What is Digital Advertising: A Clear Guide to Online Marketing Techniques

Digital advertising is how companies promote their products or services online using websites, social media, search engines, and other digital channels.

It uses the internet to deliver targeted adverts to people on computers, tablets, and smartphones.

This helps businesses connect with the right customers quickly and efficiently.

People see digital adverts every day when they browse the internet, scroll through social media, or watch videos online.

The adverts might be banners, videos, pop-ups, or even sponsored search results.

Digital advertising can be measured and adjusted easily, which makes it a popular choice for both small and large businesses.

Key Takeaways

• Digital advertising means using online platforms to show adverts to specific audiences.

• Businesses use different types of digital adverts and channels.

• Digital advertising is growing and often lets companies track their results.

Definition of Digital Advertising

Digital advertising uses the internet and digital devices to promote products, brands, or services.

It includes methods like display ads, social media promotions, email campaigns, and search engine marketing.

Core Concepts

Digital advertising takes place via online channels rather than through print or broadcast media.

It uses platforms such as websites, search engines, social media, and mobile apps.

The process often begins with targeting specific groups based on interests, demographics, or online behaviours.

A major advantage is the ability to track campaign performance in real time.

Advertisers can see how many people clicked on an ad, watched a video, or bought a product after viewing an ad.

This data makes it easier to improve future campaigns and spend money wisely.

Digital advertising also uses formats such as banners, video ads, pop-ups, and sponsored posts.

Each format offers different ways to catch attention and drive customer action.

Digital signage is another important format, displaying ads on screens in public places like stores, airports, or restaurants.

Key Terminology

Impression: The number of times an ad is shown to a user.

Click-through rate (CTR): The percentage of users who click on an ad after seeing it.

Conversion: When a user completes a goal after clicking an ad, such as making a purchase or signing up for a newsletter.

Pay-per-click (PPC): Advertisers pay each time a user clicks their ad.

Targeting: Selecting specific users based on traits like age, interests, or location.

Retargeting: Showing ads to users who have already visited a website or interacted with a brand.

Here is a table showing some digital advertising terms:

Term	Short Description
Impression	An ad view by a user
CTR	Percentage of clicks per impression
Conversion	A user action such as a purchase or signup
PPC	Paying for each click on an ad
Retargeting	Reaching users who interacted with the brand

How Digital Advertising Differs from Traditional Advertising

Digital advertising can target users much more precisely than traditional methods like TV, radio, or print.

Advertisers choose their audience by age, interests, search history, or even location.

Measurability is another key difference.

Digital ads provide real-time data, showing exactly how many users saw and interacted with an ad.

In contrast, traditional ads offer fewer details about who saw the message or who took action.

Digital ads can change quickly.

Advertisers can pause, edit, or start a campaign within minutes.

Traditional advertising materials, such as billboards and print ads, often need much more time and higher costs to update.

Digital signage, unlike static billboards, allows for quick updates and dynamic content.

Main Types of Digital Advertising

Digital advertising includes several main types that businesses use to reach people online.

Each type works in different ways and targets audiences in specific places on the internet.

Display Advertising

Display advertising uses visual ads like banners, images, or interactive elements on websites and apps.

These ads often appear at the top, side, or in the middle of web pages.

They can include pictures, logos, animations, and clickable links.

Display ads are usually sold by impressions, which means the advertiser pays when the ad is viewed.

People might see these while reading news, checking emails, or playing online games.

Targeting options include demographics, interest groups, and even specific websites.

Popular networks for display ads are the Google Display Network and Microsoft Audience Network.

Display advertising is often used for brand awareness or to drive traffic.

Digital signage is a form of display advertising that uses digital screens in physical locations to reach customers where they are.

Search Engine Advertising

Search engine advertising shows text-based ads when someone searches for specific keywords on search engines like Google or Bing.

These are often called "paid search" or "pay-per-click (PPC)" ads.

Advertisers bid on keywords, and their ads appear above or next to organic search results.

The most common model is pay-per-click, where the advertiser pays only if someone clicks the ad.

This makes it cost-effective for businesses of different sizes.

People see these ads when actively looking for services or products, so these ads can lead to more qualified leads.

Search engine ads can be tailored to reach different locations, devices, or times of day.

Key benefits:

• Reaches people with high intent

• Easily measured performance

• Flexible budgets and targeting

Social Media Advertising

Social media advertising uses paid ads on networks such as Facebook, Instagram, X (Twitter), LinkedIn, and TikTok.

Ads can appear in news feeds, stories, or as sponsored posts and videos.

These platforms allow detailed audience targeting based on age, interests, habits, and even job titles.

Advertisers often choose a goal, such as website clicks, app installs, or brand awareness.

Formats include image ads, video ads, carousels, and polls.

Social media ads are designed to look similar to regular posts, which can help increase engagement.

Advertisers can track clicks, likes, shares, and comments for performance.

Many brands use social media ads to connect with younger audiences or promote time-limited offers.

Video Advertising

Video advertising delivers ads before, during, or after online videos.

The most common places to see these ads are on YouTube, streaming platforms, or publisher websites.

Ad formats include skippable and non-skippable video clips, bumper ads, and sponsored content.

Videos can be shown to targeted groups based on interests, viewing history, location, and age.

Advertisers can use video to show how products work or to tell a story quickly.

Video ads are measured by views, clicks, or the amount of time viewers watch.

In many cases, advertisers only pay if viewers watch a certain portion of the ad.

Common video ad types:

• In-stream ads (before or during videos)

• Out-stream ads (play in articles or apps)

• Interactive video ads (clickable elements)

Video advertising is helpful for brands that want to show their product in action or create a memorable message.

Advertising Platforms and Channels

Digital advertising uses different platforms and methods to reach people online.

Some focus on websites, others on mobile apps, and some use automated technology to buy ad space.

Major Ad Networks

Major ad networks let businesses display ads across many websites, apps, and sometimes search engines.

The most well-known networks include Google Ads, Facebook Ads, and Microsoft Advertising.

These networks give advertisers access to large audiences.

Advertisers can use filters to target specific groups by age, location, interests, or device.

Paid search, display, and video ads are the most common formats.

Each network has tools to set budgets, track ad performance, and adjust campaigns easily.

This helps brands test different messages and find what works best for their goals.

Ad Network	Type of Ads	Main Features
Google Ads	Search, Display	Large reach, detailed targeting
Facebook Ads	Social, Display	Audience insights, visual ad formats
Microsoft Advertising	Search	Competes with Google, often lower cost

Programmatic Advertising

Programmatic advertising is the automated buying and selling of digital ad space using software.

It uses algorithms to decide which ads to show, who sees them, and how much to pay for each impression.

This method helps advertisers reach the right people quickly and often at a lower cost.

Real-time bidding is a common part of programmatic ads, where different buyers bid for space as a user loads a webpage.

Key benefits include speed, efficiency, and better targeting.

Programmatic tools track user data and optimise ads in real time.

This means ads can be adjusted on the fly to improve results.

Major platforms include Google Display & Video 360 and The Trade Desk.

Mobile Advertising

Mobile advertising targets people using smartphones and tablets.

Ads show up in apps, mobile web browsers, games, and even within video or streaming content.

There are several types of mobile ads including banners, native ads, video, and interactive content.

Mobile ads use features like location tracking to deliver ads based on where the user is or has been.

Mobile advertising is important as more people spend time on their phones than ever before.

Easy access to users on the go helps brands reach their audience when they are most active.

Ad networks, such as AdMob or Facebook Audience Network, specialise in mobile formats for best reach and engagement.

Digital signage can also be part of mobile advertising strategies, displaying targeted ads in public spaces where people use their mobile devices.

Benefits and Challenges

Digital advertising can help companies reach more people online, show their ads to the right audiences, and adjust their campaigns quickly using technology.

However, it also comes with issues like privacy concerns and the risk of ads not being seen by real people.

Advantages for Brands

Brands use digital advertising to reach larger audiences compared to traditional media like TV or newspapers.

With digital channels, ads can be seen on multiple devices, including smartphones and computers.

Companies can test different visuals and messages to find what works best.

Digital advertising also allows for quick changes.

If an ad is not performing well, it can be paused or updated in real time.

This lets brands use their budgets more wisely and adapt to trends or events immediately.

Costs are often lower than with classic advertising.

Brands can set strict budgets and only pay when someone clicks or views the ad.

Digital tools also make it easy to track results, so companies always know how their money is being used.

Digital signage can help brands reach customers in physical spaces, providing an extra channel for brand exposure.

Targeting and Personalisation

Digital advertising allows brands to target ads to specific groups or even individuals.

They can use data like age, location, interests, and online behaviour to make ads more relevant.

Companies can also tailor messages to reflect a person’s browsing and purchase history.

Ads can be scheduled to appear at times when people are most active.

This increases the chance the right people will see the message.

Personalised content, such as showing products someone has already viewed, can increase the likelihood of someone making a purchase.

Below is a table showing common ways digital ads are targeted:

Method	Description
Demographics	Age, gender, and income
Location	City, region, or nearby places
Interests	Hobbies, topics searched
Behaviour	Browsing or buying patterns

Common Obstacles

One of the biggest challenges is privacy.

Many people do not want their online activities tracked, and rules like GDPR in the UK make it harder for brands to collect data.

There are also concerns about ad fraud, where some clicks or views come from bots, not real people.

Ad blockers are another problem.

Many users install software that hides ads, reducing the number of people who actually see the message.

This can make it harder for brands to reach their audience.

Finally, the digital advertising space is crowded.

With so many ads online, people may ignore them, known as ‘banner blindness.’

Brands must work hard to stand out without being disruptive or annoying.

Trends and the Future of Digital Advertising

Digital advertising is changing rapidly due to new technology, new privacy laws, and people’s changing habits.

These shifts affect how marketers reach people and how audiences experience ads online.

Emerging Technologies

Artificial intelligence (AI) is reshaping digital advertising.

AI tools sort large sets of data to target ads better and automate bidding, saving both time and money.

Chatbots and voice-activated assistants are now used for interactive ads, making the ad experience more personal.

Augmented reality (AR) lets users try products virtually.

For example, a shopper can use a smartphone camera to see how furniture might look in their living room before buying.

Video content is also growing in importance, especially short-form clips on platforms like TikTok and Instagram Reels.

Blockchain is being tested for secure payment processes and to fight ad fraud.

Its use is still developing, but it may help increase trust between consumers and advertisers.

Digital signage is evolving with these technologies, allowing for interactive and dynamic ad experiences in real-world locations.

Privacy and Regulatory Changes

Regulations like the General Data Protection Regulation (GDPR) and the removal of third-party cookies are changing how advertisers collect and use data.

Advertisers are shifting towards using first-party data, which means they rely on information that users give directly to them.

Consumers can now choose to block tracking or limit cookies through browser settings.

This makes it harder for brands to follow users across the web.

Transparent data collection, clear opt-in messages, and better privacy controls are becoming standard.

These changes mean that brands need to find new ways to measure ad success and build customer relationships based on trust.

Shifting Consumer Behaviour

Viewers are spending more time on mobile devices and social media.

Short videos, live streams, and interactive ads are gaining popularity.

Younger people, especially, like ads that are quick and easy to skip if they want.

Ad blockers are more common.

Users don’t like ads that pop up unexpectedly, so brands now try to make ads less intrusive and more helpful.

Personalisation is key, but only when it feels respectful and not too pushy.

Many people research and buy items online after seeing digital ads, but they also expect brands to respect their time and privacy.

Successful ads now focus on value, not just flashy graphics or loud messages.

Digital signage is adapting to these trends by offering engaging and relevant content in public spaces. To see how digital advertising plays out in physical spaces, check out our guide to digital signage outdoor, or explore the tech behind the content with our breakdown of digital signage programs.

Frequently Asked Questions

Digital advertising involves a range of strategies and platforms.

It offers benefits such as flexible targeting and measurable results, but also presents some challenges.

What are some common examples of digital advertising?

Some common examples include search engine ads, such as Google Ads, and social media ads on platforms like Facebook and Instagram.

Display banners on websites and pre-roll video adverts on YouTube are also digital advertising forms.

Digital signage in stores, airports, and other public places is another example of digital advertising in action.

What are the different types of digital advertising?

There are several types. Display advertising uses images or banners on websites.

Search advertising places ads in search engine results. Social media advertising appears within feeds and stories.

Video and mobile ads target users on streaming platforms or mobile apps. Digital signage is also a popular format, showing visual ads on screens in public spaces or retail locations.

What are the primary benefits of digital advertising?

Digital advertising lets businesses target audiences with precision. It also allows tracking of performance in real time.

Digital signage provides opportunities for engaging content in physical locations. Digital advertising is often more cost-effective than traditional media.

How does digital advertising differ from digital marketing?

Digital advertising is a specific tactic focused on paid promotions online. Digital marketing covers a wider set of activities, including content creation and email marketing.

Search engine optimisation and organic social media management are also part of digital marketing. Digital signage can complement both advertising and marketing strategies by reaching audiences offline.

What are the advantages and disadvantages of digital advertising?

Advantages include fast setup and audience targeting options. Immediate access to performance data is another benefit.

Disadvantages can be ad-blocking and high competition. Costs may increase if campaigns are not managed well.

Digital signage can help overcome some disadvantages by reaching audiences in unique environments. It offers an additional channel for digital advertising beyond online platforms.

Which platforms are most effective for digital advertising?

Effectiveness depends on the target audience and goals. Google and Facebook are widely used because of their reach and targeting abilities.

Instagram and LinkedIn are effective for certain age groups or industries. YouTube is strong for video advertising.

Digital signage can also play a significant role in digital advertising strategies, reaching audiences in physical locations. Integrating digital signage with online platforms can maximize exposure and engagement.