How to set up a paid advertising campaign

Paid advertising is among the most effective means of getting people to notice your small business.

That said, if you're just starting out, the prospect of running a paid ad campaign may seem intimidating – particularly if you're operating on limited funds.

The best part? With some planning and clever techniques, you can create a campaign that delivers without draining your bank account.

This blog will guide you through the process of setting up paid ads, with a focus on providing practical, actionable tips for small business owners like you.

Getting the fundamentals of paid advertising right

Paid advertising – also known as pay-per-click (PPC) or online ads – lets you advertise your products or services on the likes of Google, Facebook, TikTok and Instagram.

The beauty is in its flexibility: You dictate the budget, target market and how long your campaign runs for. Paid advertising has instant visibility over organic marketing.

For small businesses, channels such as Google Ads (perfect for search intent) and social media advertising (perfect for visually engaging audiences) are especially popular.

The best platform will come down to your business objectives and target customers, which we'll explore in more depth below.

Learn more about the basics:

• What is paid advertising? A brief guide

Setting up your first paid advertising campaign

Step 1: Determine your budget and goals

Before you spend anything, think about what you want to accomplish. The following are some typical objectives:

• Driving website traffic: Attract more visitors to your site.

• Increasing sales: Publicise certain goods or services.

• Establishing brand recognition: Get more people to know who you are.

After setting your objectives, decide how much you're willing to invest. If budget is a constraint, begin modestly.

Spend £50 to £100 on your initial campaign and track the performance before investing any more.

Keep in mind that with platforms such as Facebook (Meta) Ads, you can set daily limits at as low as £1.

Common pain point: Stressing over budget

Solution: Begin with a limited budget and target high-intent keywords or audiences that are most likely to convert.

Test campaigns step by step instead of investing too much at the beginning.

Step 2: Research your audience

Whether your paid ads campaign is profitable hinges on you targeting the right people. After all, you don't want to pay for clicks from individuals who won't buy your product.

Begin by determining your perfect customer:

• Demographics: Age, gender, location and income.

• Interests: Preferences, hobbies and behaviours.

• Needs: What's the problem that your product or service solves?

Use tools like Google Analytics and Facebook Audience Insights (in Meta Business Suite) to find data about your existing customers.

If you're not sure where to start, experiment with creating audience personas to try to visualise who you're targeting.

Common pain point: Uncertainty about your audience

Solution: Use what you learn from free sources to optimise your audience targeting. Even minor adjustments – such as targeting location to "within 10 miles of my shop" – can yield a return on investment (ROI).

Step 3: Select the appropriate platform

Advertising platforms do different things, and the right choice for you depends on where your target audience spends its time.

Here's a brief rundown of the well-known platforms:

• Google Ads: Ideal for targeting users actively looking for your product or service (for example, "plumber near me").

• Facebook Ads: Ideal for engaging an audience through visual content and building brand loyalty.

• Instagram Ads: Ideal for promoting visually oriented merchandise to younger users.

• LinkedIn Ads: Ideal for B2B companies focusing on professionals.

Common pain point: Buried by choices

Solution: Begin with one platform that's grounded in your audience's preferences.

For example, an upscale bakery may flourish on Instagram, whereas a local accountant may achieve greater success with Google Ads.

Step 4: Develop compelling ad copy

Content is king, even in paid advertising. Your ads must capture attention and move potential customers to take action.

Here are the most important elements of an effective ad:

• Headline: Make it concise, pertinent and eye-catching.

• Visuals: Incorporate high-quality videos or images that reflect your brand.

• Call-to-action (CTA): Ask viewers to do something (like "Shop now" or "Get a free quote").

For instance, a local florist might design a Facebook ad with a beautiful bouquet image, a heading such as "Fresh flowers delivered to your doorstep" and a CTA button that says "Order now".

Common pain point: Difficulty in producing content

Solution: Use free tools such as Canva to create visually appealing graphics, and A/B test versions of your advertisements to determine what works.

VIDEO: Using social media ads to reach more customers

Marketing experts Niki Hutchison and Jonny Ross explain how to use digital marketing and social media advertising to reach more customers and grow your business: 

Step 5: Setting targeting options

Most sites permit you to narrow down your audience by using targeting features like the ones below:

• Location: Identify target customers near your business.

• Demographics: Target by age, sex and other.

• Interests and behaviours: Target people interested in the same products or services.

For example, if you run a gym in Manchester, you can target users between the ages of 18 and 50 within a 10-mile radius who have an interest in fitness.

Common pain point: Fear of targeting incorrectly

Solution: Begin with a wide audience and then narrow it down based on performance metrics. Most platforms provide audience recommendations to lead you.

Step 6: Launch and monitor your campaign

Once you've got your campaign up and running, it's time to launch.

Monitor its performance closely, especially in the first few days. Look for metrics like these:

• CTR (click-through rate): Calculates how frequently people click your advert.

• CPC (cost per click): Measures what you're paying for each click.

• Conversions: The ultimate objective – sales, sign-ups or any other action intended.

Tools such as Google Ads Dashboard and Facebook (Meta) Ads Manager give you in-depth information that helps you measure your success.

Common pain point: Struggling to comprehend metrics

Solution: Start with one or two important metrics at a time (such as CTR and conversions) so you don't feel overwhelmed. Use tutorials or guides from the platform to read data.

Step 7: Adjust and optimise

No campaign is ever fully complete from the beginning. With the performance data at your fingertips, start optimising by:

• pausing ads that aren't performing

• testing new headlines, images or CTAs

• adjusting targeting based on audience behaviour

Regular optimisation like this is the key to boosting ROI over time.

Common pain point: Exasperation with poorly performing ads

Solution: Don't give up! Review what is and isn't performing. Making minor adjustments, such as adjusting a headline or targeting the audience, will have a significant impact.

Key takeaways

Using the steps above, you can develop a paid ads campaign that fits your business objectives and budget.

Start small, focus on learning what works and don't be afraid to experiment. Remember, the beauty of paid advertising is its flexibility – you can refine and improve as you go.

Through the power of internet marketing, you'll not only be able to acquire more customers but also discover what drives your business.

So what are you waiting for? Set up your very first paid advertising campaign today and see your small business thrive!

Relevant resources

• What is paid advertising? A brief guide

• Paid ads: How to make them effective – on a budget

• Lunch and Learn: Master your marketing with PPC advertising