PPC ads are hard to ignore, as PPC visitors are 50% more likely to convert than organic traffic. But which ad type works best for your business? If you are new to PPC, you will discover 10 of the most common types of PPC advertising and learn how each can help you hit your marketing goals in 2025!
Contents
9 Types of PPC Advertising
Pay-per-click ad comes in many forms, and each serves a different purpose depending on your goals. Below are 9 common types of PPC advertising you should know in 2025:
1. Search Ads
This is the most common PPC format, ideal for high-intent users. People clicking search ads are 50% more likely to convert than those coming from organic search.
They show up as promoted texts when someone types a keyword into a search engine like Google or Bing. These ads appear at the top of the search results page with a small “Ad” label.
Therefore, search ads are used to target people who are actively looking for something, like “best running shoes” or “plumber near me”.
How It Works
First, suitable keywords are selected based on the products advertised. Then, when a user searches these terms, a corresponding ad may appear on the results page. This is an economical option for reaching really high-intent audiences since you only pay when someone clicks on the ad.
Furthermore, it also allows you to adjust the ad headline and description to be more appealing and aligned with the searcher’s intent.
When To Use
Search ads are best when you want to get leads, sales, or bookings from people who are ready to act. If someone is searching for what you sell, this ad type helps you appear in front of them at the right moment.
Platforms available
Google Ads, Microsoft Search Ads (Bing Ads), Yahoo Japan, or Naver.
2. Display Ads
Unlike search ads, display ads don’t require users to actively search for your product. These ads are images and are shown based on users’ interests, age, location, or past browsing behavior.
They are known for their wide reach, with Google Display Network alone reaching over 90% of internet users. Thus, they help businesses get in front of people who might not be actively searching for a specific keyword.
How It Works
You choose keywords your ideal customers might search for, like “emergency plumber”. When someone types in those terms, Google or Bing runs an auction to decide which ads appear.
Similar to search ads, you only pay per click. Also, you can enhance your ad with extensions like phone numbers, site links, or review stars.
When To Use
Display ads are great for building awareness. Thus, you can use them when your goal is to get more people to notice your brand and reach a large audience quickly.
Platforms Available
Google Display Network (GDN), Microsoft Audience Network, YouTube, and other platforms like AdRoll or Criteo.
>>> Read more: Top 9 Benefits of Display Ads That You Should Know in 2025
3. Shopping Ads
Shopping Ads are ideal for eCommerce businesses. They display the product image, name, price, and store name at the top of the search results and show up for queries about specific products, such as “trench coat” or “LED desk lamp”.
A distinguishing aspect of shopping ads is that they provide a sneak-peek view of the product for the user before he or she even clicks.
How It Works
Instead of using keywords, shopping ads are powered by your product feed. You upload your product data (name, price, image, availability, etc.) into tools like Google Merchant Center. When someone searches for a product that matches your listing, your ad appears alongside others in a visual carousel. You’re charged only when a user clicks.
When To Use
Shopping ads are great if you sell physical products online. They help people compare products quickly and usually bring in high-quality traffic—people who are already looking to buy.
Platforms Available
- Google Shopping Ads (via Google Ads & Merchant Center)
- Microsoft Shopping Campaigns (for Bing users)
- Facebook and Instagram Shops (for catalog-style product ads)
4. Gmail Ads
Gmail ads, now rolled into Discovery campaigns, used to appear in the Promotions or Social tabs of Gmail inboxes.
They look like regular emails but expand into a full-page ad when clicked. Because they feel personal and native, Gmail ads are great for re-engagement or limited-time offers.
How It Works
These ads are created using a headline, a brief description, and visual assets. Once someone clicks, the ad opens like an email, complete with buttons, images, and even sign-up forms.
You’re only charged when a user opens the ad, not just when they see it. Since they’re shown to users based on interests and behavior, it’s an effective blend of email marketing and PPC.
When To Use
You should use Gmail ads to reach warm audiences (such as site visitors or past customers), promoting special deals, or building awareness in a more direct format. For example, a SaaS platform can use Gmail ads to target users who downloaded a lead magnet but didn’t upgrade, offering a 7-day free trial.
Platforms Available
- Google Ads (via Discovery Campaigns)
- Shows across Gmail, YouTube, and the Google Discover feed
5. Social Media Ads
According to Hootsuite, 75% of users have purchased a product after seeing it on social media. Hence, they are a powerful tool to promote products and services.
A social media ad could include images, videos, carousels, or stories. They blend in seamlessly with the regular content so as not to disturb a user’s experience.
Each platform has a distinct audience:
- TikTok: Gen Z and short-form video fans
- Instagram: Millennials and shopping-focused users
- LinkedIn: Professionals and B2B audiences
How It Works
You first have to select your desired audience based on interest, behavior, age, and geographic location, etc. Then upload your content, images, texts, or video.
After the ads have already been shown to the selected audience, you will pay the platform either on a CPC or CPM basis, and for other objectives like engagement or app installs.
When To Use
If brand awareness, sale of attractive products, and engaging niche audiences are your goals, social media advertising might be the best way forward.
Platforms Available
Facebook and Instagram (Meta Ads), TikTok Ads, LinkedIn Ads, Twitter (X) Ads, Pinterest Ads, Snapchat Ads.
>>> Read more: Top 15 Social Media Ads Advantages That You Shouldn’t Miss
6. Video Ads
Video ads are short video clips that play before, during, or after videos on platforms like YouTube. These ads can visually display a product, tell a story, or describe a service in a more engaging way than simple images or text.
How It Works
First, you have to upload a video through Google Ads onto a site such as YouTube. Next, choose an audience and set your goals. Then, you could set your ads to be skipped after 5 seconds or non-skippable.
Unlike other types of PPC advertising, you only pay when someone watches a certain percentage of your video ad.
When To Use
Video ads are suitable for catching attention quickly, explaining visually, or boosting engagement. They’re especially useful for products that need a little more storytelling or demo to win people over.
Platforms Available
YouTube Ads, Facebook, Instagram, TikTok, streaming platforms with programmatic video options
7. Remarketing Ads
Remarketing ads target people who’ve already visited your site, looked at a product, or abandoned a cart. These ads are known to increase conversion rates by up to 70% compared to first-time visits.
How It Works
When someone visits your site, a small tracking code (called a pixel or tag) saves their data. Later, your ads are shown to them as they browse other websites, scroll on social media, or watch videos. You can even customize ads based on what they saw earlier.
When To Use
When you want to bring back potential customers who didn’t convert the first time, you should use remarketing ads for cart abandoners and repeat buyers.
Platforms Available
- Google Ads (Display, YouTube, and Search retargeting)
- Facebook, Instagram, and TikTok retargeting
- Programmatic platforms like AdRoll, Criteo
8. Native Ads
Native ads are advertising that matches the feel of its surroundings. It embodies the same vibe as the particular displayed website or app, so that the ad will look like a regular post.
You can see these ads on your newsfeed, articles, or content widgets.
How It Works
Native ads are delivered through programmatic advertising and real-time bidding.
When someone visits a website, ad exchanges send their data to advertisers, who bid for the spot using demand-side platforms (DSPs). The highest or most relevant bid wins, and the ad is shown, blending naturally with the site content, all within milliseconds.
When To Use
Native ads are best for content promotion, brand storytelling, or soft selling. They work ideally at times when you need someone to click on a link and don’t want to sound pushy about it, especially for industries dealing with lifestyles, education, or finance.
Platforms Available
Taboola, Outbrain, MGID, Google Discovery Ads, social feeds.
9. Local Service Ads
Local Service Ads (LSAs) are special ads that are usually seen at the top of a Google search page whenever someone searches for local services, such as plumbing, electrical work, cleaning, or the services of a real estate agent.
The ads show the business name, phone number, ranking, and a badge stating “Google Guaranteed”.
How It Works
Businesses must first get verified through Google’s Local Services program. After selecting the service category, location, and budget, the ads are shown to nearby users looking for those services.
Unlike other PPC formats, you only pay when someone contacts you directly through the ad, either by call, message, or booking.
When To Use
If your business is local and depends on leads, such as home services, legal, or health care, then Local Service Ads are what you need. They are great for getting calls or bookings from local customers.
Platforms Available
Google Local Services (via Google Ads)
Criteria for Choosing the Right PPC Ad Type
Still not sure which PPC type to start with? Here are 6 important factors to consider before launching your next campaign, so you can make the most of your budget.
1. Your Advertising Objective
Ask yourself: What do I want this ad to do? If you want to encourage sales, then Search Ads or Shopping Ads will do the trick. These ads go after users who are actively searching for a product or service.
On the other hand, if your goal is brand awareness, you should go with Display, Video, or Social Media Ads since they seek a wider net cast before the audience begins its search.
Let’s say a well-known skincare brand might use Shopping Ads to get sales, while a brand-new one would work on building recognition with Social Media Ads.
2. Audience Behavior and Platform Preference
Consider where your audience spends their time online. Are they searching for answers on Google, scrolling up and down on TikTok, or reading through articles?
Young audiences, with the endless scrolling on TikTok and Instagram, give utmost importance to Video Ads. Meanwhile, B2B professionals may be more responsive to LinkedIn Ads or Search Ads.
3. Stage in the Customer Journey
Every potential customer is at a different stage in their buying journey, and your types of PPC advertising should reflect that.
- Top of the funnel: These audiences are just discovering your brand. Thus, you should use Display Ads and YouTube Ads to grab their attention.
- Middle of the funnel: When people are considering options, Social Media Ads and Native Ads help keep them engaged.
- Bottom of the funnel: This is the time users are ready to take action. You can use Search Ads and Remarketing Ads to drive conversions.
4. Nature of Your Product or Service
What you’re selling also affects the type of PPC ads you should use. Highly visual ones, like apparel, home decor, or food, might benefit from Shopping Ads, Instagram Ads, or Display Ads, where the image does most of the work.
In contrast, services are then very suited for Search Ads, as it is suitable to solve immediate problems.
For example, a bakery should run pretty carousel ads on Instagram showing cakes, but an emergency locksmith probably should concentrate on search because of relevant keywords like “locksmith near me”.
5. Urgency or Seasonality of Your Offer
With campaigns having deadlines, you will need some types of PPC advertising that promise quick results. Search Ads are excellent for capturing high-intent traffic immediately, while Remarketing Ads are great for reminding previously engaged visitors before the deadline.
You can also use Gmail Ads and Facebook Ads with countdown timers to trigger urgency.
For instance, an online store is about to run a flash sale for Black Friday. It will use Search Ads to attract active buyers and Facebook remarketing ads to send out last-minute reminders.
6. Level of Competition in Your Industry
Some keywords in highly competitive industries, such as finance, insurance, or law, can be extremely costly on Google Search.
If you have a limited budget, you may need to think about less competitive ad types. Video Ads, Display Ads, or Native Ads can help you find a target audience much earlier in their decision-making stage for a far lower cost.
A small startup in insurance is not able to compete on keywords such as “car insurance quote” but can reach customers via an educational YouTube video.
Wrap Up
All types of PPC advertising have their strengths, and choosing the right one depends on your business goals, audience behavior, and the kind of product or service you offer.
Ready to turn clicks into real results? Start with the type that fits your audience best and choose the right PPC platforms for your ad to thrive!
>>> Read more: [15+] Best PPC Ad Networks Advertisers Should Consider in 2025
