There are three key ways that digital advertising can help you improve the performance of your organic marketing efforts.
With digital ads, organic performance can benefit from:
- An increase in brand awareness by displaying your content to individuals within and outside of your networks.
- A better understanding of your audiences by leveraging the targeting and analytics of the ads platforms.
- The creation of higher-performing content by understanding what ad content helps you achieve your business goals and what doesn't.
The goal of any ads strategy should be to get a positive return on your investment, which comes down to whether you're getting more revenue out of the ad campaign than the cost you're putting in.
How can you determine what your ad spend should be to get the most return on your investment? To start answering that question, we'll need to understand the bidding system used by the ad networks.
A bid is the maximum amount of money you're willing to pay for the desired action on your ad. If it sounds like an auction, that's because it is an auction. Ad networks have a limited amount of ad space, and to determine whether or not your ads are shown to your target audience, they run an auction to see how much each advertiser is willing to pay for ad space.
Just like in an auction, the highest bidder wins. Let's say you bid $10 for a click on your ad, and the next highest bidder only pays $5 for a click.
Each ad network will only make you pay the lowest amount possible to win the bid. In this example, you might be willing to pay $10, but in reality, you'll only have to pay $5.01 to win the bid. Winning this "auction," in addition to the overall quality of your ads, will determine how your ads are displayed on the different ad networks.
Use this equation:
Lifetime Value (LTV) x Average Lead-to-Customer Rate x Average Conversion Rate
Your LTV is how much a customer is worth to you throughout their relationship with your business. The average lead-to-customer rate is the rate at which your leads become paying customers. And your conversion rate is the rate at which new contacts convert on your content offers by filling out a form.
Combined, these metrics show you how much you should spend on your paid ads to break even.
Let's say that you want to use digital ads to promote your new content offer. You're going to need to know what your maximum ad spend should be to see a positive return on your investment. Assume that you know the following about your business:
- Lifetime value: $500
- Average lead-to-customer rate: 10%
- Average conversion rate: 20%
Plug these numbers into the equation above to determine what your maximum ad spend should be: $500 x 0.10 x 0.20 = $10. This means that you can spend a maximum of $10 per click on your ad to break even. Your goal should be to spend less than $10 to see a positive return on your investment.
Types of Online Advertising
Now that we know more about how to advertise online, let's dive into the various types of online advertising.
Whether it's to chat with friends, stay connected to people across the globe, or for business and networking purposes, consumers are on social media for a multitude of reasons — and marketers know it. Because of the sheer number of active users on these platforms, advertising spend invested in social media channels is at an all-time high. Social media advertising across the world is projected to exceed $8.5 billion this year.
Advertising on social media comes with many advantages. You can:
- Reach very specific target audiences with the help of targeting features and different audiences across all of the social media platforms.
- Leverage a variety of ad formats to advertise in a way that aligns with your business goals.
- Invest in the specific advertising efforts that drive leads and sales for your business.
Let's take a look at eight popular social media networks, including Facebook, Instagram, LinkedIn, Twitter, Pinterest, YouTube, Snapchat, and TikTok. We'll cover the audiences and ad types available on each one.
Facebook is the most widely used social media network. Almost 2.5 billion people around the world use Facebook. That's more than 30% of the world's population.
With so many people using Facebook, you're almost guaranteed to be able to reach an audience that's relevant to any type of business. That's where one of the most powerful features of advertising on Facebook comes in: audience targeting. The targeting capabilities on Facebook are unmatched by any other social media network.
There are three types of audiences that you can target on Facebook:
- Core audiences: An audience based on criteria like age, interests, and geography.
- Custom audiences: Get back in touch with people who have previously engaged with your business.
- Lookalike audiences: Reach new people whose interests are similar to those of your best customers.
Facebook's advanced targeting can be used to target your ads to the most relevant audience — and even tap into new audiences you'd otherwise never reach with organic content alone.
Advertising on Facebook includes a range of ad types, including:
- Photo ads
- Video ads
- Story ads
- Lead ads
Photo ads are great for sharing collections of image content. Video ads are great for product explainer videos and branding. Story ads allow you to use a combination of photo and short-form video content. If you want to learn more about the different ad types, here's a great course from HubSpot Academy all about Facebook Advertising.
Personally, my favorite way to advertise on Facebook is with lead ads because they give you the best of both worlds: sharing visual content and generating leads all at the same time. Facebook Lead Ads allow you to capture lead information without directing people out of the Facebook platform.
No matter your business' size or industry, you can use lead ads to find potential customers who are likely interested in your products or services. With lead ads, you provide a helpful piece of content that encourages viewers to sign up for a newsletter, receive a price estimate, or request additional business information. In return, when the viewer fills out the form, the business receives a new lead.
Another way to advertise on Facebook is through Facebook Messenger.
Facebook Messenger is a separate messaging app that comes with its own advertising opportunities. Facebook Messenger is the go-to messaging app in countries including the U.S., Canada, and Australia. Other messaging apps like WhatsApp and WeChat are the more popular choice in countries throughout South America, Europe, Africa, and Asia.
Across the world, 20 billion messages are exchanged between people and businesses every month on Facebook Messenger. Ads play a big part in initiating conversations on Facebook Messenger.
There are a few different ways you can use Facebook Messenger as part of your advertising strategy.
- Facebook Messenger call-to-action in ads: Start conversations with ads on Facebook that include a call-to-action to send a message.
- Facebook Messenger Story Ads: Run story ads on Messenger Stories.
- Facebook Messenger Ads: Use messenger ads to deliver content directly into users' Facebook Messenger chats.
All of these ad types come together to encourage your audience to kick off conversations with your business. They can be used to get in contact with a sales team, request more information on a product, or even share other content like blog posts or ebooks.
Sponsored messages allow you to advertise to people who have already interacted with your business in Messenger. This is a great way to re-engage your audience in a personalized way.
You can also advertise on Instagram through the Facebook Ads Manager. Instagram has over 1 billion monthly users globally. That's a little less than half of the number of users on Facebook. The majority of users are between the ages of 18 and 34.
There are three ways that you can advertise on Instagram:
- Promote posts and stories directly from your Instagram professional account.
- Create ads from your Facebook Page and promote them on both Facebook and Instagram.
- Create ad campaigns in the Facebook Ads Manager to access full targeting capabilities.
I recommend taking the third option and creating custom campaigns for your audience on Instagram.
Instagram has similar ad types to Facebook, including:
- Photo ads
- Video ads
- Story ads
- Ads in Explore
- Shopping Post ads
By far, the most interesting ad types right now are ads in the Explore Tab and Shopping Post ads. People using Instagram Explore are exploring their interests and discovering new content creators. Ads in Instagram Explore are a great opportunity to put your brand in front of a new audience.
Shopping Post ads allow you to include a tag that shows the product's name and price within your image. Clicking on the tag takes your prospects directly to a product page where they can purchase the item — all without leaving the Instagram app.
The LinkedIn platform has over 660 million monthly active members worldwide. Users on the platform are largely made up of working professionals which makes LinkedIn a great place for B2B (business-to-business) advertising. LinkedIn is the go-to platform for working professionals, which provides B2B advertisers a large audience pool to reach.
Plus, the advantage of advertising on LinkedIn is its unique targeting capabilities. On LinkedIn, you'll have access to unique targeting criteria that isn't available on other platforms.
You can target users on LinkedIn by unique demographics, including job title, job function, and industry. Maybe you only want to advertise to potential customers at the director level who work in customer service within the recruiting industry. LinkedIn's targeting capabilities make that possible.
Plus, with the option to include lead gen forms in your LinkedIn ads, LinkedIn can be a lead generation machine. This will allow you to not only reach a very specific audience but drive leads without directing them outside of the LinkedIn platform.
The most interesting ad type of LinkedIn is Message Ads. Message Ads allow you to send direct messages to your prospects to spark immediate action.
How to use LinkedIn Message Ads:
- Deliver a targeted message with a single CTA.
- Drive stronger engagement and response than traditional emails.
- Measure the impact of your messages.
But a word of warning: Don't send too many Message Ads to the same people or it will come off like spam. And, make sure the messages sound authentic – if you were writing a LinkedIn message to a friend, what would you write in it?
If your Message Ads are too stiff, they'll come off as spammy, too. Remember: This channel is a one-to-one conversation. Direct messages are sacred spaces – if you're going to advertise there, you need to be extra careful about taking the time to make your Message Ads feel personal and relevant to your end-users. Make sure you're delivering value to them in a way that feels authentic.
Digital advertising is less common on Twitter because organic reach is still a significant driver of a brand's performance on Twitter. This is very unique to Twitter – but even so, ads can still deliver strong results depending on what your goals are. Twitter has over 330 million monthly users globally. The majority of users are between 35–65 years old.
Advertisers have discovered a few niches that have high engagement on Twitter: B2B and e-commerce. Many B2B companies are using Twitter as a digital marketing tool, and Twitter users are known to spend a lot of money online. This makes advertising specifically to these audiences a great strategy.
That’s where KBI Marketing comes in. As a Google Premier Partner and Bing Ads Professional, our pay-per-click experts work with you to create an advertising strategy that reflects your brand and will achieve your goals.
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