Paid Ads Explained: Display & Social Media Advertising

What Are Paid Ads?

Paid ads are a way to get your business in front of people by paying for visibility across search engines, social media, and websites. These are the ads you see when scrolling through your favorite apps or browsing the web—things like banners, sponsored posts, or ads that show up at the top of Google search results. The big difference between paid ads and organic strategies like SEO is that you’re paying to make sure your business is seen right away.

Paid ads use different pricing models, depending on where they appear and what you're trying to achieve. Here’s a breakdown of the most common types of paid ads you’ll run into:

Types of Paid Ads and How They Work

1. PPC (Pay Per Click)

PPC is most often used in Google Search Ads, where you only pay when someone clicks on your ad. It’s a quick way to get traffic to your site because your ad shows up in search results for specific keywords. For example, if you own a coffee shop, you might bid on terms like “best coffee near me” or “local coffee shop.” When someone searches for those terms, your ad could appear, and you pay only if they click on it.

2. CPM (Cost Per Thousand Impressions)

With CPM, you pay based on how many people see your ad. It’s not about clicks but about visibility. This is often used for display ads that you see on websites as banners or sidebars. If your goal is to get in front of as many people as possible to build brand awareness, CPM is a good option.

3. CPE (Cost Per Engagement)

CPE is used when you want to pay for actual interactions with your ad, like clicks, shares, or comments. This model is popular on social media platforms like Facebook and Instagram, where engagement is key. It’s a great way to encourage interaction with your brand and get people involved with your content.

4. Programmatic Ads & RTB (Real-Time Bidding)

Programmatic ads use automated systems to place your ads where they’ll have the best impact. Real-time bidding (RTB) is a huge part of this, where ad spaces are auctioned off in real-time to show your ad to the right audience. It’s all automated, so your ad reaches the most relevant people for the best price, based on factors like demographics, interests, and browsing behavior.

Where Paid Ads Show Up

Paid ads can be found across many platforms, from Google search results to social media feeds and display networks. Here’s how they work on some of the most popular platforms:

• Google Search Ads: These appear when users search for specific keywords. They’re usually found at the top or bottom of search engine results pages.
• Display Ads: These show up as banners or sidebars on websites and are great for building brand awareness.
• Social Media Ads: Platforms like Facebook, Instagram, and LinkedIn offer paid ads that blend into users’ feeds and target them based on interests, demographics, and behavior.

Should You Use Paid Ads?

Paid ads are great if you’re looking for immediate results, like driving traffic to your website quickly or promoting a limited-time offer. They let you reach specific audiences and get your brand out there fast. But it’s important to know that paid ads have their challenges, like ad fatigue (when users get tired of seeing too many ads) or ad blindness (when users ignore ads entirely).

Why Content Marketing Might Be a Better Option

While paid ads can deliver quick results, they’re not always the best long-term strategy. As users become more selective about what they engage with, content marketing can be a better option. Instead of paying for clicks, content marketing focuses on creating valuable, engaging material that attracts people to your brand naturally. Unlike programmatic ads, which stop the moment your budget runs out, great content keeps working for you, building trust and connections over time. If you’re thinking about a longer-term strategy, consider content marketing as an alternative.