Online Advertising as a Method of Promotion - Coursework Example

Name Course Tutor Date Introduction Online advertising is a method of promotion. It uses World Wide Web and the internet to deliver different marketing messages in order to attract customers. There are different forms of online advertising. These include different contextual ads blogs, rich media, banner ads and search engine result pages. Several online adverts are delivered by ad servers. Traditional advertising on the other hand involves the non-reliance on web-based methods to bring customers. It involves usage of newspaper ads, Radio ads, TV ads, magazine ads and billboards. This paper critically evaluates the disruptive effect of online advertising on traditional advertising industry. It will also look into various examples from different organizations. Online advertising Marketing managers in the world are continually brushing up their marketing lessons since the world has changed with the development of E-Commerce. The traditional theories of advertising are no longer sufficient and relevant. This is because people have shifted to online buying. As compared to traditional means of buying goods, online goods’ shopping entails a smaller percentage of the entire trade. Over the years however, the trend of online shopping has be while working on increasing and research shows that it will continually catch up and grow faster. While working out on strategies or marketing plans, so much focus is paid on the advertising strategy. There is also more focus on business promotions strategy. Advertising latest products is a necessity (Choi 2012). There is always the need to work out a promotional and advertising plan in detail. This includes internet media and also to look into ways of synchronizing all this to bring out the best results. The present and more successful trend followed by the public is in watching advertisements and following them online. If for example a car company is looking to introduce new car models into the market, it is important to use both the traditional and internet methods of advertising. People looking into buying a new car will look at the advertisement on the TV but will visit the car model’s website to get more details on every aspect of the car. Everyone visiting the website will be prospective customers. Organizations have to recognize and adapt all forms of online advertising. This is a formal part of overall promotional and advertising campaign. Understanding online advertising and the effectiveness caused by online advertising is necessary for all decision markers to build their marketing strategies (Chung 2007). Traditional advertising Traditional media companies like News Corp, Time Warner, Cablevision Systems, Walt Disney Company and Viacom depend more on advertising using traditional channels. There are media companies that are more exposed than others. Before the internet came along, there were other means of advertising. The television, radio, storytelling and even humor are some forms of traditional advertising models. Companies sometimes rely more on the traditional advertising methods. Some companies are finding all traditional ads to direct customers to their web sites. This is more productive than banner ads on search engines and portals. These companies have more excellent marketing results after using traditional methods. Traditional advertisements can be made in a manner to catch people’s attention and draw these people to the company’s or product’s web site with in depth information. Most companies using traditional means of advertising include the web site address. This is also known as URL (FAN 2008). Effect of online advertising on traditional advertising The growth of online information and technology has changed advertising landscape over the years. The number of very active internet users has increased rapidly. It attracts a huge number of people belonging to any age range. This amplified and sophisticated internet usage has led to the creation of various marketing channels used in internet advertising. The recent internet usage explosion has sparked demand for online advertising. This has created a huge recess to traditional advertising. The skyrocketing nature of all this has led to the replacement of newspapers, magazines, televisions and radios. One of the effects of this is that there are a lower number of people who still read newspapers. This is because of the huge targeting of online advertising. Instead of wasting more time and effort in sending junk mail and mass mailing, businesses have allocated their money to online advertising. Traditional means of advertising require more money (Pfeiffer 2010). Advertising alone on the TV for some channels require organizations and companies to pay per minute or per second in some instances. Businesses have relocated from using costly machine-gun strategies to advertising in a smarter and more effective manner. Online advertising has come up with ways of empowering businesses with up to date tracking tools. This has negatively affected the traditional methods of advertising since they do not have tracking tools. This has led to people and businesses switching to online advertising. It is highly difficult to measure the effectiveness brought forwards by newspapers, TV advertisements and other traditional channels. Online advertising has proved to empower most businesses with exemplary tracking tools. These tracking tools can be used in measuring small details including conversions, ROI and impressions (Dahlén 2007). High costs come with advertising in the yellow advertisement pages of magazine and placement advertisements. Sustaining the advertisement for a day costs more money. This has led to overpowering of traditional advertisement by internet advertising. Users are now able to sustain and control their budget. This is possible by allowing other bidding methods and lower initial fees. There is a targeted nature of all online advertising. There is also ability to track the effectiveness of all the advertisements. Making instant adjustments to different campaigns is also possible and cheaper. It is cheaper and highly sustainable as compared to internet advertising mediums. Internet advertising has affected traditional advertising as is evident on businesses getting a broader range. The greatest advantage of internet advertising is on communication. It is the most powerful tool of communication that is available. It can reach businesses via mobile phones, computers and tablets. It can also reach different households. Instead of allocating efforts on finding different mediums to be used in different audiences and regions, one can focus on letting clients come directly (Chung 2007). In terms of branding, online advertising stands in a higher notch than traditional advertising. In terms of effectiveness, it also stands in a higher notch than traditional advertising. This is the reason why online advertising has affected traditional advertising. Internet advertising can help in exposing a smaller business to any potential customers in the work. This is harder to achieve with other conventional advertising forms. Generally, online advertising has triumphed over traditional advertising. NOVA advertising is an example of a company that deals with both traditional and online advertising. The company helps in developing successful internet market campaign. It brings many businesses to next levels (Dahlén 2007). Internet advertising brings optimal effectiveness and targeting. It provides flexibility that allows for anyone’s reach. It has analytical software. This is a highly effective measurement metric that is always readily available. It has clicks, click-through-rate, conversion and conversion rate. This variance in opportunities that can be provided is what has sparked negative effects on traditional advertising. Traditional advertising cannot offer any measurement required. CTR for example helps one to determine the advertisements that get more viewer response. This allows for effective measurement and more advertisement testing opportunities. Once a specific viewer views an advertisement, the conversion rate can be determined. Conversion rates help in providing campaign success data. If there are high impressions then there is a high conversion rate. The great metric will therefore determine that the campaign was either a success or not. Internet advertising is often targeted towards people with specific interests. Specific form of targeting people is what has led to people opting for this form of advertising. It has led to saving of tons of cash on the marketing budget. Usage of a specific content network is also possible. This is for example usage of Google or Yahoo. Any business can therein advertise in this same space. Internet advertising has turns into an ongoing emerging source. It also tends to expand more and more in the coming years. The growth of this medium has led to the attraction of more advertisers who bring in more consumers. There is the aspect of interactive advertising. This presents fresh challenges for all advertisers (Chung 2007). Magazines and newspapers distributors in the world experienced a sad day when EMarketer Company releases a report. The report released in 2012 stated that the year would be a year when spending online for advertising will surpass spending for print advertising. All the print publishers definitely knew this day would come to be. This is because in 2011, online advertisement spending grew to 23 % in the United States of America. It passed the $32billion mark set. Hindustan Unilever is a company in India. It is the largest consumer goods company. This company believes strongly in the much power lying in well-crafted online advertising. The company earlier used traditional methods in advertising their services. The shift into online advertising over the years saw the company also shift its focus on online advertising. It has focused online advertising to become a cornerstone of all their marketing initiatives (Choi 2012). A report published by Madison-Pitch estimated that online advertising spending will experience an increase in the coming years. Advertisers online have come up with theories that marketing and digital advertising offer compelling to the advertised product. Unlike the traditional mediums, this allows marketers to measure their results readily. This leads to the production of a more efficient advertising that leads to a higher return on investment. Recent polls conducted by Algerian illustrated that there is a change in many industries. The poll shows that there is an increasing awareness that traditional advertisement channels do not deliver results well as they used to. 40% of people anticipate shifting a fifth of the entire budget towards different digital channels. Forrester Research on their part state that empowered consumers expect an interactive and customized brand experience that goes way beyond a 45-second television spot. People have opted more for online advertising (Chung 2007). Conclusion Advertising is the art of creation of awareness of a specific business in a consumer’s mind eye. It can solicit different emotions. This includes eventual sales of different services of products. In most cases however the main job of advertising whether traditional or online is in order to create awareness among people. Traditional forms of advertisements have over the years faded and paved way for the online methods of advertisements which people have opted for. Effectiveness of online advertising has led to fading away of the traditional methods. To people this has been viewed as the negative effect of online advertising on traditional advertising. These include analytic software, measurement metrics, clicks, impressions, conversions and conversion rates. Higher impression rates equal success. References Choi, J. (2012). Management Science. Traditional and IS-Enabled Customer Acquisition on the Internet , 754-799. Chung, Y. (2007). Processing Web Ads: The Effects of Animation and Arousing Content. New York: Cambria Press. Dahlén, M. (2007). Journal of Current Issues & Research in Advertising (CTC Press). When Is Advertising Advertising? Comparing Responses to Non-Traditional and Traditional Advertising Media , 33-50. FAN, M. (2008). Journal of Management Information Systems. Selling or Advertising: Strategies for Providing Digital Media Online , 143-166. Pfeiffer, M. (2010). Journal of Advertising Research. Can Old Media Enhance New Media? How Traditional Advertising Pays off for an Online Social Network , 42-49. Read More