Sponsored ads, also known as pay-per-click (PPC) ads, are a form of online advertising in which businesses pay a fee each time one of their ads is clicked. These ads are typically placed at the top or bottom of a search engine results page (SERP) and are marked as “Sponsored” or “Ad” to distinguish them from organic search results. Sponsored ads can take many forms, including:

• Marketplace Sponsored Ads: These ads target specific shopping keywords or search terms and blend in seamlessly with the retail media environment in which they appear. They are usually indistinguishable from the content a visitor has come to that website to find.

• Social Media Sponsored Posts: These are paid-for posts on social media platforms that appear in users timelines and blend in with other posts from users that target customers follow online. Sponsored posts can be used to start a social media conversation, build customer engagement, generate a contact list of target customer leads, and achieve key B2B marketing objectives.

• Amazon Sponsored Products Ads: These ads are a type of Amazon pay-per-click (PPC) advertising that allows sellers to bid for particular keywords to gain maximum exposure within Amazon search results. Sponsored Products ads’ on-page prominence and likeness to an organic listing thumbnail make them particularly enticing.

Sponsored ads work through a bidding process. Advertisers set a budget for their campaign and bid on keywords that are relevant to their business. When a user searches for one of these keywords, the sponsored ad with the highest bid is displayed at the top of the SERP. If the user clicks on the ad, the advertiser is charged the amount of their bid.

There are several benefits to using sponsored ads as part of a digital marketing strategy, including targeted reach, measurable results, and flexibility.