5 Types of Digital Advertising and When to Use Each

Choosing where to spend your ad dollars shouldn’t feel like a guessing game. Yet many local businesses bounce between boosted posts, Google Ads, and email blasts without a clear plan—and end up with clicks that don’t turn into calls, appointments, or foot traffic. The real issue isn’t a lack of options; it’s knowing which type of digital advertising fits your goal (awareness, leads, sales), your audience (ready to buy vs. just browsing), and your budget. If you’re tired of scattershot campaigns and want predictable results, you need a simple way to match the channel to the job.

This guide breaks down five core types of digital advertising—search (SEM/PPC), social, display, video, and email—and shows exactly when to use each. For every channel, you’ll learn what it is, the best platforms and formats, when it shines, what to budget for, which metrics matter, and practical tips tailored to local businesses. By the end, you’ll know which channels to test first, how to set expectations, and how to measure success without wasting spend. Let’s start with search advertising, the shortest path between customer intent and your offer.

1. Search advertising (SEM/PPC)

When someone types “orthodontist near me” or “emergency plumber,” search ads put you at the top of the results—exactly where intent is highest. Among the types of digital advertising, SEM/PPC is the most dependable because it’s based on keywords people are already looking for, and 90% of users end their search on the first page.

What it is

Search engine marketing shows paid listings at the top or bottom of results pages and labels them as “Ad” or “Sponsored.” You’re only charged when someone clicks. Placement is determined by your bid and a quality/relevancy score from the search engine.

Best platforms and formats

The goal is to meet active demand where it starts. Two major platforms dominate, with several useful formats.

• Google Ads: Standard search ads for most queries; supports specialized options.

• Microsoft Advertising (Bing): Reaches searchers outside Google with similar features.

• Formats to consider:

  • Search ads: Core text/responsive ads on queries.

  • Local search ads: Great for nearby, service-based intent.

  • Shopping ads: Ideal for product catalogs.

  • Dynamic search ads: Fill keyword gaps using your site content.

When to use it

Use PPC when you need immediate visibility and lead flow from ready-to-buy searchers.

• Capture high-intent queries: “near me,” service + city, or urgent needs.

• Launches and promos: Be visible on day one while SEO ramps.

• Competitor moments: Show up when prospects compare options.

Budget and metrics

Start with a defined daily budget and expand what works. You only pay on a click, and higher relevance can improve position at a lower cost. Track conversions (calls, form fills) and the cost to generate them; adjust bids and keywords to concentrate spend on profitable terms.

Pro tips for local businesses

Target how customers actually search. Pair precise geography with clear, localized keywords and hours.

• Use location terms and “near me” variants: Match real queries.

• Schedule ads to your open hours: Prioritize times you can answer the phone.

• Align pages to keywords: Dedicated service + city pages improve relevance.

• Mind negatives: Exclude unrelated searches to protect budget.

2. Social media advertising

Within the types of digital advertising, social media advertising shines for precise audience targeting and fast creative testing. Ads blend into feeds like native posts and are clearly labeled as “Sponsored,” making them effective for awareness, engagement, and demand generation—especially when visuals tell the story.

What it is

Paid placements on social platforms that appear in users’ feeds, stories, and other surfaces. These ads use interest, demographic, and behavior targeting to reach specific audiences and can drive actions like website visits, messages, calls, and lead form submissions.

Best platforms and formats

Match your audience and offer to the placement, then tailor creative to how people consume content there.

• Facebook & Instagram (Meta): Feed, Stories, and Reels for broad local reach and lead generation.

• TikTok: In‑feed short video for high engagement with younger, active audiences.

• LinkedIn: Sponsored posts and message ads for B2B targeting by job title, industry, and company size.

• X (Twitter): Promoted posts to amplify timely content and conversations.

When to use it

Use social ads to build awareness, spark interest, or re‑engage warm audiences. They’re ideal for promotions, events, seasonal offers, visual products, and storytelling that needs images or short video. Pair with retargeting to convert site visitors and past engagers.

Budget and metrics

Start with small test budgets across 3–5 creative variants, then scale winners. Optimize to the platform’s objective (traffic, leads, conversions). Track CTR, CPC/CPM, cost per result, conversion rate, and frequency to prevent ad fatigue.

Pro tips for local businesses

Make it feel local and easy to act.

• Geo‑target tightly: Radius or ZIPs around your service area.

• Localize creative: Neighborhood names, landmarks, real storefront/team photos.

• Use action CTAs: Click‑to‑call, message, or map directions.

• Leverage Lead Ads: Instant forms for quotes/appointments; follow up fast.

• Retarget engagement: Website visitors and video viewers for lower‑cost conversions.

• Design for mobile: Vertical or square, bold captions, and clear offers.

3. Display advertising

Among the types of digital advertising, display excels at visual reach. These are the image- and text-based ads you see across websites and mobile apps. They’re often more affordable than other channels and are perfect for broad awareness and retargeting people who’ve already visited your site.

What it is

Display advertising delivers visual ads (banners, pop‑ups, interstitials) across publisher sites and apps, not on search results. Targeting can be broad (placement/context) or audience‑based (interest, behavior, retargeting), giving you flexible reach with creative that carries your brand.

Best platforms and formats

You’ll run display through major ad networks and publisher inventories that place ads across blogs, news sites, and apps. Choose formats that fit your message and the browsing experience.

• Banner ads: Static or animated units that sit at the top, bottom, or sides of pages.

• Video placements: Short clips that play before/during content or within articles.

• Rich media: Interactive elements (animations, expandable panels) to boost engagement.

When to use it

Use display to put your brand in front of likely buyers while they browse, and to stay top‑of‑mind after a visit.

• Top‑of‑funnel awareness: Introduce your brand to a local audience at scale.

• Retargeting: Re‑engage site visitors with reminders, offers, or social proof.

• Seasonal pushes: Reach people researching events, holidays, or home projects.

Budget and metrics

Start with modest daily budgets and scale winners. Expect pricing commonly on a CPM basis for reach; add retargeting for efficient conversions. Track impressions, viewable impressions, CTR, frequency, conversions, and cost per result. Exclude poor placements to protect spend.

Pro tips for local businesses

Keep creatives branded, benefit‑led, and easy to read on mobile.

• Geo‑target tightly: City, ZIPs, or radius around your service area.

• Contextual placements: Appear on sites/topics your customers read (e.g., home improvement, legal news).

• Cap frequency: Avoid ad fatigue; aim for steady visibility, not overexposure.

• Segment retargeting: Different messages for cart abandoners, service page viewers, or blog readers.

• Use clear offers and CTAs: “Call now,” “Book a consult,” or “Get directions” to drive action.

4. Video advertising

Video grabs attention fast and can explain your offer in seconds. It runs before, during, or after content on platforms like YouTube, Hulu, and Facebook, and it’s proven effective when produced thoughtfully. Always assume viewers may watch on mute—clarity beats cleverness.

What it is

Short, goal‑driven videos used as ads across video platforms or as native/display placements. Use it as standalone ads or embedded placements to deliver a clear message with motion and sound.

Best platforms and formats

Match your audience and objective to the placement. Choose formats people already consume on that platform.

• YouTube Ads: Skippable or non‑skippable.

• Meta (Facebook/Instagram): Feed, Stories, and Reels video.

• TikTok and out‑stream: In‑feed or in‑article video.

When to use it

Use video when visuals and motion sell value best. It’s strong for both building demand and nudging warm prospects.

• Show, don’t tell: Demos, before‑and‑afters, testimonials, tours.

• Campaign moments: Awareness bursts, launches, and retargeting.

Budget and metrics

Pricing is often CPV or CPM; test short cuts and longer explainers. Optimize for completion and actions, not just cheap views.

• Track: Views, view rate, completions, CTR, conversions.

• Compare: CPV/CPM and cost per result.

Pro tips for local businesses

Make it watchable without sound and locally relevant. Keep edits tight and the offer unmistakable.

• Front‑load the hook: Win attention in three seconds.

• Caption everything: Add on‑screen headlines and a clear CTA.

• Show local proof: Storefront, team, and recognizable city cues.

5. Email marketing

Among the types of digital advertising, email is your owned, opt‑in channel—the list you control. It reaches people who already raised their hand, making it perfect for nurturing, promoting, and driving repeat business without paying for every impression or click.

What it is

Email marketing sends targeted messages to subscribers who opted in, such as newsletters, promotions, and automated sequences. Because recipients asked to hear from you, it’s a direct line to deliver value and timely offers.

Best platforms and formats

Use an email service provider to manage lists, design templates, and automate flows. Keep content concise so the message and CTA are unmistakable.

• Promotional emails: Limited‑time offers, discounts, and event announcements.

• Newsletters: Short updates with tips, news, or recent content.

• Drip campaigns: Automated sequences for new leads, onboarding, and re‑engagement.

When to use it

Lean on email to convert warm leads, follow up after quotes or appointments, and bring back past customers. It also pairs well with social or search campaigns to capture leads now and nurture them into bookings.

Budget and metrics

Building a list is cost‑effective, and sending scales with list size. Track the health of your program and outcomes: open rate, click‑through rate, unsubscribe rate, and conversions (calls, appointments, purchases).

Pro tips for local businesses

Make every send feel personal, local, and easy to act on.

• Offer value at opt‑in: Discounts or helpful guides in on‑site pop‑ups.

• Segment by interest: Service, location, or lifecycle stage.

• Write for mobile: Clear subject lines, scannable copy, big buttons.

• Use local CTAs: Click‑to‑call, “Get directions,” or “Book now.”

• Keep it short: Concise emails improve clarity and conversions.

Choose the right mix for your goals

There isn’t a single “best” channel—there’s a best sequence for your objective. If you need leads now, start with search. If you need awareness or to shape demand, add social and display. When your offer benefits from show‑and‑tell, layer in video. And to keep warm prospects moving, use email and retargeting to follow up until they’re ready to book.

A simple plan: pick one primary goal, one core channel, one retargeting audience, and one nurture sequence. Measure weekly, shift budget to the lowest cost per qualified result, and keep creative fresh. If you want a tailored mix—and someone to build, track, and optimize it for your local market—our team can help. Start here: Wilco Web Services.