Online Advertising: Definition, Advantages, and Types

Online advertising has revolutionized the world of marketing and business in general. Through this medium, companies have found new ways to reach their customers, overcoming geographical and temporal barriers. In this article, we will explore in detail what online advertising is, its main advantages, and the different types that exist.

What is Online Advertising?

Online advertising, also known as internet advertising or digital advertising, is a form of marketing and advertising that uses the internet to deliver promotional messages to consumers. Unlike traditional media such as television or radio, online advertising offers global reach and the ability to customize the message according to the user’s profile.

Advantages of Online Advertising

Online advertising helps in building a brand, and the immediacy of its results has allowed many brands to achieve success in their online business. The advantages of using online advertising are:

  • Rapid promotion of information without geographical limits.
  • Brand positioning.
  • Increase in conversion rates for lead generation and online purchasing probabilities.
  • High degree of affinity with audiences that are difficult to reach through other means, reaching very specific niches.
  • Unlimited creative proposal possibilities.
  • Opportunity for interaction and direct feedback with the user.
  • Reduced production and implementation costs with no distribution expenses.

Channels

When we talk about advertising channels, we refer to the places where ads can appear. Some of them are:

Text Ads

A text ad is a text with a hyperlink. Clicking on the link will take you to an advertiser’s website or landing page. Text ads commonly appear on search engine results pages (SERPs) and within or alongside blog text. This is the most common type of campaign in the Google network.

Display Ads

Display ads are banners that appear alongside the content of a website. In most cases, they contain promotional material related to the theme of the website or article.

Native Ads

A native ad is a text that appears in an online publication. It looks like part of an article, but it is actually a paid advertisement placed by the advertiser. In this method, the advertiser tries to capture the user’s attention by providing relevant content in the context of the user experience.

Social Media Ads

These ads appear on websites such as Facebook, Twitter, LinkedIn, etc., in other words, on social networks. Most of them seem to emulate messages or posts from the network. These ads are usually relevant to the user’s interests.

Affiliate Links

An affiliate link is a specific URL that includes the affiliate’s username or ID. Advertisers use affiliate links to track the traffic that a promotional campaign sends to the advertiser’s website. This is part of an ‘affiliate program.’

In affiliate marketing, the advertiser hires affiliates to sell their products or services online. If you register on the provider’s website, they will send you a specific link to their site. You then place this link on your website. When visitors to your site click on the ad, they are directed to the advertiser’s site.

As an affiliate, you will receive a commission. The commission can be defined based on the number of referrals or sales. In other words, how many people you referred or how many purchases the advertiser gets from your referrals.

In-App Ads

In-App advertising refers to ads that appear in software applications (mobile or desktop). They can be native ads, text ads, or a combination.

Video Ads

Video ads appear before watching online videos on websites like YouTube or Vimeo. In fact, video ads are like traditional TV ads. However, the advertiser can control the effectiveness of a video ad better than a TV ad.

Email Ads

Email ads appear as text, display ads, or native ads in email messages. For the advertiser, having a direct line of communication with people is ideal. That’s why email advertising is one of the most effective advertising methods out there.

Online ads are commonly purchased through one of the following means:

  • Cost Per Mille (CPM): Advertisers pay when their messages are exposed to specific audiences.
  • Cost Per Click (CPC): Advertisers pay each time a user clicks on their ads.
  • Cost Per Action (CPA): Advertisers only pay when a specific action is taken (usually a purchase).

Choosing the right channel and medium for your online advertising campaigns can be quite challenging. The intention should always be to meet the user’s needs and provide them with valuable information that offers a solution to their problem. Consider this, and your ad is sure to be a success.

Do you want your ad to be a success? Contact our digital marketing agency, and we will help you create the best online advertising strategies for your business.

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