Online advertising guide: features, ad formats, pricing and payment methods

Online advertising provides small and medium-sized enterprises (SMEs) with an affordable means to connect with their target audience and enhance brand awareness. This article analyses and compares the features, ad formats, pricing, and payment methods of the four major online advertising platforms: Google Ads, Instagram, Facebook, and YouTube. Keep reading to discover how you can earn cash rebate by using Airwallex’s AdPlus Borderless Visa card for your ad campaigns.

Online advertising platform: Google Ads

Google Ads boasts a vast user base and leverages advanced Google AI technology to identify the most effective ad formats. With its precise targeting capabilities and effective customer engagement strategies, it has become a primary marketing tool for SMEs.

Features of Google Ads: Businesses can tailor their ads based on keywords, geographical location, interests, and preferences. Additionally, they have access to comprehensive statistical and analytical tools for real-time monitoring of ad performance. This allows businesses to adjust their strategies to maximise returns.

Ad format of Google Ads are as follows:

1. Search ads: Companies place bids on keywords to have their ads displayed prominently at the top or sidebar of search results pages, using formats such as images and short videos. This strategy effectively targets users who frequently search for the product or service on Google, thereby boosting sales volume.

2. Multimedia ads: When users browse the internet, check Gmail, or use apps, multimedia ads are displayed to the target audience, thereby enhancing the visibility of the brand and its products.

3. Shopping ads: Google effectively captures consumers' shopping behaviors, accurately presenting online and offline store information to enhance website traffic and increase physical store visits.

4. Video ads: Reach potential customers watching or searching for videos on YouTube, promote videos to the right audience, and remarket to customers who have previously seen the ads.

5. Mobile app ads: Promote a company's mobile app on platforms such as Google Search, YouTube, and Google Play.

Fees and pricing models of Google Ads: Google shows ads based on a bidding system. When ad space becomes available, Google Ads runs a bidding process where businesses place bids to compete for that space. The outcome of each bid determines which ads are displayed at that moment. Here are the main pricing models:

1. Cost-per-click (CPC): This model applies to search ads and multimedia ads, where businesses are charged for each click on their ad, applicable to "Search Ads" and "Multimedia Ads." For CPC bidding campaigns, businesses have the option to choose between manual bidding (setting bid amounts themselves) or automatic bidding (where Google sets the highest bid to optimise clicks within the ad budget).

2. Cost-per-thousand impressions (CPM): Businesses pay per 1,000 views. For multimedia ads, businesses pay based on the number of times the ad is displayed, not clicked.

3. Cost per action: Businesses pay once the required actions are completed by a customer (also called successful conversion). The action is typically a purchase or registration.

Online advertising platform: Youtube

Features of YouTube Ad: YouTube boasts over 2 billion monthly logged-in users, who together watch more than 10 billion hours of videos daily. The platform uses demographic data like age, gender, location, interests, and life events to display ads at optimal times. Moreover, businesses can enhance user engagement by incorporating interactive features such as buttons and forms into their YouTube ads.

Ad formats of YouTube Ad: Various video ad formats are available, including skippable and non-skippable in-stream ads, in-feed video ads, bumper ads, Youtube Shorts ads, masthead ads, and sponsored content. While specific formats may require hosting YouTube ad assets and have limitations on video length, these ads are strategically positioned on both YouTube and Google's video partner sites and apps to maximize reach.

Fees and pricing models of YouTube Ad: YouTube, being a subsidiary of Google, has a pricing model similar to Google Ads. However, users are required to set a monthly ad budget and can pause or adjust it at any time. The ad charges depend on the chosen bidding method below:

1. Cost per thousand impressions (CPM): Charged based on every thousand ad views.

2. Cost per click (CPC): Charged based on each click.

3. Cost per action (CPA): Charged based on each successful conversion.

Online advertising platform: Instagram

Instagram has emerged as an immensely popular social media platform in recent years, renowned for its Stories feature that vanishes after 24 hours. It has become a go-to social platform for the younger generation.

Features of Instagram: Instagram focuses on visual content, with users sharing and commenting on posts of interest. Stories are where users share a quick snap of daily life moments, making it a prime spot for advertisers. In 2023, Instagram was downloaded 767 million times globally, making it the most downloaded app worldwide, with nearly 1.5 billion monthly active users.

Ad format of Instagram：The ad format is subject to the type of ad placement. For instance, image ads can be displayed in square, landscape, or portrait formats, while video ads appear in square or landscape formats. Instagram Stories and Reels typically support full-screen vertical content. These ads are primarily shown in users' feeds, Stories, within the accounts they follow, and under relevant hashtags. All ads will be clearly labeled as "Sponsored."

Fees and pricing models of Instagram: To advertise on Instagram, businesses need to set a budget, specifying the daily or overall expenditure for the campaign, which must run continuously for at least 7 days.

For example, if a user sets a maximum monthly spending of $100 but only utilises $70 due to ad performance, Instagram will only charge $70. Ad pricing is determined by a bidding system that integrates bids, estimated action rates, and ad quality to calculate the overall value. The ad with the highest total value wins the bid, and placements are determined based on bidding and performance metrics. 

The types of bidding are:

1. Spend-based bidding: Focuses on spending the entire budget to achieve maximum ad performance or revenue.

2. Goal-based bidding: Setting a cost per result goal or return on ad spend (ROAS) goal.

3. Manual bidding: Setting the maximum bid for each auction.

Fees on Instagram ads are only generated based on clicks or impressions generated by the ad.

Online advertising platform: Facebook

Features of Facebook: As the world’s largest social media platform, Facebook engages a staggering 1.2 billion daily users and reaches up to 3 billion individuals monthly, spanning a wide range of ages, professions, and interests. Its powerful social connectivity features and seamless integration with Instagram foster frequent user interactions, boosting brand visibility for businesses. By harnessing extensive user behavior and interest data, Facebook facilitates precise ad targeting, enhancing advertising effectiveness.

Ad format of Facebook: Businesses can choose from video, images, texts, or a combination of these three elements. Each with specified guidelines, ad formats include: photo, video, Stories, Messenger, carousel content, slideshow, and collection ads.

Fees and pricing models of Facebook: Since both Facebook and Instagram are part of Meta, they share the same ads pricing and models. Customers need to set a daily or lifetime budget for their campaigns, with ads running continuously for a minimum of seven days. The actual charges will either match or be lower than the customer's bid. For further details, please refer to the explanation previously provided for Instagram.

Comparison of pricing models across various advertising platforms

Binding payment methods and management

The four major advertising platforms introduced above each have the following binding payment methods:

For Google Ads and YouTube, you can use credit cards and debit cards with Visa, MasterCard, or China UnionPay logos. Simply log into your account, go to "Billing" under "Payment Methods," click on "Add Payment Method," select the appropriate payment method, and fill in the details.

For Instagram and Facebook, you can use Paypal and credit or co-branded debit cards (including American Express, Mastercard and Visa). First, click on "Billing and payments" in the left menu of the settings page in Business Manager, then select "Payment Method". Click the add button next to add your preferred payment method and enter the details. 

Place your ads with AdPlus Borderless Visa Card and enjoy up to 1.1% cash rebate rewards

Regardless of the advertising platform you choose, consider using the Airwallex’s comprehensive financial and transfer platform with AdPlus Borderless Visa Card to cover your advertising expenses. 

New eligible customers receive a 1% cash rebate on both local and international transactions, plus an unlimited 1.1% cash rebate if your advertising costs surpass HK$10,000 within the initial 90 days. This means that your ad spending can generate rewards, cutting operational costs and indirectly lowering your CPM/CPC rates!

Additionally, the AdPlus Borderless Visa Card serves as a corporate card, featuring complimentary card issuance, immediate online activation, and the ability to support payments in 140+ currencies with zero foreign transaction fees. Employees can manage business expenses in various currencies, online or offline, at any Visa-accepting locations, eliminating upfront digital advertising payments and subsequent reimbursement processes.

*Terms and conditions apply.

Frequently asked questions

1. What online advertising platforms are available for SMEs or startups?

You can choose to advertise on four major online platforms: Google Ads, Instagram, Facebook, and YouTube. Each platform reaches different target audiences, allowing businesses to select the most suitable one for their needs. 

2. What payment methods do online advertising platforms accept?

Online advertising platforms generally accept credit cards, debit cards with Visa, MasterCard, or UnionPay logos, and PayPal. Businesses can also use company cards, such as the Airwallex AdPlus Borderless Visa card, to pay for advertising expenses and earn up to 1.1% cash back.

3. Which company card offers cash rebate for advertising expenses?

The Airwallex AdPlus Borderless Visa card offers up to 1.1% unlimited cash back. Apply for free now to enjoy this benefit if the advertising expenses exceed HK$10,000 within the first 90 days of account opening. Terms and conditions apply.