The first widely publicized example of online advertising was conducted via electronic mail. On 3 May 1978, a marketer from DEC (Digital Equipment Corporation), Gary Thuerk, sent an email to most of the ARPANET's American west coast users, advertising an open house for a new model of a DEC computer.[6][11] Despite the prevailing acceptable use policies, electronic mail marketing rapidly expanded[12] and eventually became known as "spam."

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Online banner advertising began in the early 1990s as page owners sought additional revenue streams to support their content. Commercial online service Prodigy displayed banners at the bottom of the screen to promote Sears products. The first clickable web ad was sold by Global Network Navigator in 1993 to a Silicon Valley law firm.[17] In 1994, web banner advertising became mainstream when HotWired, the online component of Wired Magazine, sold banner ads to AT&T and other companies. The first AT&T ad on HotWired had a 44% click-through rate, and instead of directing clickers to AT&T's website, the ad linked to an online tour of seven of the world's most acclaimed art museums.[18][19]

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Online advertisers can collect data on their ads' effectiveness, such as the size of the potential audience or actual audience response,[20]:119 how a visitor reached their advertisement, whether the advertisement resulted in a sale, and whether an ad actually loaded within a visitor's view.[61][62]:59 This helps online advertisers improve their ad campaigns over time.

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Social Media Marketing - The term 'Digital Marketing' has a number of marketing facets as it supports different channels used in and among these, comes the Social Media. When we use social media channels ( Facebook, Twitter, Pinterest, Instagram, Google+, etc.) to market a product or service, the strategy is called Social Media Marketing. It is a procedure wherein strategies are made and executed to draw in traffic for a website or to gain attention of buyers over the web using different social media platforms.

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Online reviews have become one of the most important components in purchasing decisions by consumers in North America. According to a survey conducted by Dimensional Research which included over 1000 participants, 90% of respondents said that positive online reviews influenced their buying decisions and 94% will use a business with at least four stars. Interestingly, negative reviews typically came from online review sites whereas Facebook was the main source of positive reviews. Forrester Research predicts that by 2020, 42% of in-store sales will be from customers who are influenced by web product research.
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Alternatively, ad space may be offered for sale in a bidding market using an ad exchange and real-time bidding. This involves many parties interacting automatically in real time. In response to a request from the user's browser, the publisher content server sends the web page content to the user's browser over the Internet. The page does not yet contain ads, but contains links which cause the user's browser to connect to the publisher ad server to request that the spaces left for ads be filled in with ads. Information identifying the user, such as cookies and the page being viewed, is transmitted to the publisher ad server.

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A trick banner is a banner ad where the ad copy imitates some screen element users commonly encounter, such as an operating system message or popular application message, to induce ad clicks.[35] Trick banners typically do not mention the advertiser in the initial ad, and thus they are a form of bait-and-switch.[36][37] Trick banners commonly attract a higher-than-average click-through rate, but tricked users may resent the advertiser for deceiving them.[38]

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