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An evaluation of competitive advantages of electronic advertising to companies in UK - Asda and Tesco - Dissertation Example

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An evaluation of competitive advantages of electronic advertising to companies in UK - Asda and Tesco
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"An evaluation of competitive advantages of electronic advertising to companies in UK - Asda and Tesco"

Download file to see previous pages This analysis is primarily an evaluation of the market potential of electronic advertising for businesses in the UK, with case-studies of notable examples. The relevant findings that necessitate studies such as this include data that portrays as many as 14 million households in the United Kingdom going online to discover current details about goods or services in September of 2009 – 14 million within just one month. (Office of Fair Trading, 2010) Other relevant findings indicate an ongoing growth rate in the subsequent advertising revenue that can be achieved for those that take advantage of online advertising opportunities. The percentage of advertising revenue generated from online commerce has grown 17% in the five years between 2003 and 2008, for example. (Office of Fair Trading, 2010) There are additional complexities to this form of advertising, but there is strong evidence to suggest that electronic marketing/advertising is a growth area which must be pioneered by any company that does not wish to be left behind by history. As of 2010, the practice of behavioral advertising through online targeting is responsible for revenue as high as ?95m. (Office of Fair Trading, 2010) This represents the fraction of possible online marketing revenues known to be possible within the United Kingdom, to say nothing of the global market, but even within the UK there is potential for further growth. Online marketing allows for an element of behavioral tailoring which is more difficult in other forms of media – even other visual media. The competitive advantages of electronic advertising through online sources allow the vendor to maximize the relevance of an advertisement by adjusting content pertaining directly to the consumers’ desires. This potential is far greater than what might be achieved through less responsive media. Television advertisers for decades have sought to generate programming specific to a selection of the demographic most likely to be watching a given program at a given time, but this method has its limits. A television station attempts to acquire as many advertisers as possible, and must negotiate its scheduling to satisfy all of them, and the most popular programs may have a diverse demographic. Some commercials may be relevant to any particular viewer, but in the course of satisfying all advertisers inevitably there will be much content there any particular view or will not find worthy of attention. Television is not responsive in the way that online navigation could be. The television viewer has already responded by selecting the channel, and no further customization is possible. The situation is similar with radio. Electronic advertising through online sources allows the advertiser to adapt their message in a way that capitalizes upon the very personal nature of website navigation. In front of the computer or mobile computing device, the user has access to an ever growing network of information and entertainment, far more options than could ever be feasible for the programming of a radio or television company. The range of options is dizzying, but provides a golden opportunity for advertisers. Those who attempt to market to individual website users do not need to cater to the totality of need for an audience of (hopefully) ...Download file to see next pagesRead More
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