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Internet Advertising

Introduction

Online advertising, also called online marketing or Internet advertising or web advertising, is a form
of marketing and advertising which uses the Internet to deliver promotional marketing messages to
consumers. Consumers view online advertising as an unwanted distraction with few benefits and have
increasingly turned to ad blocking for a variety of reasons. When software is used to do the purchasing, it is
known as programmatic advertising.

It includes email marketing, search engine marketing (SEM), social media marketing, many types of display
advertising (including web banneradvertising), and mobile advertising. Like other advertising media, online
advertising frequently involves both a publisher, who integrates advertisements into its online content, and
an advertiser, who provides the advertisements to be displayed on the publisher's content. Other potential
participants include advertising agencies who help generate and place the ad copy, an ad server which
technologically delivers the ad and tracks statistics, and advertising affiliates who do independent
promotional work for the advertiser.

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In 2016, Internet advertising revenues in the United States surpassed those of cable television and broadcast
television.In 2017, Internet advertising revenues in the United States totaled $83.0 billion, a 14% increase
over the $72.50 billion in revenues in 2016.
Many common online advertising practices are controversial and increasingly subject to regulation. Online
ad revenues may not adequately replace other publishers' revenue streams. Declining ad revenue has led
some publishers to place their content behind paywalls.

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Types of internet advertising

 Banner advertising: The most famous online advertising form ever. Banners of different
sizes, formats, and design are placed on thematic websites for a price. Their aim is to attract the
attention of potential clients. Being interested in the offer, users click the banner and are taken
to the website. However, the omniprese nce of online ads made users blind to it and they don't
even pay attention to them when browsing a website.
 Search engine optimization: Its goal is to manipulate search engine results to get high
rankings. Attempting to be on the top, marketers neglect the quality of the content simply trying
to cover all the algorithms. And they get penalties. So, it's important to create valuable and
useful content for a user.
 Social media marketing: It means promoting a brand in social networks. The effectiveness
of this internet advertising type depends on your target audience. Its great benefit lies in the fact
that you can use segmentation and create tailored offers in socials as well.
 Mobile advertising: It shouldn't be an afterthought as everything is going mobile. More
users all over the world check their inboxes on the go, that's why creating and optimizing
content for it is an A-list task. To cope with it, make sure your ad is adapted for the smallest
screen resolutions and the loading speed is high. Don't forget about eye-grabbing banners with
bright CTA buttons.
 Email marketing: Email marketing remains the most profitable tool of internet advertising
as every $1 spent brings $40 ROI. It helps businesses to generate leads, nurture prospects,
increase both customer retention and brand awareness, raise client loyalty. Professional
marketing instruments allow to cope with all the above-mentioned tasks without a sweat. Any
process can be easily automated. The effectiveness is easily measurable with the help of specific
metrics.

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Advantages of Internet advertising

 Global reach:Advertising online allows to go far beyond geography. You can find customers all
over the world. All you need is well coordinated and 24/7 work of you support team.

 Targeting:With the help of this advertising mechanism, you can create tailored offers, relevant to
every client. It implies dividing the users into segments according to geographic, demographic,
psychographic and other criteria. Thus, you'll increase your marketing campaign performance due to
high user engagement.

 High brand awareness: Online presence is crucial for any brand as it contributes a lot to its
popularity. Companies greatly benefit from the buzz around their name. When users come across the
same brand more than once through different platforms, they unconsciously consider it to be a
trustworthy one.

 Easily measurable:Internet advertising is easy to measure if compared to traditional. For any

type of online advertising, you can find lots of special analytics tools that enable tracking campaign
performance in real time. It helps marketers discover the most effective techniques and correct
mistakes in their strategy.
These advantages are common for all internet marketing types. Each of them has its list of benefits
and reasons to implement. Everything depends on the industry.

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Disadvantages of internet Advertisement?

Is advertising a good or bad thing? What are the pros and cons of various forms of advertising? Marketing
strategies have shifted in the last decade to use social media as a primary advertising platform. With these
changes and aggressive campaign strategies, ads have made their way into our digital lives—large tech
companies track our every move and bombard us at every corner.

But even "successful" advertising has its demerits. So, it's important to take a look at the repercussions of
product or service marketing and how they affect an audience. I've provided some common criticisms
regarding the demerits of advertising below.

Advertising Pros and Cons

Pros
Introduces new products
Expands the market
Increases sales
Fights competition
Educates consumers
Eliminates the "middle person"
Higher quality products
Supports salesmanship
Creates employment opportunities
Reduces newspaper and magazine
advertising
Creates a higher standard of living
Cons
Creates consumer unfulfillment
Encourages monopolistic control
Ad cost might exceed sales
Pushes out small businesses
Misleads consumers
Eliminates the "middle person"
Raises the cost of products and
services
Creates opportunities to mislead
Reduces small business employment
Creates distracting and risky
advertising approaches (Billboards)
Manipulates people to spend outside
of their purchasing allowance

1. It Is a Costly Function:

One strong objection to advertising is that it is a very costly function. Many studies have proved that the cost
of ads exceeds that of sales by a small but significant percent. In theory, the high cost of advertising is
covered by increased sales of the advertised product, but this usually is not the case.

Advertising is an indirect cost which is added into distribution expenses. When expenses increase, the selling
price of products does too. With large advertisers spending thousands of dollars a week solely on ads and

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marketing, advertising costs make up a significant part of the price of an advertised product. Thus,
consumers have to pay higher prices for products.

Advertising is an economic waste because unbalanced advertising causes certain goods to cost more than
they should.
2. Misleading Claims About Products: Some advertisers cleverly create misleading impressions of their
goods—they present a very rosy picture of their products with the object of increasing their sales. In reality,
their item is of inferior quality. To demonstrate this point, here is a list of some of the most infamous and
misleading product claims.

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