---
title: The Beginners' Guide to Online Advertising for Small Business [Infographic]
description: Are you confused by all the advertising options now available online? Have no fear! Here's your guide to successful online advertising for small business.
image: https://blog.velocity23.com/hubfs/beginners-guide-online-advertising-small-business-featured-image.png
---
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By: [Velocity23](https://blog.velocity23.com/blog/author/velocity23)
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# The Beginners' Guide to Online Advertising for Small Business \[Infographic\]
[Strategy](https://blog.velocity23.com/blog/topic/strategy)
Advertising online can be overwhelming, but it doesn't have to be. Thanks to the [WhoIsHostingThis?](http://www.whoishostingthis.com/) infographic below, online advertising for small business makes sense again. Take this knowledge and use it to [drive new traffic and customers to your website. ](http://marketingninjas.com/internet-marketing-services/inbound-marketing-packages/)
## The Basics
Before you can launch a campaign, you need to understand some of the most common terms used in the industry.
**PPC (Pay Per Click)**
Under this model, advertisers choose a maximum amount they are willing to pay each time a user clicks on their ad.
**CPC (Cost Per Click) **
This refers to the cost of each click an advertiser pays once a user clicks on an ad in their PPC campaign
**CPA (Cost Per Action)**
What the advertisers pay when their ad click leads to action, such as a sale.
**CPM (Cost Per Thousand)**
The cost for 1,000 ad impressions (displays) - NOT clicks. The ad can be clicked 10 times or 400 times, but the cost will remain the same.
**CTR (Cost Through Rate) **
A comparison of the number of people who view your ads, compared to the number of people who click your ads - expressed as a percentage.
**Conversion Rate**
Used to compare the total number of website visitors to the overall goal of the ad. For example, the goal could be paying customers, new users, or new subscribers.
Make sure to check out the infographic for more online advertising tips & tricks for small businesses!
### [](https://cta-redirect.hubspot.com/cta/redirect/346889/1a617892-c843-4171-9fe0-1a1fb02f2e5a)
#### Was this infographic helpful to your business? What online advertising are you currently doing and how effective is it? Let us know in the comments below!
#### About Velocity23
We help home builders and developers upgrade their marketing, sales and operations processes so they can grow and scale their business, and sell more homes.
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