What is online advertising?
Online advertising is any paid promotion that reaches people through the internet, such as search results, websites, social feeds, video platforms, and apps. Advertisers pay to show a message to a chosen audience and usually pay per click, per thousand views, or per action. The goal is to put an offer in front of the right person at the moment they are likely to act.
Types of online advertising
Most campaigns use one or more of the formats below. Each suits a different stage of the buying journey.
- Search ads (PPC): text ads on Google and Bing that appear when someone searches a keyword. Demand already exists, so intent is high.
- Display ads: banner and image ads shown across a network of websites. Good for awareness and retargeting, weaker for direct response.
- Social media ads: placements on Facebook, Instagram, LinkedIn, and TikTok. Strong targeting by interest, role, and behaviour.
- Native ads: sponsored content that matches the look of the page it sits on, often used for articles and product discovery.
- Video ads: in-stream and short-form clips on YouTube and social platforms. Useful for storytelling and brand recall.
- Retargeting: ads shown to people who already visited your site. Cheaper to convert because the audience already knows you.
Online advertising channels compared
| Channel | Best for | Buying model | Speed to results |
|---|---|---|---|
| Search (PPC) | Capturing existing demand | Cost per click | Fast |
| Social | Targeted awareness and demand creation | CPC or CPM | Fast |
| Display | Awareness and retargeting | CPM | Medium |
| Native | Content-led discovery | CPC or CPM | Medium |
| Video | Brand recall and storytelling | CPV or CPM | Medium |
| Retargeting | Converting past visitors | CPC or CPM | Fast |
How much does online advertising cost?
You control the budget on every major platform, so there is no fixed entry price. What varies is the cost per result. Search clicks in competitive industries can run from under a dollar to well over ten, while display and social impressions are priced per thousand views and cost far less per view. The real number depends on your industry, audience size, and how relevant your ad and landing page are. Start small, measure cost per lead or sale, then put more behind the channels that pay back.
How to choose the right channel
Match the format to intent. If people already search for what you sell, start with search ads and retargeting. If you need to create demand or reach a specific audience, social and video tend to work better. New advertisers usually do well to pick one channel, learn it properly, and expand once the numbers are predictable. For the groundwork on goals, audiences, and budgets, see our introduction to online advertising.
Frequently asked questions
What is online advertising?
Online advertising is any paid promotion delivered over the internet, including search results, websites, social feeds, video platforms, and apps. You pay to reach a chosen audience, usually per click, per thousand views, or per action.
What are the main types of online advertising?
The main formats are search ads (PPC), display ads, social media ads, native ads, video ads, and retargeting. Search captures existing demand, while social and video are better for creating it.
How much does online advertising cost?
You set the budget on every major platform, so there is no fixed entry price. What changes is cost per result, which depends on your industry, audience, and how relevant your ad and landing page are.
Which type of online advertising is best for a small business?
Most small businesses start with search ads and retargeting because the audience is already looking for what they sell. Social ads help when you need to reach a specific audience or create demand.
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