Advertising and the Internet Essay

2095 Words Jan 14th, 2012 9 Pages
Advertising & the Internet

The Internet has revolutionized the world in many ways, including the method in which companies promote their products. With its low-cost advertising and abundance of e-commerce through the Internet, many companies have benefited with the reduction in their marketing and advertising costs. Although in the U.S. Internet advertising revenues for the first half of 2009 declined by 5.3% from the previous year, interactive marketing is still one of the advertising sectors that have been the least affected by the economic downturn (www.iab.net). There are many different types of advertising including ad insertions, banner ads, Social network advertising, compensation advertising, blogs, cookies, and spam.
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Companies can also bid for advertisements on Google and Overture on a performance basis in which they only get charged when visitors click on the advertisements (Clausen, James).
Internet advertising also allows for targeted marketing to companies who are looking to market to a specific market. It provides methods that insure that those who see the ads are interested customers. Google’s Ad Words and Ad sense are two examples of programs that help match up advertisers with their target market (www.google.com/ads). Internet advertising also enables good conversion tracking. The advertiser can track the number of people who have viewed the ad as well as the amount of visits their business web site gets from particular ads. This permits the advertiser to see the conversion rates the Internet advertisements are receiving (Clausen, James).
While Internet advertising may be beneficial to advertisers, it is a disadvantage to traditional print media. Many newspapers and magazines are going out of business or failing as the world is gearing more towards accessing information through the Internet. The ad revenues of traditional print media are also steadily declining, which may be indicative of the future of broadcast media advertising.
Another disadvantage of Internet advertising is that it does not target the entire population. There are still a number of computer illiterate consumers who do not possess the knowledge to access the

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