Short answer
- Paid advertising is any marketing where you pay a platform or publisher to show your message: search ads, social ads, display banners, video, local ads, even a billboard.
- The big split is demand capture (people already searching, like Google search ads) versus demand creation (people who weren't looking, like Facebook ads).
- Most local businesses should start with one channel, send it to a page built to convert, and track calls.
- Ad spend never replaces a good website and reviews; it multiplies them.
The main types of paid advertising
| Type | Where it appears | Intent of the viewer | Typical use |
|---|---|---|---|
| Search ads | Google and Microsoft results pages | Actively looking | Emergency or ready-to-buy services |
| Local Services Ads | Top of Google for some trades and services, where available | Actively looking | Contractors and home services in eligible categories |
| Social ads | Facebook, Instagram, TikTok, LinkedIn and others | Browsing, not searching | Offers, events, visual products, lead forms |
| Display and video | Websites, apps, YouTube | Mixed, often passive | Awareness and retargeting |
| Shopping ads | Google Shopping and marketplaces | Comparing products | Online stores |
| Offline paid media | Radio, direct mail, print, billboards, local sponsorships | Local, passive | Brand presence in a specific area |
If you're unsure how paid search differs from the unpaid kind, my guide on SEO vs SEM vs PPC untangles the terms. For Google's local trade ads, see Local Services Ads explained.
How you get charged
Platforms use a handful of billing models. Knowing them stops you comparing numbers that don't compare.
- CPC (cost per click): you pay when someone clicks. Common in search ads.
- CPM (cost per thousand impressions): you pay for 1,000 views whether or not anyone clicks. Common in social and display. See CPC vs CPM.
- Cost per lead: you pay per form or qualified contact. Used in Local Services Ads in eligible categories.
- Flat fee: a set price for a slot, like a mailer, a radio spot or a sponsorship.
Prices change by industry, location and season, and they shift constantly, so be careful with any article that quotes one "average" figure. My guides to Google Ads costs and Facebook ads cost explain what drives cost without pretending to know yours.
How to pick your first channel
Ask: what is the customer doing when they need me?
- Searching in a hurry (plumber, locksmith, urgent dentist): start with search ads or Local Services Ads where eligible.
- Scrolling and open to ideas (restaurant, gym, salon, boutique, event): start with Facebook and Instagram ads.
- Researching a big purchase over weeks (remodeling, legal, financial): combine search ads with a strong content and reviews presence, and consider retargeting.
- Selling products online: shopping ads plus retargeting, once your product pages convert.
Then ask about budget
A channel with a minimum workable budget beyond your means will disappoint you. If you can only spend a small amount, a narrow geographic search campaign or a single local social offer usually teaches you more than spreading thin across three platforms. My Marketing budget calculator helps you set a sensible figure to start.
Before you spend a dollar
- A page that convertsA clear headline, phone number, proof and one action. Paid traffic to a confusing homepage is the most common waste. See PPC landing pages.
- TrackingCalls, forms and bookings recorded as conversions. Without that, you're guessing.
- ReviewsVisitors check your Google rating before they call. A handful of real reviews improves every ad you run.
- An answering planIf nobody picks up or replies within the hour, you're paying to lose leads.
- A test budget and a stop ruleDecide in advance how much you'll spend over how long before judging results.
Measuring it honestly
Judge paid advertising on cost per real enquiry and, ultimately, cost per customer, not on clicks or impressions. A simple hypothetical: if you spend $600 in a month and it produces 12 calls, your cost per call is $50. If 4 of those calls become jobs, your cost per job is $150. Those figures are illustrative only; what matters is comparing them with what a job is worth to you.
Don't expect the first month to be perfect. The first weeks teach the platform and you which searches and audiences work. A good manager will refine, not just spend. If you want help, see my Google Ads management and Facebook & Instagram ads services, and nobody can honestly guarantee a specific number of leads.