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It comes as no surprise to see advertisements all over the Internet. Advertising online is a booming industry where the top 5% controls 85% of the marketing space on the web. Big budgets reign supreme for the top 5% online advertiser, but where does the little guy fit in?

Welcome to the Poor Man’s Guide for Online Marketing. Within these contents you will find how you can make your site, product, or service visible to the masses while keeping your wallet in tact.

Let’s go over the forms of online advertising briefly so all avenues are explored.

• Banner Advertisements
• Text Link Ads
• Pay per Click (Search Engine Ads)
• Video Advertisements
• Local/Regional/Directory Ads
• Website Sponsorships

Advertising on a large scale on mass media or mass traffic sites is probably out. But would exposure on those sites help you reach your goal of success. Not necessarily.

The less money you have to spend per month means you will have to strategically spend your advertising dollars in a way that gets you a lot of quality exposure without breaking your wallet. The keyword is quality advertisements. Advertising on sites that have no relations of customers will waste your money and bring you zero return.

Pay per Click (Search Engine Marketing) 

The key to quality advertisements is displaying your presence in your industry. One of the easiest ways to do this is through Pay per Click (Search Engine Marketing) ads that will show up for the keywords you choose. Search engine marketing entails creating an ad with title, description, URL and a bid, all of which will determined which ad spot you will receive in the Search Engines Results Page. With proper research you can find keywords that are inexpensive and highly targeted to your customers. ROI can be very high when you optimize your ad and find the right combination of ad copy and landing page. It is cost effective, targeted and reaches a lot of people depending on the keywords targeted.

Banner Advertisements 

Many businesses/individuals decide they would like to pay for banner advertisements on a related website.  They are visible to the viewer and more often than not the most expensive form of advertising.  Results show that banner ads are the most ineffective form of advertising, yet on almost every website you visit you will see banner ads.  Banner ads can be bought cheap on related, individual owned niche-sites and blogs.  Many of these ads could see significant traffic, and if you advertise within your niche the traffic sent over will be highly targeted.

Text Link Ads 

Text Ads within body content are the highest converting form of advertising.  These advertising deals don’t generally have a rule on how much they will cost, but price is usually negotiated with the site owner depending on how many links you would like.  These links are generally cheap and high converting and are best used on a niche site or blog.

Video Advertisements 

If you are capable of producing video ads you could get yourself some great advertising space.  Many site owners are constantly on the lookout for video ads to put on their site.  More often than not they are priced on a pay per click basis.  This is currently one of the best ways to advertise online in my opinion.

Local/Regional Ads 

I am referring to pay per click or even sponsored ads in the yellow pages or other local directories.  For directories these ads will be pricier, but for pay per click you can usually find niches to advertise in dirt cheap.

Website Sponsorships

This could refer to any thing from contest sponsorships to general site sponsorships.  Getting your name out on a site anyway you can as a sponsor for a site may be slightly more expensive, but the recognition you will receive will be worth it.  Look to sponsor contests, time-sensitive offers or general websites with good traffic.

These are the best choices for online advertising.  They are inexpensive and will showcase your site, business or product/service.  As a general rule, look for middle tier sites and stay away from mainstream sites and you will be able to save money on your ads.  But still, my favorite form of advertising is through an affiliate program, because you get other people to spread the word for you.  If you don’t have an Affiliate program and you are a retailer or in the service industry, look into starting one.  There are a lot of companies out there that will make it easy to setup and they are sure to return well on your investment.

AOL Time Warner will join Microsoft and Google with major purchases of online advertising companies. AOL will purchase Quigo for around $300 million. The deal is expected to close by the end of 2007.

The 23% drop in profits is clearly something to be worried about as AOL looks to strengthen their advertising platform. AOL will now gain advertising rights on Quigo’s current partners ESPN, Disney and ABC.

Rumors continue to swirl about the possibility of Google releasing a competitor for the Apple iPhone. It’s speculated title is the gPhone, and it is rumored to be bigger and badder than the iPhone. Not in looks, but in functionality and features.

In other words, don’t expect a fancy touch-screen, which would only raise prices. Do expect a lot of applications, all of which will probably have advertising built-in. Google maps, Gtalk, search, and many more features will be readily available. Another way they plan to keep the cost down is by not making the actual phone themselves, rather they will contract another company to design the phone, and they will supply the software bundle that will make the phone a Google device. In a way, the Google phone will be more like a mini-computer than a cell-phone, with an easy to use operating system making the gPhone a great buy for all levels of cell phone users.

Interactive marketing is evolving and being implemented at a rapid pace.  In fact, the industry will grow by over 27% per year over the next 5 years.  This means an increase in interactive marketing spending from $18.4 billion in 2007 to over $61 billion in 2012.  According to Internet Retailer, the fastest growth will come from online video ads and emerging marketing vehicles, for example, social media, widgets, mobile and gaming.

Not surprisingly online video ads is and will continue to grow at the most rapid pace.  What is interesting, is that interactive marketing spending is less that 10% of total online advertising spending.   By 2012, interactive marketing will account for close to 20% of advertising spending.  Search engine marketing and social media marketing will also grow rapidly.  There is no better time to join the market than now, because it is only going to grow.

100 YouTube publishers have been recruited by Google to offer up videos for Adsense publishers to use on their sites.  Adsense wants to give their publishers more options on the content front, and now Publishers can host videos on their sites that work the same way as normal Adsense ads.

This move by Google wasn’t an unexpected one considering they are always improving Adsense.  Options are somewhat limited in the categories offered for video content, but Google is expecting to expand deeper breadth-wise and create a number of niche categories.