Main types of paid advertising
- Paid search: ads on Google and Bing for chosen keywords, usually paid per click.
- Paid social: ads on Facebook, Instagram, LinkedIn, TikTok and other networks.
- Display and video: banner and video ads on websites, apps and YouTube.
- Shopping ads: product listings with an image and a price, such as Google Shopping.
- Native and sponsored content: ads that match the look of the site they appear on.
Pricing models
- CPC: pay per click.
- CPM: pay per thousand impressions.
- CPA: pay per conversion or action.
- CPV: pay per video view.
Paid vs organic
Paid advertising brings results quickly and can be switched on and off, but the traffic stops when the budget does. Organic channels such as SEO and content take longer but keep working. Most businesses get the best return from a mix, using paid ads to test offers and capture demand while their organic visibility grows.
Paid advertising example
A small company sells handmade soap online. It spends 1,500 kr a month on Google Shopping ads, 1,000 kr on Instagram ads to people who visited the site, and nothing on banner ads. After three months, it checks revenue per channel: Shopping returns 6 kr for each 1 kr spent, Instagram remarketing 4 kr, and brand awareness ads on Instagram 1 kr. It moves the awareness budget to the other two.
How to choose between paid channels
| Goal | Good starting channel |
|---|---|
| Capture people ready to buy | Paid search and shopping ads |
| Create awareness among a defined group | Video and social ads |
| Win back visitors | Remarketing |
| Reach business decision-makers | LinkedIn ads |
Paid advertising mistakes
- Spending before conversion tracking works.
- Sending all traffic to the home page.
- Switching off ads too early, or never reviewing them.
- Counting clicks, not sales.
Paid advertising FAQs
Paid or organic?
Paid is faster and controllable, but stops with the budget. Organic is slower and lasts. Most businesses use both. See organic search traffic and advertising budget.
How do I measure return?
See return on ad spend and cost per acquisition.