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Fundamentals of online advertising

Advertising on the web takes place when an advertiser pays to place advertising content on 

another website. The process usually involves 

ad serving

 from a different server from that 

on which the page is hosted (ads can be served on destination sites in a similar way).

Advertising is possible on a range of sites in order to drive traffic to an organisation’s 

destination site

 or alternatively a 

microsite

 or nested ad-content on the media owner’s site 

or on the destination site.

The purpose of interactive advertising

Robinson et al. (2007) have noted that the two primary goals of online display advertising 

are, first, using display adverts as a form of marketing communication used to raise brand 

awareness and, second, as a  direct-  response medium focussed on generating a response. 

Cartellieri et al. (1997) identify the following objectives:

● 

Delivering content. This is the typical case where a clickthrough on a banner advertisement 

leads through to a destination site giving more detailed information on an offer. This is 

where a direct response is sought.

● 

Enabling transaction. If a clickthrough leads through to a merchant such as a travel site or 

an online bookstore this may lead directly to a sale. A direct response is also sought here.

● 

Shaping attitudes. An advertisement that is consistent with a company brand can help 

build brand awareness. Building awareness is a key aspect of online advertising.

● 

Soliciting response. An advertisement may be intended to identify new leads or as a start 

for  two-  way communication. In these cases an interactive advertisement may encourage a 

user to type in an email address or other information.

● 

Encouraging retention. The advertisement may be placed as a reminder about the  company 

and its service and may link through to on-site sales promotions such as a prize draw.