This paper seeks to examine the ways in which the increased presence of the Internet has changed the advertising industry in the United States in recent years. Some different types of internet advertising methods will be presented, as well as how some consumers view these types of advertising and their overall effectiveness. Many companies today take advantage of the online technologies that are available, and this has caused a great change in advertising platforms and messages. This paper will explore the advantages Internet advertising has to offer and changes that have occurred in the world of advertising because of the presence and expansion of the Internet and what is has to offer. Introduction
The development and growth of computer technologies has transformed the way in which companies have traditionally approached advertising. The huge presence of the Internet has dramatically transformed the face of advertising and its effectiveness. The seemingly endless amount of information that is available to users and the amount of time that is now spent on the Internet has made it a prime way to advertise and reach consumers. Because of the flexibility and control over advertising materials that is possible through the use of the Internet, it has become a widely used marketing communications tool. Before the Internet really came on the scene, the most popular means of advertising were through television, newspapers, radio, and magazines. These are still used today, but do not have the same capabilities that come with using the Internet. This fact has caused most companies to change their marketing plans and has allowed them to more effectively reach their target market.
The range of the Internet is greater than most traditional means of advertising and it offers some targeting methods that help to make sure a company’s ads are seen by the people who are most likely to end up making a purchase. Another advantage of advertising on the Internet is the ability to track effectiveness, and usually this can be done in virtually real time. Things such as the number of impressions an ad receives and how many visits a business’s website gets - and from what source - can be viewed and used to increase effectiveness. Also, being able to determine which ads led someone to a company’s website makes it easy to figure out the conversion rates of different internet ads. The affordability of advertising on the Internet is another great advantage and allows even very small companies to be able to use this as a way to reach customers. It allows these smaller companies to be able to compete with larger and more established companies by successfully connecting with target customers. Literature Review
According to a report by the Interactive Advertising Bureau (IAB), which is called the IAB Internet Advertising Revenue Report, Internet advertising reached over $26 billion in 2010 in the U.S., representing about 15% of all advertising. This is up 15% from the $22.7 billion that was spent in 2009 and a $16 billion increase over the amount spent in 2005. It has become the second largest advertising medium, closely behind TV Distribution. This research is conducted by PricewaterhouseCoopers LLP (“PwC”) on a continuous basis, and the report was initiated by the IAB in 1996. It uses data and information that is reported directly to PwC, such as corporate data that can be publicly accessed online and information that is offered by companies that are actually selling the online advertisements. The results that are shown are considered to be the
most precise measurement of Internet advertising because the numbers come from the online ad selling companies. The breakdown of amount spent on advertising in the US for 2010 is as follows: $28.6 billion on TV Distribution, $26 billion on Internet, $22.8 billion on newspapers, $22.5 billion on cable TV networks, $17.6 billion on broadcast TV networks, $15.3 billion...