14 December 2024
6 min read | 560 views
According to PwC and Interactive Advertising Bureau, the digital marketing domain alone generated an ad revenue of $225 billion in 2023. The numbers are still rising as we near the end of 2024.
In the coming years paid advertising is going to redefine how platforms are monetizing the data they are collecting through paid advertising. From the industry giants like Bing and Google to newbies like Tik Tok, the choice for paid advertisements is galore. This also means that the market is becoming increasingly competitive. Relying only on organic traffic will not let businesses live up to the game. Most companies who are just starting out could benefit immensely from social media marketing firms. So, let’s understand the paid advertisements and how they work in maximizing ROI.
Online advertising model or paid advertisement works on a bidding system. The advertisers bid on platforms like Google to participate in real time auctions to show their ads to targeted audiences. The ads are usually shown within slots of a specific network or platform.
One of the other names of paid advertisement is also biddable media or pay-per-click advertisement. As the advertisers pay for the platform every time there is a click on their ad, earning the name of PPC ads. Most of the online businesses are now heavily relying on maximizing ROI with paid ads.
To understand the role of ROI in paid ad campaigns, let’s first understand the significance of ROI.
ROI or return on investment determines whether your ads campaign has paid off, increasing the number of customers and boosting sales. It uses different metrics to determine the success or failure of the ad campaign. In other words, it also means measuring success with paid ads. There are several benefits of understanding the significance of ROI in paid advertising like,
To understand paid advertisements, let's discuss their important types and benefits to get better insights. Usually, paid ads are categorized into ad format and the channels they are displayed on.
Source: BrandWell
As the name suggests, search engine advertising also means placing ads on the search engine results page, SERP like Google, Bing, Yahoo etc. These ads are displayed when the users enter an enquiry on the search engine promoting the ads to show.
The practice of placing ads on mobile apps, websites and social media channels are called display ads. The formats are of various types like graphics, images, videos and animations. They are also sometimes called banner ads.
Using social media for placing paid ads is called social media advertising. Based on the context of your ads there are several platforms like TikTok, Instagram, Facebook and LinkedIn. These platforms collect metrices like age, location, interests of the audience to define target audience. Social media platforms are versatile mediums for paid ads in terms of formats and audience they support.
These ads are shown through a video format to promote a service, product or a brand. Video ads appear within before after or within content such as social media or streaming services like YouTube. At the same time, video ads can exist as a standalone feature within a social media feed or a web page.
The advantages of paid advertising are numerous in maximizing ROI with paid ads. It offers insights as well as scope to improvise for better results.
One of the most sought-after benefits of paid ad campaigns is to track and measure performance. Data revealing new to brand customer and sales can define ways into optimizing ad spend for higher ROI.
Paid advertisement is basically putting your ads in front of audiences who are most likely looking for products or services related to your domain. This brings along engagement that is likely to boost rate of conversion.
Unique messaging and a variety of channels brings out the uniqueness of your messaging to the target audience. Whether you choose to add an image or just text, your message has the option to perform in paid advertising channels like Facebook, Snapchat, Twitter, Instagram, YouTube and LinkedIn. However, while you get to broadcast your ads, it is advisable to use niche platforms around two to three for a more targeted outcome.
One of the several Benefits of paid advertising for businesses is it allows retargeting. Once an audience has viewed your ad and clicked on your website or has engaged with your ad, the campaign allows you to retarget. With the retargeting ads, you can show the visitors highly relevant ads to continuously engage the prospect. This allows better chances of retention and conversion boosting ROI.
Paid ads offer several benefits that organic ads fail to do. And with organic social media decreasing over the next few years, more pay to play model is bringing in better leads for companies and brands.
Companies often get lost in the changing dynamics of the paid ads market making it incomprehensible. However, Viacon’s comprehensive paid advertisement guide expertly assists companies in strategizing marketing budget and developing compelling ad copies that engage and convert.
Viacon’s transparency in paid advertisement has garnered favors from clients over the years. Some of the ethical practices followed by Viacon are:
Viacon helps brands to bring out the right messaging through their ads. Often ads might come across as clickbait which end up harming its image as well as the publishers. Sensationalizing an ad campaign using misleading words or creative waste consumer’s time. It does not deliver any results or add to the real value of the brand. Therdore, Viacon helps brands come up as trustworthy businesses that do not pressure or deceive audiences through their ads.
Viacon’s ethical approach towards using consumer data has helped brands in forming a bond of trust with their audience pool. With our guidance, companies have established transparency in their intentions in collecting data from prospects. And while doing so, consumers still have full control on who can use their personal information.
The consumers are more likely to pay a premium amount for brands that demonstrate authentic purpose. Viacon therefore, helps companies communicate their core values creatively through their ads offering a peek of their authentic self. For example, if a brand is into sustainable practices or animal welfare, Viacon helps them to bring out their core values through their messaging that reaches the consumers. The focus here becomes the authentic rather than purpose. Connecting with the consumers through the right message is one of the greatest ways to create awareness and in maximizing ROI with paid ads.
The potential for paid advertising is immense. However, it requires some careful planning and consideration. Whether you are a big brand or a company looking to generate leads, Viacon has a systematic approach in planning paid campaigns.
Goals are probably the first thing to keep in mind before running any campaign. Establishing clear objectives is important to guide the strategy. The goals can be varied including generating leads, increasing brand awareness, improving customer retention or driving sales. Once the clear target is set, measuring the success of your campaign or adjusting your approach as required becomes seamless.
Viacon understands that the key to any successful ad campaign is understanding the psyche of the audience. This further eases the fact of delivering the right kinds of ad to them at the right time. Delving into the audience psyche includes identifying the pain points, motivations and goals. Segmenting audience based on unique factors like,
Based on these key factors, Viacon gathers customer data and divides the audience according to their interests.
Understanding platforms and using them to optimize your ad campaign is one of the important factors to consider. Viacon carefully considers your target audience and suggests the best platform to get maximum engagement. As per your demographics and psychographics, if majority of your audience are professionals, LinkedIn ads are more fruitful. On the other hand, for a younger target audience, Instagram or TikTok are better options.
Ad copy and creativity is one of the prime factors that add to success and in maximizing ROI with paid ads. A copy that communicates to the audience about its want, desires and pain points gets the maximum engagement. Clear and concise language with a strong CTA encourage clicks and conversions. Viacon understands the importance of a good copy and customizes copy and design to align with your goal and reap the maximum benefits.
Viacon prioritizes high performing marketing channels based on the demographics and psychographics of the brand. Also, with careful analyzing of data, Viacon allocates budget on channels that will generate the most returns for your investment. This increases the chances of a successful ads campaign. However, even after budget allocation, the continuous monitoring of performance is ongoing for data insights and performance adjustment.
In other words, Viacon has a process for A/B testing to ensure that the ad is optimized using different formats, headlines, CTAs and images. Trying various combinations will help understand which one resonates best with the audience. Therefore, with the A/B testing method, Viacon gets a better insight on the variations and optimizes the ad campaign for maximum benefit.
All details matter in maximizing ROI with paid ads. Viacon has a vivid process of taking care of the details from setting goals to retargeting. Certain features are a must in optimizing the landing page. It must have a strong call to action, concise, clear and engaging messaging, relevant visuals, fast loading speed and mobile responsiveness. Viacon ensures that the landing page has all the features for optimal conversion.
When the ads are ready to go online, certain things play an important role. Insights on peak active hours of the target audience and strategically placing the ads at those times to get maximum engagement determine the success rate of the campaign. Viacon uses data and insights to determine the active hours. This helps in further pushing the ads to the right kind of audience for better visibility.
A whopping 26% of users will return to a website due to retargeting. This figure is only set to increase in the coming years. With that note, Viacon’s retargeting strategy re-engages users who have interacted with the brand by sending personalized emails or displaying tailored ads to boost sales and enhance brand loyalty. This tactic is implemented across digital platforms to increase the rate of conversions by targeting an audience who is already familiar with the brand.