You have probably read or came across about paid advertising at least once while browsing the internet and you would have probably also read that how much expenditure some companies put forth into it. If I were to state some examples of paid advertisements then the most notable ones would be the display ads you see while going browsing through social media platforms like Facebook and banner ads you see in various web pages. Few businesses invest millions into it, while others choose to avoid it entirely. Many self-proclaimed ‘experts’ who say that to receive actual value from paid advertisements is only possible through
huge investments is simply not aware of what they are speaking and have no knowledge regarding it. Through this blog I hope to make you realize how important Paid Advertising is and impart knowledge on how to efficiently and strategically use it to effectively boost your E-commerce sales for increased profit margins.
Understanding Paid Advertisement
In the previous blog we read about Marketing and various methods on how to aware of your customer base about your business. For a small business the notion of spending financial capital can seem quite a difficult decision to make considering that there is already so much expenditure done in other parts of the business’s operation. But if properly done, it can bring in more money than what was spent.
To begin understanding what paid advertisement I’ll explain it through a simple example:
Imagine there is a plot of land called the ‘Ad space’ which is owned by a person whom we’ll refer to as the ‘ Owner ’ and there are a bunch of people ‘ Marketers ’ who wish to exchange money
for the right to use this space. The Marketers seek to buy this space so that they can construct their advertisement on it so that people who pass by will get to know about their business. To do this they need to lease it from the Owner, The price for which is determined through a bidding process between the Owner and Marketers.
Now that we know what marketing is all about and its necessity for the growth and sales of a small business. It is time to learn about various efficient and cost-effective marketing practices and activities you try yourself to market your business to a large audience.
Importance & Benefits of Paid Advertisement
Better reach than organic advertising -
Unlike organic advertising which uses SEO and keywords to gain ranking in search engines. Paid advertising is a much better option for getting guaranteed reach as organic advertising relies on SEO which isn’t a guaranteed way of getting ranked and also high you will be ranked. Another thing is the time it takes for your business getting advertised organically can be quite long while through paid advertising you can easily get ranked in the few hours without having to go through the hassle of working on SEO and keyword brainstorming.
Multiple platforms -
Your display ads are shown across the various social media platforms like Facebook, Twitter, Instagram, etc. This aids in spreading awareness about your business to a very large audience that isn’t just limited to your physical vicinity.
Targeted Audience -
Paid advertising is also beneficial in strategically captivating the consumers who will most likely be interested in the products your business sells. This makes you get more relevant traffic that is more likely to download your application and use it to buy your products.
Managing your results -
Paid advertising is also helpful in the fact that it provides you with daily, weekly, monthly and yearly reports of your ad campaigns and with filters to easily sort through data so you can make a more efficient ad campaign the next time.
Now that we are clear about the benefits of undertaking a paid ad campaign. It is time to understand the two main types of Ads that you will be dealing with and various other ads that are platform-specific.
Types of Paid Advertising
Social Media Ads -
These are probably the most popular and widely used ads because most people now days have a smartphone through which they access their social media handles across various platforms, so these kinds of ads are more accessible and likely to have higher customer outreach. Social media platforms like Facebook, LinkedIn, Instagram and Twitter are the ones which have seen high success rate with advertisements in them, mainly because unlike other social media ads their ads are made natively meaning how they seamlessly blend into your media feed making it look like a post by another user. A lot of creativity and effort goes into their creation to maximize the user engagement rate. A social media ad also boasts an increased targeting, affordability when compared to the size of the targeted audience. You promote the ad post for a certain duration during which it appears on the feed of people who are selected according to details you input like the demographic, interests such as food/travel/lifestyle, language, education, behaviours, etc.
Affiliate Marketing -
This is quite a different and unique way of advertising your business to the audience. You provide promotion of your products and business to a person usually a blogger with a good following to review your products or talk about it in a positive light to boost audience outreach and provide them with a commission of a fixed % for every sale that happened due to them by providing an affiliate link or code to keep a track.
These are the ads we often see while searching something on Google. These come inside a subtly highlighted box with the word Ad in bright yellow fill at the left indicating they are an ad. They are often situated at the top of all search results or the side in a vertical banner form. Clean and simple, these do a fine job of displaying your business. Also you can add certain keywords so that only relevant customer base can see it. The higher you want it to be ranked in the search results the more you will have to bid/pay.
Display Ads -
Unlike search ads, these ads come up in the form of a landing page of a website, an Ad pop-up, or a banner. You will never see these in the search results. Often placed in websites and blogs, they help to redirect the attention of people to your business. Another major difference between display and search ad is, in Display Ads there is a picture and a line of text while for search ads it is entirely text-based. They are also likely to receive more clicks and visits almost as high as 70%. Examples of Display ads are the small, rectangular shape banners we see in website at the side or top which might be static or animated and when clicked on will take to download page of your application on Google Play store and the Floating Ads we see which appears over a webpage when we visit it, covering it for a small duration usually 30 seconds, or we can close it ourselves immediately.
Video Ads -
These are ads in static images or a video format much like the ones we are used to seeing on television which appears at the start, during the middle, or at the end of a video. They play for a short duration, around 30 seconds or sometimes 5 seconds if it is just an image. They also help to direct huge traffic to your business’s E-commerce portal as most people are watching videos on YouTube these days.
Inbox Ads -
These are ads that appear in your mail account at top of all your emails. These are easily distinguishable by the sponsored content mentioned right to the emails. These are formulated not based on history or behaviour but the content of the inbox.
Now that we have reached the end and went through so much information, we can safely say paid advertising has huge prospects and can boost your E-commerce sales a lot quicker and at an affordable price if done correctly and strategically. Knowing what ad to use for which product or service, at which time, for how long, which platform, etc are all contributing factors to how your Ad campaign will perform in boosting visitor engagement and converting them to customers.
We have also dismissed the many claims of Paid advertising being only for huge corporations and not for small businesses. With this knowledge start your Paid Advertising campaign for your business and increase your E-commerce sales and gain huge profits. That is all for this blog, see you in the next with another new topic.