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All business owners understand how important advertising is. Advertisements provide a favourable presentation of a product or service to consumers. It creates awareness about a brand of goods and services among customers. Product promotion through advertising will in turn increase the number of clients and sales profits as the business is promoted. Advertising can be done through various outlets such as print media, broadcast media, or local advertising. Radio and television broadcasting is out of the picture for small companies which cannot afford the cost of broadcast media advertising. Print media is more affordable but is limited to readers only. Local advertising through bill boards, banners, and flyers is even more limited than print advertising. Advertisements set on a local level can only reach local residents.

Online Advertising. Internet based advertising can actually beat all three platforms mentioned earlier. It is able to reach a wider audience. In the U.K., over 82.2% of its population uses the Internet according to the records of the Office for National Statistics during the first quarter of 2011. Local businesses in the U.K. can take advantage of this truth to promote products and services online. There are fees associated with advertising online however. The cost is dependent on the size of the banner, the length of the period when it is displayed (often paid on a monthly basis), among other factors. Other advertising methods include pay per click campaigns and commission based advertising. In the former, the advertisement publisher is paid based on the number of clicks generated from the campaign. The latter on the other hand is based on the number of sales converted. The publisher is paid with a commission.

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