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Advantages and Disadvantages of Paid Advertising

Paid advertising has existed for awhile and has recently been legalized in the U.S. as an FTC approved form of Internet marketing. In other words, anyone can participate in paid advertising without fear of government action. Paid advertising is different from free marketing because it utilizes networks such as Google AdWords, Yahoo Search Marketing, and Microsoft’s Internet Advertising Network to advertise products and services. It’s a great way to get your business out there, but there are some major pros and cons with paid advertising that need to be weighed carefully before proceeding.

Paid Advertising

PPC (Pay Per Click) – This form of advertising is one of the most popular, and effective, for both advertisers and consumers. PPC means that an advertiser will pay a certain amount per click on their advertisements. For instance, in the pay per click model, an advertiser would pay only if viewers actually clicked on their advertisements.

Social Media – One of the most interesting advantages of paid advertising is that it creates brand awareness for businesses, even though they don’t actually pay for it. Through social media outlets such as Facebook, YouTube, MySpace, and Twitter, large groups of people are exposed to ads that match their interests. Because they’re interested in the new product, service, or company, they “click through” on the advertisement and are exposed to the product or service. That means there’s no direct interaction between the advertiser and potential customers, but this is still very valuable because it gives a business a chance to establish a name in their market.

Branding – A brand is a name that people trust and use repeatedly. Therefore, paying for digital platforms such as Facebook is very useful for creating brand awareness. For instance, if you own a pet grooming business, you could have a page on your website, blog, or other digital platform that offers free tips on taking care of your pets. Facebook, in particular, is great because you can target a large group of customers without cost per action, which increases the chances of converting those visitors into clients. This is why paid advertising can provide a good return on investment.

There are, however, some disadvantages to the method. One of the biggest disadvantages is that paid advertising takes away from the credibility and reputation of a brand. As a result, consumers may be less likely to use or recommend a brand when paid advertising was used. In fact, many people have called paid advertising nothing more than spam. Another disadvantage is that although consumers are targeted, they still don’t get many options. They simply have the option to see ads by a single company, which doesn’t allow them to choose other companies they might be interested in seeing.

Paid advertising also has certain disadvantages. Although it provides businesses with a reliable and effective way to reach target audiences, it does come with certain disadvantages. Paid advertising has significantly higher turnover than organic search engine traffic, has limited options for choosing a wide range of advertisers, and generally costs more per click. Paid advertising is a useful advertising model that can provide businesses with an effective solution for reaching target audiences, but it’s important to consider all of its pros and cons before deciding if paid advertising is right for your business.