Internet advertising, also known as online advertising and web advertising, is a form of promotion that uses the World Wide Web to promote marketing messages to a global audience at very affordable costs. Internet has taken the concept of globalization to a new level and has opened up fresh avenues for doing business. Ecommerce opportunities and the concept of online marketing have blurred the boundaries of geographies and time enabling people to shop, search for information, and look for entertainment 24 hours a day, seven days a week, 365 day a year.

The change in the way the world conducts business has also introduced a new powerful medium of advertising, which is Internet advertising. There are different forms of online or internet advertising such as banner ads, classified ads, contextual ads of search engine result pages, online classified advertising, email marketing, Rich media advertisements, and social network advertising.

Benefits of Internet advertising

Internet is fast emerging as a popular medium of advertising because it is not limited by geography and time. The importance of online advertising can be gauged from the fact that online ad spend in the UK has exceeded that of TV and online advertising has now emerged as the single largest medium in advertising in the country. In Europe, online advertising spend is expected to grow by 7.6% year-on-year. These figures have been released by the European Interactive Advertising Association (EIAA) and are further substantiated by the findings of the study conducted by the Internet Advertising Bureau (IAB), the trade body for digital marketing, in collaboration with the World Advertising Research Centre (WARC) and PricewaterhouseCoopers (PwC). These figures clearly point to the emergence of internet as an important medium of marketing and companies, and account for why advertisers are turning to the online medium to woo their customers.

Internet advertising is audience specific

Online advertising is very audience specific. The advertisers use the keywords or phrases in their online ads that are most likely to be used by the targeted buyers to search for a product or service. For example, a user may enter the phrase 'children games' in the search engine bar. Now, the ads which have the phrase children toy in their content will appear on the right side under sponsored links, that is if the advertiser has signed up for the AdWords program of Google. Secondly, when the user clicks on the search result web pages, he will be taken to the websites that contains some information on children toys. Children toys ads will also appear on these pages. So in this way, the ads appear directly in view of the people who are interested in that particular product or service.

Taking this further, these online ads are also region specific. For example, if you are in the UK and you enter the phrase children toys, the ads that appear will be of companies in the UK that sell children toys. Internet advertising enables the advertisers to specify the geographical regions, states, cities, organizations and communities where the products or services are in demand.

Besides targeting the geographical areas, the ads can also be addressed to specific interest or behavior group, gender, and age group etc. The ads can be placed on activity or interest specific websites. For example, a kayak company can place its ads on canoeing websites in the oceanic or river regions.

As already stated, banner advertising is a popular form of online advertising. Advertisers can also come to an arrangement with online companies and advertise their banners on their sites.

Internet advertising is cost-effective

Internet advertising is more cost-effective than other forms of advertising. There is just a one time startup cost of creating a website. The hosting costs are minimal. The internet website is the most important online advertising medium. There are no associated costs like postage, storage, or repeated design fee for each promotion. Then again, the costs with running internet advertising campaigns are also minimal. It is relatively easy to fix an oversight and that too within a moment. There are no physical or geographical limitations, and the website is available to anyone who has a computer and an internet connection. With internet advertising, advertisers can broaden their consumer base on the massive global scale by incurring little or no cost.

Internet advertising is more interactive

Internet marketing is more interactive in that by using web analytical tools, advertisers can track, measure and test nearly all the aspects of the internet advertising and marketing campaigns. By using tracking software, advertisers can track the number of visitors their websites attract, the pages they visit and the ones they don't. Then again, with banner advertising, you can track the number of visitors who have viewed the banners by tracking the number of clicks on them. All this makes internet advertising very interactive and gives companies the opportunities to modify their strategies according to the results. Advertisers can calculate the conversion rate and determine how their marketing strategies are working. A unique feature of the internet advertising medium is that its interactive nature elicits instant response to the advertisements. The user, in response to an ad, can visit a website, sign up for the membership, or buy the product or service right away by the mere click of a mouse.

Online advertising complements other channels of advertising

There are various advantages of the online media over traditional advertising channels. The one that clearly stands out is that online advertising provides global reach and that too at affordable rates.
Then there are other benefits associated with online or Internet advertising that can not be ignored. Online ads are immediately published on the internet and are more interactive that ads placed in traditional media.
Online advertising also gives greater control to the advertiser. Web analytic tools provide quick analysis on the response to an advertisement and according to results, advertisers can modify their ads. Secondly, internet advertising also enables customization of ads in terms of content and the sites on which these ads appear. For example, Google AdWords and Yahoo! Search Marketing enable ads to appear on websites with relevant or related content.
Online advertising also supports flexibility in payments. For example, in case of pay-per-click advertising, advertisers pay only for the clicks on their ads. So in case of online advertising, payment is relative to the audiences' response to an ad.

Studies however have shown that advertisers can get the best results by harnessing the power of both online and offline media, and especially the print media. Recent studies all have shown that brand awareness can be achieved more effectively by a combination of print advertising and online advertising. There is a certain level of trust and comfort level associated with the print media and so by combining online advertising with newspaper advertising, advertisers can boost customer confidence in their offerings.

A study by Google also substantiates this fact. It shows that nearly 30% of internet-using newspaper readers are likely to go online to research at least one product that they first come across in newspaper advertising.

Internet advertising when combined with newspaper advertising can help advertisers reach different target audiences, those who prefer the print media and those who turn to the internet for their daily dose of news and information.
Marketing
Newspaper Advertising
Internet Advertising