Online advertising is the process of buying and displaying advertisements throughout the internet. The key to a successful online advertising strategy is in understanding the indicators which is true of both online and offline media buying. For more information on this visit our section on Media Planning.
The key question is, what happens after someone clicks on an advert? Do you have an e-commerce shop? If so, 9 times out of 10 you're looking for someone to make a purchase after they have clicked on an online advert. There are many other reasons for doing online advertising though - such as awareness campaigns or new product launches.
It's important when doing any advertising to be able to measure the results of your efforts and online advertising can be wonderfully measurable. If 1,000 people visit a page with your advert on and 50 click through of which 4 make purchases totalling £500, you can easily work out how much you would be prepared to pay for another 1,000 adverts.
The great thing about measuring online advertising is that it is easily and quickly scalable. So, if you realise that one advertising campaign is producing an unbelievable return on investment, you can easily increase your budget and invest more - safe in the knowledge that your percentage returns are high.