On Paid Advertising

What Is Digital Paid Advertising (And How Do the Different Types Work)?

When people hear the term digital paid advertising, it can sound technical and overwhelming. But at its core, it’s simply paying to get your business, product, or service in front of the right people online. Instead of waiting for customers to find you through word-of-mouth or search engines, paid advertising helps you show up exactly where they’re looking.

Think of it as renting a billboard on the internet—only smarter, because you can choose exactly who sees it, when they see it, and often only pay when they interact.

Let’s break down the main types of digital paid ads in simple terms:


1. Google Ads (AdWords)

When you search something on Google—like “best dentist near me” or “buy hiking shoes”—you’ve probably noticed that the first results say “Sponsored” or “Ad.”
That’s Google Ads (formerly called AdWords). Businesses bid to appear at the top when someone searches for keywords related to what they sell.

  • Why it’s powerful: You reach people right when they’re actively searching for what you offer.

  • Example: A local plumber pays to show up when someone types “emergency plumbing near me.”


2. Pay-Per-Click (PPC)

PPC is the broader method behind Google Ads and many other platforms. It simply means you pay only when someone clicks on your ad.

  • Why it’s powerful: You’re not paying for exposure alone—you’re paying for action. If nobody clicks, you don’t pay.

  • Example: A coffee shop runs an ad. 500 people see it, but only 50 click. The shop pays only for those 50 clicks.


3. Paid Social Media Advertising

This is when you pay to promote posts or ads on platforms like Facebook, Instagram, LinkedIn, or TikTok. Unlike Google Ads, people aren’t searching for your service—they’re just scrolling. The platform shows your ad based on who they are (interests, age, location, behaviors).

  • Why it’s powerful: You can build awareness with people who may not even know they need you yet.

  • Example: A yoga studio promotes a free trial class to women ages 25–45 who live within 10 miles and are interested in wellness.


4. Targeted Digital Ads (Display & Beyond)

These are the banner or video ads you see on websites, apps, or even streaming platforms. They can follow you around online based on your browsing history or interests (ever wondered why the shoes you looked at “follow” you around the internet?).

  • Why it’s powerful: You can stay top-of-mind and remind people about your business, even after they’ve left your website.

  • Example: An online store shows ads for a jacket you viewed last week, nudging you to come back and buy.


So, Which One Is Best?

The truth is, there’s no single “best.” Each works in different ways:

  • Google Ads → great for capturing people who are already searching.

  • PPC → ensures you pay for clicks, not just eyeballs.

  • Paid Social Media → builds awareness and reaches new audiences.

  • Targeted Ads → keeps your brand in front of people who’ve shown interest.

Most successful strategies use a mix of these, tailored to your goals.


Bottom line: Digital paid advertising is simply about putting your business in front of the right people at the right time. Done well, it’s one of the fastest ways to grow awareness, attract customers, and drive sales—without needing to be a tech wizard.