Online advertising

Companies use the internet to show you things.

They show ads on websites and phones. These ads show toys or food. They help people find things to buy.

Some ads are just pictures. These are called display ads. They can have videos or moving parts. You might see them on social media.

Ads can also be in your email. Sometimes, too many ads arrive at once. People call this "spam." This can be very annoying.

Computers help pick which ads you see. They use special tools to do this fast. This is called programmatic advertising.

These tools look at what you like. They try to show you better ads. It is a big part of the web.

Online advertising uses the internet to sell things.

Companies use many ways to reach people. They use email, social media, and mobile phones. Some ads are just pictures or videos. These are called display ads. They might show logos or moving parts.

In the past, the internet was for work only. Early networks banned using the web for business. This changed in the 1990s. One type of ad is sent through email. If you get many unwanted emails, it is called spam.

Today, computers do much of the work. This is called programmatic advertising. This is a way to use software to buy ads.

The software uses cookies to help. Cookies are tiny files that identify a computer. They can track what you like to see. This helps companies show you ads that fit your interests. This is called behavioral targeting. Some ads also match the page you are reading. This is called contextual advertising. In 2017, US internet ad sales reached $83.0 billion.

Online advertising is a way to promote products and services using the internet.

You might see these ads on social media, in your email, or on mobile apps. There are many different kinds of ads. Some are called display ads, which use pictures, videos, or logos to grab your attention.

Others are search ads that appear when you look for something online. This industry is huge and grows very quickly. It helps businesses reach people across many different digital platforms.

Ads work through a system involving many different people and tools. A publisher is a person or company that puts ads into their online content. An advertiser is the one who provides the ad to be shown. Often, advertising agencies help create the ad copy. An ad server is a special tool that delivers the ad and tracks its success. Sometimes, software does the work automatically through programmatic advertising. This software uses cookies, which are small identifiers for computers, to help pick the right ads.

In the early days, the internet was not for making money. Two early networks called ARPANET and NSFNet actually banned commercial use. This rule began to change around 1991. One of the first big examples of online ads happened on May 3, 1978. A man named Gary Thuerk sent an email to many users on the West Coast. He was advertising a new computer from a company called DEC. Later, in 1993, the first clickable web ad was sold by Global Network Navigator. By 1994, banner ads became a mainstream way to advertise.

Numbers show how much the internet has changed advertising. In 2016, internet ad money in the United States was more than cable or broadcast TV. In 2017, those revenues reached $83.0 billion. This was a 14% increase from the $72.50 billion earned in 2016. By 2019, research estimated that US spending on online ads hit $125.2 billion. This was much higher than the $70.4 billion spent on television. These numbers show how much companies rely on the web today.

Many things you see online are connected to this world of ads. You might use an ad blocker to stop ads from appearing. Some websites even use paywalls, which are ways to charge for content, because ad money is changing. You might also see ads that match what you are reading. This is called contextual advertising. Some ads even use your location, which is called geotargeting.

Whether it is a video or a small banner, ads are part of our daily digital life.

Online advertising, often called digital or web advertising, is a marketing method that uses the internet to promote products and services.

This industry spans many digital platforms, including social media, search engines, email, and mobile applications. It serves as a vital way for businesses to reach specific audiences across the globe. Because it is so widespread, online advertising has become a massive economic force. It connects advertisers, who want to show their products, with publishers, who provide the digital space for those ads to appear.

The process of delivering an ad involves several specialized participants. An advertiser provides the content, while a publisher integrates that content into their website or app. Advertising agencies often help create the ad copy. An ad server acts as the technological engine that delivers the ad and tracks its performance statistics. Sometimes, advertising affiliates perform independent promotional work for the advertiser. In modern systems, much of this is handled through programmatic advertising. This is a method where software, rather than humans, automates the sale and delivery of ads.

Programmatic advertising relies on complex data to decide which ads to show. Ad servers often use cookies, which are unique identifiers for specific computers, to track user behavior. This allows for several specialized targeting methods. Behavioral targeting aggregates data from multiple websites to build a profile of a user's interests. Retargeting uses cookies to show ads to people who left a website without buying anything. Contextual advertising displays ads that are related to the specific content on a webpage. Advertisers also use geotargeting, which uses an IP address to guess a user's geographic location.

There are many distinct types of display advertising used today. Web banner advertising involves graphical ads, like traditional frame ads, placed on a webpage. Some banners use rich media, which includes interactive elements like video, audio, or buttons. Pop-up ads open in a new window above the visitor's current window, while pop-under ads open underneath it. Floating ads, or overlay ads, appear superimposed over the website content. Expanding ads change their size based on user actions, such as mouse movements. News Feed Ads, also called Sponsored Stories, are unique because they blend into the social media updates a user is already reading.

The history of online advertising began with strict rules. Early internet predecessors like ARPANET and NSFNet had policies that banned commercial activities by for-profit groups. The NSFNet began phasing out this ban in 1991. One of the first major examples of email marketing occurred on May 3, 1978, when Gary Thuerk sent an email to ARPANET users to advertise a DEC computer. By 1993, Global Network Navigator sold the first clickable web ad. In 1994, banner advertising became mainstream when HotWired sold ads to companies like AT&T. One early AT&T ad even achieved a 44% click-through rate by linking to an online art museum tour.

Economic data shows how quickly this field has grown. In 2016, internet advertising revenues in the United States surpassed those of cable and broadcast television. In 2017, US internet advertising revenues totaled $83.0 billion, which was a 14% increase from the $72.50 billion earned in 2016. By 2019, research estimated that US online advertising spending reached $125.2 billion. This amount was $54.8 billion higher than the $70.4 billion spent on television. This massive shift shows how much digital platforms have changed the way companies spend money.

Despite its success, online advertising faces many challenges and controversies. Many users find ads disruptive and use ad blocking software to avoid them. Some practices, like "trick banners" that imitate system messages to induce clicks, can deceive users. Because of these issues, many practices are increasingly subject to regulation. Additionally, declining ad revenue has forced some publishers to place their content behind paywalls. This creates a complex relationship between the people who create content and the companies that fund it through digital marketing.