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Online Advertising: Your Go-To Guide Guide to Ads

Jun 21, 2024 - By Camilla Mackeviciute & Anmol Ratan Sachdeva

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Online advertising is the most important and highly rewarding marketing tactic in recent times. Almost everyone’s trying to ride the ‘online’ growth wagon these days. 

But the rising competition and information overload around the subject can overwhelm anyone. That’s why we created this beginner’s guide about the best online advertising methods to help you pick the best way to advertise online, including small business online advertising strategies.

What is Online Advertising?

In its simplest definition, online advertising refers to ads that appear in emails or websites. It’s a marketing strategy that uses the internet to generate website traffic and deliver specific marketing messages to the right customers.

Digital advertising helps persuade targeted customers to take specific actions like purchasing.

Unlike traditional ad strategies, advertising products online enables you to target a specific demographic, such as gender, generation, or geographic region. Online ads are interactive, meaning that users can respond through actions like clicking and visiting your website.

Online vs. Internet Advertising

Internet advertising is another synonym for online advertising, online marketing, digital advertising, or web advertising – a catch-all term for online promotional activities. These terms revolve around promoting products, services, or ad content through various online channels.

Types of Online Advertising

Integrating different online advertising channels into your digital marketing strategy is a great practice when you’re aiming for growth. An omnichannel campaign influences customers across different platforms and increases your marketing ROI. Here are the six most popular channels you should add to your strategy: 

1. Email Marketing

Email marketing is a popular way to advertise and reach your customers online. An email marketing strategy allows you to offer a personalized experience for your subscribers and inform them about your value proposition.

You can use email marketing to promote your products, send survey emails, start a newsletter, or nurture leads. Automated email campaigns can also be set up using a marketing automation tool to help you put things on autopilot. 

Email marketing campaigns yield high conversions and a great ROI between $32 and $45 on average* — thanks to email and SMS automation tools like Sender.

ProsCons
Personalized communication sent directly to inboxesPotential for emails being marked as spam
Lower costs compared to traditional methodsRecipients may unsubscribe over time
Detailed analytics for tracking campaign effectiveness

Sender has everything you need for successful email marketing – from responsive email templates and drag-and-drop email builder to audience segmentation and automation workflows.

Sender_drag-and-drop_builder_Green

2. Display Advertising

These are visual ads that you can place on contextual third-party websites. Typically, they contain images or videos published as display banners, blog banners, or within other placements on a website, blog, or online portal. 

You can buy ad space on popular blogs by reaching out to publishers or can use a platform like Google Adwords to start a display ad campaign. Such ad campaigns are priced based on the number of clicks or views. You’re charged for cost per click (CPC) or per thousand views (CPM). 

If you have an ecommerce product and know of websites or blogs ready to place contextual ads for you in their content, you can do very well in terms of impressions and even conversions. All you need is a beautiful display ad banner to be placed right for viewers to discover and leave the rest to your website. 

ProsCons
Targets a broad audience across various websites and platformsSome users use ad blockers, reducing ad visibility
Uses eye-catching graphics and multimedia for engaging adsUsers may ignore display ads due to their placement on websites
Allows precise targeting based on demographics, interests, and behaviorsUsers may become immune to ads after repeated exposure

3. Search Engine Marketing (SEM)

Search Engine Marketing (SEM) or PPC advertising consists of ads placed on top of results on search engines like Google. 

SEM ads are displayed when users search for keywords you pre-select in your AdWords or search ads campaign. CPC, site quality, and contextual messaging affect the placement of search ads. 

These ad campaigns aim to raise brand awareness, drive clicks, and get conversions without waiting for SEO benefits to kick in. Basically, SEM ads help you get instant results from existing search traffic. You can use these ads for all kinds of businesses, including eCommerce, B2B SaaS, and service-oriented agencies. 

ProsCons
Reaches users actively searching for specific keywords, increasing relevanceHigh competition for popular keywords can lead to high costs per click (CPC)
Can drive traffic and conversions quickly, especially with paid search adsManaging SEM campaigns requires expertise in keyword research, bidding, and optimization
Provides detailed analytics for tracking performance and ROIUsers may overlook or ignore ads, especially if they resemble organic search results

4. Native Advertising

Native ads are different from other forms of ads you see online. Think of native ads as in-line promotions embedded within your content so they don’t look like ads anymore. 

These ads are designed to look like an ‘add-on’ that fits neatly in the user’s journey to discover something new. Though they might look like ads at places, they generally add value to the discussion, so most consumers don’t mind clicking on them to know more.  

Native advertising aims to gain visitors’ trust by solving their problems. The simplest way to implement native ads is by creating a blog where you discuss topics related to your niche, include helpful and interesting info for your users, and promote your products natively within the discussion. 

ProsCons
Blends in with the surrounding content, making it less intrusive to usersWithout clear disclosure, native ads may be perceived as deceptive or misleading
Often generates higher engagement rates due to its non-disruptive natureNative ads may have limited reach compared to other forms of advertising
Builds trust with audiences by providing valuable content alongside promotionsCreating quality native ads can be more time-consuming and costly

5. Social Media Advertising

Social media advertising works best for businesses with an active presence on social networks and a large following. Creating ad campaigns on social media platforms helps generate brand awareness, build a community, reach a large audience, and acquire new customers. 

Most people spend a better part of their day on social media. Using social media networks like Facebook, Twitter, and LinkedIn for ads allows you to target potential customers who have already visited your website and attract new ones. 

Due to social platforms’ deep targeting and segmentation capabilities, advertising makes sense for products and businesses looking to grow revenues from niche audiences. 

ProsCons
Allows targeting based on demographics, interests, and behaviors, maximizing relevanceUsers may experience ad fatigue due to the high volume of ads on social media platforms
Provides interactive ad formats such as likes, comments, and shares that encourage user engagementAlgorithms and policies on social media platforms can change frequently, affecting ad performance
Offers detailed analytics for measuring campaign effectiveness and optimizing performance

6. Content Marketing

Content marketing is a popular way to start online ads, especially for B2B SaaS, eCommerce, and service-oriented business models. It involves creating relevant content for audiences that answers their specific queries.

You can start creating content on your blog that will help you boost your search engine rankings. When users search for a similar query online, your blog pops up in the results. Users can find their solutions in your content and go on to try out your product or service (which you can plug natively into your content). 

Nowadays, content has evolved with the rise of different distribution mediums, and businesses are using existing content to repurpose across social media platforms, newsletters, and communities to attract additional visitors to their websites and landing pages.

ProsCons
Provides valuable and informative content that establishes credibility with the audienceCreating high-quality content requires time, effort, and resources
Generates long-term organic traffic and brand awareness as content remains accessible over timeIt may take time to see significant results from content marketing efforts, requiring patience and persistence
Can be repurposed across various channels, such as blogs, social media, and email, maximizing reach and impactMeasuring the ROI of content marketing can be challenging, as it often involves indirect metrics such as brand sentiment and customer loyalty

7. Video Advertising

Video ads are one of the best types of advertising to promote your brand. People love watching videos, so these ads get higher engagement than traditional banner ads.

Video ads allow you to tell stories about your product, highlight its benefits, and showcase your brand’s personality. You can even use videos to demonstrate your products uniquely and emotionally connect with your audience.

YouTube, TikTok, and other video platforms all offer ways to advertise on their platforms. You can even collaborate with YouTubers to review your products or services on their channels. Another strategy is producing original video content that helps you reach the right audience, attract views, and improve your organic search rankings. 

ProsCons
Videos capture attention and convey messages effectively, leading to higher engagement ratesCreating high-quality video content can be expensive and time-consuming
Video ads can be used across various platforms, including social media, websites, and streaming servicesUsers have short attention spans, requiring concise and captivating video content to retain interest
Provides advanced targeting options based on demographics, interests, and behaviors, improving relevanceUsers with slow internet connections or disabilities may have difficulties accessing video content.

8. Banner ads

The banner ad is usually an image-based, rectangular advert placed on a website to promote a brand and drive some visitors to the website or landing page associated with the brand.

The banner ad is a visual representation of your product, service, or offer and can be static, animated, or even interactive rich media, depending on your campaign goals.

The most powerful benefit of banner ads is the ability to use platforms such as Google Display Network to reach out to extremely niche websites and their hard-to-spot audiences in an extremely targeted yet cost-effective manner.

Whether you’re looking to increase your brand awareness or drive traffic to your web assets via special offers and promotions, a well-designed, timely banner ad can make it worthwhile by bringing you high-quality visitors that convert.

ProsCons
Banner ads can be placed on numerous websites, allowing for broad exposure to audiencesUsers often ignore or overlook banner ads due to their commonplace on websites
Compared to some other forms of advertising, banner ads can be relatively affordable to design and placeBanner ads have limited space for conveying messages and may struggle to capture attention effectively
Banner ad performance can be tracked using metrics such as click-through rates and impressions, allowing for optimizationUsers may utilize ad-blocking software, reducing the visibility and effectiveness of banner ads

9. Mobile Advertising

Mobile advertising refers to promoting products, services, or content to a target audience through mobile devices. It’s a valuable channel for reaching and engaging with a wide range of audiences, as people spend much time on their mobile devices.

There are numerous strategies and ad formats to create high-converting ad campaigns, including:

  • In-app advertising – banner ads, interstitial ads, video ads, or native ads seamlessly integrated into the app’s content;
  • Mobile web advertising – banners, pop-ups, or text-based ads displayed on mobile websites when users browse the internet using their mobile browsers;
  • SMS advertising – promotional messages sent via text messages to mobile users who have opted in to receive them;
  • Push notifications – messages sent directly to a user’s mobile device, often from apps they have installed;
  • Location-based advertising – ads targeted to users based on their geographic location, typically using GPS or Wi-Fi data.
  • Mobile video advertising – videos specifically designed for mobile devices can be displayed within apps, mobile websites, or social media platforms.
ProsCons
Offers interactive ad formats such as video, playable ads, and in-app ads, increasing engagementMobile screens have limited space, making creating engaging and informative ads challenging
Allows for precise targeting based on users’ location, enhancing relevance and effectivenessUsers may utilize ad-blocking software on mobile devices, reducing visibility and reach
Wide reach and high user engagementPrivacy regulations and user concerns about data collection can impact mobile ad targeting and tracking capabilities

Most Effective Forms of Online Advertising

To maximize the online advertising opportunity, you need to spend the maximum budget on effective channels. In 2023, organic reach will be at an all-time low across platforms. So, using paid channels to promote your products and services online makes sense. Here are the three most effective online advertising channels if you want to get started: 

Email Advertising

Distinct from email marketing, email advertising refers to tactics and strategies surrounding the placement of ads within or delivery of ads using emails.

With the number of email users estimated to reach 4.6 billion by 2025, you couldn’t ask for a more direct way to put your product, service, or offer in front of them.

Email advertising can take various forms, including banner ads in newsletters, sponsored content from businesses, footer ads, or even sharing non-competing businesses’ offers. Because these ads reach targeted subscriber segments inside their inboxes with their permission, you can expect higher conversions and better sales.

Paid Search Advertising

Paid Search Advertising (aka PPC advertising) is an effective online advertising tactic that allows you to bid for top search positions on SERPs. According to TechJury, PPC has an amazing ROI of up to 200% and generates twice the number of visitors compared to SEO. 

Paid search is a great option for companies seeking brand awareness and driving qualified website traffic. You can use Google Adwords and other PPC advertising platforms to launch paid search advertising campaigns for your brand. 

Paid Social Media Advertising

Social media advertising is the second most effective form of online advertising after search advertising. According to a survey, 33% of all digital advertising spending happens on social media ads. 

The phenomenal retargeting power that social platforms offer, plus explosive reach, make it a preferred option for B2B, B2C, and eCommerce brands. You can start advertising on social media platforms like Facebook, Instagram, and TikTok with a small ad spend and scale as per your goals and advertising budget. 

Online Advertising Examples

You know now the types of ad campaigns you can run online. You also know the most effective ones. Now, let’s look at some real-world advertising examples from the digital world. Use these examples to get inspired to launch your own online advertising campaign and attract traffic to your website. 

Targeted Online Advertising

Targeted advertising is one of the most effective online advertising strategies. It’s a form of digital display advertising where marketers deliver promotional messages to customers based on their specific traits, interests, and preferences. Look at the following example by G’s Beauty Parlor: 

targeted_ad
Image source: G’s Beauty Parlor Facebook Ad

Online platforms like Facebook allow you to target customers based on their online behavior, interests, geography, etc. Like in the above example, the brand specifically targets the ladies in San Dimas. Targeted ads have many advantages, including the following:

  • It helps you interact with audiences that are most interested in your products;
  • It offers advanced personalization that enables you to provide the most suitable products or services to consumers;
  • You get improved sales and higher conversion rates since you’ll show relevant offers to your target audience.

Depending on your budget, prices are based on the limit you set on an advertising platform. When you reach the limit, the advertising platform stops showing your ads. That said, here are five ways to up-sell and cross-sell your previous customers using targeted advertising:

  • Analyze past buyer metrics to help you understand the true motivation behind their purchases;
  • Organize your customers into segmented lists to target them with the right offer;
  • Create remarketing campaigns in Google and preferred social networks to target specific buyers with the correct messaging;
  • Remind customers why they choose you over your competitors to instill a new sense of brand loyalty in them;
  • Incentivize loyal customers with personalized offers such as free gifts or discounts if they purchase an item again.

You can buy online ad spots on platforms with high traffic volumes to attract potential customers to your website. Paid advertising allows you to put your featured ads appear on specific websites. 

The best-paid search advertising strategies are PPC, influencer marketing, social media ads, retargeting, and banner ads. Marketers and businesses compete for PPC ad space and social media ad slots by bidding for their advertisement slots. Take the following ad example from SEMRush: 

PPC_example
Image source: SEMRush Banner Ad

The banner ad is displayed across eligible sites on the Google Display Network, bringing lots of traffic to the SEO tool’s website. You can work with any budget to launch your paid ads. Paid ads have various benefits, including:

  • They’re very affordable and measurable;
  • You can test them and gain valuable audience insights;
  • You can broadcast your messages across multiple, but selected channels.

Retargeting Ads

Retargeting ads are a type of online advertising that targets users who have previously visited a website or engaged with a brand online. These ads are designed to re-engage potential customers who may not have converted or made a purchase on their initial visit. 

Retargeting ads can be displayed on various platforms, including social media, websites, and search engines, and are typically paid for on a Cost per Acquisition (CPA) basis, where the advertiser only pays when a desired action is taken. 

This strategy allows a marketer to maximize their online promotions and improve ad performance metrics, such as click-through rates and conversion rates.

Unlike free online advertising, retargeting ads offer a more targeted approach to reaching potential customers, increasing the chances of conversion. By bidding for ad slots, marketers can optimize their ad impressions and reach their desired audience.

Here’s a retargeting ad example from Olipop. If a person visits the brand’s website, chances are they’ll see the ad in their Facebook feed afterward:

Olipop_retargeting_ad_example
Image source: Olipop Facebook ad

Google Ads Online Advertising

Google Ads is a paid advertising platform by Google that helps you run PPC ads. You can see Google ads all over the internet — on top of search results, within YouTube videos, and all over the websites on the Google Display Network. Take the following Google Ads example: 

google_ad_example
Image source: Google

The brand has placed a PPC ad on the keywords ‘monitor sales calls,’ and Google has a top placement for the brand. So, whenever a searcher searches for the said keywords, he sees the ad from the brand on top of all organic search results. Google ads help expand reach and drive conversions. More benefits include: 

  • It enables you to target people with specific interests in your products.
  • It helps you control your costs since you only pay when someone clicks your ad.
  • You can measure your success since you’ll know when someone clicks your ad.
  • It offers you tools to manage and monitor your accounts.

Social Media Advertising 

Placing paid ads on social media is profitable for marketers and business owners. With so many users spending time on social media platforms, it makes sense to spend money on advertising your brand or business on social media. Here are your options in case you’re thinking of social media advertising: 

Facebook Online Ads

Facebook ads work on a PPC model where you pay the network each time a user clicks an ad. It enables you to build brand awareness, increase ad visibility, and measure clearly defined metrics to create better, more optimized ad campaigns.

The cost of Facebook advertising is determined by a daily or lifetime budget. Daily budget is where your ads run continuously throughout the day, while lifetime budget is where your ads run for a specified period. Here’s an example of a Facebook ad by Mark Morphy: 

facebook_ad_example
Image source: Mark Morphy Facebook Ad

The ad is displayed natively within a user’s feed and entices them to check out the collection with a CTA button, ‘Shop Now .’Users are known to respond well to direct CTAs on social media ads. Other benefits include: 

  • Facebook has over two billion users worldwide, so Facebook Ads can help you reach a wider audience;
  • Both B2B and B2C companies can use Facebook Ads to reach their target audiences;
  • Facebook Ads allow you to drive referral traffic to your business’s website.

Instagram Ads

Like Facebook, Instagram also offers you an option to run ads to target users on the platform. You can place video ads, in-feed ads, or choose from different available formats. The ads appear as a post by a brand within a user’s feed, on the explore page, and more recently between Reels scroll, too. Here’s an example of an online ad by Ajio on Instagram: 

instagram_ad_example
Image source: Ajio Life Instagram Ad

Such an ad persuades users to check out the product range by installing the eCommerce platform’s app. Clearly, with social media’s targeting options, such ads perform really well for eCommerce brands and businesses when planned well. 

LinkedIn Ads

LinkedIn is a professional social media platform that’s really good for B2B businesses to advertise their products and services. Like other social media ads, LinkedIn ads also offer in-feed placements along with other placements on the website.

LinkedIn ads are known to increase awareness and drive downloads, signups, and inquiries if you’re targeting a professional audience, founders, marketers, or a target audience that spends a lot of time in the office. 

Take a look at the following ad by Route Mobile: 

linkedin_ad_example
Image source: Route Mobile Ltd. LinkedIn Ad

The ad shares a case study with the target audience, urging them to download the case study. The successful download can be seen as a qualified lead instance and move a prospect into the sales pipeline.

So, what are the benefits of LinkedIn ads?

  • LinkedIn’s detailed targeting options allow you to reach users based on industry, company size, job title, seniority, skills, and more;
  • The platform is ideal for B2B marketing, as it connects you directly with professionals who may be looking for industry-specific solutions or networking opportunities;
  • LinkedIn offers a variety of ad formats, including sponsored content, message ads, text ads, and dynamic ads, enabling you to tailor your approach to your campaign goals.

X – formerly Twitter Advertisement

Twitter ads are known to be concise and targeted mainly at youngsters, millennials, and Gen-Z. If you are in the tech business, Twitter can be a great advertising platform. However, Twitter’s ad targeting options can be limited, and you might spend a lot of money on a single ad campaign. 

Nonetheless, brands use Twitter to reach out to their audience and announce product launches, updates, and more. Take a look at the following ad by One Plus India announcing their new smartphone model: 

twitter_ad_example
Image source: OnePlus Twitter Ad

The benefits of X advertising include the following:

  • You can leverage X’s real-time nature to connect with audiences during trending events and conversations;
  • X’s targeting capabilities allow you to reach specific audiences based on their interests, behaviors, and demographic data;
  • The platform’s hashtag system can amplify your campaign’s visibility, making it easier to track campaign performance and engage with users.

Reddit Advertising

Reddit is another platform where you will see B2B, SaaS, and tech brands trying to grab the attention of a young audience. However, Reddit users are known to hate paid ads; brands have been experimenting with various ad formats on the platform. 

The platform allows you to run promoted ads that appear as Reddit posts within the user’s feed. Look at the following promoted post by Grammarly as an example: 

reddit_ad_example
Image source: Grammarly Reddit Ad

Here are the benefits of Reddit advertising:

  • You can tap into a highly engaged community that is passionate about niche topics;
  • Reddit allows for precise targeting based on interests, subreddits, location, and demographics;
  • With Reddit’s upvote and downvote system, your content can gain organic traction if it resonates well with users;
  • Reddit offers a variety of ad formats, such as promoted posts and display ads, providing flexibility in how you present your message.

Video Advertising

Video advertising is promotional content that plays before, during, or after streaming. Some marketing professionals expand video advertising to include display ads with video content, such as videos that start playing when you put a mouse cursor over them. Examples include in-stream video ads, out-stream video ads, and bumper ads.

The benefits of video advertising include the following:

  • You can communicate the necessary information quickly to your target audience.
  • You’ll gain more social shares and attain a wider customer reach.
  • You can educate customers about your offers interestingly and interactively.

YouTube Advertising

YouTube is the most popular video advertising platform that allows you to run ads within the videos, on the homepage, across website banners, etc. YouTube ad campaigns can be run from within Google AdWords platforms, and the cost depends on audience targeting, watch time, and campaign objective.

Take the following screenshot from YouTube’s homepage as an example: 

youtube_ad_example
Image source: PitchGround Youtube Ad

The first result is a brand trying to promote its ecommerce store builder. Viewers can see the video ad or click on the link attached to go to the website directly. The video ad can also be contextually placed within relevant videos from other creators who choose to monetize their videos. 

Amazon Online Ads

Amazon advertising works in a similar way to Google’s PPC, but the ads appear on Amazon’s own platform. Amazon sellers pay when buyers click on ads. Amazon sellers have many ad formats and placements to choose such as Amazon-sponsored products, sponsored brands, and product display ads. 

Take a look at a sponsored ad appearing on Amazon’s search page for a keyword: 

amazon_ad_example
Image source: Amazon

The ad is shown at the top of the search result and is clearly a discovery booster for a seller on the platform. Benefits of Amazon advertising include:

  • It has the brand-safe, high-quality environment that advertisers want;
  • It shortens the sales cycle;
  • It improves product visibility and sales history;
  • It boosts brand awareness;
  • You can get valuable insights into changing consumer habits and optimize advertising campaigns to reach a more targeted audience.

Ecommerce Online Ads

Ecommerce advertising is any form that raises awareness and drives traffic to an online store. 

This includes all kinds of ads shared above. When an ecommerce store uses an online platform to boost sales, it can be deemed an ecommerce ad. Here’s an example of an ecommerce ad placed by Amazon on Facebook: 

ecommerce_ad_example
Image source: Amazon Facebook Ad

Such an ad is called a catalog ad that shares an entire product catalog as a carousel for a user to browse without leaving the social media platform. When they click on Shop Now, they are redirected to the product page for checkout. 

Website Banner Ads

The biggest benefit of banner ads is that instead of having to create your own traffic source, you can leverage high-quality traffic other websites are already getting. 

Your exact campaign goal may vary, from brand awareness to offers and promotions, but what’s a given is that with banner ads, you can reach a vast, global, online audience in a targeted manner at will.

Look at the banner ad example below promoting Amazon Prime on IMDB’s home page.

IMDB_Banner_Ad_Example
Image source: IMDB

Amazon uses this mega-sized banner ad to promote its OTT (Over-The-Top) service, Amazon Prime, at the top of IMDB’s homepage to attract traffic. 

The high visibility placement ensures that every visitor IMDB gets is also exposed to Amazon’s offer. More importantly, this source of traffic is highly relevant and valuable since most IMDB visitors won’t be averse to checking out online video streaming services apart from the ever-popular Netflix.

Do you love numbers? Because we do. That’s why we’ve curated this advertising statistics article:
45+ Online Advertising Statistics (Facts and Figures for 2024)

Key Takeaways

  • Always plan your online advertising campaigns in advance; 
  • Research your audience before you pick an online advertising channel; 
  • Create ads that emphasize the advantages for your prospects rather than coming across as overly promotional;
  • Don’t forget to segment and target your audience based on their personalized interests and expectations; 
  • Use a marketing automation platform to run omnichannel advertising campaigns. 
About author
Camilla is the content wizard who weaves creativity and strategy into every piece she works on. Her expertise lies in crafting impactful content that drives results.

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