The big advantage of advertising online is that it provides a reach unrivalled, certainly in terms of its affordability, by most other media. Its national (and international) coverage means that smaller businesses can compete with their larger rivals without having recourse to the sort of advertising budgets demanded by such conventional media as the press and television.

The most obvious form of online advertising is a firm's own website. For a website to be an effective advertising tool it must be designed in such a way as to appeal to visitors. It should be easy to navigate, should offer appropriate and useful information about products and services, and should make it simple to order goods.

Another form of online advertising is to place banner or pop-up ads on the websites of other businesses. As well as alerting visitors to your business, the ads provide links to your own website. Usually there is a charge for placing such ads. However, some websites - those, for example, that are not direct competitors but are complementary to the sort of goods or services you offer - may be prepared to accommodate your ads free of charge if the business believes that doing so enhances the relevance and usefulness of their own site.

A third option is advertising via an online directory. You may choose to take an entry with a directory company such as Yell.com. If you wish a more specialised online environment in which to advertise, you can buy space on a directory that serves particular sectors. The Data Publishers Association can provide details about such directories and the type of firms that advertise on them.