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Advertising is a form of communication whose purpose is to inform potential customers about products and services and how to obtain and use them. In its non-commercial guise, advertising is a powerful educational tool capable of reaching and motivating large audiences.

Advertising has gone through five major stages of development: domestic, export, international, multi-national, and global. Additionally, some non-profit organizations are not typical advertising clients and rely upon free channels, such as public service announcements.

In the United States alone in 2006, spending on advertising reached $155 billion, reported TNS Media Intelligence. That same year, according to a report titled Global Entertainment and Media Outlook: 2006-2010 issued by global accounting firm PricewaterhouseCoopers, worldwide advertising spending was $385 billion.

Advertising is increasingly invading public spaces, such as schools, which some critics argue is a form of child exploitation.

The Volkswagen ad campaign--featuring such headlines as "Think Small" and "Lemon" (which were used to describe the appearance of the car)--ushered in the era of modern advertising by promoting a "position" or "unique selling proposition" designed to associate each brand with a specific idea in the reader or viewer's mind. This period of American advertising is called the Creative Revolution and its poster boy was Bill Bernbach who helped create the revolutionary Volkswagen ads among others. Some of the most creative and long-standing American advertising dates to this incredibly creative period.

As cable and satellite television became increasingly prevalent, specialty channels emerged, including channels entirely devoted to advertising, such as QVC, Home Shopping Network, and ShopTV. Entire corporations operated solely on advertising revenue, offering everything from coupons to free Internet access.

At the turn of the 21st century, a number of websites including the search engine Google, started a change in online advertising by emphasizing contextually relevant, unobtrusive ads intended to help, rather than inundate, users. This has led to a plethora of similar efforts and an increasing trend of interactive advertising.

A recent advertising innovation is "guerrilla promotions", which involve unusual approaches such as staged encounters in public places, giveaways of products such as cars that are covered with brand messages, and interactive advertising where the viewer can respond to become part of the advertising message.

Prices of Web-based advertising space are dependent on the "relevance" of the surrounding web content and the traffic that the website receives.
As the mobile phone became a new mass media in 1998 when the first paid downloadable content appeared on mobile phones in Finland, it was only a matter of time until mobile advertising followed, also first launched in Finland in 2000. By 2007 the value of mobile advertising had reached 2 billion.

One of the reasons advertising is successful is because it can target a particular audience to build awareness of what the advertiser has to offer. According to many sources, the past experience and state of mind of the person subjected to advertising may determine the impact that advertising has.

Children under the age of four may be unable to distinguish advertising from other television programs, while the ability to determine the truthfulness of the message may not be developed until the age of 8.