[http:encarta.msn.com/encyclopedia_761564279/Advertising.html#p52 Advertising] is any paid form of non-personal communication about an organisation, product service or idea by an identified sponsor. Advertising was originally established in print media, such as newspapers and magazines, and followed onto the television and radio broadcast scene. However, focus has started to shift away from the traditional print and broadcast media,and towards the growing online advertising industry. Advertising has found a whole new medium with which to communicate to customers.
As the new millenium begins, we are experiencing perhaps the most dynamic and revolutionary changes of any era in the history of advertising. These changes have been driven by advances in technology,and developments have led to the drammatic growth of communication through [http:encarter.msn.com/encyclopedia_761566157/Broadcasting.html interactive media],particularly the [http:en.wikipedia.org/wiki/Internet internet.] The online advertising industry is growing and developing at a rapid rate. Since 1994 when online advertsing originated, the industry has faced many obstacles. Ad Age's interactive section provides a facinating chronicle of the beginnings of online advertising.After the dot com crash in 2001, online advertising's success diminished, but has since re-established itself and is now a thriving $8.4 billion dollar industry.(Kridler,2004) The use of online advertising as an advertsing medium is increasing in popularity at a fast pace. It is projected that the online advertising industry will to grow three times faster than advertising in any other medium. (Kridler,2004)
Businesses are beginning to evaluate the advantages and disadvantages of advertising online. Businesses are recognising that by advertising online, their message is communicated in a fast and efficient way, while not only interacting with customers, but establishing a one-to-one dialogue.(Adams,2003)Online Advertising's potential as a low cost channel for doing business directly with customers is viewed as a major advantage of advertising online. Many companies recognize the advantages of communicating via the internet and are developing Web strategies and hiring interactive agencies specifically to develop their websites and make them part of their integrated marketing communications program. (Blech & Belch, 2001)
Creative and innovative advertisements can be displayed online. As an advertising medium the internet provides great potenital in captivating,engaging and interacting with audiences. A variety of different advertising formats can be used to communicate a particular message to consumers. Different forms range from the traditional banner to interactive pop-up advertisement messages. Different advertisement forms acquire different audience responses. Each online advertisement format has its own attractions and limitations. For example, when a user clicks on a banner advertisement, that click can accurately track their campaigns in terms of how many people actually read the advertisement and go through the site.[http:www.banner-mania.com Banner Mania Advertising] provides an indepth view into a banner advertising network, which allow businesses to utilize thier banner advertising space while earning revenue.
The potential to create innovative, eye-catching, self-perpetuating and unique advertisments is limitless. Specific online advertisment design features can be employed to best communicate the advertising message in the most effective and efficient way. Colour, style, graphics,content,format and the target audience must all be taken into consideration when designing an online advertisement.By understanding and implementing the best suited design features, a company can produce effective campaigns that reach target audiences, and go beyond standard demographic groupings. Online advertisments can be designed strategically, with the goal in mind of reaching, and influencing a particular target market.
Online advertising spending increased as the hype around the web spread, and grew in intensity. Advertising sponsorship and revenues are forecasted to grow, alongside the realization of the potenial in online adverting. Mary Hilton states that what we are seeing with the internet is that it has gained alot of legitamacy over the last couple of years. It has been around long enough that there is robustness to it as a media of choice in the advertising industry.(www.the-daily-record.com) In online advertising, the company carrying the advertisements is usually responsible for hosting the arrangements, and they will often designate the task to a third party company. Advertisers calculate the cost and success of their campaigns relative to the number of visitors and of money-earning clicks.(www.adage.com)
Internet related advertising spending is growing at the highest rate of increase ever - 25% this year over last year.(Oser,2004)Growing numbers of large companies such as broadcast and television networks and newspaper publishers are beginning to shift larger parts of their advertising budget online. The growth of online advertising is occuring at a rapid rate. In recent years the internet has become an essential element in advertising strategies. Three major areas are expected to grow: paid search, display advertisements and internet banners and classifieds are all predicted to be the biggest growth areas in online advertising. The decreasing interest in print advertsing and the new found interest in online advertising is a major development for the online advertising industry.
Online advertising is creating innovative, low cost and highly targeted opportunities, while expanding into other media related to the web.(Feilds,2004) Further information on online advertising is avaialable at [http:www.adage.com Ad Age], and [http:www.entrepreneur.com Entrepenure.com.] An [http:www.o-a.com online advertising discussion list] site also provides further information on online advertising.
Specific information on some central issues can be found using the links below:
Skye Salleras 03:26, 14 Sep 2004 (EST)
