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When it comes down to paid advertising, the only one thing that matters for marketers is the ROI. You can say Return on Investment.

But today in this competitive world, marketers are facing difficulties in reaching out to the new customers. They don’t know which paid advertising options can earn their business maximum ROI.

So in this blog post, we will shed light on some of the B2B paid advertising option and their ROI and see how they could be a good choice for your business.

1. Display Advertising.

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Display advertising is a form of websites advertising. It contains information in the form of text, image, flash, video, and audio. The main purpose of these ads is to deliver a brand message to the site visitors.

According to Google, the most effective display ads are 336×280 or 300×250 pixel rectangles, 300×600 pixel half-page ads, and 728×90 or 320×110 pixel banners.

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Types of Display ads

1. Banner Advertising

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Banner ad appears on the side, top, and bottom sections of websites. Due to the standard size of 468 X 60, banner ads stands out noticeable on websites.

In banner ads, you will find news based on websites, brands, blogs, and specialized web communities.  These ads can be effective to those target customers who are actively searching for something new.

2. Google Display Network

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The Google display network is a collection of partner websites and specific google websites- including Google Finance, Gmail, Blogger, and YouTube that shows google display ads.

Pricing Methods Of  Display advertising

Pricing methods of Display advertising are classified into four categories:

1. Cost Per Click (CPC)

Here the advertiser pays the publisher, every time the visitors click on the ads.

2. Cost Per Impression (CPM)

The advertiser pays the publisher for every 1000 impression of its ads.

3. Cost Per Acquisition (CPA)

The advertiser pays the publisher for every acquisition or action made by the users. For example, Impression, Click, form submission (e.g., contact request, newsletter sign up, registration etc..)

4. Flat Fee

An amount of money advertiser pays the publisher for specific placement of ads. For example, an advertiser might buy a “home page takeover” for a flat fee of $1,000 per day.

ROI Of  Display Advertising.

The first display advertising by hotweird achieves a 44% click through rate. Extremely, high as compared to today’s average rate of 0.1%.

According to comScore, more than 5 trillion display ads has seen by US consumers in 2012.

A study from iProspect reveals that online display ads are still popular:

  • 31% respond by directly clicking on an ad
  • 27% respond by searching for the product, brand, or company by launching a search on a search engine
  • 21% respond by typing the company Web address into their browser and directly navigating to the website, and
  • 9% respond by investigating the product, brand, or company through social media venues
  • Overall, 52% of Internet users actively respond IN SOME WAY to online display advertising.

Here are some other statistics of display advertising.

1. Overall placement of display ads.

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This data shows that the overall placement of display ads is 0.17%, which is very low 2 click per 1000 impression.

2. A study reveals, standard banner ads and mobile display ads have a click-through rate of 0.12% and 014%.

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3. A study shows that traditional full banner ad format performs very poor as compared to other ad formats.

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Are Display ads right for your business?

Only, when you use correctly. It can bring success for your business, which you can never imagine off.

Plus, it will bring you vast audience reach, increase your brand awareness and helps you in nurturing the leads for your business.

Do you know?

With display advertising, Heineken Light achieved an 11.7% increase in brand awareness. Plus, it reached 35 million people within three days.

To unlock these benefits, you need to first spend time on planning and researching.

2. Pay Per Click Ads

Pay Per Click Advertising is a great way of increasing traffic for a business. In pay per click advertising, the advertiser pays the search engine every time the visitor click the ads and visit their website.

Type of PPC Ads

1.Adwords advertising

Adwords advertising is one of the best platforms of PPC Ads. In this advertising, advertiser bids on the keywords and pay for each click whenever the visitor clicks on ads.

This advertisement allows the advertiser to reach a potential customer at a cost that fits their budget.

2. Bing Advertising.

Same like Adword ads, Bing ads also provides pay per click advertising on both bing and yahoo search engine where the advertiser pays a maximum amount to show their ad on the search engine.

It also provides a demographic option, which allows the advertiser to target customers by their gender, age, location, languages known, and annual income.

Pricing Methods Of  Pay Per Click Advertising.

1. Percentage Spend

The Percentage spend is one of the most common pricing models of PPC Advertising. In this, a minimum price is set for advertising. Usually, a company or agencies charge a certain amount of minimum fee, but if the ad spends increase then you’ll charge around 10% of the ad spend.

For example, you will charge a flat minimum of $1000 in starting, but once your ad spends reach over $10,000 in a month then it will flip to a 10% fees.

2. Fixed Fee

This pricing model works for those companies who have fixed amount of money to spend on advertising. In simple word, you pay a fixed amount of money to PPC agencies every month based on your ad spend.

For example, you’ll pay one fee if you spend between $0-1000, another from $1001-2000, and so on.

3. Pay Per Leads

In this pricing model, you pay solely on the result which you want to achieve. For example, You may pay the company $ 5 for each phone call or email you receive from the campaign or you could pay them 5% of each sale generated from the PPC campaign they manage for you.

4. Revenue Share

This pricing model is little different from pay per lead. In this model, you pay a percentage of the revenue generated from the sale as opposed to a fixed amount. Here the overall fee of the PPC Company depends upon your business success.

ROI Of  Pay Per Click Advertising.

In march 2006, ComScore study for Google reveals that 63% of consumer who does online searches actually, buy the product.

This means the ROI of PPC ads are higher.

1. Data from Sitewit shows that “the top 3 paid ad spots get 41% of the clicks on the page.” And, on average, businesses earn $2 in revenue for every $1they spend on AdWords.

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2. 72% of Adwords marketer plan to increase their PPC Budget. This data shows that the businesses are generating positive ROI from PPC advertisements.

3. The average Click-Through Rate of the ad on the first page of google search result page has been range from 8.0% to 0.2% for positions 1 to 10, with an average click-through rate of 3.16%.

Are PPC Advertising right for your business?

PPC advertising work for any type of business who are looking to generate sell from an e-commerce website, want to build brand awareness, or even for those who want to drive foot traffic for their local store.

PPC advertising offers two unique opportunities for your business.

  1. Grow your customer base.
  2. Generate leads at low cost.

So, if you want to use PPC campaign for your business then, you need to answer this question first.

  1. What is the purpose of using PPC campaign for your business?
  2. what is your target audience?
  3. How much money will you spend on your budget?

Twitter Advertising

Twitter ads are the marketing solution designed for those people who want to achieve their business goals. It helps people by following ways.

  1. Create a campaign based on the variety of business goal, which will increase your website traffic.
  2. It keeps your business in front of those people who have shown interest in doing business with you.

Types of Twitter ads

Twitter ads are flavor by three ingredients:

1. Promoted Tweets

Promoted Tweets are ads or message that appears directly on the timeline of twitter users and at the specific time which you have bid on.

2. Promoted Account

Promoted account invites twitter users to follow your brand. Advertisers use this ad to attract more followers to their brand.

3. Promoted Trends

In twitter Promoted Trends allows you to put your story at the top of that list for 24-hours.

Pricing Methods Of Twitter Advertising.

The Cost of twitter ads depends on the ad type, which you will use in your twitter campaign. Remember, there is no exact price of twitter ads.

Here are some pricing method of Twitter ads:

1. Website click

In this, you will charge for those click to your website which has come through the twitter campaign. And in this, other action and engagement are free like impression, replies, and retweets.

2. Follower campaign.

In this pricing model, you will only charge for the follow that you acquired from this campaign.

3. Tweet Engagement Campaign.

You will only charge for engagements on your Promoted Tweets.

4. App Engagement campaign.

You will only charge for click and installation of your app and all other action and engagement are free here.

5. Lead campaign.

You will only charge for the lead which you acquired from the twitter campaign.

ROI Of  Twitter Advertising.

1. According to the study of RBC and advertising age, nearly 80% of the US marketers were using promoted tweets, up 44%from 2013.

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2. The Average cost of Twitter CPM is $ 3.50, quite higher then facebook platform.

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3. Promoted tweets saw an average cost-per-click (CPC) of $0.29 in 2014, with a CTR or engagement rate of 1-3%.

4. While it experiences a higher CTR than Facebook, the revenue per visitor is only $0.44to Facebook’s $ 0.93.

5. Promoted Trends on Twitter provide a 22% lift in brand conversion, a 30% lift in positive mentions and a 32% lift in retweets, but they can come at a cost of more than $200,000 a day.

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6. 79% of B2B marketers who use Twitter generate, on average, twice as many leads as those who don’t.

Are Twitter ads right for your business?

Here are some reasons which will show whether twitter ads is right fits for business or not:

  1. Twitter ads have the power to gain visibility of your brand by using it’s promoted tweets weapon which will display your products and service message at the top of your potential customers’ Twitter feed.
  2. It can grow brand follower quickly by using promoted account.
  3. By using Twitter ads, you can easily collect the name and email list of potential leads which will help you in growing your business.

Linkedin Advertising.

Like Adwords, Bing and Twitter ads. Linkedin ads also provide options for placing ads. Users who click your LinkedIn ads are taken to your websites.

Aside from small display ads you can also do rich-media display ads, targeted InMail, and polls.

A study reveals that 83% of B2B marketers use LinkedIn to distribute content. The reason behind this popularity is that LinkedIn provides a path to target professional and business people rather than general public.

Types of Linkedin Ads.

1. Premium Display Ads

This ad allow you to share content with a targeted audience through display ads.

2. Email Marketing via Sponsored InMail

This ad delivers sponsored content directly to LinkedIn user inboxes.

3. Direct Sponsored Updates

Direct Sponsored updates show your updates directly into the LinkedIn timelines of your target audience.

Pricing Methods Of  Linkedin Advertising.

Linkedin pricing methods are based on cost per click model or by cost per impression. However, LinkedIn has set a minimum budget of $10/day for users of their ad platform.

There are also minimum bids for CPC text ads ($2.00/click) and CPM text ads ($2.00/1,000 impressions). Sponsored Update minimum bids will vary based on the audience you choose.

ROI Of  Linkedin  Advertising.

1. A survey from the state of inbound marketing, 65%of B2B companies have acquired a customer by using LinkedIn and its ad features.

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2. HubSpot reveals that LinkedIn has highest visitor-to-lead conversion rate at 2.74%—2.77% higher than Twitter (.69%) and Facebook (.77%).

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Are Linkedin ads right for your business?

Now, you understood what ROI Linkedin ads can generate. It’s time to figure out if this platform is a good fit for your business or not.

First, you have to find the answer to this question.

  1. Do you know the job titles of your target audience?
  2. Where your target audience work?
  3. Do you know the unique skill or interest of your target audience?
  4. What type of role your target audience hold at the company?

If you have an answer of this question then LinkedIn ads will be a good choice for your business.

Conclusion:

By using this paid advertising, you can easily earn the maximum ROI for your business. But, only when you have a perfect plan of executing this paid advertising option. So you will need a plan, if you want to earn the profit for your business.

“The majority of men meet with failure because of their lack of persistence in creating new plans to take the place of those which fail.”  

                                                                                      –Napoleon Hill