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Introducing Online Advertising – Basics, Objectives and Benefits

5 February 2021

Welcome to the 21st century. Do you use any online advertising tools? If so, are they useful? The amazing world of digital marketing brings even the smallest businesses the opportunity to reach new customers.

Online advertising

Advertising via the web is one of the most popular types of advertising.

It was calculated that the internet advertising market ad spending worldwide amounted to 325 billion U.S. dollars in 2019 and that after a drop in 2020 due to the coronavirus related market issues, it would grow to 389 billion dollars in 2021.

In this article, we will discuss a few key terms and concepts.

Content Table

The basics of online advertising What are the objectives of online advertising?
What are the benefits of online advertising? Online Advertising Key Terms and Concepts
More Keyterms and Concept

The basics of online advertisingOnline advertising

Before we take a look at what online advertising is, it will be best to first look into what advertising is. Advertising is doing anything in order to draw attention to your business or product. When an individual is trying to decide on a product or service, they are much more likely to look online if there is a listing for it. Even if they don't end up using your services/products and just scroll through your website, you still have gotten their attention to some extent.

Online advertising is a multi-faceted term that refers to the creation and running of an online ad campaign. This includes the adverts on your website, landing page, social network pages, emails, and more. There are many different types of digital advertising, too – from simple banner ads that show at the top of your page to full-page ads and even video ads!

Don’t get overwhelmed. We’re coming back to each of these strategies separately in future articles, so don’t worry! Now let’s talk shortly about 4 main types of online advertising: display ads, search engine marketing, native advertising and social media. 

Display ads

An example of display ads

Display ads are graphic advertisements that appear on the side of a page or in a sidebar. These ads come in the form of banners, buttons, boxes or other banner ad formats. 

Internet ads are the least intrusive way you can advertise your business. They’re also the easiest to manage because you just have to create an ad and then put it in front of people. 

It is also a great way to get your name out there, especially if you’re a small business trying to build an audience.

Online ads aren't only on computers; they can be seen virtually everywhere and on different devices from TVs, to smartphones, to tablets.

There are many ways to create banner ads. You can hire an advertising agency, freelancers, and even create a display ad yourself. Now, in the era of no-code products, there are many services for creating display ads, so you can just take any banner maker, offline, like Google Web Designer, or online, like BannerBoo.

Search Engine Marketing

Search Engine Marketing

Statistics show that 63% of Google users will click on a paid search advertisement. That’s why search engine marketing can be a very effective way to promote your business and attract new customers. It works by using different types of SEO tactics like creating a blog, creating an authority website, and linking to other sites.

When you use search engine marketing, there are two main types: paid search and organic search.

Paid search is where you pay for the opportunity to show your ads to a certain type of internet user. You can perform a paid search on Google or, for example, Facebook. They both offer different tools that you can use to guide your paid search campaign.

When it comes to paid search, you have two options: display ads and contextual ads. Display allows you to run a text ad on your website and will appear as a static image or text ad. Contextual advertising is a way of delivering ads based on the browsing history of your users.

Organic search refers to the organic traffic a site gets from natural searches without paid advertising. It is incredibly important for any business that sells products online or offline. Organic search is the most valuable type of traffic because it comes from people searching for your product or service on Google, Yahoo and Bing.

One of the best ways to get a lot of organic traffic is to be listed on Google’s search results pages. The more you are listed, the more potential customers will find you.

Native advertising

Native advertising is a form of advertising that is created specifically for the site, website or publication that it’s appearing in. It can be a sponsored article on an existing website or blog, but it doesn’t have to be.

According to Business Insider, native advertising will increase from 56% of total US display ad revenue in 2016 to 74% by 2021, based on data from PwC and the Interactive Advertising Bureau. The stats show just how powerful and effective native ads are.

Native advertising is all about being authentic, which means you have to make sure your ads are editorial in nature. This means they should adhere to the standards of journalistic integrity and not look like advertisements.

This kind of advertising is important in today's digital landscape because it allows brands to inject other content types into their websites without disrupting an already-existing customer flow. The best native ads strategy is one that blends seamlessly with an existing brand site and isn't distracting to the user.

Social MediaBannerBoo in Facebook

BannerBoo in social media: Facebook

There are more than 350 million monthly active users of social media, according to the social media statistics on Emarsys. In other words, this represents about 45% of today’s population. 

Social media is arguably the most important marketing tool available to today’s entrepreneurs. By using social media (YouTube, Twitter, Facebook advertising or Instagram ads), you can build a loyal customer base through word of mouth, and develop visibility for your business.

Social media is one of the best ways to build your brand. If you’re active on social media, people will recognise that you’re a real person, and they’ll start to build a relationship with you and trust you.

Internet advertising is a great way to reach new customers who may not have been aware of your brand before. If you’re looking to advertise your products or services, you can do so in a variety of channels including social media, articles written about you and your products or services, and by paying to be listed as a sponsor on blogs that have relevant content in your field.

What are the objectives of online advertising?

As it stands, there are many different reasons digital advertising is being used.

Some brands use this strategy to improve their effectiveness, visibility and awareness. Some use it to increase sales volume. Other brands use it to increase their share of voice in the marketplace and build brand awareness.  All these objectives can be achieved simultaneously, of course.

The concept is simple: reaching consumers at the right time and in the right place in order to meet their needs. The key is to produce marketing that doesn't oversell or overwhelm, but instead produces content that's helpful yet not overly intrusive. It's about understanding how to target the audience with smart messaging, and providing satisfying content that helps them find a solution that serves their needs.

Like in search ads, ad placement is based on a combination of user behaviour. The ideal place for advertisements to appear is where potential customers can see them. After all, advertisers want their messages to stand out and be seen by consumers. 

The good news for you is that this kind of advertising doesn't have limitations. You can use online advertising to reach people all over the world, rather than just in one particular area.

Place your digital ad on the world wide web and use it to generate leads. Google Ads, Youtube, Twitter, Facebook ads are excellent for driving traffic to your website and converting customers. You do have the choice of using images, videos, text, games, and other interactive elements such as quizzes. But how you use these tools will determine the results you achieve.

What are the benefits of online advertising?

Ah, the internet. It's the greatest marketing tool that has ever been invented. Open to advertisers of all kinds! In today's world, web advertising is a fast-growing medium that offers so many ways for brands to reach their target audiences. Online advertising is a great way to connect with your customers and reach beyond your immediate sphere of influence. It offers unique benefits that traditional media cannot - being tailored to your customers, delivering relevant, personalised messages, and at a fraction of the cost. Let the magic begin!

There are seven major benefits of online advertising.

1. Global

Online advertising is a great way to reach out to your customers worldwide. While traditional advertising methods are great, there are many ways the Internet can help you expand your business while staying in your own city. You don’t even need to leave the house to advertise your business; you’re only a few clicks away from reaching a huge audience online.

With this, you'll dominate the market. With a couple of clicks, you can often set up an online storefront and get your products delivered to thousands, if not millions, of consumers across the globe. 

As your business expands online, more customers will find your site and become potential customers in the future. As a result, you will be able to make more sales and collect leads. 

2. Cost-efficient

You need to tap into an online audience. How can you get noticed? One of the biggest advantages of online advertising is its low cost. It's possible to reach a wide group, even on a shoestring budget. With a little creativity and an understanding of the online landscape, small business owners can find targeting options and creative ways to make their ads stand out.

3. Targeted

Online advertising is an incredibly effective method of reaching your target audience. Through online and social advertising, brands have the ability to focus their message on a particular audience. 

An excellent example of this is when you are targeting a particular group of people with a specific interest or demographic. For example, you could run an ad for iPad accessories for a certain age group. With online advertising, brands can get much more control over how they advertise, and what format it takes. 

Instead of simply throwing your ad at everyone and hoping to catch someone by sheer force of numbers, marketers have access to demographic data, consumer sentiment data, and other important data now available online.

4. Measurable

Online marketing is a lot easier to gauge and quantify, but it's a lot more important. If you want to increase sales, then you've got to invest in online tools and analysis. Online metrics can show what's working and what isn't, and your marketing dollars are better spent targeting your most profitable customers and raising your revenue. They will help you make adjustments and changes to increase your campaign effectiveness, all while providing important brand-audience statistics about your target audience.

5. Gives feedback

The internet can connect people with their friends and family all over the world. It also allows businesses to easily reach customers on many different platforms, whether it's a social media site like Facebook or a consumer website like Google.

Facebook ads, Twitter ads, and other advertisements on social networks are great tools for building brand awareness. Look how many of your competitors have them - they're everywhere! They allow you to gather customers' feedback and responses to issues. The more you engage with customers on social media, the more likely people are to come back and even become brand advocates.

You know that great customer service ends every interaction positively. Doing so should be a top priority for any business that has a presence online. Online customer service is the most powerful form of marketing and an essential part of any online site. Companies can use real-time messaging to maintain conversational communication with their customers, showing them they're listening and doing things to reward them.

6. Flexible

Ad campaigns are fluid and flexible. It's easy to test new ad copy and re-engage in a very short period of time, keeping your campaign on track. With all the options powerful platforms provide, it's just as easy for marketers to pause a campaign or adjust their strategy in a minute or two. And existing campaigns can be re-energized soon after further testing as updates including data become available.

This flexibility allows you to keep your customers in the loop. It also helps you anticipate customer needs before they even realize there is a problem. And if something does go wrong, you can implement another solution right away.

7. Gives endless opportunities

Internet advertising offers a world of opportunity for every type of business. This is an exciting, ever-changing space and there's a lot of opportunities for people to make a living out of it. No matter your budget, advertising is a simple way to reach and engage consumers. 

Your audience is all over the web, reading and sharing everything from social media to blogs. You have to be there for them. These are the days in which social media marketing exists, not just as a "for a few months" strategy. You will need to figure out what your audience wants and what they love. Monitor, listen and engage, and you will be able to reach them when they are looking online or even offline for your brand.

Online Advertising Key Terms and Concepts

The ad server is a piece of software that places ads on websites.

Ad network – Advertising networks connect advertisers with websites that are interested in hosting their ads. It is a platform that combines the supply of ad inventory from publishers with the demand of advertisers.

Ad format – are the types of advertisements you might see on your site (for instance, video ad, display ad, native ad, etc).

Advertising campaign – a group of similar advertisements that convey a single message or tone.

Marketing campaign – a sequence of activities and processes that are used to promote a product, service or resource.

Advertising strategy – The ad strategy is a comprehensive plan for a specific ad campaign. It involves the development of specific media-buying strategies that accomplish the desired results and overcome any objections.

Display advertising – is a common tactic used by marketers to spread awareness of various products and brands. Simply put, the ad will display on these same type of online platforms, usually like a banner, but will have some form of additional text or image added onto it.

Banner – being a form of display advertisement, banners usually take the form of a graphic image that appears on the top of a web page, or at the bottom of it.

Animated GIF – is an image file that allows for different palettes of 256 colors each frame. These are images that move, but not quite a video.

PPC advertising or Pay-per-click (PPC) is a model of online advertising that advertisers use to drive traffic to their sites by paying publishers when the ad is clicked. Search engines usually implement pay-per-click advertising.

CTR or click-through rate is the proportion of clicks divided by the total number of impressions.

Conversion – the activity in which a site visitor completes a targeted action.

Cost per Acquisition or CPA – This is an indication of the cost to acquire a new customer. As the advertiser, you will only be charged for actions you specify.

CPC – Cost per click - When a user clicks your ad, you pay a certain amount. This is the CPC.

A cost per thousand impressions, also known as CPM, indicates how much an advertiser will pay for every impression in an advertisement.

Display Network – is a network of content websites that deliver PPC advertisements from the same provider. 

More Keyterms and Concept

HTML - HyperText Markup Language, this type of programming language is read by web browsers.

An IP address is a unique address assigned to every computer in a network.

Key Performance Indicators or KPI – A KPI is a metric which is used to measure success or failure of a specific objective.

MarketPlace Ads – Facebook features many forms of advertising. One of the most popular is the marketplace advertisement. This feature is being implemented by other social media platforms as well.

Paid Search Advertising – ads that appear on search engine results pages. 

Mobile Advertising – any advertisement displayed on a mobile device, like a smartphone or tablet, using wireless connections. Advertising occurs through text messages or banner ads that are embedded on a mobile web site.

Programmatic Advertising – simply put, programmatic advertising is buying digital advertising with software. Programmatic buying relies on algorithms and machines to purchase display space rather than traditional methods such as requests for proposals, tenders, quotes, and negotiation by humans.

Pop-up Ad – this is an advertisement that appears on top of the window the researcher is currently viewing.

Tracking refers to the process of collecting and analyzing statistics to assess how effective a campaign is.

Tracking code – this is a piece of code used to monitor how people interact and navigate a website

A search engine marketing strategy is used to advertise a business on search engine results pages (SERP).


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