What is Paid Advertising and How Does it Work?

Kristina Abbruzzese

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Ever feel like organic marketing is just shouting into the void? You post, you pray, and if you’re lucky, the algorithm throws you a pity like.

Paid advertising? That’s your shortcut. Your fast pass. Your “stop scrolling and look at me” moment.

If you’re trying to grow your business without waiting around for organic reach to kick in sometime between now and the heat death of the universe, this blog is for you. You’ll walk away knowing what paid advertising is, how PPC works, and how ads are actually structured, without needing a dictionary or a digital marketing degree.

Let’s clear the fog.

So, What Is Paid Advertising?

The gist:
Paid advertising is when you pay platforms like Google, Meta, LinkedIn or YouTube to get your stuff seen. Instead of waiting for your content to organically reach the right people, you pay to put it directly in front of them.

Why it matters:
You get eyeballs. Fast. And not just any eyeballs, qualified ones. People searching for what you sell. People who’ve already checked out your site. People who don’t even know they need you yet, but will the moment they see your ad.

How it works:
You create an ad, set your audience (by interest, behaviour, keyword, demographic etc), pick your budget, and launch. The platform shows your ad based on your criteria and you pay based on the type of campaign, usually per click, view or conversion. More on that in our breakdown of paid advertising cost.

Still with me? Cool. Because this is where PPC comes in.

What is PPC (Pay-Per-Click)?

The gist:
PPC is a model where you pay only when someone clicks on your ad. Google Ads is the MVP here, but PPC also happens on Bing, Meta, LinkedIn, Pinterest, even TikTok.

Why it matters:
You’re not paying for impressions or vague “brand awareness”. You’re paying for action. Someone clicked because your ad spoke to them. That’s intent, and intent is where conversions start.

How it works:
Each time someone searches a keyword you’re targeting, Google runs a little auction behind the scenes. Your ad competes based on:

  • Your bid (how much you’re willing to pay per click)
  • Your Quality Score (how relevant and useful your ad is)

Better ad quality = lower cost. Not everything is pay-to-win. For more on performance tracking, head to how to measure paid advertising effectiveness.

How Paid Ads Are Structured

The gist:
Ads aren’t just pretty pictures and persuasive copy. They’re built to hook, hold, and convert. And different platforms have different flavours. Google is all about text. Meta is all about visuals.

Most paid ads include:

  • A scroll-stopping headline
  • Short, emotional body copy
  • A direct call to action (Buy now, Learn more, etc)
  • A strong visual or video
  • A link to a high-converting landing page (never just your homepage, please)

Why it matters:
People scroll fast. You’ve got seconds to make them stop, click and care. The right structure makes that happen. The wrong one? Wasted budget, no conversions, sad marketer.

Want more on this? Check out why your ads are getting clicks but not converting into sales and A/B testing in paid ads to optimise your creative and copy.

Final Thoughts: Is Paid Advertising Worth It?

If you’ve been relying on organic reach alone, paid ads might feel like a cheat code. That’s because, when used right, they kinda are. But they’re not magic. They’re tools, and tools work best when you know how to use them.

From picking the right platform for your business, to understanding retargeting, to deciding whether to DIY or hire an agency, we’ve got you covered.

Check out the full series to get the big picture, or start with how to set your paid ads budget so you don’t blow it on day one.

Next up: How much does paid advertising cost?

Want the bigger picture? Start here: Paid Advertising.

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