According to statista, worldwide online Advertising expenditure that was around 229 billion U.S. dollars in 2017 will grow to approximately 335 billion by 2020. But in order to make use of this opportunity, it is important to understand the basics of online advertising.

Most advertising is done to promote products or services to potential leads. Such advertising would be visible on banners on roads/newspaper/magazine/TV radio/Social media etc. Well, these different channels of advertising can be broadly classified into Online advertising channels and Offline advertising Channels.

Advertising Channels

But online advertising channels have been dominating the offline advertising channels due to below reasons

  • They offer Low investment cost and give higher/better returns
  • It is possible to measure the effectiveness of online advertisements and implement any changes of advertisements immediately
  • Multiple options to display online advertising message using mages, video, audio, links etc
  • More accurate pursuing leads who will watch the advertisements using filters or metrics such as geography, demographics, time of display etc.


Given the benefits of Online Advertising channel, it is important to further understand the classification of it as below

Search-Based Advertising

The advertisement displayed in a text format with a link to the landing page based on the keyword searched for in the search bar. Advertisements are displayed on a search page based on the key search terms (keyword) entered in a search string. There is an algorithm which is used for these search Ads and they are displayed based on the ranking

search advertising

Some of the advantages and disadvantage of this advertising are listed below

Advantages :

  1. Reaches intended audience when they are searching for related information
  2. Ensures that advertisements are only shown when searchers are searching for related information

Disadvantages :

  1. Advertisements displayed are based on the algorithm and finally displayed advertisement may not appeal to the users’ interest
  2. Located in a single Ad unit and is textual hence  may not  capture the attention of the user

Display Advertising

This is Interactive Advertisement information which is typically displayed using a Banner/Flash/Games/Pop-Ups etc

Display Advertisement

Some of the advantages and disadvantage of this advertising are listed below


  1. It is Visually appealing to viewers as compared to other types of advertisements
  2. With the better internet connection, this advertisement can also take other attractive and resource intensive forms


  1. Usually costly when compared to other forms of online advertising
  2. Some view this type of advertisements as the irritant, thus driving negative opinions

Content-Based Advertising

The advertisement that is displayed in a text format with a link to the landing page based on the content displayed on the page. An advertisement is delivered based on the relevancy of this content or they are targeted specifically to end users

Other Forms of Online Advertising

Other channels such as Email, Social Media and Upcoming new mediums (as technology evolves) is providing advertisers multiple improved options to customize advertisements based on end-user needs and increase ROI (Return on investment).

About the author

Amar Naik

software engineer searching for the meaning of success