5 Types of Online Advertising in 2025 That You Should Forget

The digital world continues to move forward very quickly. This change has a major impact on various aspects of life, including how businesses interact with potential customers. Online advertising has become one of the most effective ways to reach a broad and targeted audience.

The year 2025 is predicted to be an exciting year in the evolution of online advertising, with the emergence of various innovations and new trends. There are five types of online advertising that are predicted to be very effective in that year. Let’s start with the first type of advertising.

What are 5 types of online advertising?

1. Search Engine Marketing (SEM)

When someone is looking for information on the internet, the first step often taken is to use a search engine. For example, like Google, Bing, or DuckDuckGo.

Search Engine Marketing (SEM) utilizes this behavior by displaying ads on search engine results pages. These ads usually appear at the top or bottom of organic search results and are marked with an “Ad” or “Advertisement” label.

How Does It Work?

SEM works based on keywords. Advertisers choose keywords that are relevant to the products or services offered. When someone types these keywords into a search engine, ads from the advertiser have the potential to appear.

The position of the ad on the search results page is determined by several factors. For example, the cost-per-click bid, ad quality, and ad relevance to the keywords and landing page.

Example:

Imagine someone in New York is searching for “best running shoes for marathon”. If a sporting goods store in California uses SEM with these keywords. Then, the store’s ad could appear on that person’s search results page. This ad might contain an attractive title. For example, like “Best Running Shoes for Marathon – Prices Starting from $100”. And a direct link to the product page on the store’s website.

SEM is a very effective way to reach people who are actively looking for specific products or services. However, there are other types of online advertising that focus on building brand awareness and reaching a wider audience. One of them is advertising on social media. Let’s take a closer look at the second type of advertising.

2. Social Media Advertising

Social media platforms such as Facebook, Instagram, Twitter (X), LinkedIn, TikTok, and YouTube have millions, even billions, of active users every day. This makes these platforms ideal places for advertising.

Social media advertising allows businesses to target audiences based on various factors. For example, demographics, interests, behaviors, and even connections with friends.

Social Media Ad Formats

Ads on social media come in various attractive formats, including:

• Image Ads: Simple ads in the form of an image with short text. This format is effective for conveying visual messages quickly. Example: A clothing brand displays images of their latest collection in users’ Instagram feeds.
• Video Ads: Ads in the form of short videos that can appear anywhere. For example, in feeds, stories, or as in-stream ads before or in the middle of other videos. Example: A technology company launches a new product through a short demo video on YouTube.
• Carousel Ads: Ads that allow users to swipe through several images or videos in one ad. This format is suitable for showcasing various products or features. Example: A travel agent displays several tourist destinations in one carousel ad on Facebook.
• Collection Ads: An ad format that displays a product catalog with an attractive and interactive appearance. It usually consists of one main video or image with several product images below it. Example: A furniture store displays a video of a living room atmosphere complete with their products. This is followed by product images that can be clicked to see details and prices.
• Stories Ads: Ads that appear between users’ stories on platforms like Instagram, Facebook, and Snapchat. This format is usually vertical and short-lived. Example: A local restaurant offers a special promotion through a story ad on Instagram.
• Messenger Ads: Ads that appear in users’ message inboxes or as sponsored messages. This format allows direct interaction between businesses and potential customers. Example: An insurance company sends a sponsored message offering a free consultation via Facebook Messenger.

Social media advertising is very effective for building brands, increasing customer engagement, and driving sales. However, there is another type of online advertising. This advertising focuses on targeting audiences based on their interests and behaviors across various websites. This is called display advertising. Let’s discuss the third type of advertising in more detail.

3. Display Advertising

Display advertising is a type of online advertising that appears in various visual formats. For example, like banners, images, and videos on various websites, applications, and other online platforms.

Ad networks like the Google Display Network allow businesses to display their ads on thousands of websites. Ad exchange platforms also have relevance to their target audience.

Display Ad Formats and Sizes

Display ads come in various standard sizes and formats set by the Interactive Advertising Bureau (IAB). Some common formats include:

• Banner: A rectangular or square-shaped ad that is usually placed at the top, side, or bottom of a web page.
• Leaderboard: A large banner that is usually placed at the top of a web page.
• Skyscraper: A tall and narrow vertical banner, usually placed on the side of a web page.
• Medium Rectangle: A medium-sized banner that is often placed within the content of an article.
• Large Rectangle: A large banner that is often placed at the end of an article or in a prominent area.
• Interactive Ads: Ads that allow users to interact directly, for example, by filling out a form or playing a mini-game.
• Expandable Ads: These ads are initially small. However, their size can be expanded to become larger. This happens when users interact with them, for example, by hovering the cursor over the ad.

Advantages of Display Advertising

One of the main advantages of display advertising is the flexibility in targeting. Advertisers can target audiences based on various criteria, including:

• Interest: Reaching users who show interest in specific topics or categories. Example: Showing ads for sports products to users who often read articles about fitness.
• Demographics: Targeting users based on age, gender, geographic location, income, and other demographic factors. Example: Showing luxury car ads to users aged 35-55 with an income above $100,000 in a specific region.
• Behavioral: Reaching users based on their web Browse history, interactions with previous ads, and other online behaviors. Example: Showing ads for products that a user has previously viewed on other websites (retargeting).
• Placement: Choosing specific websites or categories of websites where ads will be displayed. Example: Showing ads for baby supplies on websites or forums that discuss parenting.
• Contextual Keywords: Showing ads that are relevant to the content of the web page the user is currently viewing. Example: Showing ads for cooking recipes on a website that contains articles about cooking tips.

Display advertising is an effective way to build brand awareness and reach a broad audience across various websites. However, there is another type of online advertising that focuses more on using video as the main medium, namely video advertising. Let’s explore this fourth type of advertising further.

4. Video Advertising

Video platforms like YouTube, Vimeo, and social media with video features are increasingly popular. Therefore, video advertising is becoming increasingly important in digital marketing strategies. Video ads can convey messages in a more engaging and interactive way compared to text or image ads.

Video Ad Formats

Video ads come in various formats tailored to the platform where the ad is displayed:

• In-Stream Ads: Video ads that play before, during, or after the main video content. On YouTube, this format is often referred to as pre-roll, mid-roll, and post-roll ads. Some in-stream ads can be skipped after a few seconds, while others cannot.
• Video Discovery Ads: On YouTube, these ads appear next to video search results. These ads also appear on video watch pages or on the YouTube homepage. Users must click on these ads to watch them.
• Bumper Ads: Short video ads with a maximum duration of 6 seconds. These ads cannot be skipped. They play before the main video on YouTube. This format is effective for conveying short messages and increasing brand awareness.
• Out-Stream Ads: Video ads that appear outside the main video content. For example, in news articles, social media feeds, or mobile applications. These ads usually play automatically without sound and will play sound when the user clicks on them.
• Overlay Ads: Ads in the form of banners or text that appear at the bottom of a playing video. This format is often used on YouTube.
• Interactive Video Ads: These video ads are equipped with interactive features. Some examples are call-to-action buttons, information cards, or links to products. This format allows users to interact further with the ad.

Platforms Used for Video Advertising

• YouTube: The world’s largest video-sharing platform with billions of active users. YouTube offers various video ad formats and sophisticated targeting options.
• Social Media Platforms: Facebook, Instagram, TikTok, and LinkedIn offer various video ad formats. These formats are effective for reaching relevant audiences.
• Streaming Platforms: Streaming services like Hulu and Amazon Prime Video also show video ads to their users.
• Websites and Applications: Many websites and applications integrate video ads as part of their monetization strategy.

Video advertising is a very effective way to convey complex messages and build emotional connections with the audience. However, there is another type of online marketing that relies on the influence and trust of certain individuals, namely influencer marketing. Let’s discuss this fifth type of advertising in more detail.

5. Influencer Marketing

Influencer marketing involves collaboration between brands and individuals. These individuals have a significant following and influence on social media or other online platforms.

These influencers can help brands reach a loyal audience. They also build trust in the products or services being promoted.

Why is Influencer Marketing Important?

Modern consumers are increasingly skeptical of traditional advertising. They are more likely to trust recommendations from people they admire or follow online. Influencers have a specific and engaged audience. They offer an effective way for brands to deliver their messages. These messages are delivered in a more authentic and credible way.

Types of Influencers

Influencers can be categorized based on the number of their followers and their level of influence:

• Mega-Influencers: Have more than one million followers on social media platforms. Usually celebrities or public figures with a very wide reach.
• Macro-Influencers: Have between 100,000 and one million followers. Often experts in a particular field or popular content creators.
• Micro-Influencers: Have between 10,000 and 100,000 followers. Usually have a more niche audience and a high level of engagement.
• Nano-Influencers: Have less than 10,000 followers. Often have a very specific audience and a very high level of trust among their followers.

Forms of Collaboration with Influencers

Brands can collaborate with influencers in various ways, including:

• Sponsored Posts: Influencers create content in the form of images, videos, or text. This content promotes the brand’s products or services on their social media accounts.
• Product Reviews: Influencers try the brand’s products or services and provide honest reviews to their followers.
• User-Generated Content: Brands ask influencers to create content featuring their products. This content can then be used by the brand in their marketing campaigns.
• Giveaways and Contests: Influencers hold giveaways or contests involving the brand’s products or services to increase awareness and engagement.
• Long-Term Partnerships: Brands establish long-term partnerships with influencers to become brand ambassadors or spokespersons.
• Live Streams: Influencers conduct live broadcasts on social media platforms. They interact with their followers. Influencers also promote the brand’s products or services directly.

Conclusion

Looking at the development of these five types of online advertising, it is clear that the advertising landscape in 2025 will be increasingly dynamic and complex. Marketers need to have a deep understanding of each of these types of advertising. They must know how these ads can be integrated into a holistic marketing strategy.

• Search Engine Marketing (SEM) will remain the backbone in reaching consumers with high purchase intent. However, increasing competition will demand smarter keyword strategies and better ad quality.
• Social Media Advertising will continue to dominate with increasingly attractive ad format innovations and more precise targeting capabilities. New platforms and interactive features will open up new opportunities for brands to interact with their audiences.
• Display Advertising will continue to evolve with the latest technology. Programmatic advertising allows for more efficient ad buying. Ad impressions also become more personalized. Creativity in ad design will be key to attracting the attention of audiences who are increasingly accustomed to online advertising.
• Video Advertising will increasingly become the dominant content format. This applies not only to video platforms but also to various social media platforms and websites. Brands need to invest in high-quality video production that can convey their messages effectively and attractively.
• Influencer Marketing will continue to grow and become more mature. Brands need to be more strategic in choosing the right influencers and building authentic and sustainable partnerships. Greater transparency and regulation will also be important factors in ensuring the effectiveness and credibility of influencer marketing.

Overall, success in online advertising in 2025 will greatly depend on the ability of brands. Brands must understand constantly changing consumer behavior. Brands must leverage technology and data effectively.

They also need to create relevant, engaging, and non-intrusive advertising experiences. Integration between various types of online advertising and other marketing strategies will also be key to achieving optimal results.

For business owners and marketers, 2025 will be an era full of opportunities. It will also be a time that presents exciting challenges in the world of online advertising.