Paid Ads 101 for Newbies: What, Where and How

An average internet user spends about six hours and forty minutes online daily. Advertising on the internet has become a must for businessess of all areas. If you're new to the world of digital marketing and excited to explore the world of paid advertising to boost your brand, attract leads, or make more sales, you're in the perfect spot. Welcome to "Paid Ads 101 for Newbies: what, where and how" , a friendly journey through the basics of paid advertising where I'll cover crucial steps before the launch of any of your paid ads campaigns. Whether you're a small business owner, a young marketing specialist, or someone simply curious about online ads, this article will help you understand paid advertising and make it work for you.

What are paid ads??

In simple words, paid ads is the content you see with a tag “sponsored” or ads from influencers you follow, but that’s not all. Here’s what Chat GPT says about what are paid ads: “paid ads, also known as online advertising or digital advertising, are a form of marketing where advertisers pay a fee to have their content or promotional messages displayed on various online platforms”.?

Most common types of paid ads

Search Engine Advertising: paid search ads appear at the top or bottom of search engine results pages (e.g., Google Ads). Advertisers bid on keywords related to their products or services, and their ads are displayed to users who search for those keywords.

Display Advertising: display ads are graphic or multimedia ads (e.g., banner ads) that appear on websites, social media platforms, or within mobile apps. They are often used for brand exposure and can be targeted based on user demographics, interests, or browsing history.

Social Media Targeted Advertising: Social media platforms like Facebook, Instagram, Twitter, TikTok, YouTube, LinkedIn and other offer paid advertising options. Advertisers can create targeted ads that appear in users' feeds or as sponsored content.

Native Advertising: Native ads blend seamlessly with the content of the platform they appear on, making them less intrusive. They can be found on websites, social media, and within apps.

Email Marketing: Advertisers can pay to have their ads or sponsored content included in email newsletters or sent directly to a list of subscribers.?

Influencer Marketing: Brands collaborate with social media influencers to promote their products or services to the influencer's followers. Compensation may include money, products, or both.

Who’s your Target Audience??

Pinpointing your target audience (TA) is a key part of any marketing or advertising plan. Your target audience is like your fan club – it's the awesome group of people who are most likely to really dig your products or services.?

To understand your TA better, start with market research. Explore your industry and scope out the competition. Find out who the big players are, figure out who they're trying to win over, and discover what makes your products or services extra special.?

I suggest creating a profile for your perfect customer. This includes:?

• Demographics (age, gender, GEO (urban, suburban, rural), income level, education level, marital status, occupation).
• Psychographics (Interests and hobbies, social media used, values and beliefs, lifestyle choices, personality traits, behavior patterns).

For example, a profile for an electric car salon buyer in Poland is (car purchase is for personal use, not for a taxi park):?

Demographics:

• Age: 30-45 years old
• Gender: Predominantly male, but a growing number of female buyers
• GEO: Primarily urban and suburban areas, with some representation in larger rural towns
• Income Level: Upper-middle to high income bracket
• Education Level: College degree or higher
• Marital Status: Most are married or in long-term relationships, potentially with children
• Occupation: Professionals in tech-related fields, business owners, and environmentally conscious individuals

Psychographics:

• Interests and Hobbies:Technology and innovationOutdoor activities, such as hiking, biking, and sportsKeeping up with the latest advancements in electric vehicle technology
• Social Media Used:LinkedIn for professional networking and staying updated on industry newsInstagram for showcasing their electric cars and sharing their experiencesYouTube for researching and watching reviews about electric vehicles
• Values and Beliefs:A strong desire to adopt innovative technologiesSupport for efficient and cost-effective transportation solutionsPreference for convenience and reduced maintenance costsAppreciation for the performance and features of electric vehicles
• Lifestyle Choices:Preference for modern and convenient livingRegular exercise and a focus on health and wellnessMay engage in minimalistic or efficient living practicesActive participation in tech-related communities and events
• Personality Traits:Forward-thinking and innovativePragmatic and well-informed consumersEnthusiastic and passionate about electric vehiclesMotivated by efficiency and convenience
• Behavior Patterns:Extensive research before making a purchase, often comparing different electric car models and featuresRegularly attend technology expos and automotive eventsTend to advocate for the practicality and advantages of electric vehicles among their social circlesMay consider government incentives and cost savings when making a buying decisionOften the early adopters of the latest electric car models, willing to invest in the latest technology

Setting goals, budgeting and tracking the performance

Now that you've identified where your target audience is "hanging out," it's time to establish your paid ads objectives. Typical goals encompass boosting sales, enhancing brand awareness, generating more leads, and so on. Here's a handy list of potential objectives tailored to your business, crafted with the assistance of Chat GPT. Your chosen objectives will shape your platform selection.

• Increase Brand Awareness: Paid ads can help introduce your brand to a broader audience, making more people aware of your products or services.
• Drive Website Traffic: The goal here is to attract more visitors to your website, increasing the chances of conversions or engagement.
• Generate Leads: Paid ads can be designed to collect contact information from potential customers, expanding your leads database for future marketing efforts.
• Boost Sales and Conversions: The primary aim may be to increase sales, sign-ups, downloads, or any other desired actions on your website or app.
• Enhance Engagement: Some campaigns focus on increasing user engagement, such as likes, comments, shares, or video views, to build a more interactive online community.
• Promote Special Offers and Events: Use paid ads to highlight promotions, discounts, or upcoming events to attract a targeted audience.
• Expand Market Reach: Paid advertising can help you reach new markets, both geographically and demographically.
• Educate and Inform: Some campaigns aim to educate the audience about a product or service's benefits or unique features.
• Test and Learn: In some cases, the primary goal is to gather data and insights through A/B testing and experimentation to inform future marketing strategies.
• Social Proof and Trust Building: Use paid ads to showcase customer reviews, ratings, or endorsements to build trust and credibility with potential customers.
• App Downloads and Installs: If you have a mobile app, your goal might be to encourage people to download and install it.
• Customer Relationship Building: Some campaigns aim to build relationships and loyalty with existing customers, making them repeat buyers and brand advocates.

The objective you select will dictate the method you use to measure the performance of your paid ads. For instance, you might monitor metrics such as clicks per ad, reach, or cost per lead. Let's revisit the example of an electric car dealership. They would likely opt for Cost per Lead (CPL) since their sales team will later follow up with these leads to establish contact with potential customers.

Budgeting can be an enjoyable task, as it hinges on industry benchmarks. A benchmark represents the standard price for a specific action within a given industry. Below, you'll discover a compilation of the most prevalent industry benchmarks.

How to choose a social media platform for your paid ads campaign??

While establishing a strong social media presence across various platforms is a crucial foundation, it's equally important to prioritize specific channels that align with your target user profile. Let's delve into some insights about each social network.

Facebook

Facebook is like a massive online gathering place where over 3 billion people hang out every month, according to Statista. That's like a whopping 37% of the world's population! Facebook's little sibling, Facebook Messenger, is no slouch either, with a cool 931 million people chatting it up every month. It is commonly used by people aged 30 and older.

And it's not just for individuals, more than 200 million businesses, many of them small ones, use Facebook's tools. Plus, over seven million advertisers are actively promoting their businesses here. So, if you want to make a splash in the social media world, Facebook is a pretty solid choice.

Instagram

Instagram is like the ultimate visual playground for showing off your awesome products or services through photos and videos as well as using the power of influence marketing. If you're running a brand, you've got the option to create a special Instagram business profile. This comes with some nifty perks like in-depth insights about your profile and posts, plus the ability to schedule your posts with the help of third-party tools. Another neat thing is that Instagram is a goldmine for user-generated content because your audience loves sharing stuff and tagging your brand.

Instagram has around 2 billion monthly active users and is popular among younger people, especially those in the 18 to 34 age range. Video content is much more converting on Instagram.?

X (formerly Twitter)

X is a buzzing platform with around 556 million monthly active users. X tends to be popular among users aged 18 to 49. This place is a hub for news, entertainment, sports, politics, and more. One of the best platforms to reach Web3 communities. What sets this platform apart, which used to go by the name Twitter, is its dedication to real-time information. It's all about what's hot and happening right this very moment, and you've got a mere 280 characters to get your message across.?

YouTube

YouTube is like this awesome place where people spend a billion hours watching videos every day. It's not just a cool video hangout; it's also considered the second-largest search engine after Google, its big sibling. Users of all ages can be found here.

LinkedIn?

LinkedIn has come a long way from its humble beginnings as a job search platform. Now, it has around 424 million monthly active users. It's not just about finding jobs anymore – it's all about professional networking. Industry experts gather here to share cool stuff, make connections, and boost their personal brand. Plus, businesses have caught on to the magic. They use LinkedIn to show off their smarts in their fields and to reel in the best talent out there.

TikTok

TikTok, also known as Douyin in China, is like a whirlwind of short videos that's taking the world by storm. Here, you can find videos for just about every interest under the sun, from lip-syncs, dance-offs, and challenges to crafty DIY tricks and makeup how-tos. In fact, nearly half of TikTok's users in the U.S., about 47.4%, are between 10 and 29 years old. So if you're aiming to reach a younger crowd, TikTok is your golden ticket to get your business out there.

Below there is a table illustrating the popularity of each social network for you to visually see the volumes of traffic each platform has.

Let’s get creative!?

Now comes the most exciting part. You've got your budgets, your target audience, and the channels you'll be utilizing. It's time to bring your ad to life. In the world of digital marketing, it's no secret that people prefer concise content, especially on engaging platforms.

To spark your creative genius and perfect your ad graphics, I suggest exploring the META ads library. There, you can analyze your competitors' strategies, identify what has proven successful for them, and discover insights to optimize your budgets.

For a deep dive into the latest trends and inspiration, don't forget to check out the SuperBowl ads – they offer valuable insights. To elevate your creativity further, I recommend reading John Kovacevich's article, "98 Creative Campaigns That Caught Our Eye in the First Half of 2023".?

Conclusion

And there you have it, a thorough exploration of Paid Ads.?

As you set forth into the realm of digital marketing, it's vital to bear in mind the fundamental principles: managing your budget judiciously, pinpointing your target audience, and crafting engaging ad copy. Be flexible and continuously refine your strategies.

While immediate success may remain elusive, the crux lies in gleaning wisdom from your experiences and persistently propelling your marketing endeavors. With determination, ingenuity, and a keen analytical eye, you're well on your way to achieving mastery in digital marketing.