Skip to content
Little fox agency logo with a little fed fox icon
what is online advertising for small businesses

Table of Contents

How Paid Advertising Works

Google and Facebook dominate online display advertising, which has become a highly concentrated market, with estimates that they were responsible for 70% of overall US digital advertising revenue in 2016.

Advertising is a complex system where advertisiers must strategically place their bids to obtain the best placement and exposure for their campaigns. Paid advertising work by auctioning off ad space on various networds, sych as Google Ads, Facebook Ads, and Amazon Ads.

Bidding on these platforms takes into account many factors including:

-How niche your offers is
-The targeted audience for your ads
-any keywords you have associated 
-budget constraints

All these elements come together to determine what Cost Per Click (CPC) bids will be accepted for each advertisement.
The more specific and targeted your ads campaigns are, the higher you can expect to have to bid for those clicks. 

What Are the Benefits of Online Advertising?

First, online advertising offers much more geographic reach than traditional physical advertisements.

Web banners, text links and digital video ads can be created to target customers from virtually any part of the world.

By using targeted keywords in web content, advertisers can also have their products found by potential buyers through searches – therefore expanding a company’s brand awareness.

Additionally, online advertisement campaigns allow plenty of customisation options – with split testing available to determine which images or copy may lead to greater returns on investments.

These methods create measurable data that lends itself well to analytics, and allows businesses to properly identify what works best for their campaigns and target demographics.

Proponents of online marketing also tout its low barrier-to-entry costs; smaller companies or entrepreneurs can use advertisement hosting platforms such as Google AdWords or Yahoo Advertising that offer Online advertising provides businesses with an unparalleled opportunity to reach their target audiences quickly and cost-effectively. Two-thirds of businesses are taking advantage of this powerful marketing strategy, and for good reason: online advertising offers a number of important benefits.

For starters, digital advertising enables businesses to measure results in real time. This helps maximize the return on investment by eliminating guesswork and any potential waste of resources on activities that aren’t driving desired results.

Digital campaigns are also easily tailored towards a specific audience or segment, allowing for more targeted messaging.

Additionally, ads on the web provide businesses with valuable consumer insights like interests, purchase behavior or demographic data which can be used to inform future campaigns and better serve customers’ needs.

In addition to these advantages is the fact that spending money on online advertising has significantly lower upfront costs than traditional media such as television or radio ads – With online ads you can start small, monitor your budget, track performance closely and grow your ad spend when more budget becomes available.

All these reasons make it clear why two-thirds of businesses are embracing online advertising – they’re getting impressive results at a significantly lower cost than other media channels.

What are the types of online advertising

What are 5 types of online advertising

1. Search Engine Optimization (SEO): This type of advertising seeks to increase the visibility of a company or product on search engine results pages (SERPs) by optimizing certain keywords and phrases.

2. Social Media Advertising: This type of online advertising uses platforms such as Facebook, Twitter, Instagram and LinkedIn to promote products or services through sponsored posts, targeted ads, and/or sponsored stories.

3. Display Ads: These are the traditional web banners found on websites that contain images or text about a product or service.

4. Video Ads: These are video commercials which appear in YouTube videos, social media feeds, or other websites to promote a product or service.

5. Native Ads: These are ads that are presented in the same format and style as the content they appear with, making them less intrusive and more likely to be noticed by viewers.

As someone who has been involved in online advertising for a number of years, I can personally attest to the effectiveness and reach that this channel provides. By using targeted keywords and split testing to gain insights into what works best, businesses can reach consumers all over the world with a much lower cost than traditional forms of media. Additionally, digital campaigns offer plenty of customisation options that allow for more targeted messaging and improved customer segmentation.

The ability to track results in real time is also a huge advantage when it comes to online advertising. This allows marketers to identify what’s working and where adjustments need to be made immediately – without having to wait months or even years for results.

How Google is used for online advertising

1. Create a Google Ads Account: Start by setting up an account with Google Ads, which will allow you to manage your online advertising campaigns.

2. Define Advertising Goals: Determine the objectives of your online advertising campaign, such as increasing website traffic, generating leads, or boosting sales.

3. Choose Target Audience: Identify your target audience based on demographics, interests, and behavior to ensure your ads reach the right people.

4. Select Advertising Format: Google Ads offers various ad formats, including search ads, display ads, video ads, shopping ads, and app ads. Choose the format that best suits your advertising goals.

5. Set Budget and Bidding Strategy: Determine your advertising budget and select a bidding strategy, such as cost-per-click (CPC) or cost-per-impression (CPM), to optimize your ad spending.

6. Create Compelling Ad Copy: Craft engaging and relevant ad copy that captures the attention of your target audience and entices them to click on your ads.

7. Choose Keywords: Select relevant keywords that are frequently searched by your target audience. These keywords will trigger your ads to appear when users search for related terms on Google.

8. Optimize Landing Pages: Ensure that the landing pages your ads direct users to are optimized for conversion, with clear call-to-actions and relevant content.

9. Track and Analyze Performance: Utilize Google Ads’ tracking and analytics tools to monitor the performance of your ads, including impressions, clicks, conversions, and return on investment (ROI).

10. Refine and Optimize: Continuously analyze the data from your advertising campaigns and make adjustments to optimize your ads for better performance. This may involve tweaking keywords, adjusting bids, or refining ad copy to improve results.

Types of Online Advertising

There are many different types of online advertising – or internet advertising/web advertising as it is otherwise known – and it can be difficult to know where to start. To help, we have highlighted some of the most important types of online advertising for you to consider:

  1. Social Media Advertising
  2. Content Marketing
  3. Email Marketing
  4. SEM (Search Engine Advertising) – including PPC
  5. Display Advertising – including banner advertising & retargeting
  6. Mobile Advertising

What is Social Media Advertising

According to a survey, 33% of all digital advertising spending happens on social media ads.

Source: sender.net

Social media advertising refers to the use of social media platforms, such as Facebook, Instagram, Twitter, and LinkedIn, to promote products or services and reach a specific target audience.

It involves creating and sharing content that is engaging and relevant to the audience, with the aim of increasing brand awareness, driving website traffic, or generating leads and sales.

Social media advertising allows businesses to target their ads based on demographic, geographic, and behavioral factors, ensuring that their message reaches the right people at the right time.

It also offers various ad formats, including text, image, video, and carousel ads, providing flexibility and creativity in reaching and engaging with the audience.

Overall, social media advertising is an effective and cost-efficient way for businesses to connect with their target market and achieve their marketing objectives.

What is content marketing

What is Content Marketing

Content marketing is a strategic marketing approach that focuses on creating and distributing valuable, relevant, and consistent content to attract and engage a target audience. The goal of content marketing is to provide valuable information or entertainment to the audience, rather than directly promoting a product or service.

Content marketing involves creating various types of content, such as blog posts, articles, videos, podcasts, infographics, and social media posts, that are tailored to the needs and interests of the target audience. The content is designed to be informative, educational, entertaining, or inspiring, with the objective of building trust and credibility with the audience.

Video advertising increases conversion rates by up to 86%*;

Source: sender.net

By consistently sharing high-quality and valuable content, businesses can establish themselves as industry experts and thought leaders. This can help in attracting and retaining customers, increasing brand awareness, driving website traffic, and ultimately, generating leads and sales.

Content marketing also plays a crucial role in search engine optimization (SEO), as search engines value informative and relevant content. By producing and optimizing content with targeted keywords, businesses can improve their organic search visibility and attract more organic traffic to their website.

Overall, content marketing is a long-term strategy that focuses on building a relationship with the audience through valuable content, rather than relying solely on traditional advertising and promotional tactics.

What is Email Marketing?

Email marketing is a digital marketing strategy that involves sending targeted promotional messages or information to a group of individuals through email. It is a form of direct marketing that allows businesses or organizations to communicate with their customers or prospects directly in their inbox.

Email marketing can be used for various purposes, such as promoting a product or service, announcing special offers or discounts, sharing news or updates, nurturing customer relationships, or building brand awareness.

To execute an email marketing campaign, businesses typically collect a list of email addresses from their customers or potential customers. They then use an email marketing platform or software to create and send personalized emails to these individuals. These emails can be customized with the recipient’s name, personalized content, and targeted offers based on their preferences or previous interactions with the business.

Email marketing offers several benefits, including cost-effectiveness, scalability, measurability, and the ability to reach a wide audience. It allows businesses to track the success of their campaigns through metrics such as open rates, click-through rates, and conversions, enabling them to refine their marketing strategies for better results.

However, it is important for businesses to adhere to email marketing best practices and regulations, such as obtaining consent from recipients, providing an option to unsubscribe, and ensuring the security and privacy of customer data.

What is SEM marketing

What is SEM (Search Engine Marketing)

SEM, which stands for Search Engine Advertising, is a digital marketing strategy aimed at promoting a website or business through search engines like Google, Bing, or Yahoo. It involves placing advertisements on search engine result pages (SERPs) to increase visibility and drive targeted traffic to the advertiser’s website.

According to TechJury, PPC has an amazing ROI of up to 200% and generates twice the number of visitors compared to SEO.

Source: sender.net

One of the key components of SEM is Pay-Per-Click (PPC) advertising. PPC is a model of online advertising where advertisers pay a fee each time their ads are clicked. This means that advertisers only pay when someone actually clicks on their ads and is directed to their website. PPC ads are typically displayed at the top or bottom of the search engine results page, labeled as “sponsored” or “ad.”

To set up a PPC campaign, advertisers bid on relevant keywords or phrases that are related to their products or services. When a user searches for a specific keyword, the search engine’s algorithm determines which ads are displayed based on factors such as the bid amount, ad relevance, and quality score. The quality score is a measure of the ad’s relevance and the landing page’s quality, and it affects the ad’s position and cost-per-click.

PPC advertising offers several benefits for businesses. It allows advertisers to target specific keywords and demographics, ensuring that their ads are shown to users who are actively searching for related products or services. It also provides instant visibility, as the ads can be launched and start generating clicks and traffic immediately. Additionally, PPC campaigns can be easily tracked and measured, providing valuable insights into the effectiveness and return on investment (ROI) of the advertising efforts.

What is Display Advertising?

Display advertising refers to a form of online advertising where visual advertisements, such as banners, images, or videos, are displayed on websites, mobile apps, or other online platforms. These advertisements aim to attract the attention of users and promote a product, service, or brand.

According to Google, the Google Display Network reaches 90% of Internet users worldwide, across millions of websites, news pages, blogs, and Google sites like Gmail and YouTube.

Source: meltwater.com

social media platform

Search Engine Marketing

Display advertising typically works on a pay-per-click (PPC) or cost-per-thousand-impressions (CPM) model, where advertisers pay when a user clicks on the ad or when the ad is displayed a certain number of times. Advertisers can target specific audiences based on demographics, interests, or online behavior, allowing them to reach a more relevant audience and improve the effectiveness of their campaigns.

Consumers who search after seeing a display ad are 59% more likely to convert*.

Source: sender.net

Display ads can be static images, animated graphics, or even rich media ads that include interactive elements, videos, or audio. They can be placed strategically on websites or apps to maximize their visibility and engagement with the target audience. Display advertising can be an effective way to increase brand awareness, drive website traffic, generate leads, or promote specific products or services.

What is Mobile Advertising?

Mobile advertising refers to the practice of displaying advertisements on mobile devices such as smartphones and tablets. It is a form of digital advertising that targets users who access the internet through their mobile devices.

Mobile advertising takes advantage of the widespread use of mobile devices and the ability to reach users anytime and anywhere. Advertisements in this form can be displayed within mobile apps, mobile websites, or through SMS (short message service) or MMS (multimedia message service).

There are various types of mobile advertising formats, including banner ads, interstitial ads, video ads, native ads, and push notifications. These ads can be targeted based on factors such as location, demographics, interests, and previous user behavior.

Mobile advertising offers several advantages over traditional forms of advertising. It allows for precise targeting, as mobile devices provide a wealth of data about users’ interests and behaviors. It also provides the opportunity for personalized and interactive advertising experiences, such as interactive ad formats or location-based offers.

Furthermore, mobile advertising offers a higher level of engagement and the potential for immediate action, as users often have their mobile devices with them at all times. Advertisers can track metrics such as clicks, conversions, and app installs to evaluate the effectiveness of their campaigns.

Overall, mobile advertising has become an essential component of modern marketing strategies, as it enables businesses to reach and engage with their target audience effectively in the mobile-centric digital landscape.


EX-GOOGLE EMPLOYEE
LEAKS WILD NEW WAY TO
CUT LOCAL DIGITAL MARKETING COSTS IN HALF
AND GET NEW CLIENTS FAST

The brand-new FREE report reveals the most powerful new way to
reduce your cost to acquire a new customer and
skyrocket your return on marketing spend locally…
online advertising for local business customers will never be the same.
what is online advertising for small businesses

What Is Online Advertising

Table of Contents How Paid Advertising Works Google and Facebook dominate online display advertising, which has become a highly concentrated market, with estimates that they

Read More »
google ads certification badge for chris obrien

what is ppc in google ads

Pay-per-click (PPC) is a form of digital advertising that is widely used by businesses to drive traffic to their websites. Google Ads is one of

Read More »

100+ Facebook Leads

NEW WEALTH MANAGEMENT PRACTICE GETS 100+ BOOKED LEADS IN FIRST 3 MONTHS Client Intro: This financial advisor started his own practice and needed clients fast.

Read More »