Sponsored ads, also known as pay-per-click (PPC) ads, are a form of online advertising in which businesses pay a fee each time one of their ads is clicked. These ads are typically placed at the top or bottom of a search engine results page (SERP) and are marked as “Sponsored” or “Ad” to distinguish them from organic search results.
How Do Sponsored Ads Work?
Sponsored ads work through a bidding process. Advertisers set a budget for their campaign and bid on keywords that are relevant to their business. When a user searches for one of these keywords, the sponsored ad with the highest bid is displayed at the top of the SERP. If the user clicks on the ad, the advertiser is charged the amount of their bid.
Benefits of Sponsored Ads
There are several benefits to using sponsored ads as part of a digital marketing strategy:
- Targeted reach: Sponsored ads allow businesses to target specific keywords and demographics, ensuring that their ads are seen by the people most likely to be interested in their products or services.
- Measurable results: Sponsored ads provide detailed data on the performance of each ad, including the number of clicks, impressions, and conversions. This allows businesses to track the effectiveness of their campaigns and make informed decisions about how to optimise their ad spend.
- Flexibility: Sponsored ads offer a high degree of flexibility, allowing businesses to adjust their campaigns in real-time based on changing market conditions and consumer behaviour.
Supercharge Ad Performance
Unlock more leads and higher ROI with industry-leading efficiency tools. Sign up now for a 14-day free demo.
Best Practices for Sponsored Ads
To get the most out of sponsored ads, it’s important to follow best practices:
- Conduct thorough keyword research: Identify the keywords that are most relevant to your business and have the highest search volume.
- Use negative keywords: In addition to targeting specific keywords, it’s also important to use negative keywords to exclude irrelevant searches.
- Test different ad copy and landing pages: A/B testing different ad copy and landing pages can help you determine which combinations are most effective at driving clicks and conversions.
- Monitor and adjust your bid: Keep an eye on your bid and adjust it as needed to ensure that your ad is being displayed to the right audience at the right time.
- Utilise ad extensions: Ad extensions, such as location and call-out extensions, can help improve the visibility and effectiveness of your sponsored ads.
Choosing the Right Sponsored Ad Platform
When it comes to choosing a sponsored ad platform, there are several options to consider, including search engines like Google and Bing, social media platforms like Facebook and Instagram, and specialised platforms like LinkedIn and Pinterest.
Each platform has its own unique features and targeting options, and the best choice for your business will depend on your goals, budget, and target audience. Some factors to consider when choosing a sponsored ad platform include:
- Relevance: Choose a platform that is relevant to your business and target audience. For example, if you are a B2B company targeting business professionals, LinkedIn may be a good choice.
- Audience size: Consider the size of the audience on each platform and how well it aligns with your target audience.
- Ad format: Different platforms offer different ad formats, such as text ads, display ads, and video ads. Consider which formats will be most effective for your business.
- Targeting options: Look for a platform with robust targeting options that allow you to narrow down your audience and reach the right people.
- Cost: Consider the cost of advertising on each platform and how it fits into your budget.
Frequently Asked Questions
How much do sponsored ads cost?
The cost of sponsored ads depends on a variety of factors, including the competitiveness of the keyword and the quality of the ad. On average, businesses can expect to pay anywhere from a few cents to several dollars per click.
Can sponsored ads be used on social media platforms?
Yes, many social media platforms, such as Facebook and Instagram, offer sponsored ad options. These ads can be targeted to specific demographics and interests and can be used to drive traffic to a website or promote engagement on the platform.
How can I prevent invalid traffic on my sponsored ads?
Invalid traffic, also known as “fake” or “fraudulent” traffic, can waste ad spend and negatively impact the performance of your sponsored ads. To prevent invalid traffic, consider using a tool like Lunio, which helps advertisers and PPC specialists prevent bots and ingenuine users from clicking your ads and wasting ad spend.