What is online advertising? – Definition from Techopedia

What does online advertising mean?

Online advertising is a marketing strategy that involves using the Internet as a medium to get website traffic and to target and deliver marketing messages to the right customers. Online advertising aims to define markets through unique and useful applications.

Since the early 1990s, there has been an exponential increase in the growth of online advertising, which has become a norm for organizations large and small.

Online advertising is also known as internet advertising or digital advertising.

Techopedia explains online advertising

A major advantage of online advertising is the rapid promotion of product information without geographical limitations. A major challenge is the evolution of the field of interactive advertising, which poses new challenges for online advertisers.

Online ads are purchased through one of the following common vehicles:

  • Cost per thousand (CPM): Advertisers pay when their messages are exposed to specific audiences.
  • Cost per click (CPC): Advertisers pay each time a user clicks on their ads.
  • Cost per action (CPA): Advertisers only pay when a specific action (usually a purchase) is made.

Examples of online advertising include banner ads, search engine results pages, social media ads, email spam, online classified ads, pop-up ads, contextual ads, and spyware.