Category - Paid Digital Marketing

What are the Pros and Cons in Paid Digital Marketing?


In recent report published by Rebecca Lieb and Jeremia Owyang, they’ve explained digital marketing in a new light. They combined three digital marketing , paid, owned and earned and came up with “converged media.”


In the recent years, it has been seen that the popularity of owned and earned digital marketing have drastically increased; whereas the paid digital marketing has lost its old glory.

Even if it seems that paid digital marketing has less potential convertibility according to many digital marketers, is it the reality?

In this article, we will critically analyze paid digital marketing and will find out the chief advantages and disadvantages.

Let’s get started.

Advantages of Paid Digital Marketing

This is the age of permission marketing. Thus many digital marketers feel that paid digital marketing may take away the permission from the dictionary of marketing. But reality is something else. If you’re one of those who believe that paid digital marketing doesn’t work, look at the following advantages –

Highly targeted ads: Contrary to popular belief that paid digital Marketing is robbing off the privacy of customers, paid digital marketing only shows relevant ads to people. Unlike traditional advertising, it doesn’t throw generalized ads on public. They pick and select the most relevant ads to people who are most interested in that topic. As an example, let’s have a look at the paid ads in the image below


Tracking ROI would be easier: As you will only pay for the ads when they would be clicked, it would be easier for you to track spending and you will also be able to find out how much return on investment (ROI) you have got. For example, if a company invests $200 per month on paid ads and they set their maximum pay per click as $0.50, there could be maximum 400 clicks in a month. If only 1% converts at a sale price of $100 per sale, the total sales would be $400 a month. That means the return on investment is –

ROI = Total Return/Investment*100 = $400/$200*100 = 200%.

Top placement: Paying helps. You know that there are no free lunches, thus if you pay for your marketing, it will definitely help. In paid digital marketing, you would be able to appear ahead of your competition. More you will pay, better would be your reach to the relevant audience. Your success rate depends on the placement of ads. If your ads are on the top, then your conversion rate will increase as consumers click more on the top.


Disadvantages of Paid Digital Marketing

There are also some demerits. Let’s look at them.

Paid digital marketing is expensive: You will get the maximum benefits from paid ads when it’s on the top of the page. But to do that you need to pay a lot more than you can ever think. Thus only giant companies who have prodigious budget to invest on paid digital marketing go for it. Small businesses look for ways to integrate owned, earned and paid digital marketing.

Avoidance of general audience: Even if, paid digital marketing works when you have a big budget, general audience ignores paid ads. This is not good news for people who rely solely on paid ads. Many people tune off the ads because they don’t like them. This is the age of permission marketing and people don’t like ads when they search for stuffs.

So what would be the solution? Should we go for paid media? The best solution depends on the type of firm you are and the budget you have. If you’re a big company and have a hefty budget, you can rely solely on paid digital marketing, but if you’re a small business and trying to spread the word or to make the sale, it’s better to go for converged digital marketing strategy.


Having said that, paid digital marketing works only then, when you associate with a marketing firm who can walk the talk for you.

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