Chapter 5: Panorama of Online Advertising Formats — What are you actually buying?

1. Core Logic: Context Decides Everything

Before picking a format, ask: What is the user doing when they see this?

• Are they actively looking for an answer?
• Are they mindlessly scrolling through friends’ photos?
• Are they waiting for a video to load?

2. Search Ads — Buying “Intent”

Where: Google, Bing. User State: Active Seeking.

• Pros: Extremely high intent. Someone searching for “emergency locksmith” is ready to pay.
• Cons: Limited by search volume. You can’t create demand; you can only intercept it.

3. Display Ads — Buying “Presence”

Where: Banners on blogs, news sites, or apps. User State: Passive Browsing.

• Pros: High visual impact, cheap CPM. Great for brand awareness.
• Cons: Often ignored (Banner Blindness).

4. Social Ads — Buying “Interest & Identity”

Where: Facebook, Instagram, TikTok. User State: Hanging out.

• Pros: Ads look like content. High engagement (likes, shares).
• Cons: Creative fatigue is fast. You need a constant stream of new visuals.

5. Video Ads — Buying “Emotion & Resonance”

Where: YouTube, TikTok. User State: Immersive Watching.

• Pros: Best storytelling. Sound, motion, and rhythm build a brand like nothing else.
• Cons: Expensive to produce. The first 5 seconds are make-or-break.

6. Conversational AI Ads — Buying “Instant Solutions”

Where: ChatGPT, Perplexity. User State: High-Focus Creation/Decision.

• Pros: Extreme context relevance. If you ask “how to make coffee,” an ad for a grinder fits perfectly.
• Outlook: This is the future—ads that serve rather than interrupt.

7. Brand in Action: Nike’s Multi-Weapon Strategy

Nike uses different formats for different funnel stages:

1. Awareness (Video): Epic films on YouTube to make you love the brand.
2. Consideration (Social): High-def photos of sneakers on Instagram for fitness enthusiasts.
3. Decision (Search/AI): When you ask ChatGPT for “best beginner marathon shoes,” Nike is there to close the deal.

Next Chapter: Chapter 6: Personality of Ad Formats. Why do some scale better than others?