The Different Types of Online Advertising

Online advertising is everywhere these days.

Platforms such as Facebook, Google, TikTok, and YouTube primarily operate on advertising models to finance their services. For businesses of all sizes, online advertisements offer a cost-effective means of reaching a broader audience compared to traditional advertising methods.

What is Online Advertising?

Online advertising refers to any promotional activities conducted via the Internet. A more precise definition would be: utilising the Internet to deliver measurable, interactive consumer advertisements, employing industry-specific best practices for targeted outreach.

Benefits of Online Advertising:

Cost-Effective: Generally more affordable than traditional advertising methods.
Trackable Results: Easier to monitor and analyse campaign performance.
Wider Reach: Capable of connecting with a larger audience.

How Does Online Advertising Work?

The advertising process starts with establishing clear goals, such as improving brand awareness or increasing sales. Platforms like Google Ads and Meta Ads Manager gather user data to help advertisers accurately identify their target audiences. We then design customised content—be it images, videos, or text—to engage these specific groups.

Once the ads are live, they are displayed to the intended audience across selected platforms. We continuously analyse performance using analytics tools, tracking key metrics like impressions, clicks, and conversions. Based on this data, we can adjust their campaigns to enhance effectiveness.

Key Types of Online Advertising

Understanding the various forms of online advertising is crucial, as not all methods will be effective for every business. Here’s a brief overview of the main types:

1. Native Advertising

These ads blend seamlessly with a publication’s content, like sponsored articles that resemble editorial pieces.

2. Search Advertising

Text-based ads that appear alongside search results on platforms like Google, utilising keyword targeting and bidding strategies.

3. Display Advertising

Visual ads that promote products on third-party websites, often delivered through networks like Google Display, using demographic and cookie data for targeting.

4. Social Media Advertising

Ads shown on social media platforms, typically found in users’ feeds, each with their specific guidelines and practices.

5. Video Advertising

Ads presented on video platforms such as YouTube or TikTok, employing targeting similar to display advertising.

6. Mobile Advertising

Advertisements presented on mobile devices or within app environments often interrupt user activity with promotional content.

7. Retargeting Advertising

This technique serves ADs to users who have previously interacted with the brand, using tracking technologies to reconnect with them.

Advantages of Online Advertising

In the UK, online Ad expenditure increased by 9.7% to £10.6 billion in Q3 2024, and estimates show the UK advertising market was valued at £40.7 billion in 2024, marking an 11.2% year-on-year rise, according to data from the Advertising Association and WARC’s Expenditure Report. This growth underscores the numerous benefits online advertising offers:

1. Targeted Reach

Unlike traditional advertising, online ads can target distinct audiences. For instance, if you sell baked goods, you can direct your ads at individuals searching for baked products, those who’d birthday’s are coming up or those who have previously purchased from you, ensuring they reach those more likely to convert.

2. Real-Time Tracking and Measurement

Online ads allow for precise tracking and measurement of performance. Once an ad is published, you can monitor impressions, clicks, and conversions, enabling the assessment of your return on investment.

3. Cost-Effectiveness

Running an online Ads through platforms like Facebook, Instagram, or Google Ads is generally more economical than traditional methods, such as billboards. However, it’s essential to approach online advertising strategically; without proper knowledge, businesses may waste their budgets. Working with experts can mitigate this risk, ensuring funds are spent efficiently.

4. Flexibility and Scalability

Online advertising enables experimentation with various strategies and ideas. You can test different platforms, audiences, and creative content with minimal investment. Targeting options based on demographics or interests are abundant, and campaigns can be adjusted or halted if they prove ineffective. A/B testing can also be employed to identify the most effective ads, allowing for refined efforts.

Best Practices for Online Advertising

Although online advertising can be intricate, adhering to a few best practices can simplify the process. Each platform has its own algorithms and settings, but the following core principles generally apply:

1. Understand Your Audience

2. Utilise Compelling Visuals

3. Craft Strong Calls-to-Action

4. Monitor Performance Regularly

These strategies can enhance your online advertising, leading to improved engagement and higher conversion rates.

At SOTS Socials, we offer a very specific advertising package tailored to service-based businesses only. Through our experience and research, we’ve determined that the average advertising budget available to local businesses suits these particular businesses best and offers the best ROI. We don’t believe in working with people and spending budgets when we can’t guarantee results.

If you’re a service-based business on the South Coast looking for Lead Gen Social and Search for ADs, get in touch.

The Difference Between Online ADs