Digital marketing

Online Advertising: 17 Main Types and their Peculiarities

19 June, 2020
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Surely, every company needs online advertising media for winning the competitive struggle in the near future. We recommend everyone who manages an online store to study types of online advertisement more thoroughly. Even if one still doesn’t have a website as “everything’s going fine without it”, this can change soon. It is recommended to have a web resource, especially if one has plenty to offer the online audience. This should not be neglected. If a company does not have online customers, this does not mean that they are absent at all. Maybe, vice versa, the company will become more successful with the website SEO and online advertising.

So let’s try giving a short definition of “online advertising”.

What is Web Advertisement: Fast Facts

Simple as that: web advertisement provides using the Internet as a medium for delivering marketing messages to prospects so that they would visit the website. This allows making a sale or generating leads (applications).

With the rise of the Internet and broadband connection, the decline of conventional advertising began. Although not all developing countries use Internet advertisement, many businessmen consider this marketing channel as the main lead generation tool.

The main advantage of online advertising is fast delivery of information about a product/service to the target audience worldwide. Specific orientation in advertising and result estimation allow optimizing marketing budgets and building up an efficient sales process.

Usually, online advertising is charged for according to one of the following principles:

  • cost-per-thousand (CPM): the advertiser pays for the number of target audience impressions of its ad;
  • cost per click (CPC): the advertiser pays every time when the user clicks on its ad that redirect it to the landing page;
  • cost per action (CPA): the advertiser pays for a certain action made by the prospect (purchase, application, etc.).

If the ad is directly published as agreed between the business owner or its representative and the admin of a thematic website, the advertiser may pay a fixed rate. But this is rarely done and usually payments are made as above.

What can be advertised on the Internet?

Web ads improve the brand awareness to the users and boost the sales volume.

The intentions determine what to choose for advertising online and how.

The following can be advertised on the Internet:

1.   products of services provided by the company

2.   websites

3.   brands

4.   online stores

5.   everything that is not prohibited by the law.

Online advertising has the following peculiarities:

Web advertising peculiarity #1 – Engaging users into certain activities

Why Internet advertising works better than newspaper, billboard or even TV ads? Simple as that: due to its appearance and choosing the “favorable location” online advertising encourages prospects to join the process required by the business owner, i.e. to click on the banner and go to the required page, follow the hyperlink, answer a question or fill in a form. This allows gaining good results almost at once.

Online advertising peculiarity #2 – Wide reach of web-users 

Internet advertising allows reaching a lot of Web-users that may become prospects or (having seen the ad) even standing customers. Everything depends on the activity and purposes of online ads.

Online advertising peculiarity #3 – User segmentation for targeting the audience

Constant improvement of advertising platforms allows thorough segmentation of users by interests, geolocation, age, sex, previous searches and by other methods. So the preset target audience only will see the corresponding ads. Detailed target audience allows minimizing costs for advertising and boosting the sales volume.

Web advertising peculiarity #4 – Precise estimation of online advertising results

Advertising results is the thing that should be analyzed. It is impossible to estimate Internet advertising profitability without any figures. Currently, there are more than 100 tools for analyzing web advertising efficiency. Usually, its values are displayed on the admin panel with the ad settings or Google Analytics can be used. It allows estimating not only the efficiency of online advertising but also the efficiency of the website or online store work in general.

It is important to track the performance of web advertising as the settings mistakes can be revealed 48 h since running. If there are some mistakes, this should be improved for saving the budget and taking advantage of Internet ads.

So let’s discuss the types of online advertising that can be used for SEO of a website, online store, or any product/service.

Main types and peculiarities of web advertising

There are a few main types of Internet ads with different patterns of interaction between the parties, complexity of settings and campaign, placement, and other peculiarities.

Understanding them, their advantages and drawbacks allows avoiding the risk of “muddling money” and choosing the right solution. Anyway, before using one or another advertising type it is worth consulting with a specialist.

Below the main web ad types and their peculiarities are described.

Google Ads

Google Ads is an online advertising service for setting up various ad types. This allows competitive companies, websites or online stores to “fight” for prospects’ attention due to various proposals and appeals.

Google Ads includes:

1.   Online pay-per-click advertising

2.   Classic and dynamic remarketing

3.   Media (banner) web advertising

4.   Google Shopping Internet advertising

5.   Online video advertising

This article deals with every type of Internet ads in Google Ads. So let’s start!

1. Pay-per-click advertising (PPC)

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One of most wide-spread and popular ad types. The advertiser pays if the user clicks on the ad and becomes forwarded to the website of the advertiser.

Pay-per-click ads are displayed in the search line.

When a user enters a corresponding keyword preset in the advertiser’s campaign, such ad appears in the search results. This type of advertising is also known as “contextual” as the ads are based on content or searches.

Search engines are providers of pay-per-click ads. The most popular one is Google Ads

It should be mentioned that PPC is one of the efficient types of advertising. It is completely safe and legal. Besides this, search engines gain the most profit from PPC. So they encourage companies to use it.

However, the price per click is determined by an auction between the advertisers. The one who offers the highest price wins the auction. This made the competition in some topics so high that large companies only could afford these ad types.

2. Classic and dynamic remarketing as one of the most efficient online advertising types

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Remarketing is one of the functions available in PPC systems. But this advertising type can be specially emphasized due to several peculiarities. Remarketing allows tracking the website users and show them ads again as a reminder.

When the user visits the website with a special remarketing code, its identifier is added to a special remarketing list. Then a campaign can be created in Google Ads so that users will see the ads on other websites.

A simple example: if the conversion on the website is 1%, this means that 99% of website users bounce it or don’t do any conversion actions due to some reasons. Classic remarketing allows checking in and probably encouraging to change the decision.

Google improves its user tracking technologies all the time and offers opportunities for advertising campaigns. However, classic remarketing has a drawback: users see the ad of the same company, although they may not be interested in this offer.

Dynamic marketing is intended for generating individual ads based on the viewed products. Due to this conversion can be increased twice.

3. Digital display (banner) Internet advertising

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It is one of the first types of web advertising that appeared on the cusp of the Internet. Digital display advertising involves placing banners on external websites. When users click on them, they are forwarded to a special target page on the advertiser’s website. Such traffic can be easily tracked with Web analytics tools.

Digital display ads can be published with Google Ads as it has all necessary capabilities for this. Also, platforms in form of affiliate network websites can be used. Besides that, one can place such ads upon agreement with the owners of the required resources. Banners can be ordered from Web-designers.

CPM (cost-per-thousand) is the main payment scheme in banner advertising (cost per click) is applied in Google Ads. On one hand, this can sound unprofitable as the advertiser pays for impressions and their effect can’t be predicted. But on the other hand, usually, the cost of thousand impressions is rather low, so this is profitable for both parties

Using Google Ads for running digital display ads gives the advertiser more opportunities for setting up if compared with ad placement upon agreement. The main opportunities are geotargeting and demographic targeting. If the campaign seems to be inefficient, it can be stopped at any time.

Banner advertising becomes less popular as the Internet is developing and other more efficient methods of attracting customers appear. Even market leaders in e-commerce industry don’t use this ad type actively. But as before, it is profitable to use it with PPC and remarketing. Also, it is useful for increasing the brand awareness.

4. Advertising in Google shopping – A new advertising method for online stores

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Google Shopping (aka “shopping ads”) Web advertising is a relatively new tool if compared with all above-listed types of online ads. Shopping ads in Google searches is one of the types of online video ad types. It allows viewing several variants of the proposed products.

The user advantages of running this type of online ads are fast view and comparison of prices for products offered by different companies without a need to use other services. So the user saves time and money as s/he sees the same product in different online stores.

The advantage for running this type of Internet ads for owners of online stores is that they can increase the share in Google searches, beat off competition due to low cost and boost the sales volume and traffic on the website.

5. Internet video advertising – YouTube

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Now every second Internet user watches videos, movies, overviews, and other stuff on Youtube Imagine if such number of users will see your product or service ad? Nice touch? Sure!

However, such Internet ads are very time-consuming as the short video has to include as much information important for a prospect as possible.

6. Social media advertising

Currently targeted social media advertising is one of the main types of Internet advertising. Besides this, SMM is also actively used. This is marketing in social media that involves creating and developing communities dedicated to the brand page in certain social media.

Any large social media has a function of displaying ads. The main media used for this are Facebook and Instagram. E.g., here’s targeted advertising in Facebook:

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In Instagram:

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Both platforms allow using different forms of ads together. Testing and analyzing their efficiency allows the advertiser to develop the most successful and profitable strategy.

The difference between targeted advertising and SMM is that in the first case one pays for clicks so as in PPC and the second type involves developing a community and brand page. Social media marketing can be complex and include advertising.

Currently, efficient advertising campaigns can’t be imagined without social media.

7. Web teaser ads

This is a combination of digital display advertising and PPC with some peculiarities that allow classifying it as a separate group. Teaser is an ad that includes a header, short text about the product, and a photo. E.g., here’s a typical teaser:

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Usually, a striking header, intriguing text, and an eye-catching photo are used. CTR teasers can increase the similar rate of PPC at affiliate network websites.

Teaser ads are created and placed via special teaser networks upon co-operation of website owners and advertisers. Search engines have nothing to do with such advertising, they don’t include it in searches and even can provide a lower rank for websites actively monetized by such ads.

Although this type of Internet ads is rather cheap, it is often used for promoting medium- and high-cost products and (moreover) services. But there are some cases of its efficient use for emotion-driven and cheap products.

8. Online CPA advertising

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This type of web ads is called affiliate marketing.

Cost Per Action (CPA) framework involves such work patterns when the advertisers pay for some certain customer actions only. So the advertiser bears minimal risks as this guarantees a high ROI.

On the other hand, CPA is not so desirable for advertisers: although they have a high return, the profit can vary depending on the type of the advertised product, quality of the advertising campaign, and many other aspects.

To put it in short, one pays for CPA if a sale is made. Of course, this seems to be expensive if compared with cost per impression or click. But the conversion rate will be also lower and the company profit will be higher.

E.g., one places a banner on a thematic website and agrees to pay $15 from each sale, if the customer was forwarded on the advertiser’s website from a corresponding resource. So even if these ads are displayed thousands of times, the user pays for the made sales.

Co-operation with Web-masters and advertisers according to this pattern is usually based on special platforms known as CPA networks. Admitad.com, Kma.biz, and SalesDoubler.com.ua are the largest and most popular platforms.

It’s peculiar that in the e-commerce industry the world renowned online store Amazon.com was the first to use affiliate marketing as referral programs with royalties for every sale in the 90s. It is considered that active sharing of affiliate links for the products from Amazon catalogue by users influenced its rise as the largest e-commerce platform in the world.

9. Online mobile advertising

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This type of ads is peculiar as it allows addressing the potential audience through the smartphone – the most personal device for a modern man. The main advantage of mobile advertising is that people carry mobile devices all day.

Google has developed AdMob – a special platform for mobile advertising. Besides this, ads for mobile devices can be created in Google Ads. Anyway, starting a campaign covering smartphones allows using all above-listed PPC advantages, in particular, precise settings of geotargeting and demographic targeting.

E.g., geolocation technologies allow marketing specialists to run advertising campaigns oriented on encouraging people to visit local entertainment venues.

Although ads are displayed on a small screen, advertisers can personalize ads making the campaign more efficient.

There are three main methods of using mobile advertising:

  • full screen advertising. It is often used in free mobile apps; this is how developers monetize them. A full screen banner and an ad intro appears for certain periods of time;
  • product placement. Integration of a marketing message into the app as a design feature or content. It is an expensive and difficult method used by popular brands only;
  • mobile PPC. The same principle as conventional PPC has, but online ads are displayed in mobile search.

Currently mobile advertising is not suitable for all advertisers, although in some niches it allows gaining a good result. Often app developers use ads from other apps for promoting their products.

10. Internet location-based ads

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Online location-based advertising is a modern type of web advertising targeted on Internet users in a specific location. E.g.: If one owns a diner, s/he can target the location-based ads on users who pass through this area or plan to visit it. Such online ads will be displayed in apps, online maps and navigators. This allows increasing the cafe attendance of such diner.

There is another feature of displaying location-based ads on mobile devices at once with notifications.

This type of online advertising is similar to Google Maps that offers venues, shops, etc. in a certain location according to the user’s search request.

11. Internet viral advertising

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The main purpose of online viral advertising is to attract the Internet users’ attention (perhaps, prospects) and be so catching that they would be willing to share these ads (perhaps even without having a clue that they share ads, but not just interesting content, etc.).

Mostly this type of Web advertising involves videos, funny pics, and memes. For making a viral ad one has to follow the fashion of new jokes, situations or just catch a good mood of users.

12. E-mail marketing as one of types of Internet ads  

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Some people claim that such type of online ads as e-mail marketing does not work anymore. This should be disproved. This type of Web ads is still used for communicating with prospects and standing customers. This type of online advertisement can be also called an Internet blog in a mailbox. Usually, e-mail marketing means sharing interesting and useful information with subscribers. This allows checking out business news in one’s mailbox.

It is worth using e-mail marketing for online advertising in the following cases:

1.   One represents online stores and websites where the user is interested in the information about the product or device. So this allows sending offers and news interesting for the buyer or just useful information.

2.   One represents news websites, portals, or marketplaces. This allows finding out more information about users and increasing the traffic.

13. Pop-Ups as a type of Internet aggressive advertising

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Although pop-ups have proven themselves as aggressive online ads, they are still widely-used for advertising on an other website. In spite of bad reputation, this allows increasing the conversion % of your website, informing the users about news, collecting an e-mail base for further bailout, and improving the website behavioral factors.

One can use Plerdy – a builder of smart PopUp forms for trying out pop-ups for a website or online stores. After a few steps of setting up the pop-up can be customized and the results of their work can be analyzed in a few hours.

14. Web push notifications are a popular type of Internet advertising

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Such type of online ads as push notifications has emerged in the advertising sphere not so long ago. It is a very efficient type of advertising as 80-85% of users see such pop-up messages.

Firstly, push notifications were used in Web apps for constant reminding about such apps, changes, etc. However, advertisers have found this method very promising and now push notifications are widely used in advertising.

This type of ads can be set up using special services so as any other Web ads.

15. Search engine optimization (SEO)

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Search Engine Optimization is a set of measures taken by specialists for improving the website search visibility by target keywords for boosting the traffic.

SEO has some distinctive peculiarities if compared with other types of Internet ads. One of the main differences is orientation of long-term effect as it is impossible to boost the traffic and get new customers at once using SEO.

At the same time, it is the only type of online ads that allows getting the so-called organic traffic – visitors that land on the website as a result of unpaid search results. Of course, the work of specialists should be paid for, but the clicks are free. This makes this advertising type especially profitable in medium- and long-term prospective.

Here’s a simple example: online store SEO for six months can be fully repaid in the seventh month and the net profit of the company owner grows only while the fee for SEO specialists remains the same or changes slightly.

We’ve published several materials on SEO in our blog. They will be useful both for online store owners and businessmen working in other niches. Firstly, we recommend paying attention to the following articles:

Also, many other interesting materials on related topics and about separate aspects of digital marketing can be found in our blog.

Conclusion

Online advertising is not a trend any more, although some businessmen still perceive it in this way. Now it is a necessary tool. Internet ads can be efficiently used not only for selling products and services but also for sharing information about the brand and increasing the brand awareness.

For some reason, some “old-fashioned” companies still avoid working online and developing this area. But, experience has proven that sooner or later customers themselves lead the company to this.

Simple as that: if a dozen customers ask you for detailed information on the products and services on a website for reading it when convenient, but you don’t have a website at all, isn’t it a good reason for making it?

The above-given types of online ads allow attracting many users and thus making the first move to taking the company to a new level.

Every type of online advertising can be tested alone tracking the conversion rate and ROI and then allocating more budget for maximum coverage on the most profitable medium.