Paid advertising is an online advertising model where advertisers bid to participate in real-time auctions in order to show their ads within slots on a specific platform or network.
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How PPC Advertising Works!
Most platforms offering paid advertising services use algorithms to run real-time auctions. The algorithms decide which ad to place within an available slot online. The criteria are often a mix between the bid amount and the quality of the ads but can vary depending on the platform used. Platforms don’t always make the criteria transparent however, and there are a variety of other variables to consider.
Ads come in many shapes and formats such as text, images, videos and more. Many platforms now offer to automatically favour ads that are performing well based on your goals. Their algorithms pick up on a huge number of signals than humans can process, making it more efficient to let them decide which ads to push.
There are many targeting options to choose from but most of them fit into two main categories:
- Search ads – triggered by someone actively searching for specific keywords; the ads usually show on a Search Engine Results Page (SERP) and answer a specific question.
- Display ads – triggered by someone fitting specific targeting criteria such as demographics or interests; the ads usually show when someone is browsing the web or an app and can be regarded as disruptive.