Types of online advertising – five formats and how to choose

The five main types of online advertising

Online ads go by many names. Sorted by where they appear and who they reach, they fall into five main types:

• Search ads: text ads shown at the top of Google or Yahoo! results when someone searches. They reach people who are looking right now, for example "plumber near me" or a service plus your city
• Shopping ads: Google ads with a product photo, price and store name, in search results and the Shopping tab. Built for online stores and people comparing products
• Display ads: image and banner ads on news sites, blogs and apps. They put your brand in front of people who are not searching yet
• Social ads: ads in the feeds and stories of Instagram and Facebook (Meta Ads), LINE, X or TikTok, targeted by age, area and interests
• Video ads: ads that play before or during YouTube videos and in short-form video feeds. They show how a product works or what your place feels like in seconds

There are also affiliate ads, where you pay only for results, and fixed placements bought from a single media site for a set period. Most small businesses start with one or two of the five types above.

Which ad type fits which business goal

Start from the result you want, then choose the format. Here is how goals and ad types usually match:

• More inquiries or bookings, soon: search ads. They work especially well for services people look for when the need arises – repairs, clinics, legal help, renovation
• More online store sales: shopping ads combined with search ads. The quality of your product data has a big effect on results
• Awareness for a new product or shop: social, video and display ads, especially for products that look good in photos or video
• Bring back past visitors: retargeting (remarketing) through display ads or Meta Ads, shown only to people who already visited your site
• More local customers in store: search and social ads limited to your area, ideally together with MEO to improve how you appear on Google Maps

If you are unsure, start with search ads, which reach people already looking, then add awareness formats once you see how people respond. That order keeps the budget working.

How online ads are billed

Each ad type charges at a different moment. Knowing the models makes quotes and dashboard numbers much easier to read.

• Cost per click (CPC): you pay only when someone clicks. The standard for search and shopping ads
• Cost per thousand impressions (CPM): you pay per 1,000 views. Common for awareness campaigns on display and social
• Cost per view (CPV): you pay when a video is watched for a set time or interacted with. Available on YouTube
• Pay per result: you pay when a sale or sign-up happens. Typical of affiliate programs

With most self-serve ad platforms you set a daily budget and can pause at any time. Click prices vary widely by industry and region, so a practical approach is to test with a small budget for one or two months and judge by the cost per inquiry. For typical budgets, see online advertising costs.

What to prepare before you run ads

Whichever type you choose, ads only pay off when the page people land on is ready and results can be measured. Check these points first:

• Landing page: does it match what the ad promises? Is it easy to read on a phone, with the inquiry or buy button easy to find?
• Tracking: GA4 and ad conversion tracking set up so inquiries, bookings and purchases are counted
• Account ownership: ad accounts, GA4 and your domain created in your company's name; if someone manages them for you, add them as a user with access
• Ad wording: in Japan, health products and cosmetics fall under the Pharmaceutical and Medical Device Act, price and performance claims under the Act against Unjustifiable Premiums and Misleading Representations, and clinics under the medical advertising guidelines. Each platform also reviews ads against its own policies
• Materials: logo, product or shop photos, a short video if you have one, and a note listing your three main strengths

Laws, guidelines and platform policies change, so check the latest official information before launch. The landing page in particular can change results a lot for the same ad spend.

Common mistakes when choosing ad types

Most underperforming campaigns go wrong early, at the stage of choosing the ad type and preparing for launch.

• Running awareness ads on social media, expecting instant inquiries, and stopping after two weeks
• Spreading a small budget across many platforms so none collects enough data to judge
• Sending mobile ad traffic to a landing page designed for desktop
• Running ads without conversion tracking, so nobody knows which ad brought the inquiry
• Never checking where display ads appear, so they keep showing on unrelated sites and apps

Our page on display ads management covers placements and bidding, and ad management services explains what to look for if you hand campaigns to an outside partner.

How UNANOBO works: a free demo of your landing page

UNANOBO runs Google Ads, Google Shopping and Meta Ads, and sets up GA4 and tags. Before any ad goes live, we build the page your ads will send people to as a free demo, designed around your brand. You check it on a computer and a phone and decide whether to go ahead once you are confident it is ready for paid traffic.

The process is free demo, feedback, launch, growth. After hearing your goal and budget, we suggest which ad type to start with. The founder handles every project personally, so you keep one contact from the demo through campaign management. Everything runs by message, in Japanese or English, and ad accounts stay in your name.