With people spending most of their day staring at a screen looking for products, people and places, it is crucial for businesses to use Internet advertising. Marketing is constantly shifting towards online from offline. Mobile technology has made Internet penetration deeper, which is boosting the online advertising market. Advertisers are making use of this platform to reach their targeted audience. It is relatively inexpensive compared to the traditional advertising methods and helps in reaching out to a wide range of audience. Reports indicate that 80% of the social networking companies generate revenue through online advertising. However, dependency on the Internet is growing as it is the ultimate source of information and communication, making it a leading advertisement platform.
Machine learning can analyze a huge amount of data about the customer and determine the best times to contact the customer. It can also analyze the content that generates more clicks. This helps to understand the customer in a better way and pave the way for new approaches.
Advantages of Online Advertising
Online advertising is preferred by many of the businesses as it helps in reaching out a large number of customers and helps to expand their business in an effective way. It is faster compared to the offline advertising activities and has a wider geographical reach along with the potential to benefit consumers through more relevant and timely advertising.
In online advertising, the advertiser is able to convey more information to the audience at less cost. Online advertising helps in getting rid of the traditional advertising strategies which include flyers, cold-calling, brochures, and banners.
Types of Online Advertising
Different types of online advertising include paid search advertising, social advertising, native advertising, and display advertising. Paid search advertising and social advertising are an ongoing trend as it is preferred by many of the customers.
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Some of the Ongoing Trends
- Paid search advertising also referred as search engine marketing works based on keywords. Businesses bid for keywords to make their website visibility higher on the search engine results page. Paid advertising include pay per click (PPC) and cost per thousand (CPM). PPC is the best way in which it charges only when people click on the ad. CPM is the way where it charges a particular amount for a number of shows on SERP.
- Display advertising is another form of pay per click advertising. These appear on the third party website pages as visual ads. These ads can be in the form of texts, static images, wallpapers, pop-up ads, videos, floating banners, flash, and others. Most of the companies prefer PPC and display advertising as these are affordable and help in large visualization of the content.
- Biggest brands have stopped relying on the agencies for buying media. Instead, they are focusing on social media platforms and mobiles for their advertising strategy.
- Programmatic advertising is an ongoing trend, which uses Artificial Intelligence, making the ad buying automated, which helps in targeting specific audience. Chatbots is another AI-based technology, which chats in real-time with the site visitors and customers.
Challenges of Online Advertising
- Customers browse through 500-1000 ads every day. Advertisers should also be able to fulfill the consumer needs at any moment and incite them to get into the store and buy.
- In an attempt to target a wide range of customers, advertisers are pulling out data through many sources such as IoT-based sources, which include Google Home, Amazon’s Echo and others. Websites are being developed to track an individual’s browsing history, the time that they spent on the website, clicks, and other activities. However, this new available information is raising serious privacy issues. In fact, using such data will worsen the situation as it is been overly automated and not personalized.
- Measuring the Return on Investment (ROI) of your advertisement is one of the drawbacks in online advertising. The click-through rate has been used as a metric of measuring success, but it is hardly a foolproof method. Revenues generated from advertising on mobile devices are lower compared to desktop advertisements. The format for creating ad also varies for these platforms (desktop, tablets, and mobiles).
- The biggest disadvantage of online advertising is, the marketing materials are automatically available for the entire world to copy. Trademarks, images, and logos are copied and used for different commercial purposes. Also, web users are ignoring Internet advertising as they are so inundated with spam emails and banner ads.
Investments
Year-on-year there is an increase in the amount spent on mobile advertising. An approximate value of $32m was spent on mobile advertising to access websites through mobile devices and this expenditure is expected to increase by 190% year on year.
AdStage, which is an all-in-one ad management platform features integration with LinkedIn ads, Bing ads, Google Adwords, and Facebook ads to provide complete automation to their advertisers. It has secured $6.25m from various ventures, which include Digital Garage, Chris Noble, Verizon Ventures, Newbury Ventures, and others for campaign management.
World Wide Web is increasingly becoming a standard advertisement platform, with the growing number of Internet users. It offers the business advertisement world with richer media tools and interactive services with a global reach. Internet advertising is essential and is becoming a more habitual and necessary practice. Almost, every business will require an online marketing strategy to remain competitive in the near future.
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