Paid Advertising

When should you use paid advertising?


Pay-per-click (PPC), also known as cost-per-click (CPC), is a form of paid advertising, where advertisers bid on specific keywords to appear in a search engine’s sponsored links, which appear above organic search results. You only pay when a user clicks on your ad. Basically, you are purchasing visits to your website. The most popular pay-per-click marketing providers include search engines such as Google and Bing, and social media sites such as Twitter, LinkedIn. PPC is often used for action-oriented campaigns like lead generation or event registration.

How does PPC work?

Let’s say you run an ad on Google for your product using Google Adwords. Everytime a potential customers clicks on your ad, you pay $3. Imagine that you make one sale for every 10 clicks. This means you are paying $30 for a single customer aquisition. This would be a reasonable tool to use if you have a product that is selling for $200, because you would generate a net revenue of $170. However, if you are selling a product for only $30 it may not be a wise thing to do.


Cost-per-impression (CPM) is where advertisers pay each time an ad is displayed regardless of whether anyone has clicked on the ad. Your cost is calculated based on each thousand advertisement impressions. This advertising model is used by Facebook and Instagram and is a favorite tool of savvy digital marketers who understand the sales cycle. CPM is very useful when brand awareness is the goal.

Facebook and Instagram Ads

Facebook has many tools that can help you manage your target market such as Facebook Ads Manager. Facebook Ads Manager can also be used to manage your Instagram advertising. Why spend money targeting everyone, if you can reach the specific audience you want. It is a huge opportunity for niche products and services. You can target by location, industry, gender, age range and interests. This is the great option for local businesses with limited budgets, as you can choose detailed location targeting to advertise strictly to people living in your city or region. 

Facebook has a ‘lookalike’ feature that will help you target potential buyers with similar attributes. This feature can help your business grow rapidly. Facebook also has a great feature of allowing you to remarket to individuals that have already visited your website. Sometimes people just need a little push to convert interest into action.


Cost-per-engagement (CPE) is when you pay when someone engages with your ad. This model is used by Pinterest and is useful when you set a goal to increase engagement by getting your audience to interact with your content.

How can I help you with paid ad campaigns?

Paid advertising can be very expensive and is unfortunately the main traffic generation method for most digital marketing agencies. I do not recommend paid advertising as a long term solution. The secret to creating and running a profitable online business is being able to attract visitors to your website without continously paying for it. The main problem with paid advertising, other than its high cost, is that your traffic source ceases as soon as you stop paying for it. Paid advertising can be useful to kickstart your traffic flow or to supplement your other traffic channels. However, you need to tread very cafefully with paid ads otherwise you can very quickly run up a high cost and ultimately lose money.

Your bottom line is my priority. Depending on your product, industry, locale and budget, I would first assist you to evaluate whether a paid ad campaign makes any sense. If it does make sense, I would then guide you to:
1.  Decide on what platforms you should run your ads;
2.  Perform the necessary keyword research and identify your target market;
3.  Create dynamic ads that will stand out;
4.  Divide your target audience and use A/B split traffic testing, to see which marketing efforts results in the best returns;
5. Remarketing towards already previously targeted audience to move them along the sales cycle;
6. Review the paid ad campaigns regularly to make sure that the ads result in sufficient sales to justify the cost.

Book a free consultation to discover how I can help you