The Internet enables extensive coverage in advertising as it has the capacity to reach global audiences at a rapid rate.
The first 10 years of online advertising was an evolution. It all started with a boom that quickly burst. Today we are witnessing a resurgence of the online advertising industry. The huge successes of Microsoft, Yahoo!, Google, Amazon, and American Online have proved that online advertising is here to stay and flourish. Sensing enormous potential in online advertising, the marketing departments of most large companies have set up e-advertising groups.
Online advertising, over time, has matured, and today Internet advertisers use multiple forms of online advertising tools, including contextual ads, pop-up ads, spyware, banner ads, and email ads.
The continuing progress of technology and innovative ideas have made significant contributions to making online advertising exciting, interactive, and affordable to small organizations.
Why Online Advertising?
- The Internet has opened up new communication options for personalized messages to be delivered to targeted customers.
- Reading habits are changing fast. More prospective customers are going online every day, and they are spending more time online than on traditional media.
- The medium of online advertising offers unparalleled multimedia tools that can make ads very powerful and effective.
- In addition to large marketing potential, the medium offers unlimited opportunities for creativity.
- The medium has the advantage of targeting precise customer groups and tracking the effectiveness of ad campaigns.
- Online advertising, in combination with traditional media ads, can increase brand recall.
- Advance targeting capabilities enable advertisers to modulate ads’ creative parts and limit their frequencies.
- The biggest strength of online advertising is the direct response that it offers to both customers and advertisers. Audiences are just one click away from the advertisers, creating a unique opportunity for advertisers to engage in two-way communication with buyers.
- Customers have also advantage of knowing more about products and companies.
- With the help of impressions, clicks, and conversions, advertisers can easily judge the effectiveness of the messages in their ads.
- In comparison to traditional forms of advertising, online advertising is cheaper. Often, advertisers are charged only when visitors click on their ads.
- Because of the benefits of targeted marketing and effectiveness tracking, conversion rates in online advertising are cheaper than in traditional advertising.
- As the Internet spans the globe, advertisers need not spend millions of dollars by running ads in multiple publications and on radio and TV stations.