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Strategy

What Is Digital Advertising? What Are the Types of Digital Advertising?

Digital advertising is how brands reach their audience through online channels. PPC, CPM, CPA, social, search, video and email ad types explained.

3 min readMoon Workshop
Contents

Digital advertising is the form of communication a company uses to promote its brand, product or service through the internet and digital communication channels. Today it has become increasingly important for companies to analyse their competitors, and while doing so they need to adapt to newly emerging processes. Since we spend most of our time online, the likelihood of encountering digital advertisements keeps rising.

Cartoon illustration of digital marketing with a megaphone

What is digital advertising?

Digital advertising covers all the advertisements shown on web browsers, social media platforms, blogs, mobile apps and other internet-based platforms. Through these channels, a brand delivers its product or service message to its target audience.

What is the difference between digital and traditional advertising?

Compared with traditional ads, digital advertising offers the following:

  • Precise targeting based on demographics, geographic location and interests.
  • Feedback and interaction that can be measured.
  • Large audiences reachable with relatively low budgets.
  • Numerous tools and resources that make it far easier to understand and help your target audience.

Moreover, with social media ad platforms it is possible to focus on a specific audience based on your buyer persona. Alongside this, an SEO strategy lets you track how many visitors reach your website, evaluate the accuracy of your marketing efforts and make changes that improve efficiency.

What are the types of digital advertising?

Pay-per-click advertising (PPC)

Cost per click (CPC) is a payment model in digital advertising. In this model advertisers pay a set fee each time their ad is clicked. In other words, if the ad is not clicked, no payment is made.

What is the difference between PPC and CPC?

PPC is your strategic approach to marketing campaigns, while CPC is the metric that measures performance.

Cost per mille (CPM)

CPM refers to the amount paid for every 1,000 impressions of an ad. Whether or not the user clicks, the advertiser pays once the ad has been displayed 1,000 times.

Cost per acquisition (CPA)

CPA is a model in which advertisers pay only when a user completes a specific action, such as purchasing a product or subscribing to an email list. Payment is based solely on actual results.

Social media ads

Social media advertising consists of promotional content created through the ad tools of platforms, allowing brands to reach targeted audiences for a fee. These ads appear in user feeds, stories or suggested content.

Search engine advertising

Search engine marketing (SEM) involves text-based ads targeted according to what users search for on platforms like Google. Advertisers bid for their ad to appear when a user searches, typically on a pay-per-click basis. For campaign setup and management in this area, Google Ads is the most common starting point.

Digital marketing illustration showing SEO and SEM concepts

Video advertising

Video ads are short or long audiovisual pieces published on digital platforms to reach specific audiences. They are typically shown while users consume content: before YouTube videos, between Instagram Reels or within news articles. YouTube advertising is the best known example of this format.

Email advertising

Email advertising consists of digital messages brands prepare for their subscribers to announce promotions and campaigns, introduce products or share information. As part of email marketing, these messages offer relatively high conversion potential because the communication is direct and personalised.

Mobile app advertising

Mobile app ads are digital advertisements shown on mobile devices, designed to help smartphone and tablet users discover and download an app.

In summary

Digital advertising is one of the most effective marketing methods for brands to reach their audience through online platforms. It spans a wide range, from search engine ads to social media campaigns and from video content to email marketing, and it produces measurable results when the right strategy meets creative execution. Deciding which type matters most for your business is the first piece of work to do, before any campaign is built.

Published: · Updated: · Author: Moon Workshop

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Frequently Asked Questions

Frequently Asked Questions

What is the main difference between digital and traditional advertising?
Digital advertising allows targeting by demographics, geographic location and interests, makes engagement and feedback measurable, and lets you reach large audiences on modest budgets. Traditional advertising cannot show with the same clarity who saw the message and what it produced.
What is the difference between CPC, CPM and CPA?
In the CPC model the advertiser pays for each click on the ad. In CPM, payment is made for every 1,000 impressions whether or not anyone clicks. In CPA, the advertiser pays only when the user completes a specific action such as a purchase or a sign-up.
Are PPC and CPC the same thing?
No. PPC describes your approach to a marketing campaign, that is, the advertising strategy built on a pay-per-click model. CPC is the performance metric showing what each click of that strategy costs.
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