Online advertising is the latest and the newest form of advertising. Online advertising helps you reach a larger customer base as in today’s world almost everybody uses internet and surfs different sites for gathering information, downloading, chatting, etc. Online advertising is costlier as compared to news paper advertising but is cheaper than the usual TV commercials or radio advertisements. Online advertising is moderately priced and is very beneficial as it is performance driven and one needs to pay only if the desired performance is achieved by the publisher.Online advertising is also very flexible and latest updates and modifications can be updated with minimum fuss and minimum efforts. Also online advertisement has no time constrains as that of the TV commercials. There are many web sites that publish ads and hence this gives you a larger base for advertising as compared to other mediums like TV, magazines, news paper, hoardings, etc. Also one can choose the advertising web site and content that best suits the need of his company or that best relates with the companies product and services and then accordingly make his choice.There are two main types of online advertising pay per click advertising technique and permanent or sponsored web site advertising method. Pay per click is the latest type of advertisings, here as permanent or sponsored advertising style is the contemporary and traditional style of on line advertising. Many people are shifting to pay per click method as it is more efficient and more beneficial, in terms of money as well as productivity.Pay per click online advertising technique:Pay per click is completely performance driven method of advertising. An advertiser displays or publishes his or her ads on a particular site or a particular web page free of any monthly rentals, etc. The web site or the web page or the publisher gets paid for publishing these ads when the internet users click on that particular ad. Depending on the particular number of clicks for that ad in a stipulated time period the publisher gets paid. The cost of the single click is decided depending on the popularity of the web site that has published the ad, the use of popular and most searched key words in the ad, the usage and popularity of the search engine on which the web site has been listed and last but not the least the ranking of the web site in the search list.Permanent or sponsored online advertising technique:Permanent advertising technique is not performance driven and the advertiser has to pay a specific amount of monthly rental as well as the publishing cost to the web site or the publisher. The per month rental of the ad is calculated using factors like the size of the ad, the position of the ad like top corner bottom corner, etc; then factors like the daily visits and usage of the website, the content and efficiency of the web site are also taken into consideration.