Online advertisements are a very cost effective form of advertising for businesses. Traditional advertising can only target limited potential customers. For example, a newspaper is only published in certain cities which mean your advertisement will only be read by people in only one area. Online advertisements will allow businesses to reach worldwide audience anytime.

But an online investment can easily become an expensive venture if the business is not smart in this type of advertising. A business may spend too much in online advertising but doesn’t attract any audience.

The following are smart online advertising techniques. Some of them may require funds but they will not drag your business in advertising costs.

1. Create a smart banner for your online advertising - if you don’t have any idea on how to create a banner, search for a professional designer in your area. Make sure to obtain a design in various sizes to easily post them in other websites.

2. Exchange links with other websites - link exchange is a very popular technique for websites who wanted to increase their popularity without spending anything. By exchanging links, their website is advertised for free in exchange of a free advertisement in their website.

3. Starting a blog - selling products or offering services can be easily replicated online. But when you start a blog, your advertisement is not just on mere facts since you actually show what you know about the industry. Search engines will easily find your site if you support them with informative blogs.

4. Web hosting with free search engine listing - choose a web hosting service that comes with search engine credits in advertising. The credit you’ll have will give you an opportunity to advertise in various search engines. This will give your business a strong start because of increased visitors.

5. Manually submit your site to search engines - popular search engines allow webmasters to manually submit their website without any cost. Visit various search engines and look for their advises on "meta-tags" that you need to add in your site in order to be recognized by search engines.

6. News vs. Blog advertisement - the best site to advertise your products and services are in popular news sites and blogs. However, news sites are expensive considering their online popularity. Blogs on the other hand are maintained by few private individuals. This means the rates in advertising is highly negotiable.

7. Commenting on blogs - a popular technique used by bloggers to increase their visibility online is to consistently comment in various blogs. By commenting in various blogs, you are offering links to your website which could increase visitors. Just make sure your comments are based on the article or else they will be marked as spam.

8. Talking in online forums - another free advertising technique used by many bloggers and webmasters is to participate in forums. By participating in forums with a link to your business, you are personally reaching out to potential customers as they will visit your site through your link in the forum.

9. Being patient - if you’re not willing to spend hundreds of dollars in advertising costs, you need to be patient in doing free advertising activities. It might take a while before you reach the target visitors but you’ll never have to spend too much to gain popularity online.

10. Develop an eye-catching website - the best advertisement for your website is the site itself. A great looking and interactive website will most likely have repeat visitors. Spend a little bit in improving the design of your site and add articles or links to forums in order to have the interaction to your potential costumers.