Online Advertising Basics And Examples

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1. Online Advertising Basics

• Definition: Online advertising involves promoting products, services, or brands through the internet to reach specific audiences. It's done via paid channels like search engines, social media, websites, and mobile apps.

• Types of Online Advertising:

  1. Search Ads: Appear on search engines like Google and Bing based on keywords.
  2. Display Ads: Banner or visual ads on websites and apps.
  3. Social Media Ads: Ads on platforms like Facebook, Instagram, LinkedIn, and TikTok.
  4. Video Ads: Ads shown on platforms like YouTube or in social feeds.
  5. Native Ads: Ads that blend with website content, like sponsored articles or recommendations.
  6. Affiliate Marketing: Partnering with affiliates who promote your product for a commission.
  7. Remarketing/Retargeting: Ads targeting users who’ve interacted with your site but didn’t convert.

• Benefits:

  • Precise targeting (demographics, behaviors, interests).
  • Measurable results (track clicks, impressions, and ROI).
  • Scalable campaigns for businesses of any size.

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2. Examples of Online Advertising in Action

• Search Ads Example:
  • A local plumber runs Google Ads targeting “emergency plumbing services near me.”
• Social Media Ads Example:
  • A clothing brand uses Instagram Stories ads to showcase a new winter collection with a “Shop Now” CTA.?
• Display Ads Example:
  • An airline promotes discounted flights with banner ads on travel blogs.?
• Video Ads Example:
  • A SaaS company runs a 15-second YouTube ad explaining its software benefits.
• Remarketing Example:
  • An e-commerce store retargets users who viewed a product with ads offering a 10% discount.

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3. Formulas for Online Advertising Success

Key Metrics & Formulas

• Click-Through Rate (CTR):

  • CTR (%) = (Clicks ÷ Impressions) × 100
  • Example: 500 clicks from 20,000 impressions (500 ÷ 20,000) × 100 = 2.5%.

• Cost Per Click (CPC):

  • CPC = Total Ad Spend ÷ Total Clicks
  • Example: $1,000 spent on 500 clicks CPC = $1,000 ÷ 500 = $2 per click.

• Conversion Rate (CVR):

  • CVR (%) = (Conversions ÷ Total Clicks) × 100
  • Example: 50 purchases from 1,000 clicks (50 ÷ 1,000) × 100 = 5%.

• Return on Ad Spend (ROAS):

  • ROAS = Revenue Generated ÷ Ad Spend
  • Example: $10,000 in revenue from $2,000 ad spend ROAS = $10,000 ÷ $2,000 = 5x.

• Cost Per Acquisition (CPA):

  • CPA = Total Ad Spend ÷ Total Conversions
  • Example: $1,000 spent on 20 conversions CPA = $1,000 ÷ 20 = $50 per conversion.

• Impression Share (Google Ads):

  • Impression Share (%) = (Impressions Received ÷ Total Eligible Impressions) × 100

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4. Specific Scenarios

Scenario 1: E-Commerce Store Advertising

• Goal: Increase product sales for an online store.
• Strategy:
  1. Search Ads: Run Google Shopping ads targeting keywords like “buy organic skincare.”
  2. Social Media Ads: Use carousel ads on Instagram showcasing product bundles.
  3. Remarketing Ads: Show discounts to users who abandoned their cart.
  4. Measurement: Track ROAS and CPA to optimize campaigns.

Scenario 2: Local Service-Based Business

• Goal: Get more leads for a local real estate agent.
• Strategy:
  1. Search Ads: Target keywords like “buy a home in [City].”
  2. Display Ads: Use banners with images of featured properties on local news websites.
  3. Lead Generation Ads: Use Facebook Lead Ads to collect contact info directly from users.
  4. Measurement: Track leads generated and CPA to evaluate success.

Scenario 3: SaaS Company Promoting Free Trials

• Goal: Drive signups for a free trial of a project management tool.
• Strategy:
  1. Search Ads: Target keywords like “best project management tool for teams.”
  2. Video Ads: Run YouTube ads explaining how the tool solves pain points.
  3. Retargeting Ads: Show ads to users who visited the website but didn’t sign up.
  4. Measurement: Track CVR and free-to-paid conversion rates.

Scenario 4: Promoting a Mobile App

• Goal: Increase app installs for a fitness app.
• Strategy:
  1. App Ads: Run Google App Campaigns targeting keywords like “best workout app.”
  2. Social Media Ads: Use Instagram Reels ads showing features of the app.
  3. Incentivize: Offer a free trial or discount for first-time users who install the app.
  4. Measurement: Track Cost Per Install (CPI) and in-app purchases.

Scenario 5: Event Marketing via Online Ads

• Goal: Increase ticket sales for a virtual conference.
• Strategy:
  1. Search Ads: Target event-related keywords like “digital marketing conference 2025.”
  2. LinkedIn Ads: Use sponsored content to reach professionals in relevant industries.
  3. Remarketing Ads: Target users who visited the event page but didn’t purchase tickets.
  4. Measurement: Track ROI and ticket sale conversion rates.

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5. Practical Tips for Online Advertising Success

• Audience Targeting: Use demographics, interests, behaviors, and retargeting to refine your audience.
• A/B Testing: Test different ad creatives, headlines, and CTAs to identify what works best.
• Landing Page Optimization: Ensure your landing pages are fast, mobile-friendly, and match the ad’s message.
• Use Analytics Tools: Leverage Google Analytics, Facebook Ads Manager, or other tools to track performance.
• Budget Allocation: Start with a small budget, focus on high-performing campaigns, and scale from there.
• Ad Frequency: Avoid ad fatigue by refreshing creatives regularly.
• Monitor Competitors: Analyze competitors’ ads for inspiration and insights.

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