has full access to all features and billing information.

  • Campaign Manager: Responsible for creating and managing campaigns, ad groups, and ads.

  • Creative Manager: Responsible for creating ad content, including copy, images, and videos.

  • Analyst: Focuses on analyzing campaign performance and making recommendations for optimizations.


Key Benefits


LinkedIn Ads offer several benefits, including:

  • Targeted Reach: Reach your target audience based on demographics, interests, and behavior.

  • Increased Brand Awareness: Use various ad formats to increase brand visibility and engagement.

  • Conversion-Driven Campaigns: Drive conversions, such as website visits, lead generation, and job applicants, through targeted campaigns.


By understanding the structure, ad formats, targeting options, and performance tracking of LinkedIn Ads, businesses can effectively use the platform to achieve their marketing goals.


Why Choose Paid Ads vs Traditional?


Paid advertising has become an essential tool for businesses looking to quickly reach their target audience and drive results. Here are some key benefits of paid ads:


Immediate Results

Paid ads can put your brand in front of potential customers almost instantly, leading to clicks and conversions right away. This is especially useful for boosting sales or promoting time-sensitive offers.


Precise Targeting

Paid ads allow you to target specific demographics, interests, and behaviors with remarkable precision. You can target by location, age, gender, interests, and more to reach the exact audience you want.


Measurable Performance

Paid ad platforms provide detailed analytics to measure the success of your campaigns. You can track metrics like clicks, impressions, and conversions to optimize your ads for the best ROI.


Scalability

Paid ads are highly scalable - you can increase your budget to expand your reach or decrease it to cut costs. Even small businesses can afford to run paid ad campaigns.


Diverse Ad Types

There are many different types of paid ads to choose from, including search ads, social media ads, display ads, video ads, and more. You can pick the formats that work best for your business.


While paid advertising requires an upfront investment, it can deliver a strong return. Paid ads allow you to quickly build brand awareness, drive traffic, and generate sales. When used strategically as part of an overall marketing plan, paid advertising can be a powerful tool for business growth.


Start Your Paid Ads Journey! 


At Hollas Consulting, we specialize in creating effective paid ad campaigns that drive results. Contact us today to learn more about how we can help you achieve your marketing goals.



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