Introduction
Advertising is a major part of the web, and whether you realize it or not, it's probably a part of your daily life. From banner ads on Facebook to Google AdSense advertisements on countless websites, online advertising has become ubiquitous.
In this guide we'll be going over many types of online ad units, including static banners, rich media, video, mobile ads and more.
Online Advertising Expenditure Reports from the IAB for Q3 2012 show that online advertising expenditure reached $8.4 billion in the US alone, up 22% year-on-year. In Europe online advertising spend hit €7.2 billion, a 9% increase from Q3 2011. In the UK it was £758 million, a rise of 20%. So not only is online advertising growing year-on-year but the industry as a whole has been enjoying steady growth from one quarter to the next.
Static Banner Ads
A static banner ad typically consists of an image and headline with a link back to the advertiser's site. These ads are also known as display, image or banner ads and can be seen all over the web such as on Google search result pages and social media sites like Facebook.
They're usually created in a standard size that fits into a rectangular or square space which varies between 300 x 250 pixels to 728 x 90 pixels in large web-based ad management tools. Static images are designed to catch the eye and establish brand awareness, but they rarely generate clicks due to their simplicity.
These types of ads are quick and easy to produce, requiring only an image file for the banner itself along with a linked landing page which can be created in just a few minutes using a standard HTML editor. There is no need to download any specific software to create the ad unit, though many managers prefer programs like PhotoShop or Illustrator that can be used for more professional results.
The image file should be saved as a JPEG (.jpg), GIF (.gif) or PNG (.png) and must be under 300 KB in size to conform to AdSense ad serving requirements. If an ad is created that is larger than the standard 300 x 250 pixel size, it may be cut off by a third party ad server and not appear correctly on all sites.
Rich Media Ads
A rich media banner ad consists of a static or animated image or video which can be interactive and contain a number of different formats. Rich media banners provide a way for advertisers to tell a more engaging story that goes beyond text, audio or video.
These ads can include sound, animation, video and other elements which have been popularized by advertising networks such as the widely recognized Flash ads from Adobe Systems Incorporated. Rich media ads can be created in Flash or HTML5 with ad management tools like AdDuplex, Google AdWords and DoubleClick.
Interactive ads are typically allocated higher CPMs than static images because they demand more attention from the viewer. They usually command significantly higher budgets than normal banner ads due to their cost-effectiveness which is why they're sometimes used as brand exposure vehicles at the top-of-page locations on publisher sites.
Video Ads
A video ad is one of the most engaging and persuasive forms of online advertising, typically containing either a short trailer or extended promo for an upcoming movie which can be viewed directly on a website through streaming technologies. This type of advertisement can be beneficial to movie studios, game developers or anyone else looking to promote their company in the best possible light.
Video ads can either take the form of a pre-roll commercial which must be watched before getting to the content, or they may appear directly on the side of a video player like an overlay ad unit. This type of creative is often paired with a TV commercial to drive traffic from offline advertisements directly to the product page on a website.
These clips are usually less than 30 seconds in length and can be very lucrative for content providers because they can charge a premium CPM rate of anywhere between $10 and $35 depending on the duration of the ad. Advertisers are charged only when a user clicks to play the ad and can choose customized targeting options like location, gender and age to make their campaigns even more specific.