What is paid ads? Exploring 8 Types and Their Benefits

Paid ads is becoming increasingly popular and is being used more by businesses, with the standout advantage of providing quick and diverse results in terms of format, from offline to online advertising. To learn more useful information about paid advertising, please continue reading this article by Viindoo.

What is paid ads?

Paid ads or Paid advertising is a digital advertising method where advertisers compete in real-time auctions to display their ads in designated spots on a particular platform or network. As an example, when searching for "earrings", both shopping and text ads can be seen.

What is paid ads

Shopping and text ads can be seen

This form of advertising is also known as biddable media or Pay Per Click ads (PPC), as payment is typically based on the number of clicks an ad receives. Algorithms are responsible for determining which ads are displayed in available slots online, with bid amount and ad quality often serving as key factors. However, specific criteria can vary based on the platform being used.

Paid advertising offers a range of formats, including text, images, and videos, and platforms use algorithms to prioritize ads that align with advertisers' specific goals and perform well. These algorithms can process vast amounts of data more efficiently than humans, making it advantageous to let them determine which ads to promote.

Advertisers can choose from various targeting options:

  • Search ads appear on SERPs in response to keyword searches
  • Display ads appear based on specific targeting criteria while someone is browsing the web.

Although these categories can be combined, analyzing their performance separately is recommended, as search ads tend to perform better because they are less intrusive.

 Don’t miss: How to advertise your business: 10+ Most Effective Introductions 

Benefits of Paid Advertising for Businesses

Paid advertising provides businesses with two significant advantages: first, it delivers quick results, and second, it offers a wide range of targeting options to help reach a global audience. No other advertising channel can match the immediate impact of paid advertising. Below are some of the greatest benefits of Paid Advertising. 

Biddable Media, Accelerated Path to Boosting Website Traffic

Paid advertising can quickly increase website traffic and conversions, while SEO takes longer to see results. It's important to budget for both as they serve different purposes. PPC is great for short-term tactics, while SEO is a long-term investment for exponential business growth.

PPC can be useful for businesses starting online with little organic ranking for relevant terms. It can also complement SEO for highly competitive search results and expand reach towards new audiences. Retargeting existing visitors is also effective for moving them down the buying funnel.

Benefits of Paid Ads

Benefits of Paid Advertising for Businesses

Paid Ads have offered measurable results for everything

PPC advertising has become popular because of its ability to provide measurable results online. Unlike traditional advertising methods like TV or billboards, it's difficult to determine ROI for these channels because tracking audiences is not possible. However, with tools that track website activity and integrate with advertising platforms, it's possible to determine if someone purchased a product after clicking on an ad and calculate ROI.

Advertising platforms like Google, Facebook, and LinkedIn provide access to valuable information about audiences, including demographics, interests, and jobs. This data can help businesses understand their audience better and target them more effectively to maximize their advertising budget. 

Connect with Your Target Audience in Their Online Space

With more and more people spending their time online, traditional media like TV and print magazines are losing popularity. Online advertising allows for more personalized ads that can be tailored to specific audiences, resulting in better returns for businesses.

Ad platforms can help businesses reach their target audience in their preferred online space. However, finding the right platform may require research and experimentation, as what worked in the past may not be relevant anymore. It's important to continually test and refine advertising strategies for optimal effectiveness. 

Diverse Channels for Paid Advertising

While numerous online advertising channels are available, below is an overview of the primary ones:

Channels for Paid Ads

Channels for Paid Advertising

8 types of Paid Advertising

Paid advertising comes in various forms, and it's crucial to understand the different types to determine the best fit for your business. Let's explore the various formats of paid advertising and their visual appearance.

Search Ads

Search ads are advertisements that appear in the search engine results when a user enters a search query, such as on Google or Bing. These ads are generated based on keywords that businesses bid on and pay for each click they receive.

Certain keywords are more competitive and costly. It is recommended to target keywords with higher buyer intent, indicating that the users are more likely to convert, to maximize the benefits of search ads.

 See more: Comprehensive types of advertising strategy and Examples 

Display Ads

Display ads are a common form of online advertising that can be seen on various websites. When you visit a website, you may see display ads that promote products or services. These ads can be used to either advertise your own website on other sites or to generate revenue by displaying ads on your own site. An example of a display ad can be seen on ENEWS's website:

Display paid Ads on ENEWS's website

Display Ads on ENEWS's website

Social Media Ads

Social media ads are ads that are paid for and displayed on social media platforms such as Facebook, Instagram, Twitter, and Reddit. They have a broad audience reach and can be precisely targeted, making them one of the most powerful forms of paid advertising. Yes, the sentence is grammatically correct and makes sense. It accurately describes how social media ads can appear in different formats, including sponsored posts, in-feed ads, and Instagram paid ads, among others.

Email Sponsored Ads

Email sponsored ads refer to paid advertisements that appear in users' email inboxes, without being sent as emails. For instance, in Gmail, you may have seen ads like those from CashMyCar and Revv Self Drive Cars at the top of your inbox:

email Paid Ads

Sponsored Emails that Get Results

These ads are based on user behavior, rather than email marketing. One significant advantage of email ads is that they can be shown to users, even if you don't have their email addresses.

Google Shopping Ads

Google Shopping ads are a type of search ad that shows up in response to product-related queries with high purchase intent. They feature images, pricing, and reviews. For instance, a search for "iphone 14" might display Google Shopping ads.

Show off your products with Google Shopping paid Ads

Show off your products with Google Shopping Ads

While you can get free Google Shopping ads by correctly formatting your product pages, you typically have to pay for each click. 

Video/Instream Ads

On online videos, video ads can appear at the beginning of the video, while instream ads can show up in the middle. With the growing trend of online video consumption, American adults spend an average of 103 minutes per day watching digital videos. This means that video ads have the potential to reach a broad audience.

 Learn more about: YouTube Ads for Beginners: How to Advertise on YouTube

Native Ads

Native ads are a type of paid advertising that blends in with the content of a website. Instead of appearing as traditional ads, they are designed to resemble the site's content. Various forms of native ads can include sponsored blog posts, infographics, and even videos.

Native Paid Advertising Examples

Native Advertising Examples


Retargeting and remarketing ads are a type of focused advertising that targets users based on their actions, rather than demographic-based targeting that depends on factors such as location, age, or income. Retargeting ads can specifically target users who have previously visited a website, downloaded a lead magnet, or added an item to their cart.

We have just provided you with some valuable insights into Paid Ads that you can implement for your business. Stay tuned to Viindoo for more Marketing knowledge updates. 

What is paid ads? Exploring 8 Types and Their Benefits
Viindoo Technology Joint Stock Company, Yen Nguyen 28 March, 2023

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