Let’s be honest: the landscape of digital advertising is evolving quicker than the latest trending reels.
Let’s be honest: the digital ad space is changing faster than the latest trending reels. What worked in 2018 might not even show up on users’ feeds in 2025. That’s why understanding the different types of digital ads isn’t just useful—it’s essential for marketers who want to stand out and scale effectively. Whether you’re a startup owner, a brand marketer, or a digital strategist, knowing what each ad type offers can save money, boost reach, and bring in serious ROI.
So, whether you’re diving into your first campaign or fine-tuning your media mix, let’s decode the top 10 digital ad formats making waves in 2025.
Why Understanding Digital Ad Types Is Important
Digital advertising isn’t one-size-fits-all. Each ad type serves a different purpose—from building awareness and increasing web traffic to driving conversions and nurturing leads. Choosing the wrong type can waste budget, miss your audience, or simply fall flat. But when you get it right? Magic happens. Better engagement, higher ROI, and meaningful connections with your target audience—especially in India’s dynamic digital ecosystem.
10 Types of Digital Ads (With Examples)
In the ever-evolving Indian digital marketplace, not all ads are created equal. Each type serves a unique purpose, caters to a specific stage in the customer journey, and differs in cost and complexity. Here’s an in-depth breakdown of the 10 most impactful ad formats for 2025, with actionable examples, use cases, and campaign tips:
1. Display Ads
Overview: Visual-based banner ads that appear across websites, apps, or on the Google Display Network. These include static images, GIFs, and HTML5 creatives.
Use Case: Best for brand visibility and top-of-funnel awareness campaigns.
Example: An Amazon Great Indian Festival banner on The Times of India homepage.
Pro Tip: Use eye-catching design, bold CTAs, and retarget users who previously visited your site.
2. Search Ads
Overview: Text-based ads that appear at the top of Google or Bing search results when users enter relevant queries.
Use Case: Perfect for high-intent keywords like “buy shoes online” or “best home loan provider.”
Example: A PolicyBazaar ad showing up for “term insurance for 30-year-old.”
Pro Tip: Use negative keywords to filter irrelevant traffic and improve your Ad Quality Score.
3. Social Media Ads
Overview: Ads that appear on platforms like Facebook, Instagram, LinkedIn, and X (formerly Twitter). They include image, carousel, video, story, and lead-gen formats.
Use Case: Great for hyper-targeting based on interests, behaviors, or lookalike audiences.
Example: A carousel ad from Mamaearth showing skincare products on Instagram.
Pro Tip: Test creatives for different age groups—millennials vs Gen Z engage differently even on the same platform.
4. Video Ads
Overview: Short-form or long-form video ads on platforms like YouTube, Instagram Reels, and OTT apps like Hotstar.
Use Case: Ideal for storytelling, product walkthroughs, or influencer-based testimonials.
Example: A Swiggy Instamart pre-roll ad on YouTube before a cooking tutorial.
Pro Tip: Keep key messaging within the first 5 seconds. Most viewers skip after that!
5. Native Ads
Overview: Sponsored content that blends seamlessly with editorial content. It doesn’t disrupt user experience, making it less “salesy.”
Use Case: Ideal for financial services, health, or SaaS where educating the user is key.
Example: A Groww sponsored blog on MoneyControl titled “Top SIPs to Start in 2025.”
Pro Tip: Use informative titles and include subtle brand mentions rather than pushing hard sells.
6. Email Ads
Overview: Promotional messages sent via email, either standalone or part of automated sequences (like onboarding or re-engagement flows).
Use Case: Excellent for nurturing leads, driving repeat sales, and loyalty programs.
Example: Zara India sending a limited-time sale email with product images and links.
Pro Tip: Personalize subject lines and use clear CTAs. A/B test open rates using emojis or urgency-driven words.
7. Shopping Ads
Overview: Product-focused ads that include an image, price, store name, and rating—usually on Google or eCommerce marketplaces.
Use Case: Best for retailers and D2C brands with a product catalog.
Example: Boat earphones popping up when a user searches “budget headphones” on Google.
Pro Tip: Optimize product feed titles and use high-quality product images to improve click-through rates.
8. Influencer Ads
Overview: Branded content promoted through influencers or content creators on platforms like YouTube, Instagram, or Twitter.
Use Case: Highly effective for trust-building and brand discovery, especially in niche markets.
Example: CRED partnering with Tanmay Bhat for humorous fintech skits.
Pro Tip: Choose creators whose audience matches your target—not just those with the highest followers.
9. Retargeting Ads
Overview: Ads shown to users who have previously visited your website or app but didn’t convert.
Use Case: Perfect for cart abandoners, page viewers, or trial users.
Example: Ajio is reminding users of shoes they left in their cart through Facebook ads.
Pro Tip: Use dynamic creatives that show the exact product left behind to boost return rates.
10. In-App Ads
Overview: Ads that appear inside mobile applications. These can be banners, interstitials, or reward-based ads.
Use Case: Great for app-driven brands like fintech, gaming, or food delivery.
Example: A Zomato Gold subscription offer inside a cricket score app.
Pro Tip: Reward-based ads (e.g., “Watch to get extra coins”) often have higher completion rates and user satisfaction.
How to Choose the Right Type of Digital Ad?
Ask yourself: What’s your goal? Brand awareness? Conversions? App installs? Each ad type caters to a specific objective. For example:
- Awareness: Display, video, influencer, social ads.
- Conversions: Search, retargeting, shopping ads.
- Engagement: Social, native, in-app.
Also, consider where your audience hangs out. A B2B brand might benefit more from LinkedIn and search ads, while a fashion brand might thrive on Instagram and YouTube.
Cost of Different Types of Digital Ads in India
Understanding digital ad costs in India is crucial for budgeting effectively. While costs vary widely based on industry, audience, and competition, here’s a general estimate based on recent insights from Indian digital marketing agencies and platform data:
- Search Ads (Google Ads): ₹5–₹150 per click, depending on keyword competitiveness and quality score. High-intent keywords like “buy insurance” or “hire a lawyer” are on the expensive side.
- Display Ads: ₹10–₹50 CPM (Cost per 1000 impressions). Display networks like Google Display Network (GDN) offer broader reach but may have lower engagement rates.
- Video Ads (YouTube/OTT): ₹0.50–₹5 per view based on targeting, placement, and content length. Skippable ads often cost less than non-skippable formats.
- Social Media Ads: ₹1–₹10 per click. Instagram and Facebook tend to be more affordable for B2C sectors, while LinkedIn ads can go up to ₹150 per click for B2B campaigns.
- Influencer Marketing: ₹5,000–₹5,00,000+ depending on follower count, niche, and engagement rate. Micro-influencers (10K–50K followers) typically charge between ₹5,000–₹25,000 per post.
- In-App Ads: ₹2–₹20 CPM. Game and utility apps offer various formats like banners, interstitials, and rewarded videos.
These figures offer a ballpark range. Always factor in creative, targeting quality, bidding strategy, and campaign duration for a realistic budget plan.
Conclusion
Understanding the types of digital ads is like having a Swiss Army knife for your marketing strategy—each tool serves a unique function, and together they create something powerful. As Indian consumers become more digitally savvy, brands need to be equally smart and selective. Whether you’re retargeting a cart abandoner or building buzz for a new launch, there’s a perfect ad format waiting to elevate your campaign.
FAQs on Digital Ads Every Marketer Should Know in 2025
What are digital ads?
Digital ads are promotional messages delivered via the internet, targeting users across platforms such as search engines, websites, social media, apps, and email.
What are the most common types of digital ads?
Search, display, social media, video, and email ads are among the most commonly used types.
Which type of digital ad is best for brand awareness?
Video, display, and influencer ads work exceptionally well for building awareness.
What type of digital ads are best for generating leads?
Search ads, social media lead forms, and retargeting ads are ideal for lead generation.
How much do digital ads cost in India?
Costs vary based on platform, targeting, and competition but can start as low as ₹1 per click for social ads to ₹150 per click for high-intent keywords on search ads.
