Pay-per-click, remarketing, and landing pages … oh my!
Those online advertising terms may not be part of your vocabulary. They might even sound intimidating.
Still, with 4.3 billion people online worldwide today—3.9 billion of which are mobile users and 3.5 billion on social media—the upside is hard to ignore.
One recent study found that 79% of small businesses that spent 5-10 hours per week on advertising “reported revenue growth.” 52% that spent less than five hours also said they saw revenue growth.
Data from Statista and OutboundEngine
And yet, while 89% of people in the U.S. alone are online, only 66% of small businesses advertise online.
Data from the Pew Research Center and The Manifest
If you’re among the near majority not yet taking advantage of this opportunity, we’ve created this guide to …
Answer five questions and provide five steps for small business online advertising success.
1. What is online advertising?
From search campaigns to banner ads, mobile marketing to social media, online advertising spans the internet. As an advertiser, small businesses select (1) the channels, (2) the ad formats, and (3) the placements best suited to reach their target customers and meet their advertising goals.
With a strategic message and persuasive offer, ads convince your customers to act—either to buy immediately or learn more about your business.
Start with your target audience
Who you’re targeting and what ad placements you choose will depend on the strategies you’ve put together in your small business advertising plan. If you haven’t done so already, spend some time defining …
Who is your target customer?
What demographics—like age, income, and geographic location—define your ideal buyer?
Where do they spend their time online?
Do they use specific social media platforms? Are they heavy mobile or desktop users? What are their interests and what types of sites do they visit?
What are their pain points or psychological motivations?
What keeps them up at night and what was the trigger that got them to buy your product?
Creating personas and mapping out their buying journey lays a behind-the-scenes foundation not only for online advertising but growing your small business overall:
Next, identify your online campaign
There are two main types of online ad campaigns:
(1) Direct response ads
These ads use a strong call-to-action to drive immediate results (e.g., buy or call now, download this ebook). Direct response campaigns are mostly done on a pay-per-click (PPC) or cost-per-acquisition or cost-per-action (CPA) basis.
Copy for these ads should be short, with a clear message—explaining your offer and why customers need to act quickly.
(2) Branding campaigns
Branding, on the other hand, helps you raise awareness so customers remember your name and what your business does. The goal is to generate an emotional response—making you stand out in their minds.
These ads are bought based on audience reach and are often paid for on a cost-per-thousand-impressions (CPM) basis, or a flat fee per ad or listing. An impression or view is counted every time a customer sees your ad.
Writing copy for these ads should appeal to the hearts and minds of potential customers—tied to what your brand does and why they should choose you.
Of course, you may be thinking …
This all sounds great, but what if I’ve never created, bought, or posted an ad before? Let’s touch on it next.
2. Why advertise online?
Online ads typically aim at one or more five goals:
Data from The Manifest
Also, consider …
- Facebook users click on 10 ads every month
- 87% of shoppers begin product searches online
- Social ads drive 3X more new customers than existing customers
- 95% of mobile internet users use their phones to lookup local information with the intent of calling or visiting a business
In addition, online advertising is …
You can pay per click or customer acquisition, rather than a flat fee (which is often higher) to target a set number of media impressions.
You can reach ideal audiences based on geography, a specific time of day, specific interests, and more. For example, you can target only women ages 18 to 34 in Sydney, Australia who like to shop for the latest fashions on their phones over their lunch break.
You can calculate your return on investment and refocus your campaigns on the best-performing platforms.
Pausable, removable, and flexible
Perhaps your cash flow statement reveals a shortage one month or you discover — through your inventory management platform — one of your advertised products is out of stock. With print or OOH (out of home) advertising, you’re stuck. Online, you can adapt quickly.
3. How to create your online presence?
Before we dive into how to advertise online, it’s essential to consider where you’ll send people once they click on your ad.
It could be a website, a product or service page, or a landing page specifically designed for an ad campaign.
Basic website or blog requirements
We cover website necessities in our post on how to start an online business. Some of the highlights include:
- Clean design with lots of whitespace
- Compelling web copy
- Easy navigation
There are several budget-friendly options to launch your small business website—like WIX, Squarespace, or WordPress. If you’re short on cash, use a template versus building a custom site.
Being online is vital, but you don’t need a show stopper of a site to begin. You can improve your site by adding better imagery, social proof, and functionality as your business grows. Lastly, have a look at what your competitors are doing to inspire you.
What’s a landing page?
Landing pages are standalone webpages you send customers to when they’ve clicked on your ad.
If you already have a website, it’s still preferable to use a landing page as the destination for your online ad campaign.
Alternatively, you can also use your homepage or a specific product, as long as both have clear calls-to-action.
4. What digital advertising terms matter?
There’s a lot of technical jargon associated with online ad campaigns. Let’s review the top terms now.
Every time someone sees your ad online, it’s counted as an impression. Businesses looking to run a brand advertising campaign will often buy ads based on a set number of impressions. You reserve those impressions on websites highly targeted to your ideal customer—so you know your ad is likely to resonate with your audience.
CPM: Cost-per-mille (thousand)
You pay a set fee for every thousand impressions you buy. So, if a website charges a $6 CPM, it means you’ll spend six dollars for every thousand impressions. Ideally, you’ll want to reach as many people as possible within your set budget. So, if you have $10,000 to spend, at, say, a $5 CPM, then you could buy 50,000 impressions.
It sounds like a lot, but that budget can be spent in a very short time on a site with high traffic. It’s why a lot of small businesses prefer to pay per click, rather than per impression.
PPC ads let marketers pay for an ad online when a customer clicks on it. This form of advertising is preferable to small businesses running direct-response campaigns, as it’s perceived as easier to measure ROI from this strategy.
What you pay per click depends on the keywords or audience categories you’re bidding on. The more popular the keyword or audience, the higher the price.
CTR: Click-through rates
Click-through rates tell you the percentage of people who clicked on your ad, based on the total number of people who saw the ad. These days, CTRs are pretty low. However, your ad will still be seen by a lot of people, which helps you from a branding perspective. Average CTRs for a Google search ad is 1.91%, and 0.35% for a Google display ad.
CVR: Conversion and average conversion rate
A conversion happens when someone who clicks on your ad, then proceeds to buy something from your website. This term applies on transactional websites. The average conversion rate is the percent of conversions you get from a particular ad. On Google, average CVRs are 2.70% for search ads and 0.89% for display ads across all industries.
CPA: Cost-per-acquisition or cost-per-action
CPA represents how much it costs you to acquire a new customer, based on a specific action you set. The action could be to sign-up for your email newsletter, register for an event, or download an ebook. You can bid for Google keywords based on a CPA. Average Google CPA is roughly $59 for search and $61 for display or banner ads.
Companies seeking to generate new leads often bid on a CPA basis when their product or service is worth a lot of money (e.g., a car or enterprise software).
Engagement is another way businesses now track the effectiveness of an ad. It’s especially important in social media and with video ads. Engagement with a paid social media post or video ad can be measured by likes, ratings, comments, time spent watching a video, and shares.
Retargeting or remarketing
Remarketing is the ability to show ads to people who have previously visited your website as they browse other sites across the web. Remarketing focuses specifically on web users who have, in some way or another, expressed an interest in your product or service.
For example, some visitors may have looked at merchandise sold on your e-commerce site or they may have abandoned their shopping carts before purchasing the items. These cart “abandons” are considered a sales lead and are excellent targets for remarketing.
Tracking URLs are unique URL extensions you use to track your advertising campaign performance on each ad platform. You can create a tracking URL and monitor it using Google Analytics.
Google Analytics is free software you can install on your website or landing page to track the success of your online ad campaigns. The tool offers many reports to help you understand the behaviors of visitors to your site (e.g., how much time they spend, the top pages they visit, the total number of pages they view).
Additionally, you can learn which sources—namely, which search engines or social media networks—and websites are sending you the most traffic. Knowing this helps you identify advertising opportunities.
Return on investment (ROI)
ROI is the amount of sales revenue you earn from advertising on a particular platform. I’ll explain how to calculate it shortly.
Now that you know the terms let’s look at the most popular platforms for small businesses to advertise online.
5. Where to buy and place online ads?
Social media, display advertising, and paid search are the most popular formats for small businesses. So, let’s take a look into each of the options.
To make this practical, most of the campaign examples I’ll share are for plants, flowers, and landscaping.
However, the same types of campaigns can be set up for any business.
Paid Google search and display network ads
Google Ads lets you create ads which appear on Google when people search online for certain words or phrases, known as keywords. They use a cost-per-click model, so you pay when a user clicks on your ads. Or, bid based on a CPM model to buy a set number of ad impressions for display ads.
You can set your maximum budget for reaching new customers, and your ads will run until it’s all been spent.
AdWords allows you to bid on keywords to place text ads at the top of search engine result pages (SERPS). The ads appear at the top of the page, with a small “Ad” logo in green in the top left of the text. You can also buy video and image-based banner ads through Google’s display network.
Both text and display ad options are available to appear on partner media publication websites and blogs. These sites opt-in to the network to have their ad spots sold through Google AdSense.
You manage where your ads are placed by choosing specific websites that target your audience. Or, you can let Google select automatic placements for you, based on specified keywords and audiences.
For example, if you have a landscaping business, you could select keywords relevant to home improvement, gardening, and local searches like “near me.”
If you want to make small changes on the fly, the Google AdWords Express app lets you quickly view and tweak campaigns. You can also use it to set up simplified pay-per-click campaigns.
This interface is beneficial for absolute beginners. Once you’ve set up a few campaigns, though, you should begin using the more extensive AdWords account interface.
If you want to learn more about Google AdWords, you can get certified as a Google Ads specialist. Or, find a freelancer or ask an employee to get certified to help you out.
Affiliates are websites and content creators (e.g., bloggers and traditional media sites) that opt-in to promote your product on their site.
It’s often a cost-effective way to drive additional sales or leads for your business. You only have to pay them when someone clicks on a link or buys something. You might pay a percentage of the sale you made, or a flat fee. It works a lot like PPC advertising.
You can seek out an affiliate network to help you spread your message across the web. Affiliates in a network act like intermediaries between you and your product or service.
Paid social media display ads
Paid social media ads are seen by a captive audience of registered platform users. According to The Manifest, “Facebook (86%) is the most popular social media channel small businesses use to advertise, followed by YouTube (51%), Instagram (47%), and Twitter (41%).”
Here’s a snapshot of the highest-profile social networks:
With over 2.38 billion active monthly users (as of the first quarter of 2019), Facebook’s ad platform sells sidebar and newsfeed ads, also known as promoted content posts.
Blueprint, Facebook’s certification program, teaches you about their Ads Manager and the different reach customers.
Begin by selecting the type of campaign you run. It can be either brand awareness, consideration, or a direct response campaign to convert new customers (categorized as “conversion”).
Actions move customers to the “consideration” phase of the funnel and include app downloads, form completion for lead generation, or engagement with a “how-to” video.
Next, select your target audience. You can do so by identifying demographics (e.g., age and geography) and then dive deeper into audience categories, like “Homeownership.”
Then, select your ad placements, which can run on Facebook, Instagram, Facebook Audience Network (similar to the Google AdSense network), and Facebook Messenger.
Finally, set your budget. Setting up your budget and scheduling your ads is similar to Google in that your ads run until your budget is spent. You can set the budget to “lifetime budget” to ensure Facebook paces the spending out over a set period.
Like Google, these ads are bought based on a PPC auction. So, you bid on what keywords and audiences you want to target.
You’ll need to pick the right ad formats for your campaign too. Some of the different ad formats you can choose from include single image banner ads, carousel ads, video ads, and slideshow ads.
Below is a carousel ad example which tells a visual story with up to ten images. It works well for product businesses as well as landscapers or contractors to show-off their work:
Another popular Facebook advertising format for small businesses is the single image ad with text. It’s an affordable option when you’re kicking things off.
This ad placement is a “sponsored post” which shows up in a Facebook user’s newsfeed and looks like a standard post, except for the “sponsored” text under the title.
The link could drive users back to a blog post or landing page, which includes a guide to in-home gardening and a form to capture the customer’s information (e.g., their name and email address).
If you’re targeting other businesses, LinkedIn is a great advertising option and has over 645 million monthly users worldwide who use the site to:
- Network with colleagues
- Create and share content
- Find full-time or freelance jobs
You can begin by creating a free LinkedIn business page to promote your company and share business-targeted content. Additionally, you can buy both display and text-based ads through LinkedIn Marketing Solutions.
Your ads can appear as sponsored content, similar to other social networks, or as text or display ads to the right of a user’s news feed.
Buying a native ad involves promoting content you’ve created and posted on LinkedIn to drive people back to your business page. Display and text ads can be highly targeted to niche businesses or user profiles (e.g., CEOs, CFOs, or CMOs).
Sponsored “InMail” is another option which sends a targeted email message to a group of specified users. These ads are bought based on a set price and targeted email list. You can learn more about it via LinkedIn Marketing Solutions on its website.
Instagram is owned by Facebook and has roughly one billion monthly active users. You can set up and run targeted Instagram campaigns straight from the Facebook Ads Manager tool.
There are many different ways to advertise on Instagram, including stories ads, and sponsored post photo ads, video ads, carousel ads, and collections ads. If you’re on a tight budget, the single image ad, like the one for Facebook, is probably your best bet as it won’t cost as much for design.
Review the Instagram advertising guide for more details on their different ad formats.
YouTube is the second-largest search engine behind Google. In fact, one billion users spend 40 minutes a day on the video platform.
If you have the budget or know-how to create video content or ads, you can target customers through keywords. Your video ad will appear based on your target audiences’ interests, specific video topics, demographic groups, and more.
The most common types of video ads on YouTube run before a partner video plays (e.g., other video creators who’ve opted-in to the YouTube ad network). These are called pre-roll ads and come in skippable and non-skippable formats.
Additionally, video ads can run after a set period into a video stream (e.g., the length of time a video is playing). These are called in-stream ads and are very similar to traditional TV ads because they’re like commercial breaks.
If you prefer simple display ads, those can be managed through the Google ad network. Add YouTube as one of your targeted ad placements.
Another option is semi-transparent overlay ads in the form of display or text ads which appear over the bottom portion of a video. Keep in mind; advertisers must now include those as part of a reserved CPM sponsorship ad buy.
TrueView Discovery ads are another excellent PPC option if you do create YouTube video ads. These ads show up next to videos on YouTube search result pages. All you need is a small thumbnail of your video and text to create the ad.
Twitter has about 275 million monthly active users. The social platform lets businesses run several different campaigns, including promoting your account to get more followers, sharing promoted tweets to get more engagement (e.g., retweets, replies, and favorites), and promoting hashtags.
You can drive traffic to specific links and pages as well. Single-image promoted Tweets are a good option and show up in your target customers’ Twitter Feed. Here’s the official guide on Twitter advertising.
Pinterest boasts 291 million monthly active users, and you can target customers based on their interests. For example, a landscape architecture business could target Pinterest users who are pinning images of unique landscape designs.
You can target customers through promoted pins in the app and on the site, promoted video pins, and buyable pins, which let you click to buy something immediately from a pin.
Promoted pins are probably the best place to begin as a small business. Similar to Instagram and Twitter, you only need an image and some text to create the ad.
To advertise on Pinterest, signup for a business account and follow the steps in our ultimate guide to Pinterest.
Targeting mobile users with ads
While mobile ads weren’t called out specifically in The Manifest’s chart, mobile users are important to target across all of your online ad buy formats.
An increasing number of shoppers are abandoning their desktops in favor of using smartphones and tablets to get online. Mobile internet traffic surpassed desktop traffic back in 2016, and mobile ecommerce sales continue to grow. Although, as of the publication of this post, they still lag desktop sales.
Fifty-three percent of PPC traffic comes from mobile. All this means mobile targeting is effective. Because people typically have their phones on them at all times, customers can see your message or offer as soon as you send it.
By using location-based targeting to determine users’ geographic locations, businesses can tailor their mobile messaging to match the users’ unique circumstances.
Many of the PPC platforms I outlined above offer mobile-targeting in addition to desktop. And some of them are now launching mobile-specific ads.
For example, here are the guidelines to all Google network mobile targeted advertisements. Also, here’s the link to Facebook mobile app ads.
Be sure to check both the mobile targeting options and opportunities to create mobile-specific ads for the online platforms you choose. If you start with images and text ads, it should cover both mobile and desktop platforms in most cases.
Now that we’ve the big question, we’ll discuss how to plan a campaign.
6. Create a test campaign
Let’s assume you have $10,000 to spend on online advertising for the year. You can absolutely work with less, this is just a hypothetical number.
With a limited budget, experiment with one or two standard ad formats and messages.
Use this first campaign as a test to see what works. Let’s say you’ll launch with a two-week Facebook (plus Instagram) and Google search test campaign. We’ll also assume you’ve spent $500 to pay a copywriter to write the ad, and paid $500 for a designer to create the ads.
You have $9000 left and will spend $1000 on each platform. That leaves you $6000 to spend once you’ve seen some results. Here’s what you’ll need:
- Create an account with Google AdWords and Facebook, which includes Instagram ads, too.
- Follow the steps to set up your campaigns in each of the ad management platforms—including setting your budget and scheduling your campaign.
- Read about tracking in the next section before you set your campaigns to go live. You’ll need to do a few things in Google Analytics first.
7. Set up your tracking
For both branded and PPC campaigns, you can use Google Analytics to track the ad campaigns you’ll run on each platform:
- Create separate tracking URLs (one for each platform) to monitor performance in Google Analytics. How to create the URLs is explained on the Google Analytics website.
- Follow the instructions so you can see which platform is sending you the most traffic, or is driving the most ROI in your analytics reporting.
- Use those URLs as you’re setting up each of your campaigns in your platform advertising accounts.
If you want to measure conversions in Google Analytics, you’ll need to set up campaign goals in your account.
To set up campaign goals, follow the steps outlined on the Google Analytics site. The goals will show up on your website’s campaign report, which we’ll talk about in the next section.
For branding campaigns, you can track a lift in phone calls or visits to your site both before, during and after a campaign has gone live. You may want to create a unique 1-800 number, just for the campaign, to track call volume.
You can also create a unique landing page and custom campaign URL (e.g., www.yoursite.com/customURLname), as I mentioned earlier, to track visitors and contact form completions from the page.
For paid social media campaigns, many platforms offer in-house analytics suites for free or a small fee. Other services offer external analytics, which may provide additional insights over in-house solutions. Examples of each include:
Each of the ad platforms you use will have their own advertising reporting tools as well. Or, the site can send you a campaign report. As you track your results, you can adjust and optimize your campaigns (more on that shortly).
8. Measure results frequently
Google Analytics reporting can be used to adjust your ad spend once you learn which media placements were the most successful during your test. The tool can also help you track and evaluate advertising ROI, and can be linked to your Google AdWords account to reveal even more in-depth insights.
To measure overall campaign performance in Google Analytics, go to Acquisitions, then click on Campaigns in the tool to see the results. Some important metrics to measure are:
- Number of new users sent to your site from each ad platform
- Average duration and number of page views per session, which indicates how long people stuck around on your site to learn more
- Goals achieved, or number of “conversions” realized (e.g., someone filled out your contact form) per ad platform
You’ll want to evaluate these metrics overall and for each of your separate tracking URLs for individual ad platforms.
What to look at in your ad campaign reporting tools
For PPC campaigns, you’ll want to look at the total number of clicks on an ad, your click-through-rate, and average cost-per-click that you paid. Comparing this information across each of your campaigns will help you determine where to focus your ad spend in the future.
The lower the cost-per-click and the higher the number of clicks and CTR, the better.
For branding campaigns, you can look at the number of impressions and engagement you generated from a specific ad through your advertising platform’s campaign reporting. You can look at the number of shares, likes, and positive versus negative comments a sponsored content post received on social media posts as well.
Additionally, you can measure a lift in phone call volume or emails (during and just after the campaign has run) if you included a link to a contact form or a special 1-800 number in your ads or on your landing page.
Finally, you can ask the people who called or emailed you to tell you where they first heard about your business.
Calculating the ROI of your ad campaigns
You can calculate the ROI of your PPC ads by taking the total revenue from your ad buy, subtract the costs to create the products or services you sold plus your total ad spend, then dividing it by those total costs:
ROI = (Revenue – Cost of goods sold) / Cost of goods sold
Let’s say your media spend on Google was $500, and your cost to create your products is $50, and you sell them for $100. Then you just need to find out, through analytics, how many items you sold via Google.
To make the equation simple, you sold 25 items during your test campaign and generated $2500 in sales. Your ROI would, therefore, be 43%:
ROI = ($2500-(1250+500))/(1250+500) = 43%
It’s harder to pin an exact number on the impact of branding campaigns. However, you can compare the lift in sales you received before, during, and after.
Even though online marketing is perceived as more affordable than other forms of advertising, try to be realistic about your ROI. Approach it as a learning experience and continue to improve your campaign strategies as you go.
Once you’ve run a test campaign and understand the performance metrics, it’s time to optimize for future campaigns and budgeting strategies.
9. Optimize campaigns and budget
Once you have all of your results, you’ll want to decide where to allocate the other $6000 of your ad spend I mentioned earlier. The campaigns with the highest ROI or the best metrics should get the lion’s share of the spend.
However, you can still spend a little on the platforms which didn’t perform quite as well—provided they generated a decent amount of leads or sales.
Remember: you can always pause a campaign if it’s not performing well on a particular channel at any time. Then, reallocate some of your budget to one that’s performing better.
That’s why you need to check on your campaign performance continually.
It might be helpful to test a few different images and messages as well in your next campaign. Lean on a copywriter or media sales reps to give you tips on what worked well for their customers in the past.
Keep in mind; new businesses have to dedicate more time and resources to advertising early on—between 12 and 20 percent—than an experienced business.
10. Beware of false advertising
Before I wrap up this post, I want to note that your ads must always truthful. Otherwise, you could end up being accused of false advertising.
Here are five tips to avoid this fate:
(1) Avoid bait-and-switch advertising
The U.S. Federal Trade Commission defines “bait advertising” as “an alluring but insincere offer to sell a product or service, which the advertiser in truth does not intend or want to sell.” This scenario happens when businesses offer a cheap product and then up-sell the customer.
Your business intent determines whether or not a bait-and-switch scheme has happened. For example, sometimes a sales rep will make more money selling an unadvertised, more costly product. It could result in a false advertising claim.
(2) Stock enough inventory for advertised products
If you advertise a product, stock limited inventory, and attempt to up-sell the customer when demand exceeds supply, that’s usually considered false advertising. Be sure your stock meets reasonable demand for your products during a sale.
(3) Be careful with eco-friendly claims
In it’s recent Green Guides release, the U.S. Federal Trade Commission (FTC) determined terms such as “eco-friendly” and “green” are deceptive unless they’re “qualified in some manner.”
The FTC also said businesses must qualify terms such as “recyclable” and “biodegradable.” Make sure your advertising claims, wherever you sell your eco-friendly products, meet regional and national guidelines.
(4) Avoid false “going out of business” claims
Businesses occasionally plan a liquidation sale at the end of the year to motivate holiday shoppers to clear existing inventory. However, if your business isn’t closing or relocating, or exceeds time limits for concluding the sale, you could be charged with a penalty fee.
For example, in Washington state, a moving sale may not be advertised more than 14 days prior. Learn the laws in your region or country before pursuing a liquidation sale.
(5) Ensure your fine print supports larger claims
If your offer states a price or option in large type and then states a different option in small print, it’s another example of deceptive advertising.
Follow all rules of your country or region related to the size of fine print. For example, the New York City Department of Consumer Affairs requires “small print” in advertising to be no smaller than 10-point type.
Depending on how your industry is regulated, have your business lawyer review your campaign to make sure there isn’t something you might have missed.
Online advertising can boost small business success
Online advertising might seem overwhelming at first. However, once you understand the terms and test a few campaigns, you’ll begin to grasp how it works. It does require a time commitment and a willingness to learn, though.
Kick things off on one or two platforms and allocate a small budget to test them out. Identify what’s working and optimize your campaign based on early results.
As your business grows, you can test new platforms and placements and improve your website to convert and nurture your customer relationships.
Use the planning tools we’ve provided and don’t forget to frequently monitor results both through platform reporting and website analytics tools.
The more information you have about user behaviors and keywords that drive traffic to your site, the more informed your future campaign planning and strategies will be.