Paid
Advertising can bring palpable returns with maximum emphasis on brand
value and increasing brand awareness. However, it works only as long
as money is being siphoned into the system. The returns are good as
long as the marketer spends money, the moment when expenses are
stopped, the returns would stop too. Thus, marketers would need to be
smart enough and the risk of losing money is high if certain aspects
are not taken care of. There are various advantages of paid online
advertisement. Its measurability, analytics and returns being the top
benefits, it also supports various in trend methodology like
retargeting. The two most popular types of online advertising are
CPM and PPC. They both have their advantages and disadvantages.
CPM
is billed at a flat rate of 1000 impressions. It is the number of
times the ad gave an impression to the users regardless of it being
clicked or not. Its advantages include its inexpensive nature and it
guarantees visibility of the ad. Among its major disadvantages, the
risk of overspending is the most severe. Impressions mean the ad is
being viewed by the user, irrespective of the consumer becoming
interested or not. A good number of impression does not necessarily
mean that people are actually interested in the brand or the
advertisement.
PPC,
the next type of online advertisement are the ad types that marketers
need to spend only when the particular ad is being clicked. The price
to be paid is the matter of the market value of the keyword or the
phrase the ad is using. PPC has several advantages against the CPM.
PPC is easier to track, it is economical because marketers only have
to pay for actual clicks and they even do not have to worry about
overspending. It is possible to keep the budget under control in this
model as it can be capped in the campaign. Thus, paid advertising is
an effective way to gain online traction.
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