The Online Advertisement Market Research Paper Example | Topics and Well Written Essays - 3250 words

The Online Advertisement Market - Research Paper Example In 1996, Procter and Gamble executed a deal with Yahoo! in which the basis of revenue calculation was number of clicks on the advertisement instead of number of views which was the norm of the day (Google and Yahoo news, 1996). This basis of compensation was quickly picked up by the media contemporaries since it provided a more focussed approach similar to the ones employed for direct response of the prospect through mail and telephone solicitations. It came to be known as CPC or Cost per Click method of online advertisement compensation. Inspite of its rapid popularity, CPM still remains the basis of many advertisements placements, particularly in the display ads segment. Online advertising revenue has steadily increased its share in the advertising industry both in absolute and percentage terms. For example, in US alone, the online advertising industry has grown from 3.2% in 2000 to 8.8% of total advertising, and from 8.1 billion in 2000 to 21.7 billion in 2007 (data derived from I nteractive Advertising Bureau Press Releases 2000-2007). From connecting computers in government offices, internet has come a long way since 1994 when it was opened for public for the first time. Internet users figure has jumped from 0.4 % of the world population in 1995 to 29.9% in 2010 (IWS, 2011). According to Coffman and Odlyzko, internet traffic almost doubled every four months in 1995- 96. The growth after that has been doubling on a yearly basis since then till 2001 (Coffman & M.Odlyzko, 2001). Main reasons for such drastic growth of internet are the ease of access and usability of internet, huge inventory of data and excellent connectivity instantly. Internet growth is a phenomenon which has not only changed the way individuals work but has also deeply impacted the culture and commerce of countries. The advent of social networking and entertainment in internet arena has further increased the scope of internet users. Before comparing print and online advertisement, it is impe rative to focus on the relationship between content and advertisements published through the two mediums. In print media, the ad is essentially locked with the content i.e. the ad is visible only for that particular day’s content. However, in internet medium, even if the content changes, the ad would still be there. This means that the chances of showcasing an old ad in print media exist only in retrieval of archives. However, the ads in internet are always current, unless it’s the reproduction of archived prints. The relationship or the non-existence of relationship between content and ads has encouraged several journals to open their archives for free which results in increased traffic to the website, thereby increasing its ad revenues (Kohler, 2006). This has changed the way print media looks at ads on its digital editions. Major differences that exist between print media advertising and online advertising are in terms of geographic reach, demographic targeting and ongoing revenues. While the ads in print media have limited geographic reach, online advertising is virtually everywhere. Also, print media ads have limited capacity to customize themselves based on geographic targets than online media. For example, it is nearly impossible for a newspaper to serve a different edition for every city of the world while it is very much possible to serve online ads based on the user’s location. Also, online ads can be updated irrespective of the content, as they

Independents study Essay Example | Topics and Well Written Essays - 2500 words

Independents study - Essay Example Ordinarily, marketing is considered an activity or function performed by business firms. However, marketing can also be carried out by other organizations and even by individuals. Whenever you try to persuade somebody to buy something, you are performing a marketing activity. Broadly viewed, the essence of marketing is a transaction - an exchange. Marketing occurs any time one social unit strives to exchange something of value with another social unit. Thus, marketing consists of all activities designed to generate and facilitate any exchange intended to satisfy human needs or wants ( Stanton, 1991). eMarketing is the "product of the meeting between modern communication technologies and the age-old marketing principles that humans have always applied.E-marketing or electronic marketing refers to the application of marketing principles and techniques via electronic media and more specifically the Internet. The terms eMarketing, Internet marketing and online marketing, are frequently interchanged, and can often be considered synonymous." eMarketing is the process of marketing a brand using the Internet. It includes both direct response marketing and indirect marketing elements and uses a range of technologies to help connect businesses to their customers. By such a definition, eMarketing encompasses all the activities a business conducts via the worldwide web with the aim of attracting new business, retaining current business and developing its brand identity. E-marketing involves marketing planning within the context of the e-business e-environment. So not surprisingly, the successful e-marketing plan is based on traditional marketing disciplines and planning techniques, adapted for the digital media environment and then mixed with new digital marketing communications techniques This research looked into the advantages and limitations of eMarketing in an attempt to guide prospective marketers in the sale of their products. The Research Problem This research tried to look into the advantages and limitations of eMarketing. Much has been said about these aspects of emarketing but a few so far had looked into the benefits and limitations derived from it. Specifically, it attempted to answer the following questions: 1. What is eMarketing 2. What are the advantages of eMarketing 3. What are the limitations/disadvantages of eMarketing Related Literature This part describes and discusses important concepts, ideas, judgments and opinions of experts and authorities on topics which have bearing on the present study. The studies and literature have been reviewed to provide insights and to help the researcher in formulating problems and hypothesis and aid in the analysis and interpretation of data. What is eMarketing eMarketing is essentially part of marketing. The American Marketing Association (AMA) definition (2004) is as follows: "Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders." Therefore eMarketing by its very nature is one aspect of an organizational