From the course: Digital Marketing Foundations

Introduction to paid advertising

From the course: Digital Marketing Foundations

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Introduction to paid advertising

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- We live in a pay to play marketing landscape. Organic reach just isn't what it used to be. So if you want to reach more people, well, you'll need to pay for the opportunity. Now, the majority of paid advertising operates in an auction format. So, you'll identify what bidding model you're interested in, and then you'll set a price that you're willing to pay. The most common bidding model is pay per click. And just as it sounds, you're deciding how much you'll pay when a user clicks on your ad. Now, pay per impression is also incredibly common. In this model, you'll pay on what's known as a CPM basis, or cost per thousand impressions. So you'll be paying each time your ad shows up, regardless if it's clicked or not. Now you can also pay per action or acquisition, which is a model that essentially guarantees a conversion takes place for an agreed upon price. And in social media marketing, you can also encounter pay per engagement, which gives you the opportunity to pay for a like, a share, and even comments. And also within mobile app marketing, you can even pay per install. And then finally, video advertising is mostly based on a pay per view model. And these models are used across many types of advertising. One such model is search advertising, and this is primarily bid on a cost per click, or a cost per action model. Search engines, such as Google, allow advertisers the opportunity to place text ads alongside organic search results. And Google Ads is the single most popular advertising platform. But other search engines, such as Bing, also have platforms that allow you to reach audiences actively searching for offerings similar to yours. Now another common paid advertising channel is display advertising. With display advertising, you'll be placing text or image advertisements on sites around the web, and within mobile applications. These banner ads can have different shapes and sizes, and you've likely encountered these as you've navigated the web yourself. Now you can target your display ads based on the content on the actual page, a website itself, or even by user attributes, such as interests or demographics. Display is great for remarketing to visitors who didn't purchase, as well as for generating brand awareness, but it is harder to generate a direct response. Now, most display ads are shown to a very relevant audience, but that audience may not be expressing intent, or even purchasing behavior. Video advertising is another incredibly popular approach. In this model, you'll pay to run a short ad in a pre-roll, mid-roll, or post-roll placement. And this is referring to where your ad shows up. It's either running before the video plays, interrupting the video that's currently playing, or it'll show up at the end. And YouTube is, by far, the most popular video advertising platform. Now, from here, we have social media marketing, and in social media marketing, you can boost your social media posts, or even advertise completely separately from your social media profile. Now, social media ads boast some of the lowest costs, and can amplify your organic following tremendously. Paid advertising is an important component of any marketing strategy, so you'll want to explore how it fits into your marketing goals.

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