The case talks about how today’s company are spending more time and money on online advertising. With the advent of internet advertising is increasingly becoming disconnected from its historical base,its business models and its audiences. A survey of 99 major advertisers and 20 ad agencies found that nearly 85% of them planned to expand their online budget.According to the survey sixty-three percent said that online advertising was a brand building tool “equal to or better than” advertising on TV or in print. Because of the rapid developments in computer networls and telecommunications 1/3 of the households in US have high speed internet connections. The average time spent by an american online has grown upto 50%. Also Americans spend 30% of their time surfing internet.
Chrysler’s director of marketing communication spent 10% of the budget in online advertising in 2005 which they planned to increase to more than 20% in 2007.The company used to spend roughly $400 million on advertisements in television,newspaper and magazine ads which will now be spent on internet advertisements.
The main revenue model for google is online advertising. Google effectively reinvented online advertising with the targeted,classified like text links that can be seen everywhere. The company earned huge profits from selling those ads and thus made the stock market capitalization to $85 billion making Google the most highly prized media company of the world.
Yahoo performs on search advertising,online classifieds, and a host of commission-generating businesses such as selling SBC and Verizon broadband subscriptions. They are much visual oriented and easy to understand. It is more helpful to a new user of online marketing.These moves brought huge profit to the company. To attract small companies for advertising Google’s strategy would work because they have very...