Advantages of online advertising
Online Advertising refers to either sponsored listings, feeds on social media networks, or online advertising space that appears at the top of search results on Google or Bing.
Online Advertising is useful in driving larger volumes of traffic to your website as it returns a higher volume of traffic than organic search results, this is especially true if you are not on the 1st page of Google.
Search engines and most popular social networks offer Online Advertising or sponsored listings to help you target a specific audience. It is typically charged on a Cost-per-Click (CPC) basis where you pay or bid on a specific search term or listing. Typically, search engines mainly charge you if a visitor clicks on your advert (CPC), whereas many social media sites also charge per thousand impressions (CPM).
Most popular social media channels offer online advertising solutions to help you target your specific audience, platforms included are; Google, Facebook, LinkedIn, YouTube, Pinterest.
Targeted audiences can be broken down into various demographics, interests, keywords, and online behaviour patterns, among many others.
Using online advertising is a useful digital marketing technique when you want to create brand awareness, launch a new product or service, generate new leads, or increase sales. It is however used by many companies on a permanent basis because of the potential return on investment of bringing in new sales.
Although vast amounts of money can be wasted on ill-prepared campaigns, when done correctly Paid Ads can be a very cost-effective way on generating new business. The key is to start small by defining your ad campaign objectives and then fine-tune your campaign until your click through rates (people who see your ad and click it) and your conversion rates (people who afterwards complete your desired action) are at acceptable levels.
Only once you are happy with your cost-per-conversion (or customer acquisition) and happy that you are achieving a good return on your investment, can you increase your advertising spend and increase your overall profits.