What is Online Advertising?

Advertising on the internet is one of the best ways to advertise or promote your business and services. It makes it easy for you to deliver marketing messages to people in your target market and attract potential customers. There are many different forms of online advertising that you can use including banner ads, Rich Media Ads, Social network advertising, interstitial ads, online classified advertisingadvertising networkse-mail marketing and even e-mail spam.

Advantages of Online Advertising

There are many advantages to advertising online with the useWhat is online advertising of the internet instead of using traditional advertising methods like placing ads in a newspaper or on a billboard. When you place ads online, you can use a method called interactive advertising which allows for actual interaction between the advertiser and the potential customer before the customer decides if they are interested in what the ad has to offer or not.

Another great thing about online advertising is the cost and efficiency of it. It is cheaper to advertise online than it is in a magazine and it is much more efficient. There are also programs such as Google AdWordsYahoo! Search Marketing and Google AdSense that allow users to only pay for their ads when they are clicked on, allow the user to earn money by placing ads on their site and allow the user to analyze data and statistics about their individual ads.

Growth of Advertising Online

Since advertisements first started being promoted on the internet just a short time ago, they have come a long way in their capabilities and sophistication. Internet ads are also very cheap to display and advertising online is the most efficient form of advertising in the world which is why it has become so popular. When a person chooses to advertise outside of the internet, they pay a company to promote their ads and then have no control over the rest of the ad campaign. When you advertise online you have complete control over every aspect of your individual advertisements and your entire ad campaign. Online advertising has also experienced a large growth to being able to advertise on popular social networks including Facebook, Twitter and Myspace. The amount of money spent per year on online advertising has been growing steadily for many years and the amount of money spent in the next year alone is expected to surpass thirty-five billion dollars.

Purchasing Online Advertising

There are many different ways that people use to purchase online advertising. The most popular ways are by using CPMCPC, and CPA. These letters stand for Cost Per Mille, Cost Per Click and Cost Per Action of Acquisition.

  • Cost Per Mille is a good choice for advertisers to use if they want to target their ads to a specific market and keep their ad on a website that is geared towards people in their target market. “Per mille” means per thousand impressions. An impression occurs when an advertisement is loaded, which is every time a webpage with the ad on it is visited.
  • Cost Per Visitor also is a good method to attract individuals in your target market. You pay a small ad fee each time a visitor is sent to your website from your advertisement wherever it may be placed. This ensures that you only pay for your advertising when it is bringing you potential customers.
  • Cost Per View is a very cheap way to advertise and it gets your ads a large amount of viewers. You pay a very small ad fee for each view that you ad receives. You may per your ad server solutions sor whoever is promoting your ad per every ten thousand views or a similar high number that you decide upon.
  • Pay Pay Click, which is stands for Pay per click, is very popular due to it generally being thought as the most efficient form of online advertising payment methods. This method is also known as cost per click. The advertiser does not have to pay for putting their advertisement on a website or websites; they only have to pay when someone clicks on their ad and then arrives at their website. Instead of paying every time someone sees your ad or clicks it but doesn’t end up at your site, payments are only made for users who click on the ad and actually arrive at the advertiser’s website.
  • Cost  Per Action which is sometimes referred to as either Cost Per Acquisition or Pay Per Performance is a more complicated marketing form of online advertising. Since this method is more complicated than most other forms, it is usually only used by people who use affiliate marketing to promote their website or business. This payment method is much different from the others because the only one who is taking a risk is the publisher. They have to display the ads and are only paid when someone makes a purchase or signs up for something from following the ad. This method does not follow the standard conversion funnel way of obtaining a sale, it ignores it and lets the publisher do all of the work.  There are a few different systems that can be used in this payment method and they are listed and explained below.
  • Cost Per Lead advertising is like a combination of cost per click and cost per action. An advertiser pays every time their ad is clicked on and a lead is created to a user making a purchase. The lead can be as simple as a click or more complicated and require a certain number of webpages to be visited or a person to sign up for a website.
  • Cost Per Sale, which is known as both PPS,  which stands for Pay Per Sale, and Cost Per Order is advertising that is only paid for when sales are made. Payment is not made for when someone follows an ad to a website, an advertiser only pays when a sale is made.
  • CPE which stands for Cost Per Engagement is the newest form of cost per action advertising that has only been around in the past few years. Impressions and clicks on advertisements have no affect on when a payment is made for this kind of online advertising This form of advertising is for interactive ads only. Payment is only made when someone engages in the interactive ad. The specific engagement required for a payment to be made varies in each situation depending on what the publisher and advertiser agree on because people may define engagement in a number of different ways.
  • Cost per conversion is used mainly by people running advertising campaign with several different ads. The publisher and advertiser first agree on what they consider a conversion to be. A conversion can be thought of as just a simple lead or it can be a sale or purchase being made. Once agreed upon, the ad campaign is started and when it finishes the advertiser pays the publisher for each conversion that was made. The advertiser can also track and record how many conversions the publisher makes per one-hundred customers.

Here you can find 9 top ad server solutions you can find (A list of ad serving companies)

Advertising Invading Privacy

Online advertising has evolved into something that now invades the privacy of internet users in ways that it never has before in previous times. When advertisers place ads on two different websites using the same hosting server, they can use third party cookies to track the browsing history of a user on these websites. This helps them conduct research that their marketing team can analyze and then create and determine certain markets based on internet history and location that they should market to.

Luckily, internet users have the option to block or deny access to third party cookies via their internet browser. Even though all of the data collected by third party cookies is anonymous, many people still do not want to have their internet history being tracked by unknown outside sources.

Malware and Damaging Software

Online advertising is not only used by people who want to advertise, it is also used by internet hackers and people with dire intentions. There are several ads that are often in the form of email spam, banner ads and pop-up ads that contain malware and are meant to damage your computer. They can do many things to hurt your online experience including redirecting all of your internet searches to unwanted websites, having ads pop up constantly and changing your browser’s homepage and not letting you change it back. These kind of ads are usually labeled as spyware or adware and should be avoided at all costs. Malware in the form of advertisements is usually designed to try and trick the user to click on it and possibly follow instructions or directions on what to do next. They act as Trojan horses and are very successful at concealing their true identities. To make matters worse, these programs are built to be very difficult to uninstall and remove which makes them a nightmare for most internet users out there who do not possess extraordinary computer skills.

Morals in Online Advertising

Ethics play in a role in internet advertising and often can eliminate some forms of advertising for an advertiser to use when they are deciding which forms they want to use. Many advertisers to not want to bother the internet users who are viewing their ads and only want to promote their business with their advertisements. Others do not care about the internet users at all and simply want to make as much money as possible. You have probably come across many unethical advertisements in your life when surfing the internet. They will usually be designed to blend in with a webpage and they give you a misleading message that may say something about your computer crashing or that you have won a prize and they always say that you have to click on their ad to either protect your computer or claim your prize. Many of these ads pretend that the message you are seeing is being sent directly from  your computer’s operating system, rather than it being an advertisement. Websites who allow these advertisements to be placed on their websites are usually owned and operated by people who are trying to make the most money from displaying ads on their site and they do not care about what may happen to their website visitors in result of displaying certain ads on their site.


If a website is flooded with all sorts of irrelevant advertisements, it is highly likely that the website owner does not monitor the ads being placed on their site and therefore clicking on any ads on their website should be avoided.

Adobe Flash is one of the most used technologies in the computer world today. Along with running the world’s most popular flash player, it gives internet users the option to use software like Adblock or NoScript which helps block certain advertisements and pop-ups that are deemed dangerous. Websites avoid having their legit advertisements blocked by using services that require JavaScript to function which ensures that the ads you are seeing do not contain malware and are not meant to harm your computer.

Online marketing and advertising companies often perform research that is based on customer feedback to analyze specified websites that may or may not be providing their visitors with the best information security and that may or may not be in incompliancy with Can Spam Requirements.

More Types of Online Advertising

Not all forms of online advertising require reoccurring payments based on the performance and use of certain ads Some forms only require one payment to be made to purchase a certain amount of advertising space on a website for a specified amount of time. The Million Dollar Homepage provides a perfect example of how these other types of advertising work. Advertisers could pay one dollar to place an ad on their site and their ad would stay on the website with no additional costs as long as the website is up and running. The kinds of display ads used to advertise on the internet come in all different shapes and forms. The following are examples of these kinds of online ads.

  • Moving Ad: A moving ad usually starts on one side of the screen where it initially gets a users attention and then it moves to the center of the screen so the user can get a better look at it.
  • Size Changing Ad: A size changing ad will expand on a webpage usually either automatically when a person arrives at the webpage or when a person hovers over the ad with their mouse. These ads will expand when they are hovered over and then compress when the user moves their mouse off of the ad.
  • Background or Wallpaper Ad: Wallpaper ads, also called background ads will change the wallpaper or background of the website you are on to display their ad and attract a user’s attention.
  • Deceptive Banner: Deceptive banners are banners that display a false or misleading message such as “your computer has a virus and is going to crash, click here to remove the virus!”.
  • Pop-up: Everyone knows what pop-ups are, they are ads that pop-up when you are on a website and they want you to click them so they can redirect you to another website.
  • Video Ad: Video ads display videos on their ads because it has been proven that people respond better to video ads than simple text ads. This form of advertising is what people see every day when they watch television and it has now become a popular way to advertise online as well.

In addition to the kind of ads listed above and the ads that have been mentioned previously in this article, streaming video is becoming very popular in online advertising because it is a way to advertise with videos that doesn’t require a user to have to wait for the video to download before they can watch it.

Advertising through Email

It has become very difficult for a business to use E-mail marketing  as a form of advertising because there is too much spam email being sent these days. The best thing website owners can do to help their emails from being distinguished as spam is to notify their customers to add their email address to their contacts list so that their emails will go to their customer’s inbox instead of their spam, junk or bulk mail folder.

Benefits Affiliate Marketing

Affiliate marketing is far more than just a form of online advertising. It is used in large advertising campaigns where advertisers use several different publishers from a variety of advertising and marketing companies to advertise all over the internet. The results of these campaigns are recorded to help the advertisers in their future campaigns. The only way to successfully accomplish a campaign with affiliate marketing today is to use an affiliate network to connect you with the online world.

Amazon.com was the first website to dominate the online advertising industry with the use of affiliate marketing. This form of advertising helped Amazon become one of the top companies in the world and it is still used by Amazon today.

Targeted Advertising

Instead of displaying all of their advertisements to everyone, advertisers can choose which ads to display to certain groups of people based on their internet behavior. This form of advertising is known as behavioral targeting. This is a very effective way to advertise. For example, if an advertiser is advertising a new kind of binder that they invented, they can choose to only have their ad displayed to people who have recently browsed multiple office supplies websites.

Many governments or government appointed companies or teams have become involved in behavioral targeting because of how the behaviors are being observed to create groups to target ads to. Internet users have their data anonymously tracked to build profiles based on certain people and their internet behavior.

Semantic Advertising

Semantic advertising is a takeoff of behavioral advertising that is much less invasive. By looking at a user and what webpages they are frequenting on the websites that they are currently on, targeted advertising  is used to decide which specific ads should be shown to this individual user. The ads shown to the user are the ads that the semantic advertising system has deemed to be the most interesting to a particular person.

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