Auctions everywhere
Most digital ad platforms (search, social, display, video) sell ad space through automated auctions that run every time an ad can be shown. Price is only one factor: platforms also weigh ad quality and relevance so that users see useful ads.
Pricing models
- CPC (cost per click): pay when someone clicks. Common on search.
- CPM (cost per thousand impressions): pay for views. Common for awareness.
- CPA (cost per acquisition): a target or result measure for conversions such as leads or sales.
- CPV (cost per view) for some video formats.
Ad types
- Search ads: text ads shown for keywords; capture existing demand.
- Shopping/product ads: product images and prices from a product feed.
- Social ads: targeted by audience, often visual; create demand.
- Display ads: banners on websites and apps; awareness and retargeting.
- Video ads: on video platforms and across the web.
Ads in search results are labelled as sponsored and are separate from organic rankings; buying ads does not improve organic SEO.
Key takeaways
- Ad platforms run auctions weighing bid and ad quality.
- Know CPC, CPM, CPA and CPV pricing.
- Search ads capture demand; social and display create it. Ads do not boost organic rankings.
Practice: Choose your first ad type
- Write down whether your audience is already searching for your solution.
- Choose search (demand exists) or social (demand needs creating).
- Estimate a test budget for one month.
Go further: Look at the ads shown for your main keyword and note their messages.