Glossary term

Online Advertising

What is online advertising?

Online advertising encompasses digital marketing strategies across multiple channels that build product awareness and drive user acquisition through targeted campaigns optimized for specific platforms and audience segments. It also covers the publisher side of the equation: developers who monetize their own apps by showing ads to their users, often through mediation platforms like Unity LevelPlay.

How does online advertising work?

This multifaceted approach uses various formats, from display banners and video advertisements to search engine marketing and social media promotions, each serving different stages of the conversion funnel.

For mobile game developers specifically, effective advertising requires understanding platform-specific creative requirements, audience targeting capabilities, and attribution models that accurately measure campaign performance.

Types of online advertising

Online advertising comes in several distinct formats, each suited to different goals and stages of the funnel:

  • Display advertising: Banner, image, or video ads placed on websites and apps, typically sold on a cost-per-impression basis. Good for building awareness at scale.
  • Search advertising: Text ads shown alongside search engine results, targeting users actively searching for specific keywords. Usually priced on a cost-per-click (CPC) basis.
  • Social media advertising: Ads placed within social platforms like TikTok or Facebook, often blending into the native feed. Strong for both awareness and direct response.
  • Video advertising: Ads that play before, during, or after video content, from short pre-roll spots to full commercials.
  • Native advertising: Ads designed to match the look and feel of the platform they appear on, so they read more like content than a traditional ad.
  • In-app advertising: Ads served inside mobile apps rather than on the web, the format most directly relevant to mobile game developers, and one of the more common ways games generate ad revenue.

How do you maximize your online advertising?

To maximize online advertising, implementation typically involves:

  1. Establishing clear conversion goals.
  2. Creating platform-optimized creative assets.
  3. Defining precise audience segments.
  4. Implementing tracking systems that measure both immediate and delayed conversions.

Modern online advertising increasingly relies on machine learning to optimize creative selection, audience targeting, and budget allocation in real time based on performance data. Unity Ads, for example, uses Vector AI to match games with the right players and optimize bidding automatically.

As acquisition costs continue rising across competitive markets, sophisticated advertising strategies have become essential for sustainable growth, requiring continuous testing and optimization to maintain cost-effective user acquisition while navigating evolving privacy regulations and platform policies.

Frequently asked questions (FAQ)

How is online advertising different from performance marketing?

Online advertising is the broad category of any paid promotion delivered over the internet. Performance marketing is one specific approach within it, where advertisers pay only when a campaign achieves a measurable result, rather than paying upfront for placement.

Is online advertising the same as digital marketing?

Not quite. Online advertising specifically refers to paid promotion. Digital marketing is the broader discipline that also includes unpaid activities like email newsletters, organic social media, and search engine optimization.

Related terms

In-App Advertising

In-App Advertising is an app monetization strategy, in which app developers get paid to show ads to their users.

Performance Advertising

Performance advertising (or pay for performance advertising) is a marketing strategy to produce specific financial results within a specific time period

Native Advertising

Native Advertising is a fully customizable system-initiated ad unit that matches apps design.