What Is Paid Media? Definition, Benefits and Examples
In today’s busy media landscape, it may not come as a surprise that only 22% of communications leaders rate their teams’ ability to identify and collaborate with the right journalists as “excellent.” The next step is to figure out how to raise that number – and the answer could lie in paid media.
Owned, earned, shared, and paid media are all essential pieces of a public relations (PR) strategy. But the last one on that list may be the most effective at cutting through the noise and reaching your targets. So what is paid media? And how can PR and communications professionals use it to amplify their brand’s voice? Let’s find out.
What Is Paid Media?
The simplest definition of paid media is any type of advertising that you have to pay for. It encompasses a wide range of channels, from social media and display ads to pay-per-click (PPC) campaigns and sponsored content. Any platform that requires payment to place your brand in front of your target audience is considered paid media.
Paid Media vs. Earned Media
The main difference between paid media and earned media is that paid media involves monetary payment, while earned media is gained organically without direct payment. Earned media relies on sharing and word-of-mouth to generate content through third parties, like news outlets and influencers, so there’s less control over the content. However, it can reach a broader audience and audiences consider it trustworthy.
Paid Media vs. Owned Media
The main difference between paid media and owned media lies in the platforms used: Paid media uses third-party platforms, like social media sites or Google, while owned media exists on platforms that a company owns, like its blog and website. With both types, you have full control of the content, but you don’t have to pay for owned media placement the same way as paid media placement.
Examples of Paid Media Marketing
Paid media is a very popular strategy, and the landscape is always changing. To really understand the meaning of paid media, let’s look at the most popular channels.
Social Media Advertising
Social media is one of the most popular paid media channels because it offers sophisticated targeting options. These platforms can reach very specific audiences based on interests, behaviors and demographics.
- Facebook offers access to a broad range of demographics. Businesses can create targeted ads based on age, interests, behavior and more.
- Instagram is especially popular with PR professionals who want to reach influencers. Targeting capabilities are similar to Facebook.
- TikTok has seen a dramatic increase in users over the past few years and is important for reaching Gen Z audiences.
- X (Twitter) offers promoted tweets, accounts and trends to increase your brand’s visibility on the platform.
- LinkedIn is the platform of choice for advertising to professionals and other businesses.
- YouTube ads can be highly targeted and come in many formats, like skippable, non-skippable and watch feed ads.
Affiliate Marketing
With affiliate marketing, you pay affiliates (also known as publishers or partners) for driving traffic, leads or sales to your business. They earn a commission or a percentage of the revenue generated from the sales they refer to you. Affiliates most commonly advertise your brand using their:
- Blogs and websites
- Social media platforms
- Email newsletters
- YouTube videos
- Podcasts
- Review sites
- Comparison sites
Pay-Per-Click Campaigns
In a PPC campaign, you only pay a fee when your ad is clicked. PPC involves bidding on specific keywords relevant to your business or audience. The bid amount, along with things like ad quality and relevance, determines the ad's placement in search engine results or on websites within the ad network. The most popular PPC platforms are Google Ads and Bing Ads.
Display Advertising
The definition of paid media wouldn’t be complete without display advertising. Today’s display ads target audiences based on relevant browsing behavior and demographic information. Types of display ads include:
- Banner ads and animated GIFs
- Interstitial ads, which appear between content transitions
- Native ads, which match the look of their platform
- Sponsored content on a blog or website
- Promoted listings on e-commerce sites
Benefits of Paid Media in Digital Marketing
From small retailers to large enterprises to PR and comms professionals, the benefits of paid media are the same:
- Immediate impact: Unlike organic strategies, paid media immediately increases your visibility, quickly driving traffic, leads and conversions.
- Targeted reach: Paid media lets you segment your audience and tailor messages for them, so your marketing reaches the most relevant people.
- Increased brand awareness: Paid media campaigns can drive brand visibility and recognition, even in highly competitive markets.
- Measurable results: You can measure the effectiveness of paid media campaigns in real time and adjust as needed.
- High ROI: Paid media has a high ROI compared to other channels. One study estimated that PPC alone has a 200% ROI.
How to Build a Paid Media Strategy
Now that we’ve answered the question “What is paid media?” you’re probably wondering: How can I put this to work for me? Here’s how to develop a well-planned paid media strategy:
1. Define Clear Objectives
You’ll never know if your paid media campaign is successful if you don’t know what success looks like. Some of the most common key performance indicators (KPIs) include:
- Click-through rate (CTR): CTR measures the percentage of people who click on your ad after seeing it. A high CTR indicates that your ad is compelling and relevant to your target audience.
- Cost-per-click (CPC): CPC measures the average cost you pay for each click on your ad. A low CPC is best – it means you’re getting more clicks per dollar.
- Conversion rate: Conversion rate measures how many people take a desired action after clicking on your ad, like sharing your content or filling out a form. A high conversion rate means your ad is effective.
- Return on ad spend (ROAS): ROAS measures the revenue generated for every dollar spent on advertising. A high ROAS is the ultimate indicator that your campaign is successful.
2. Select Your Paid Media Channels
There are many paid media channels, so you’ll need to choose the platforms that align with your objectives and target audience. Google Ads, social media and other platforms offer unique targeting options and formats. Consider audience demographics, platform usage patterns and campaign objectives when making your selection.
3. Set a Budget
Determine your campaign budget and allocate resources based on the potential return on investment (ROI) and the KPIs you chose. You can also do some research to determine the standards for your industry. For example, 42% of marketers spend less than $50K per month on PPC, 39% spend between $50K and $500K, and 18% spend more than $500K per month. What’s right for you depends on the nature of your business.
4. Target Your Campaign
One of the biggest benefits of paid media is its ability to reach the right people. Each platform differs, but here’s a general breakdown:
- Demographic targeting: Target audiences based on demographics, industry or cultural indicators.
- Geographic targeting: Specify locations where you want your content to appear, including international distribution.
- Interest targeting: Strategically place your message in front of audiences with specific interests or behaviors.
- Retargeting: Reach audiences who have previously interacted with your website or app.
- Look-alike audiences: Target new audiences who share similar characteristics with your existing customers.
- Custom audiences: Upload lists or use website data to create custom audience segments.
- Keyword targeting: Target audiences based on their search queries or content they engage with.
5. Develop Compelling Ad Creative
In one study, 79% of CMOs agreed with the statement “In a world where advertising is easier to ignore, it’s more important than ever to entertain and engage.” They’re right:Content that resonates with your target audience is the foundation of success for any paid media campaign. Tailor your messaging to address pain points, highlight what makes you unique and include strong calls-to-action that make them want to engage.
6. Launch, Monitor and Optimize Performance
Each paid media channel has its own requirements for launching ads. Then, you’ll want to track the KPIs you decided on in the first step. Identify underperforming ads or audience segments and make data-driven adjustments as needed. And don't forget to use A/B testing to optimize your visuals, targeting options and messaging.
Get Your Message Out with Paid Media Solutions
Ultimate, what is paid media for PR professionals? It’s the ideal way to get your story in front of the right audience, whether they’re across town or around the world. It’s a strategy that can maximize the visibility of your press releases and connect engagement to measurable outcomes.
PR Newswire knows the power of paid media. We offer solutions like Guaranteed Paid Placement and Strategic Media Placement to help PR professionals amplify their message, increase engagement and drive business results and ROI. Speak to an expert today to learn how we can work together to further your impact.
Paid Media FAQs
What is an “always on” paid media strategy?
An "always on" paid media strategy is a marketing approach that involves continuously running campaigns across various channels. Unlike strategies that have defined start and end dates, an always on strategy maintains a consistent and ongoing presence in front of the target audience, regardless of other marketing initiatives or promotions.
Can small businesses benefit from paid media?
Absolutely. Paid media platforms like Google Ads and Facebook Ads let small businesses set minimal budgets and only pay when users engage with their ads, making them more cost-effective than other channels. Paid media platforms also offer small businesses flexibility and control over their messaging, targeting and budget.
How much should I budget for paid media?
Your paid media budget depends on your business size, industry, marketing goals and the specific channels you choose. In general, a business’s overall marketing budget is 8% to 12% of its revenue, and paid media makes up about 25% of the overall budget. Start small, measure results and adjust your spend based on performance.
Ready to take your story or campaign to new heights? Let PR Newswire help you achieve unmatched visibility and reach.