There are two main types of online ads. Search ads (pay per click, also called CPC for cost per click), which are text based, and display ads, which are graphics-based.
Search ads are shown to users who are actively seeking information on a topic through a search. Google and other search engines return two to three “sponsored” results at the top that specifically address the query that was entered—answering the user’s current need. This is a very specific, targeted approach; the average click-through rate for search ads in 2023 was 3.17%.
Display ads are shown to those fitting a profile while they are doing anything online, such as surfing social media, reading the news, or shopping. Typically, Masterpiece Marketing recommends display ads primarily as a re-marketing tool, showing ads to users who have previously clicked on a PPC ad or visited the target website. This avoids high-impression/low-conversion budget spending and also provides assisted conversions by bringing those who were interested but forgot to complete their task an opportunity to come back—and they often do! Display campaigns are a wide net approach; the average click-through rate for display ads in 2023 was 0.46%.
