Get traffic VERY fast, High ROI, The amount of traffic will be predictable, and the strategy is easily scalable. Sounds too good to be true, right? Well, of course, there are some downsides, but these are some of the advantages paid advertising could bring.
While working on your SEO might be a free way to increase traffic, and content creation will get you more traffic, both will take a long time to be set up right, and even months before you might reap the benefits. While on the other side we have paid advertising, it isn’t free but if done right it has a high ROI, and it takes days or maybe even hours to see the result.
So if you think you’re ready for these results, or if you’ve been waiting for these a long time be sure to keep reading. In this post I will explain the different types of ads you will come across in paid advertising, while in the bonus of this series I will post an article on how to apply these types to your marketing strategy.
Don’t waste hard earned money on paid advertising
Did you know that the top 3 paid ad spots on a Google results page get 41% of the clicks on the page? That means 41% of the searchers will not see the result of your SEO.
But before jumping into paid advertising, you should first optimize your site. Make sure your conversion won’t be affected by the way your site looks and behaves.
Secondly, Make sure you focus isn’t on getting as much traffic as possible; get a high conversion instead. It’s great to see a screen showing that you had 100k visitors this month, but if only ten people have bought something or actually have read your blog, is it cost effective? It isn’t of course, that is why you should focus on a high conversion. Some keywords might be a bit more expensive and making sure you target people with high buyer intent (for e-commerce of course) will make it a bit more expensive. So you spend a bit more, but your ROI will increase.
And as the final major point to decrease your cost of paid advertising: your quality score on Google AdWords. This is a significant factor for CPC/PPC ads. Here’s why: The higher your quality score, the lower the cost per click would be. So by optimizing your site, which increases your conversion, you also save money when advertising on Google AdWords.
Types of paid advertising options
There are five major ways on the web to use paid advertising, so you might think “which one will fit my needs?”. Below I will discuss the different options, and what their pros and cons are so you can make the right decision.
Better known as Cost per mile, these ads will most often be seen as banners on websites, or just as pictures. With this type of ad, you pay per 1000 views, where it doesn’t matter whether they click it or purchase something. One of the pros of this type is that you pay for a predetermined amount of views. Another one is that this type of ads is relatively inexpensive, they can be as low as $2,80 per 1000 views.
Of course there are cons with this type of ads too. It is tough to measure the performance of the ads accurately. Besides to that, if no one clicks on your ad, you might be overspending. So if you want to use CPM ads, it is best to have a very visual or branding-oriented campaign. This will increase interest or get people to notice your brand.
This is probably one of the most commonly used ad types out there. With the cost per click advertising, you pay for every click on your ad, where the price is determined by the value of the keywords and expressions used and, the place you want your ad to be shown. For example, Google has more traffic than Bing, but the cost per click is way lower when you use Bing to advertise.
CPC marketplaces work like an auction, where the ones that perform better are likely to win. The performance will be rated by ad click-through rates (better known as CTRs) and the CPC the advertiser is willing to pay.
So when CPC is done right, it will have a much higher ROI than CPM ads. Another benefit of using CPC ads is that they are very easy to control. The ads are easy to modify in real time, you choose the exact budget, and after all, you only pay for the people clicking on your ad.
But CPC ads have some downsides too. As I already stated, you’re competing against other advertisers; this might influence the price. Sometimes a competitor can increase the cost so much that you can’t compete with them anymore.
Besides this, CPC ads need proper monitoring. Because CPC advertising is quite complicated it might become complicated to oversee everything, for example: not every click will monetize right away, but they do count in your ROI.
And at last, using CPC ads might take some initial cost to be able to optimize and get a positive ROI, but remember that you have to know what you’re doing to get a positive ROI. Don’t expect that you just set up an ad and it will start getting a very positive ROI, Expect to put in some time and money to reap the benefits later!
CPV means cost per view, which means you pay for each person looking at your video ad. This might remind you of CPM, and it is almost the same. This type of advertising is great if you have strong visual content, or a service company so you could show the customer what your service is all about.
CPV ads have a uniqueness: They perform great on platforms that are all about video like YouTube. Next to that, on some platforms you have the option to make the video ad play automatically, or by pressing start. The best part of CPV? Video is a highly engaging marketing medium!
The cons that apply to CPM apply to CPV too, so keep that in mind.
This is an option not suited for us all, but it is something which can be used strategically. I’m talking about cost per install advertisement, which means you pay a certain amount for every time someone installs your app. This obviously is a great option for app developers, but it’s suitable for other businesses too. If you’ve recently launched an app, this is a great option to start getting installs, reviews and of course users. So this type of advertising has some significant benefits on some ad networks:
- The amount of money paid for every install can decrease for a higher number of installs.
- You can efficiently target audience that has installed similar apps in the past.
These benefits aren’t hard to use in your favor, as long as your providing quality apps. Of course, this ad type has its disadvantage too: you pay the same for every install, and it doesn’t matter how long the person uses your app. So people might download the app and uninstall it the next day, but this either means the app didn’t work good enough, or they just weren’t interested in it. So make sure you perfect the app and be sure to set your targets for the right audience.
This type of paid advertising is quite rare. It is called as cost per action, also known as Revshare, this is because you pay a part of your revenue earned through the advertising channel to the owner of the website you advertise on.
The obvious pro is that you only pay for performance so you will both benefit from better advertising. This type of ads is scarce because the performance is hard to track.
Some of these might not suit your approach, which is no problem. Every type of ad has its strengths, and it’s own weaknesses. Just make sure you take advantage of the right type of ad for your strategy. If you’re not sure which type of ad will work best for you, or if you’re interested in some in-depth tips on these ad types, be sure to read the following bonus of this series in which I will explain some of the best practices. As always I hope you’ve learned from this post, and be sure to read the previous posts in this series if you want to optimize your traffic flow.