There are two types of Third Person Point of View.
Omniscient
Limited Third Person
Omniscient Point of View is like playing God. You know everything, all the characters and all the different plot threads. You hover above all the action and then zoom in what characters are doing at will.
You’re also able to show the reader every character’s thoughts, dreams and so on and also what they are doing, have done or might do.
Limited Third Person aka Viewpoint Character is where the reader sees the unfolding of a story through one person’s eyes. You get to know all the quirks, hopes and fears of that character but as a reader you can only guess what’s going on in other characters’ minds. The Third Person narrator can form opinions of other people which we can agree or disagree with. As the author, you can change the viewpoint character when needed. This change is usually clearly signaled by either a line break (double spacing) or another chapter.
Omniscient POV is useful where you have two or more characters and they are miscommunicating and not aware of each others intentions. Tension can be built up because the reader can see what is going to happen and squirms as he cannot do anything.
As already mentioned, the limited narrator can change viewpoint characters so that the reader can be aware of what is going on in other characters’ minds. In books this is normally done by changing chapters and in short stores you can do this using the line break with three asterisks. Line breaks are also used for changes of scene and time.
Be sure to remember after the line break to immediately inform the reader who is now the viewpoint character. This is done by mentioning the viewpoint character’s name. Also the reader should be aware if any change of time has passed or if there is a change of location.
Advantages of Omniscient Point of View
* More of the story can be told in less time than it would if told from a Limited Third Person Narrator Point of View.
* More character can be quickly revealed.
Disadvantages of Omniscient Point of View
* We, the reader, don’t get a chance to get really into the characters.
* We feel slightly remote from the action.
Advantages of Limited Third Person Point of View
* We can really get into the character of the third person narrator. We can see the world through their eyes, feel for them, get to know them.
* We make up our minds about a given character – we are not reliant on an omniscient narrator telling us what to think of the character in question.
Disadvantages of Limited Third Person Point of View
* It takes far more time to tell a story.
* It’s not suitable for very fast paced stories as it slows the pace down too much.
As usual it’s a matter of appropriateness. A tool is a tool and it’s how you use it that makes the difference.