Major Developments Major Developments by Calendar Year

October 28, 2014

Benefits of Online Advertisement

Filed under: 2014 — Tags: — Ralph C Dreher @ 8:01 AM

Ad serverBefore the internet era, marketing and advertising was done in a way where much attempt and vigor was focused on market research and reaching to almost every potential customer. The methods of reach used to be primarily physical in nature through newspapers, brochures, hoardings, banners, television promos, etc. This involved a lot of resources and the process took a lot of time. Even after making all these attempts, success and anticipated results were not guaranteed.

With the boom of internet in the era of information technology, internet has proved to be a worthy platform to advertise brands. Advertising on world wide web ensures that almost everyone who has access to internet is able to view the ads posted by the brands. Almost every potential customer uses internet for one or the other purpose for a prolonged time.

Online advertising is beneficial in many ways
Online marketing is nowadays the most pursued method of advertising. This certainly is because of the numerous benefits that online advertising has to offer. Few of the major benefits are:

  • Cost effective
    The traditional or routine methods employed by marketing specialists involved a lot of manual work and resources. These used in the form of surveys, material for printing, renting the space for advertisements, paying for the printing and many more. This increases the cost of the advertising campaign and thereby increasing the cost of the product. Pursuing online marketing hence proves beneficial and cost effective for both the campaigner and the customer.
  • More geographic coverage
    With the help of online marketing, it is very easy to target vast geographical areas. In fact global exposure can be gained through internet marketing affecting different parts of the world. It is incredibly easy to establish brands and their recognition in customer community. In this way, internet marketing is helpful in covering local and international markets also.
  • Easy to target audience
    Traditional ways of marketing uses targeting methods that do not touch all spheres of customers effectively. Certain sections of customers are deprived of the product or brand information. Online marketing uses different tools like cookie tracking that tracks the internet usage behavior of a person and target him with the products as per his search and demographic considerations. This helps in targeting a most suitable customer for a specific product. Traditional way of marketing somewhere targets customers collectively to some degrees.
  • Easy to measure impacts
    Unlike the traditional marketing methods where the rate of success of the campaign is mostly determined by the amount of sales, more effective methods are present in the online marketing. There are lot of tools and methods to measure the success of online campaign. Accurate results can be obtained regarding the number of people visiting the website, number of people clicking on the web ads, no of viewers who watched the videos and people who liked and shared your products/services.
  • Speedy approach
    The traditional approach is slow and needs a lot of time for preparation of the event. The material has to be bought, it has to be printed, transported and set up at the venues. Online marketing is better than traditional marketing in this aspect. The process takes a little time designing the advertisement and posting it online takes no time.
  • Brand building
    Online marketing helps to a great deal in building the brand name and getting recognition in the customer community.

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September 20, 2013

Payment Methods in Internet Advertising

Filed under: 2012 — Tags: , , — Ralph C Dreher @ 8:57 AM

Payment methods in Internet advertising are very flexible. It is an understanding between the advertiser and the publisher to decide how the advertiser pays for the advertisement posted in publishers’ website. There are three ways in which an advertiser can pay the publisher. They are as follows.

Cost-Per-Mille (CPM) or Cost-Per-Thousand impressions (CPT)
“Mille” means 1000 in Roman numbers. In CPM/CPT, the advertiser has to pay the hosting website (publisher), when the number of users to the advertisement reaches 1000. The advertiser is not responsible for any crashes or malfunctioning in the publisher’s website. The advertiser need not pay if the number has not reached the 1000 mark.

It is helpful for businesses if the advertiser publishes the advertisement on any popular website where traffic of users is high. This makes the brand visible to many visitors.

Cost-Per-Click (CPC)
In CPC, the advertiser has to pay the publisher when the banner ad is posted on the publisher’s website and gets noticed by users and users click on the link of the advertisers ad from the publishers website.

Care should be taken while designing the banner ad. It should be attractive and informative to impress the visitor. Link of the company’s website must also be present on the banner, otherwise visitors might not visit the website. Make sure to post advertisements in websites that are related to your business.

Cost-Per-Action (CPA) or Cost-Per-Acquisition (CPA)
In CPA, advertiser pays to publisher only when visitor visits the advertisers website and performs some action in the site. Action here means a transaction with the company. This may be either registering or purchasing a product. The advertiser need not pay the publisher, if the visitor just clicked on the banner ad.

CPA has become popular, as the number of websites are in millions and competition is high for posting an ad. This is a fair method, as the company pays to publishers only if he gets any lead or sale. There are two more types of payment schemes within CPC. They are:

  • Cost-Per-Sale (CPS): CPS is the best payment method for advertisers because they can pay for the advertisement only if someone visits the website and purchases the product.
  • Cost-Per-Lead (CPL): In CPL, advertiser pays the publisher only if any potential customer visits the website and registers or orders a product which leads to a sale.

Fixed payment
Fixed payment is the oldest method of payment that was used during the initial stages of Internet marketing. In this type of payment, advertisers pay fixed amount either monthly or yearly to the hosting website for advertising their ad. This method of payment is hardly followed these days.

Of all the different methods of payment in Internet advertising, Cost-Per-Action (CPA) is beneficial for businesses. (more…)

September 10, 2011

Spending on Internet Advertisement in USA

Filed under: Business — Tags: — Winson @ 7:43 AM

The increase in the internet advertisement shows that it is bringing sales to the company and we can see that many companies are investing more on internet advertisement.

The people are spending more time online, which is making the marketers to attract more number of customers. Experts says that, consumers are shifting more of their time to the digital media, so the marketers should take the opportunity to reach your target audience through the Internet.
IAB experts say that the interactive marketing deliver a good brand building experience with advantage over the traditional form of display box.
IAB has estimated that the Internet Advertising revenues to hit $7.3 Billion in first quarter in 2011, and there has been increase in the internet advertisement revenue compared to last year.
According to officials from Google, the online display market could quickly become a $200 billion ad business in next 10 years. Experts estimated that, video usage in online advertising to increase by 45% in 2011.

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May 14, 2011

US Online Advertising Revenues Reached $7.3 billion in the First Quarter of 2011

Filed under: Business — Tags: , — Winson @ 7:39 AM

Advertising has its own role in the success and growth of a business. Today’s trend of online advertising proves the growth of the businesses worldwide. With people turning more towards using Internet, many firms have been enjoying the increase in online advertisement revenues. As per the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC), the US online advertising revenues reached $7.3 billion in the first quarter of 2011.

A survey was conducted by the New Media Group of PwC to gather the revenue information. It included data of the online advertising revenues from commercial online services, websites, free e-mail providers and other companies selling online advertising.

The online advertising revenues experienced a 23% increase over the first quarter of 2010. It represent the best first quarter performance in the industry. In the first quarter of 2010, the revenues reached $5.9 billion. The revenues were nearly $5 billion dollars in the first quarter of 2007. These were found to be around $6 billion approximately in the first quarters of 2008 and 2009. The increase in online advertising revenues as of 2011 indicated that the Internet advertising industry had been growing with dynamic energy.

It is found that Americans spend more time online for gathering information and for entertainment purposes. Businesses drag this opportunity, therefore, attracting and retaining customers through digital advertising and marketing. This is meant to further enhance the growth of online advertising trends in the US.

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