Investing in Internet Advertising - Essay Example

Investing in Internet Advertising Introduction Basically, Internet advertising isadvertising online. Whether off or online, the primary goal of advertising is to boost profits. Advertising is also intended to raise brand awareness. This paper recommends the company to invest in online advertising. One of the best advantages of Internet advertising is that the information and messages are not limited by spatial or temporal factors. Online ads are also far more interactive than traditional ads. Although both traditional and online advertising can be troublesome, interactive Internet ads can be made to be distinguished as less so. Even though the Internet offers new scale for innovative advertising techniques, the company will experience its real benefit when it understands how traceable, and thus quantifiable and assessable, online advertising is. As stated by Google’s CEO, Eric Schmidt, “The Internet will transform advertising because of its trackability, not its beauty” (Stokes 26). The Importance of Internet Advertising Whether traditional or online, advertising has several goals-- motivating feedback and profit; making known to consumers the capacity of the advertiser to meet their needs and demands; generating consumer demand; and, creating brand awareness. All kinds of online promotion have to motivate feedback and profits in the long run. Nevertheless, the directness and convenience of Internet advertising also motivate feedback and profits in the short run. Not like offline marketing, Internet advertising can convert the prospective customer into a real customer immediately (Kalb 23). Furthermore it is feasible to assess precisely how successfully the online marketing campaign carries this out. When the consumer is informed of and wants a product, they have to discover how to meet those wants. If building of brand awareness has been successful, they will be aware that a specific brand is there. In this case, it is vital for the advertiser to demonstrate to the consumer how their product/service or brand will excellently satisfy that want. Consumers cannot desire what they are not aware of. Advertising has to persuade consumers about what they must desire and the reason they must desire it. Contemporary Internet advertising offers a remarkable way to convey the unique selling points (USPs) of a good, thus aiding in creating and boosting demand (Stokes 27). And then, informing consumers about a product or brand is a vital long-term objective for any advertiser. Once consumers are aware of the brand, the advertiser has carried out the first step toward acquiring the consumer’s confidence, loyalty, and support (Brown 68). The greater the brand awareness is the more the company can accomplish. And the definitive objective is to carry out more business and generate greater profit. Online advertising is mostly graphic or visual, making it a perfect medium for marketing brand security. Internet advertising is capable of generating immediate transactions and sales. Not like offline marketing channels, the customer can move from advert to merchant in a single convenient click (Stokes 28). Due to the interactivity of the Internet, online actions are very much traceable and quantifiable, which facilitates targeting of adverts and precise tracking and measuring of the success of the ads. Every online advert can be traced for effectiveness (Buell 47). In essence, the Internet has a number of useful features that can effectively contribute to the marketing and selling of high-end sunglasses. There are basically thirty major reasons why the company should invest in Internet advertising. First is that online communications and transactions can be in real time or live and two-way. Second, important information and messages can be kept in a single central site. Third, anyone can access information anytime and anywhere in the world thru any appropriate access device or gadget. Fourth, information or data stockpiled on central file servers are safeguarded from damages or misfortunes like fire, burglary, and so on (Buell 48-50). Fifth is access to equipment and other people that have Internet connection. Sixth, anyone can send out messages, photos, and any digital type of information and goods right there and then. Seventh, when in digital type, data can be transmitted to those who are connected. Eight, when connected one can exchange information at any time immediately. Ninth, the store can stay open 24-hours a day. It is open all the time to get and send information or trade goods and/or services. Tenth, since the store is open at all times, customers can buy what they need when they need it. Eleventh, message in digital type can be obtained and sent by anybody that is connected to the Internet (Plummer et al. 72-74). Twelfth, consumers can use the Internet and exchange information thru any gadget, program, or operating system intended to connect to the Internet. Thirteenth, substantial amount of cash and time can be saved from making copies, printing information, and so on (Plummer et al. 74). These data can be shared thru electronic means. Fourteenth, companies can more cost-effectively personalize orders to suit the specific demands of consumers. Fifteenth, training or preparation can be performed globally without obliging students or participants to go to an actual venue. Sixteenth, consumers can make their own orders thus getting rid of transcription errors, repetition of attempt, and the squandering of company resources (Buell 88). Seventeenth, consumers can acquire the assistance they need without calling company hotlines, or wasting time waiting for a customer service staff. Eighteenth, by means of their Web popularity, start-up or small businesses can appear as credible as leading companies. Nineteenth, individuals with disabilities can also access the Internet and the abundance of data accessible as anyone else (Brown 57). Twentieth, individuals with similar interests can locate one another, exchange information, and communicate about similar interests. Twenty-first, one can access databases and companies from the convenience of his/her own home, and s/he can gather important marketing data to carry out his/her research. Twenty-second, one can quickly and effectively communicate the product information and company to the marketplace. Twenty-third, one can eradicate a great deal of the repetition of attempt and save company resources (Brown 57-60). Twenty-fourth, a company can spontaneously connect its business operations from provider to consumer to provide its employees, providers, and consumers more useful, updated data and to allow its people to focus on vital issues instead of on the commonplace procedures that are vulnerable to mistakes and incompetence. Twenty-fifth, users can use affordable gadgets to operate computer hardware and software with embedded support (Plummer et al. 82). They do not need to continuously upgrade computer programs to the newest form because that will be performed for them by the ASP, the Application Service Provider (Stokes 30). Twenty-sixth, websites can air or transmit from homes and offices with hardly any constraints or regulation. Twenty-seventh, company news can be transmitted quickly—without time limits and lead times usual of conventional marketing. Twenty-eight, people across the globe can exchange information and cooperate to identify and resolve issues and problems. Twenty-ninth, information can be distributed and obtained in real time with no costs and interruptions usually experienced in conventional mediums (Kalb 104). And lastly, one can obtain the information or assistance s/he requires without awaiting, or depending on, others. The Internet is a new channel that will develop, improve, progress, and evolve. The above list is presented to provide the company insights as to how it could take advantage of the Internet in its advertising or how it could explain the advantages of their online offering to its customers. Before pushing on, there is another concept that the company has to be aware of about the Internet before suitably incorporating it into its operations—the notion of optimum and maximum use. Investing in Online Advertising to its Optimum and Maximum Use The notion of optimum and maximum use originates from real estate businesses and implies the improvement of a certain property in order that it will generate the biggest return-on-investment (ROI) to the property holders. This notion is vital for the company to know as the Internet changes continuously (Buell 4). Numerous, as proven by the collapse of dot com and the rise of world-wide-wait Websites, have revealed they do not have an accurate understanding of this notion. It implies that the Internet must be employed to provide the utmost added value thru widely accessible technology to the company’s target customers (Buell 4-5). Hence for the company’s marketers to employ the Internet in the optimum and maximum way, they must formulate an Internet marketing plan that is derived from the following straightforward measures. The first step is to employ Internet and traditional advertising to draw the attention, confidence, and approval of target customers. Employ conventional advertising, like outdoor marketing, broadcast advertising, direct mail, and other conventional techniques, and online advertising, like e-mail, search engines, and banner ads to draw customers to the website (Brown 114). The second step is to obtain their contact information and consent to keep in touch with them. When they visit the company’s website encourage them to provide their contact information, like e-mail address, and their consent to contact them by offering them rewards or clearly explaining the benefits to them for providing their contact information (Stokes 32). The third step is to employ e-mail to create and sustain the relationship, discovering their needs and wants and providing those to them. As the technology of the Internet grows to the extent where sounds, photos, texts, and moving images can be sent with the same effectiveness as TV, the process for employing the Internet to its optimum and maximum use will develop alongside it (Stokes 32). Until such time, the company’s marketers must keep in mind that majority of the users will not prefer to use the Internet except if it is more convenient and productive than other options. Even while it matures, advertisers must also understand that the Internet is not radio or TV (Kalb 107). Although all of the above are extremely vital, the final one, which is building customer satisfaction, is the definitive objective of Internet advertising. Do not overlook this main objective, or its precursors which reinforce it. Those who are have the tendency to pursue profit and fail to retain customers (Plummer et al. 96). Usually, they become too preoccupied with profit and success, and in the end collapses. Companies who place greater emphasis on customer satisfaction and recognize the other major objectives of marketing have a tendency to head in the right direction even after stumbling across the unavoidable challenges along their path to success. Furthermore, they are likely to generate the biggest profits. Evidence of the Value of Internet Advertising New e-commerce businesses require workers with experience and knowledge particularly apt to electronic commerce. And there are numerous prospects for new start-up enterprises (Buell 5): In 1995, Pierre Omidyar had a problem. His girlfriend collected Pez dispensers, but had no place to buy and sell them easily. He decided to create a Web site where people could sell things, all kinds of things, and other people could log on and buy them. He named the Web site eBay, originally thinking of it as a tool his neighborhood could use. Today, eBay is one of the largest and most successful e-commerce sites on the Internet. Pierre Omidyar is a billionaire. Hence, small or start-up businesses should invest in Internet advertising. One of the benefits an online company has is the capacity to reach virtually infinite number of customers. If a company invests in online advertising, it can reach anybody in the globe who has Internet connection. The e-commerce industry is teeming with success and failures. But those successful ones were able to master the craft of Internet advertising. Amazon.com is originally a bookseller and has grown to trading almost everything. Overstock.com, a business that trades budget or low-priced goods, is one of the first leading online retailers to become profitable. EBay, as mentioned a while ago, was begun by a single man and is today a very profitable auction show. As the e-commerce industry thrives and expands, new dot-com companies will be capable of using recognized dot-coms as examples (Buell 5-6). By looking at how other small or start-up businesses succeeded or failed, a new dot-co enterprise could prevent failures. For instance, Pets.com was launched in 1998 to trade pet items on the Internet and immediately became popular for the widely known ‘Sock Puppet’ TV ads. Yet, even though Pets.com became very popular, it failed to generate sufficient profit to settle all of its expenditures. In the end, in 2000, the company was compelled to shut down its online business (Buell 6). PetSmart.com, which was launched in the middle of 1999, also exploited the idea of trading pet items on the Internet, yet made a decision to collaborate with a current pet shop—PetSmart—to aid it in making sales at a cost-effective way (Buell 6-7). The e-commerce industry is realizing that strengthening or supporting an e-tailer with an actual store can strengthen an enterprise and boost profits. Simultaneously, new e-commerce businesses will have the opportunity to launch and expand with less cost, time, and effort (Plummer et al. 98). Technology is becoming more and more powerful and easier to use, and instruments will be made to accomplish everything from endorsing a Web enterprise to creating a successful e-commerce businesses without needing to carry out any form of programming. Conclusions Traditional marketing and promotional campaigns can be used for online consumers in order to guarantee full brand exposure. As stated, Internet advertising can be employed as an acquisition medium, reaching new customers. Internet advertising can be employed to get to a huge audience, and afterward other e-commerce or e-marketing strategies can be employed to addtionally cultivate this audience. When looking for viral campaigns and new products/services, online ads can be employed to draw the interest of a larger number of customers in a cost-effective way. Hence this paper recommends investing in online advertisements because of these major benefits. Although there are disadvantages or drawbacks, which all forms of medium have, these can be mitigated and resolved thru collaboration and focus. Works Cited Brown, Bruce. How to Use the Internet to Advertise, Promote and Market Your Business or Web Site- with Little or No Money. Ocala, Florida: Atlantic Publishing Company, 2006. Print. Buell, Tonya. Careers with Successful Dot-com Companies. New York: The Rosen Publishing Group, 2001. Print. Kalb, Ira. e-marketing: What Went Wrong and How to Do It. New York: K & A Press, 2002. Print. Plummer, Joe et al. The Online Advertising Playbook: Proven Strategies and Tested Tactics from the Advertising Research Foundation. New York: John Wiley & Sons, 2007. Print. Stokes, Rob. e-marketing. New York: Quirk Marketing, 1995. Print. Read More