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With online advertising you can set a budget per month or per click depending on the method you use. For example if you choose to use Google Adwords you can limit the amount you bid for each click to your website and how much you would like to spend per day. That can be a much better return than spending 2 dollars per flyer and scattering them around a building or neighbourhood.
Online advertising allows you to target your audience so well, that you only need to pay when someone chooses to find out more information after seeing the advert. For example a furniture store can show their advertisements to people who are searching Google for "leather sofas" or even "buy oak tables". Online ads can even follow people around. If someone has visited your website, and has an interest in your industry, ad networks can use this information to display adverts promoting your products to those people when they visit other websites - this is another example of precision marketing.
Online advertising also has a much lower risk factor. Within a day or even hours you can often gauge how successful a campaign is. If the return on investment is low then simple stop the advert from showing any more. It also provides ways to constantly improve your marketing. For example, you can easily set up 10 different versions of an advert and test which is the most successful for a low cost, before continuing with promoting that advertisement.