6 Types of Advertising Methods and How They’re Used
- The oldest record of advertising is a scrap of papyrus dated to 3000 B.C. in which an ancient Egyptian named Hapu the Weaver claimed to offer “the best cloth … woven to your desires.” The pitch was added to a plea by the weaver for the return of a runaway slave.
- The walls of the ancient Roman city of Pompeii were covered with thousands of “billboard” ads that promoted various gladiators, although most were in the form of graffiti.
- The first recorded print ad was a handbill published in England in 1472 that announced a new prayer book.
What Is Advertising?
Traditional vs. Nontraditional Advertising
- Handouts are flyers or printed brochures that promote a product, a business, an event, or a sale. They introduce the business to the public and are one of the most straightforward means of advertising.
- Billboards come in many sizes and are placed in high-traffic areas so the widest possible audience can view them. Their images and text are designed to grab the public’s attention and impart information quickly, simply, and clearly.
- Direct mail is sent in the form of letters or postcards to potential customers who live in a specific area. The messages help build awareness of a business and its products.
- Print ads that appear in newspapers and magazines bring a company’s message to a publication’s readers. The higher the publication’s circulation, the wider the potential audience for the ad (and the higher the likely cost of the ad).
- Event marketing distributes printed or digital material about a business and its products at trade shows, conventions, conferences, fairs, festivals, and other industry and consumer events. It relies on banners and signs to attract event attendees’ attention.
- Broadcasting gets the business local or national recognition via commercials that run on radio and television. The goal of the ads is to intrigue listeners and viewers so they make an effort to find out more about the advertised product.
- Display advertising is typically in the form of banner ads that appear on websites and in some smartphone apps. They can include video, audio, and interactive elements in addition to static graphics and text.
- Paid search advertising appears in the results that Google, Bing, and other search engines serve up. These text ads include a headline, short text description, and link to the advertiser’s site.
- Video advertising often appears before or during playback of videos that appear on YouTube and similar sites. Tremendous growth is expected for video ads that run on mobile phones.
- Social media advertising places ads on Facebook, Twitter, Instagram, Snapchat, LinkedIn, and other social media. These ads benefit from social media users’ ability to share, comment on, and otherwise interact with the ads.
- Native advertising is online content that matches the look and feel of the sites the ads appear on. The ads are often in the form of reviews or product placements that blend smoothly with other site content.
Advertising Campaigns That Blend Traditional and Nontraditional Media
- Coca-Cola leveraged its traditional Santa-themed ad campaign in 2021 by partnering with the fan connection app Cameo to give people a chance to receive a custom video greeting from the man in red himself.
- Not to be outdone by the competition, Pepsi took advantage of the ghost kitchen phenomenon by opening a virtual restaurant called Pep’s Place that paired whichever drink guests chose with an appropriate dish.
- Whiskey distiller Crown Royal ventured into the metaverse by creating a hybrid world that hosted a block party where real people were digitized using 3D printing technology and interacted in ready-to-print digital environments.
- Chipotle teamed with the popular Roblox gaming platform in October 2021 to extend its annual Boorito campaign to the virtual space. The restaurant chain provided player skins, a virtual corn maze, and $1 million in free burritos for participants.
6 Common Types of Advertising
- Conversational marketing relies on chatbots and voice assistants to answer consumers’ questions about a company’s products and services. This approach enhances engagement, builds trust in the brand, and improves the customer experience.
- Highly personalized content tailors the material that appears on streaming services to the interests and demographics of each viewer. This improves the relevance of ads and increases the chances of consumers responding to the ad.
- Programmatic advertising automates the process of purchasing digital ads by applying real-time data analysis and audience targeting. Google claims that this technique allows its display ads to reach 90% of worldwide internet users while targeting a specific audience with the right message at the right moment.
1. Paid Search Advertising
How Paid Search Ads Appear in Search Results
- Text ads are found at the top and bottom of the SERP. As many as four text ads may appear at the top, and several more may be shown at the bottom of the page. They consist of a URL, a link in the form of a headline, and a brief text description that’s one to three lines long.
- Local ads allow businesses with physical locations to purchase ads that show their names, addresses, and phone numbers, along with a star rating, a link to the company’s site, and a link to directions to the business. The location of the business is shown on a clickable map that accompanies the ads.
- Shopping ads are called product listing ads by Google; they feature images in addition to text that shows the product price, vendor name, reviews, and special offers. Based on the keyword entered, these ads may appear in a scrollable carousel near the top of the SERP on mobile devices or on the right side of the page in desktop browsers.
Paid Search Auctions, Pay-Per-Click, and Advertiser Return on Investment
- Expected click-through rate (CTR)
- Ad relevance to the search term
- Landing page experience, which means the page people are led to after clicking has useful information they’ll find relevant to their search
Resources on Paid Search Advertising
- AdRoll, “The Basics of Paid Search” — Covers topics including keyword popularity, ad quality and positioning, and the benefits of paid search ads to businesses.
- Instapage, “7 Search Engine Marketing Best Practices to Follow in 2021” — Offers tips such as focusing on ad conversion rates rather than CTRs, bidding on long-tail keywords with a sharper focus, and making sure landing pages match ad content.
How Companies Monitor Social Media for Marketing Purposes
- Quickly identify trends related to brands and products.
- Track how the target audience is responding to ads and other marketing efforts in real time.
- Gain greater insight into customers’ opinions about the products.
- Discover new high-value features and enhancements for the offerings.
- Find out how the messages of competitors are being received.
The Growing Importance of Social Media to Ad Campaign Success
- Facebook has about 2.9 billion monthly users. A Facebook business account includes numerous advertising tools and data analytics functions. Facebook gives businesses an opportunity to engage with customers directly and to save money on marketing.
- Instagram had about 1.1 billion active users in 2021 and continues to grow. The service is primarily for sharing images and videos, making it popular with young people. Instagram’s marketing tools for businesses include Instagram Live and Instagram Stories, which let a company advertise its products to audiences it couldn’t reach previously.
- Twitter was used actively by about 211 million people in 2021. The service lets businesses share images, videos, links, polls, and short text messages (240-character limit) to their followers. Using Twitter business accounts requires knowing how to use hashtags, post images and polls, and use direct messaging to handle problems.
- TikTok is a relatively new platform that’s especially popular with people in their teens and 20s, and sometimes as young as 10. TikTok for businesses lets companies share short videos, but to break through, clips need to resonate with a young, discerning audience. The five types of advertising on the platform are in-feed native content, TopViews, brand takeovers, branded hashtag challenges, and branded effects.
Resources on Social Media Advertising
- HubSpot, “Which Social Networks Should You Advertise on in 2022?” — Compares the advertising potential of the major social media brands and explains how to calculate return on investment (ROI) for the ads.
- CMSWire, “What Social Media Trends Will Emerge in 2022?” — Identifies trends such as increased personalization, greater focus on privacy, the arrival of more podcast platforms, and heightened customer expectations.
3. Display Advertising
- Keywords entered in search fields
- Demographic characteristics of the site visitor, as gleaned from data contained in browser cookies and other sources
- The page topic or interest as determined by scanning its content and metadata
Targeting Display Ads to Specific Online Audiences
- In the past, display ads were marketed just as print ads were, so they appeared at a set time and place no matter who visited the site.
- Programmatic advertising uses machine learning and other artificial intelligence techniques to make possible real-time bidding on the ad space. This allows companies to have their ads appear only when the visitor meets specific criteria, such as having visited the vendor’s site in the past.
- Other forms of programmatic advertising for display ads are programmatic direct, which ensures the ads are shown a set number of times on selected sites, and private exchanges, which are invitation-only auctions that publishers offer for their available space.
Why Display Ads Are So Effective in Engaging Consumers
- The ads demonstrate the power of high-volume distribution combined with a high level of consumer engagement. Advertisers rank display ads as their fourth most important channel, trailing only video, search, and social media.
- The ads are inexpensive enough to be available to small businesses. They have low production costs, and their pricing structure is flexible enough to accommodate nearly any ad budget.
- The ads are effective on mobile phones, increasing their range and potential audience. This is especially important as people spend more time viewing content on their phones and other mobile devices.
- The capabilities of audience targeting and retargeting continue to evolve, which promises even more effective ways to engage customers and help build a company’s brand.
Resources on Display Advertising
- Feedvisor, “What’s New in Advertising This Year?” — Trends in advertising in 2022 include more advertising via online marketplaces, interactivity in video and audio ads, and mobile-first advertising strategies.
- Smart Insights, “What Is Programmatic Marketing?” — Examines the current state of programmatic advertising and discusses programmatic advertising best practices.
4. Native Advertising
An Effective but Less Obtrusive Form of Online Advertising
- In-feed ads are placed in social media feeds and appear to be organic posts. They’re usually labeled as promoted content at the top of the post. These ads are typically found in content feeds from news sources such as CNN and Forbes, as well as product feeds from commerce sites such as Amazon and eBay.
- Sponsored content includes articles, posts, and other advertising content that appears in a separate section of a site and is distinguished from the site’s own content. Consumers tend to put more trust in these ads because they look like standard content rather than ads.
- In-app reward videos combine an ad with streaming content that serves as a reward for watching the ad. This format is popular with music services such as Pandora and with game vendors that offer virtual currency for use in the game or playing tips as rewards for viewing ads.
How Native Advertising Benefits Viewers and Advertisers
- Native ads avoid the ad blockers that nearly 40% of internet users in the U.S. use.
- They improve the appearance of a company’s site and branded app by ensuring all content has a uniform appearance.
- When hosting the ads on a company’s own servers, rather than relying on third-party ad networks, the ads avoid the malware that can sometimes infect ad networks. This also enhances user privacy because it does away with third-party cookies.
- By eliminating ad tags, the native ads speed up page loads and improve app performance.
Resources on Native Advertising
- Publift, Best Native Ads Platforms for Publishers in 2022 — Profiles native advertising platforms Outbrain, Taboola, Yahoo Gemini, Nativo, TripleLift, Revcontent, and MGID.
- Native Advertising Institute, Native Advertising Resources — The Europe-based institute offers case studies, ebooks, market reports, podcasts, and interviews with native advertising executives.
5. Print Advertising
The Benefits of Print Advertising Over Online Ads
- 95% of people younger than 25 read print magazines.
- 82% of consumers trust print ads most when making buying decisions.
- Print readers typically spend 20 minutes or more reading a print publication when they pick it up, while people on digital news sites usually are there for less than 5 minutes.
Innovations in Print Ads Enhance Their Effectiveness
Resources on Print Advertising
- The Startup Magazine, “5 Benefits of Print Marketing in 2022” — Benefits include increasing brand awareness, creating an emotional connection, building trust, and targeting more effectively.
- HubSpot, “17 Clever Print Ad Examples to Complement Your Digital Campaign” — Examines effective print ads from vendors such as Nivea, Motorola, Lexus, and Reporters Without Borders.
6. Broadcast Advertising
- Linear TV will continue to generate more ad revenue than OTT in 2022, according to the Radio and Television Business Report. Combined worldwide revenue from linear and OTT ads will increase by 3.3% in 2022 to $184.7 billion following an increase of 5.5% in 2021.
- Global ad revenue from broadcast radio is forecast to grow by 3.5% in 2022 and 1.5% in 2023, when it will reach $34.3 billion. Broadcast radio ad revenue increased by 8.8% in 2021.
- Ad spending on podcasts and other online audio rose by a third worldwide in 2021 to $5.4 billion. Podcast ad revenue increased by 50.9%, and streaming audio was up 28.4%. By 2023, online audio ads are forecast to reach $8.3 billion.
New Technologies Increase Consumer Engagement with Broadcast Ads
- Weekly podcast listeners play an average of seven podcasts each week.
- The number of podcasts available now exceeds 700,000; podcasts are recorded in 100 different languages.
- More than half of podcast listeners (55%) report that they’ve purchased an item they learned from a podcast.
How Broadcast Ads Mix Old and New Approaches
- The information that companies collect about their customers and potential customers by tapping online sources can be applied to make their ad spends on traditional broadcast media more effective.
- Adding a QR code to a broadcast allows customers to make purchases from their phones quickly and simply.
- The same people who respond well to direct video pitches will appreciate receiving the information via email.
Resources on Broadcast Advertising
- Next TV, “U.S. TV Ad Spending to Drop 4% in 2021 as Digital Video Booms” — The growing popularity of streaming video services, such as Netflix and Amazon Prime, continues to cut into ad revenus for traditional broadcasters.
- Simulmedia, “Reports of the Death of TV Advertising Are Greatly Exaggerated” — Despite recent inroads by streaming video services, broadcast TV continues to account for the lion’s share of video ad revenue.