Internet Advertising Picking up Speed as it Heads into the
Future
Internet advertising we have come
to know and love, or most likely hate, was not always so in-your-face and
persistent. In fact, Internet advertising started with one of the simplest
forms of advertising you can imagine, spam, and on one of the first
communication network systems available, Usenet in 1994. From conception to now
it has become one of the most lucrative and successful business tools
available. It is a tool that allows these businesses to reach out to a new
consumer market and reel in potential revenue, but it has a cost of its own and
one that has not gone unnoticed.
In a report by Heather Campobello,
the Interactive Advertising Bureau (IAB) has claimed that Internet advertising
saw $31 Billion in revenue in 2011. Now of course internet advertising isn’t
one corporation raking in all that money, it is split up in the market, being
claimed by the people who have invested their own money to see the returns,
but, the point is that in roughly 19 years it has gone from spamming Usenet to
seeing $31 billion worth of traffic today and growing every year.
Campobello also states a few key
factors to pay attention to as this market develops and evolves over time such
as the growth of search ads (Google’s’ AdSense, Microsoft’s Bing), which holds
the largest percentage of revenue, and mobile advertising, which hold the
smallest. Although mobile ads were the smallest it has hit a critical level and
will now be claimed as an independent piece of the “revenue pie” after seeing a
149% growth in usage over one year’s time from 2010 to 2011. Mobile advertising
in 2011 only hit 5% of the total revenue stream but given the magnitude at
which this market has grown, that is still roughly $1.6 billion.
We have all seen this develop from
a consumer standpoint with internet advertising using banners, frame ads on
websites, pop-ups/pop-unders, the time sensitive pop-ups that become
transparent after a couple of seconds and so on. How much money are companies
willing to focus on advertising online seeing as it is the new format for
reaching consumers? Which companies will be the ones to suffer simply because
they cannot keep up with rising advertising prices? The future is here as far
as advertising goes, it’s a new game with new rules and new players the
question is, how big can it get?
Citations:
Campobello, Heather. "IAB Report Claims
Internet Advertising Brought in $31 Billi
in Revenue for the 2011 Year." WebProNews . 4 18 2012: 1. Web. 11
Sep. 2013. http://www.webpronews.com/iab-report-claims-internet-advertising-brought-in-31-billion-in-revenue-for-the-2011-year-2012-04
I think the idea of Internet advertising is a growing trend. Although I also feel that they need to not spend too much money just on Internet advertising because there are still some citizens that like the other outlets for advertising.
ReplyDeleteGood Article!
I think internet advertising is a good effective way to attract new visitors, and build loyal customers because nowadays most buyers begin their search on the internet. Many companies have been eliminating all un-necessary print advertising because they don’t see the results they want and also because the costs are higher than online advertising. Good Topic!!
ReplyDeleteInteresting Article. It is odd to think that "Spam" was the first form of internet advertising,because I consider it the least effective today. However, I suppose it makes sense since most personalized advertising, pre-internet, came as spam in our actual mail-box. With the transition to the E-mail,it makes sense that "Spam" email would follow. I think that with smart phones becoming more prevalent, companies will pursue mobile marketing and we will see a rise in mobile advertising.
ReplyDeleteInteresting Article. It is odd to think that "Spam" was the first form of internet advertising,because I consider it the least effective today. However, I suppose it makes sense since most personalized advertising, pre-internet, came as spam in our actual mail-box. With the transition to the E-mail,it makes sense that "Spam" email would follow. I think that with smart phones becoming more prevalent, companies will pursue mobile marketing and we will see a rise in mobile advertising.
ReplyDelete