Online advertising

It is hard to imagine online marketing without online advertising. Over recent years, online advertising has proven to be the cornerstone of the marketing process and has led to a steady growth in sales within the industry, with figures having quadrupled over the past ten years. One of the reasons for this is that online advertising makes it possible to directly address, influence and interact with the desired target group via the Internet’s communication channels. Online advertising is more personal because targeted and individual advertising messages minimize wasted coverage and create a lasting bond with the relevant customer group.

Types of online advertising

#1 Social media advertising

Social media platforms promise to reach a large audience through online advertising. Facebook, Instagram, Twitter, and other social media channels are used by millions of active users belonging to a very diverse range of target groups and are therefore ideally suited to specifically addressing potential consumers through advertising measures. The type of advertising can be adapted to the individual platform. By integrating ads into a user’s Facebook feed, they not only appear in a positively perceived environment, but are also unobtrusive to the user. Online advertising on Instagram can be implemented as eye-catching and informative images and short videos in a user’s feed or stories. In contrast, convincing advertising claims supported by visuals are effective on Twitter. Investing in social media marketing pays off: global sales generated by social media are expected to exceed 8.5 billion dollars this year (as of May 2020).

#2 Search engine marketing

Online users utilize search engines like Google to quickly get an answer to their specific questions. Once the search results are displayed, they expect to find the solution behind the first link. To reach users with advertising here, there are therefore two options:

• Search engine advertising (SEA): Ads are displayed next to or above relevant search results and are therefore a targeted and highly personal way of satisfying the user intent with an appropriate product or service. Ads are paid on a pay-per-click basis, which means that companies pay for each click on the ad link.
• Search engine optimization (SEO): The content of the website is adapted in line with certain search content in order to satisfy the user intent and increase the site’s organic ranking in search engine results. Using previously generated pertinent keywords, informative content with added value is created and directs searchers to the website.

#3 Email marketing

As an older form of online advertising, email has not always contributed to a good customer experience. Clickbait advertising emails that spam users’ inboxes have become an unpopular advertising method: the bounce rate was high and the click rate was hardly even noticeable. Modern email advertising has moved away from this and evolved into an important part of a solid digital marketing strategy. Interesting newsletters that speak directly to customers as well as the informative promotion of products or services are friendly and tolerable forms of online marketing that provide users with added value rather than pushy advertising.

#4 Affiliate marketing

In affiliate marketing, website owners place ads from third parties on their platform. For example, a company publishing a blog may make advertising space (affiliates) available to others (advertisers). If the provided link is successful, a commission is usually paid to the affiliate, for instance on a cost-per-click basis. A major advantage of affiliate advertising is that it generates reach by addressing specific target groups.

#5 Online audio ads

In contrast to traditional radio advertising, online audio ads have become established in the digital world. Popular music streaming platforms, web radio stations, and podcasts provide a space for acoustic ad units or cooperate with brands as a sponsor. It’s not just the big players who have discovered this kind of online advertising for themselves, though: small and medium-sized enterprises are also benefiting from the online audio boom. Precise targeting of the desired target group makes online audio ads attractive and maximizes the success of an advertising campaign.

The challenges and future of online advertising

Online advertising may be growing steadily and contributing to increased sales, but this modern marketing form isn’t entirely without obstacles. More and more Internet users and browsers are utilizing ad blockers that prevent advertising. Streaming services also give users the option to subscribe to a premium account in order to enjoy an ad-free streaming experience.

Moreover, ad fraud through fake websites and data theft is a recurring issue that makes many online users apprehensive about clicking on ad links. Above all though, the ePrivacy Regulation adopted in European law has a far-reaching impact on online marketing. It bans the storage of personal data without the user’s consent and thus significantly restricts targeting features, such as retargeting, as well as the optimization of online ads based on user profiles. Nonetheless, as digitalization progresses, online advertising is growing and is an essential component of online marketing.