In an article published by TechNews World discusses the increasing use of businesses utilizing the internet for Advertising and word of mouth- the top 2 most effective forms of advertising. This article also discussed how big business are utilizing online marketing through blogs and podcasts much more than smaller firms who prefer more of a community focus (local newspaper of business journal) to capture the attention of their target audiences.
Sales in online advertising also have been sourning, in a 2006 survey completed by the IAB and PricewaterhouseCoopers, "online ad sales last year surpassed US$12.5 billion, a record, 30 percent increase. That's on top of a record of $9.6 billion in sales in 2004. "
I think online advertising will continue to grow- in part due to the fact that consumers are spending more time online (social networking sites, class blogs, checking email, watching movies, listening and downloading music, researching and reading the daily news). As a consmer of media, I personally spend much more time online, reading current events and researching information over watching television or reading the paper every day. The internet is an essential tool for businesses and marketers to reach their target audience espically with all of the personal data available to their dispense (i.e social netoworking sites and tracking of websites viewed by consumers).
Does anyone have any thoughts on the future outlook of online advertising? Do you think this will continue to be a large investment for most companies and do you think this will actually positivley impact sales for buisnesses?
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Online advertising is certainly exploding, there's no question, but it still only accounts for a fraction of the total dollar amount spent on advertising. IAB credits internet advertising for about 4.6% of the total amount spent on advertising in the U.S. in 2005. TNS Media Intelligence credits internet for 5.8%. Television takes a whopping 20.2% according to IAB, but that only includes broadcast, syndicated, and cable TV. When including other TV types, it accounts for 43.2% (TNS).
Television clearly takes the cake in total dollars spent on advertising, but who says the Internet can't catch up? It might not have been in our lifetime, but back in 1950, television advertising was dwarfed by every other category, particularly newspaper and radio. In 1850, newspaper advertising probably had the highest totals. As it became more popular, television advertising began to outdo other advertising types. It's the natural order.
My own crazy theory is that television will eventually become obsolete, leading the way to a national internet-based television running completely online. Channels will be websites. If this is the case, all television advertising will become internet advertising, right?
It's just a matter of time before the new technology supersedes the old. The rest is history...
Sources:
http://www.iab.net/media/file/resources_adrevenue_pdf_IAB_PwC_2005.pdf
http://www.rtoonline.com/content/article/Mar07/2006AdvertisingExpenditures031407.asp
I believe that online advertising will continue to grow rapidly! Seeing as children today are growing up with never knowing a time without the internet, just as we did with the television, that this is the new place for advertisements. I believe that print advertising will slowly fade, since most newspaper articles, or major news stories can be found online. There is much less need for actual paper copies of such articles. I believe that television will remain a main source of advertising. However, who knows with the development of the internet, how long television will last. Just as actual printed papers are beginning to deminish, it is only a matter of time before everyone uses the internet for both articles and their television shows. The internet is taking over in more aspects than just advertising.
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