Online advertising is a marketing strategy that involves the use of the Internet as a medium to obtain website traffic and target and deliver marketing messages to the right customers. Online advertising is geared toward defining markets through unique and useful applications.
A major advantage of online advertising is the quick promotion of product information without geographical boundary limits. A major challenge is the evolving field of interactive advertising, which poses new challenges for online advertisers.
Online advertisements 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 every time a user clicks on their ads.
Cost per Action (CPA): Advertisers only pay when a specific action (generally a purchase) is performed.
Examples of online advertising include banner ads, search engine results pages, social networking ads, email spam, online classified ads, pop-ups, contextual ads and spyware.