Grow London Local: What is paid advertising? A brief guide

by | May 14, 2025

This content is supplied by Grow London Local which is delivered by London & Partners, the growth agency for London. You can find out more about their services here.

Wondering how to effectively reach your target audience and boost sales? Heard of paid advertising but aren’t quite sure what it’s all about – or if it’s worth the investment?

When you’re up against such strong competition, capturing potential customers’ attention can feel like searching for a needle in a haystack.

But paid advertising offers a powerful way to amplify your message and gain visibility where it matters most.

From Google Ads to social media campaigns, there are various avenues to explore that can drive traffic to your business and increase brand awareness.

In this blog, we demystify the world of paid advertising and explain how to start using this marketing technique effectively.

What is paid advertising?

Paid advertising is a marketing strategy where businesses pay to promote their products, services or brand on various platforms.

This can include:

  • search engines
  • social media networks
  • websites
  • other digital and offline channels

Unlike organic marketing – which relies on unpaid methods like search engine optimisation (SEO) or word-of-mouth referrals – paid ads guarantee visibility by placing your message directly in front of your target audience.

How paid advertising works

At its core, paid advertising revolves around paying for placement.

For example, when you see an ad at the top of a Google search results page or a sponsored post on Facebook (Meta), that’s paid advertising in action.

Businesses bid for ad placements and pay for either the number of views (impressions), clicks, or conversions their ads generate.

Popular platforms for paid advertising include the following:

  • Search engines like Google Ads and Bing Ads
  • Social media platforms like Facebook, InstagramLinkedIn and TikTok
  • Display networks that show banner ads on websites
  • Video platforms like YouTube
  • Offline channels, such as TV, radio or billboards

 

The benefits of paid ads

As a small business owner, you may wonder if paid advertising is worth the money.

While it does mean paying out upfront, the benefits of paid ads can significantly outweigh the expense when executed properly.

Here are the key advantages:

1. Immediate results

Unlike organic strategies, which can take months to show results, paid ads deliver almost instant visibility.

For example, a Google Ads campaign can place your business at the top of search results within hours, helping you attract potential customers quickly.

2. Targeted reach

Paid advertising allows you to define your audience with precision.

Whether you want to target people based on their location, age, interests or online behaviour, platforms like Google and Facebook offer advanced targeting options to make sure the right people see your ads.

3. Cost-effective options for small budgets

Contrary to popular belief, you don’t need a massive budget to start with paid ads.

Platforms like Google Ads or Facebook allow you to set daily spending limits, making it possible to run small campaigns that suit your finances.

4. Measurable performance

One of the most significant benefits of paid ads is being able to track and measure your campaign’s success.

With tools like Google Analytics and Meta Ads Manager (formerly Facebook Ads Manager), you can monitor clicks, impressions, conversions and ROI, helping you fine-tune your strategy for better results.

5. Stronger brand awareness

Even if users don’t click on your ads, seeing your brand repeatedly can increase awareness and familiarity.

This helps keep your business in customers’ minds when they’re ready to make a purchase.

6. Flexibility across platforms

Paid advertising isn’t restricted to one channel. Whether you want to advertise on Google, reach users on Instagram or create engaging video ads for YouTube, the options are virtually limitless.

This flexibility allows you to choose platforms that fit your business goals and audience.

Want to learn more about the platforms you should consider as well as learn from real life examples? Read the full article here

 

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