10 Mar 2010
Development of Modern Internet Marketing
The first major turning point of marketing occurred when Google developed an algorithm, which allowed Google to track users of its search engine. Consequently, starting with Google, search engine companies gathered information which Web surfers searched for and links which they clicked (Conlin). This research and discovery of user’s behavior attracted the attention of companies and eventually led them to develop a new transaction in marketing. Advertising and marketing companies want to know data (Dwyer). Even before the Internet had spread, companies always looked for methods to gain and manipulate data of consumers; yet, “historically, data had been hard to get, expensive to manipulate, and difficult to manage”. However, “eight in ten Americans are now online” (Rasmussen), and companies can, cost efficiently, reach almost the same number of audience who watches TV by displaying their ads on the Web or sending e-mails. By analyzing such Web surfer’s behavioral data, companies can effectively target and predict the interests of, not only individuals, but different age groups, gender, race, and areas with much less budget. Thus, data collected by search engines appeared as treasure maps to companies, and all the sudden, they began to rush for those data. “Almost forty percent of financial services/travel companies surveyed are using behavioral targeting as an input into marketing mix allocation” (Rasmussen). Now, Internet marketing requires companies to centralize the massive amount of data and organize it to better understand the consumers and no longer speculate, but calculate their behaviors. Next, collecting data and understanding the interests of specific consumers enabled companies to come up with new ideas and methods of advertising. Traditionally, companies invested in placing their advertisements where the attention of mass audience...