Term Paper: Future of Internet Advertising

Pages: 10 (3267 words)  ·  Bibliography Sources: 1+  ·  Level: College Senior  ·  Topic: Business - Advertising  ·  Buy This Paper

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[. . .] Using correct procedure, web marketing can be very effective for companies targeting overseas market. Exporters could expect up to 30% of traffic and 10% of sales from overseas buyers, according to Kriz (2002). Such numbers are good promise for small businesses, which may take advantages from this method, as online buyers do not look at the vendor company's size if it could prove it gave reliable services. However, so far there is a data that said about 50% of international orders went unfilled.

4. The Setbacks of The Method

Although some great number figures were given ahead, which at first gave an exclamation mark of astonishment, the real market beneath the story does not go as fair as it seems. Menefee (1998) cited from an analyst, Matt Kinsman; about $597.1 million (U.S.) was spent on Internet advertising during 1997," but "a full quarter of the amount, or $147.1 million (U.S.), went to just four Web sites: Yahoo, Excite, Infoseek, and Lycos."

The four giant players have benefited from multiple services they offer to various range of market to global users (and consumers) all over the world. For the wide exposure, more advertisers would choose them to spread the words about their products. Those were such high number in marketing plan and capital, but they really made advantages throughout the years, which is unbeaten by other competitors.

Kinsman said, "The rich get richer," which means the beginning players need to suit their strategy to catch up with the available market. The market however remains high, and there are a lot more of new opportunities for anyone. The high competition here would take everyone's concentration, since without careful planning; the rivalry would sweep away any weakening players, even though the company might have been strongly committed to this field.

Joe Lamb from the Incorporated Society of British Advertisers (ISBA) as cited by BBC News clarified that there is no eminent standard for the effectiveness of web marketing, at least a significant research conducted to main sites. Lack of significant information, the current advertisers did not give up hope on putting more ads on the web. However, this issue may change, and that may be an important change.

Website owners practically need to find this information themselves, providing closer scope on their own niche. Lamb continued his explanation telling the advantages of exploring their own potentials, so that they could convince their to-be-advertisers to apply this principle and sell their ad spaces to them.

There was also another review given by Staffan Engdegard form Jupiter MMXI about the commercial value the advertisers should define themselves. They could not go on board blindly, without knowing what they had invested and what they would get from those investments. Many advertisers believed in such methods that "every click" gave them a potential customer. There was certainly no assurance for that, especially if it is connected to the sales rate.

Featherly (2001) mentioned, even though many forecasts said that web advertising would soon replace the traditional television, radio, and newspapers campaigns, such thing had never happened until now. There is not much to say whether analysts could tell how much is the effectiveness of such factors, although now the sites had been giving a generous option: simple, affordable, even free ad space.

He further said, it is difficult to analyze how much advertiser would make from displaying a banner-ad on famous search engines or other ads. Counting how many customers click on an ad or fill in a simple registration form would not count on how many sales or exposures they have made. There was a significant decline from ad spending made from banner ads. In the first fiscal quarter of 2000, banner ads made 52% of overall advertisement spending. This figure declined to 47% or 3.9 billion dollars, and then fell down to 40% by the fourth quarter.

Compared to banner ads, email marketing was predicted to give more accurate results to give the measurable figure of the ad outcome. This is one of the methods that web sites currently apply because they would gain better information about the customers, and therefore it enables them to send personalized information as "targeted messages to the specific customers."

5. Options for The Future

Although there are many controversies for the method, Internet advertising still has a lot more advantage compared to other traditional advertising media. In the Internet buying and selling system, advertisers can make use of the web site to give the best information and convenient look of their web sites for the more private reason. Users would get more option to see what they get from the product, as BBC News reviewed, "chance to view ads, request and receive specialized product information and make an instant purchase." Those options are not available in other media.

Therefore, advertisers need to look for more alternative ways to attract their customers not only from the advertisement, but also from the quality of service and personalized guidance the company can provide fro the customers, and the future ones.

Business Wire (2000) announced the launch of another type of advertisement that online advertisers may choose. The Lumeria Ad uses the "proprietary ad replacement technology," therefore it allows users to receive "ads that more relevant to their own interests." It does not use cookies and other features that would interrupt the users.

This is just an alternative way. There are so many to invent out there. At least, advertisers need to see the factor how they could start losing customers (at least losing money for the ineffective campaigns), if they opt for an advertisement method that the customers detest.

Kim (2001) also suggested the "personalization strategy to communicate with global customers individually as well as interactively, providing personalized content as well as commerce, community and communication services to give customers a reason to return."

That means advertisers need to break up their global market ideas to smaller pieces to suit the niches. BBC News Online also mentioned that Yahoo, one of the biggest players in the web advertisement, currently needed to compete with other sites since some of their advertisers turned to other "more regional" sites like AOL to find "more niche areas." More than 40% of internet users live outside the United States that open quite a huge market, as long as advertisers care to approach them in more personalized ways.

After the talk about the big companies, it is also necessary to consider that the current condition also seems not giving too much part of the share for smaller-scale companies. Such companies had been setting their firms online, but so far there would be limited function they use from the technology. The Internet had given a better way to carry out presentation about their products and service, and improve their communication with the existing customers. However, most of them still relied on traditional advertising methods to attract new customers. While on the other hand, the online marketing goals keep giving the vague impression.

Kriz (2002) said, exporting companies, those that were included in the list of smaller players, in fact had benefited from the regular competition in their neighborhood, however they could use the Internet better to expand their markets. While keeping the good services to local clients, they would need to follow the major sites' strategy to handle international business the same way they had been doing with local customers.

She said moreover that companies could improve their Internet utilization for revamping their websites to obtain the most effective and easily navigated structure, so that the users would get not only correct and specific information about the company but also the handiness to access them. Apart from the internal face-lift, the government could also help them to get together in a certain online exhibition or trade show. An offline support is certainly necessary for companies with low budget, so that they do not need to mortgage everything to fund their online marketing program.

6. Conclusions

Web advertising is considered to be one of the most effective methods of advertisement, as an addition to formerly known advertising method. Currently there is big amount of money invested to this industry, and projected to have a better hike in the future in accordance with the rapid change of technology that will bring more companies to go online and spend more to advertise online.

Analysts are being optimistic that the market will not slow down. The deceleration happened around 2000-2001 because of the tight competition in the market and difficulties in maintaining the service on the quality. There would be better condition if advertisers keep working to always search for better advertisement method that they can make the display interesting and measurable.

Small-scale companies should also strive better to get little part of the pie by maximizing their web utilization by giving personalized marketing plan suitable with the target market and the company's brand building goal. Therefore, companies… [END OF PREVIEW]

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Future of Internet Advertising.  (2002, November 18).  Retrieved May 25, 2019, from https://www.essaytown.com/subjects/paper/future-internet-advertising/8866626

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