Effective Mediums of Internet Advertising

A Term Paper Presented to Dr. Maria Cequena Department of English and Applied Linguistics De La Salle University

In Partial Fulfillment Of the Requirements for Englres C45 2nd Term SY 2011-2012

By Ortile, Miguel G. San Juan, Allan I.

December 9, 2011

Thesis Statement Internet advertising through Social Networking Services, Search Engines, and Online Stores is most effective in promoting brands.

Outline 1.0. Introduction 1.1. 1.2. 1.3. 2.0. Internet Advertising through the years Nature of Internet Advertising Thesis Statement

Social Networking Services 2.1. Uses of Social Networking Services 2.1.1. Twitter 2.1.2. Facebook 2.1.3. Youtube 2.2. Effectiveness of Social Networking Services for advertising

3.0.

Search Engines 3.1. Uses of Search Engines 3.1.1. Yahoo 3.1.2. Google 3.2. Effectiveness of Search Engines for advertising

4.0.

Online Stores 4.1. Uses of Online Stores 4.1.1. eBay

4.1.2. Ensogo 4.2. 5.0. Effectiveness of Online Stores

Conclusion 5.1. 5.2. Summary Restatement of Thesis

Abstract This study examines the most effective ways of different mediums of Internet Advertising. The authors, Ortile and San Juan, study and describe on which medium is most effective. Out of the many mediums of Internet advertising, they find that the three most effective mediums are through Social Networking Services, Search Engines, and Online Stores. Nowadays, the three known Social Networking Services are Twitter, Facebook, and YouTube. People find it easier to post in these sites what they feel and think about in their everyday lives. Google and Yahoo are the two most know search engines. People put all sorts of their advertisements in this site simply because of its million visitors every single day. Online stores are without a question one of the best stores simply because it is accessible even at your own place. This paper will show you a more in-depth information on how powerful Internet advertising really is.

The entire world is overflowed with advertising. For years and years, advertisers, as well as businessmen, have been spending a lot of money just to have their message reach people from all walks of life. These people have tried and failed only because everyone did the same way of reaching out to people. Now, these men are thinking and creating up new ideas and methods of breaking through the media and have a social relationship with us people at a lower cost. Time flies by so fast and the Internet is revolutionizing. It changes the methods of how people do business. The industries of marketing and advertising have developed. As the years went by, people thought of new ideas and modified their thoughts. The Internet changed the scenery of how business should be done. The power is now in our hands, from small businessmen to large companies. Nowadays, people are more knowledgeable, have a greater understanding, and appreciation for the different methods in gaining more income. They also know how to manage time and money wisely. They have taken advantage of this process of marketing and managed to get a good amount of income. We find them when they're online, we intercept their activities, and we start a relationship with them" (Vogel, 2005). Internet advertising is huge simply because people spend most of their time on the Internet. The Internet has become a new market. This is why big companies spend a lot of big bucks in this new scheme. This has become a success simply because the Internet has a great range of target market which is the entire globe. People today spend time on updating their stats on their networking sites. If they need something to buy they could easily access it by finding stores online through search engines. It is very convenient and businesses take these as an opportunity to reach their market.

Internet advertising through Social Networking Sevices, Search Engines, and Online Stores is most effective in promoting brands. Do these words sound familiar; Tweet, Like, Poke, RT (retweet), Write on your Wall, Comment, twitpic, thumbs up, favorite and #hashtag. These words have become part of our daily lives. Of course people would know this especially those who use the Internet everyday. These words came from Social Networking Services. Social Networking Services are sites that help people create and mirror their social relations. It provides services to them in which they could interact with each other, through email and instant messaging. Users are represented through profiles, which shows the details of their personality. In these profiles, they can share their ideas, interests, activities, photos, and other information. When it comes to Social Networking Services, Facebook, Twitter, and YouTube are today's global phenomena. Twitter, also known as the SMS of the Internet, commenced on July of 2006 and was created by Jack Dorsey, a software engineer and innovator. Twitter is a social networking site that is very popular for its features of micro-blogging service. It allows users to deliver and read Tweets. Twitter tweets are text-based posts and it may not exceed 140 characters. Twitter users can subscribe to the tweets of other users. This procedure is called following. The users who are following a persons status update are called followers. This social networking service circles around twitter followers. In this social networking service, people share their feelings and thoughts about different things including businesses, celebrities, events, products, services, or anything about the media. Nowadays, people understand the importance of social media with popular twitter users who are somewhat being paid for their voice and their influence in the market. Celebrities make

the most out of this. They tweet about their movies, new upcoming television shows, autograph signings, products they use, or anything on their mind; their followers would immediately support their so-called twitter idols. The followers will retweet this and so on and so forth; and before you know it, that thing being advertised with just a click is already known or used throughout the world. Twitter brings businesses and customers together as if they were all in one place. Businesses can easily give information to their loyal customers or to those who want to try their products and/or services out. They also use it to gain knowledge about what the market wants from them. They also use twitter to build strong bonds with their markets, partners and other businesses. Twitter allows businesses to pursue their target market. Furthermore, Twitter stands as the third most used social network and one of the top ten visited websites worldwide. As of this moment, Twitter has 200 million users and still counting. The power of Twitter is limitless and anyone can do it with just a single click. In 2004, Mark Zuckerberg, a student from Harvard University, created Facebook. First, he called it thefacebook. This started only as a college university website and it was only open to English speaking countries. Since then, the site has grown to include everyone. Facebook is another social networking service designated to bring people together; family, friends, and people from all walks of life. This site allows the user to make a profile page which displays information about them. People in ones network, which include family, friends, acquaintances, and business associates, can view his profile page. The profile consists of information about the user, his status updates, his friends and networks. Photos of what the user has done lately can also be viewed. This shows how one uses

his time whether at work or during your free time. The user can also tag along their friends who happen to share the same experience. In Facebook, there is such a thing called a Facebook Page or Fan Page. It is public profile of a celebrity, team sports, band, politician, famous group, or anything in particular. Facebook Pages are important for a few reasons. They have been showing up high in search engine positions. Also, one can get unlimited "fans" for his Facebook Page, unlike the limit of 5,000 friends that the regular Facebook Profile is capped at. They are visible to search engines and visitors, too. It is almost like a social networking mailing list that the user can reach out to at any time. Mulley Communications recently conducted a study and saw that users of Facebook give more time searching at advertisements on profile pages rather than on the homepage. More particularly, 71% of users looked at adverts on their Profile pages, 31% of users looked at adverts on the News Feed page (ONeill, 2010). While the abstract of facts was not overwhelming, the study supported interesting perception into the action of students at the National College of Ireland. Another social networking service that can be used in Internet advertising is YouTube. In 2005, Steve Chen, Chad Hurley, and Jawed Karim designed YouTube. This site showcases a hosting service of videos. It has been the reason for popularizing Internet trends in pop culture. YouTube Users can upload videos for public viewing. Everything one can think of is in that site ranging from music videos to sports clips to television or movie scenes to interviews to tutorials to documentaries; one can search and watch it in this site. Videos can be uploaded and watched for free. One can also view what the people think about it. A hit counter is located underneath the video of how many times YouTube users viewed the video. There is also a

thumbs up and thumbs down hit counter to determine whether people like your video or not. At the bottom of the video, a text box is placed where one can type a comment about it. Last year, the video site has emerged as an important patron to the family business at a time when Google, which generated at least ninety percent of its profit from text search ads, is looking a second act. Although Google does not communicate information with regards to YouTubes earnings, it has been said that it is flickering near profitability. Analysts say YouTube will bring in around $450 million in revenue this year and earn a profit. Revenue at YouTube has more than doubled each year for the last three years, according to the company (Miller, 2010). YouTube is a big component of our display revenue, and display is our next big business (Schmidt, 2010). Based on statistics in 2010, 73% of teenagers and young adults are members of at least one social network. Facebook has around 400 million users and has more than 1 million business pages. In Twitter, it records around 500 million tweets a day and gathers around 600 tweets in just a second. When one wants to know the latest news, and when one wants to ask someone about a particular topic, they just have to ask Yahoo. When one encounters a subject he does not know, and when one has to find a place in the face of the earth, they just have to Google it. These two names can do these things that have been said because they are search engines. Search Engines are sources of information. Basically, it works like this. One has to input keywords to it and it gives you back a page of documents where the keywords will be found. Google and Yahoo are two Search Engine giants. Yahoo is one of the largest search engines on the Internet. It has been an evident source of information by people all over the world. Companies have been lining up to put their sites on

Yahoo for advertising. This is because they have been investing enormous amount of money just to study on how their users act and think. They are examining on their users so that it would be easy to approach them. Yahoo was able to do this because they have the biggest database in the world. Another reason for getting Yahoo as companies advertising investment is because Yahoo has been tied up with other information providers, in the music industry, gaming suppliers, and news writers on web. So the point is, people come to us to find out what is going on with the world in a very nice quick fashion to do their communications, email, messenger, check-in on their teens. We all know about Yahoo finance. Its a place where you can just get it together. Its collated for you, its all the things as youre moving, and you can even get your social information there. Everybody moves through many websites in a day, Yahoo is one they always stop at. (Bartz, 2010). Yahoo charges their clients on its classified ads for keywords. Yahoo's classified ads are not like Pay Per Click advertising, its cost depends on the keyword's popularity. These ads may be less than the cost of Pay Per Click advertising. One of the special features of Yahoo's classified ads is that the client may upload the picture of their ad to catch more attention. These ads can display the address and number of their products so that they can be contacted even though they don't have a website. Another search engine that is very much effective in Internet advertising is Google. People surfing in Google can easily be aimed by your advertisements by AdWords. It will help you fix the changes you need to do on your ads. You may show different forms of advertisements, and compute for the right budget you need for your ad to get the best results. It will attract new markets for your advertising network by editing on where you will put your ad

by geographic locations and by choosing on what language it will be done. Every dollar you spend on your ad will be fully utilized since you will only be charged if your ad will be clicked. This is called cost-per-click option. A California-based public corporation specializing in online searches and advertising. Google was created by Stanford students Larry Page and Sergey Brin and has by now become the worlds leading search engine in terms of reach. Internet searches have been modeled after Googles pioneering and linkage data analyzing via PageRank. (dot.traffic, 2004). According to SEO Consultants Directory, Google and Yahoo! are the ones who are top on the list of Search Engines. They are the ones who have the highest percentage on the market share, Google being number one with 71.59% and Yahoo being next with 14.28%. People all over the world use search engines to search on anything they need and businesses take these as an opportunity to make their products and services visible to everyone in the worldwide web. This method is called Search Advertising. Another medium of effective Internet Advertising are Online Stores. What are online stores? According to e-marketing-dictionary, it is An online storefront is a web site that enables visitors to find, order and pay for products and services. Running a successful store involves getting qualified buyers to visit your store, helping them to understand their problem (and the pain or desire that it is causing them), giving evidence you can solve their problem (credibility), and making it easy for them to acquire the solution from you (steps they use to gain ownership of the item) (E-Marketing-Dictionary, 2011). E-Bay according to Business Dictionary is an Online auction service used to buy and sell items. The company uses an electronic platform to facilitate millions of transactions every day. Users seeking to purchase items make bids over a specific time period and then the seller

determines guidelines such as a minimum bid he or she is willing to accept. Payment is typically made electronically through PayPal and then the merchandise is shipped to the buyer (Business Dictionary, 2011). This website is the world's largest marketplace for rare items, whether what kind of item be it expensive or cheap. It showcases better selection than just about anyone else anywhere. In this site, people can get almost anything they want for cheaper prices. Also, any person can list any item in this site and sell it for a flexible price. The global influence of eBay can even bring up uncommon items that are not in need in ones place, making paperweights into cash. The business of eBay is to allow entrepreneurs and sellers a place to get hold of the buyers, and to present buyers a key to the biggest collection of things for sale around the globe. Third party sellers deliver and sell all the items on eBay. They are neither employed by eBay nor have any relationship with the company itself. eBay is without a shadow of a doubt one of the best websites around the globe to shop because of the variety of things it has to offer. It gives people an in depth experience into the real market value of various types of items around the globe. The mission statement of this powerhouse website is to provide a global trading platform where practically anyone can trade practically anything" (Ebay.com, 2011). Another online store that can be used in business advertising is Ensogo. Ensogo showcases a cost-effective of bringing customers and sales for businesses. The good thing in this website is that an upfront cost is not needed, which makes it better than other ways of local advertising. They only get paid when they deliver their customers to their business partners. This is all about promotion and discounts. People promote things to their family, friends, and so forth. Discount attracts the attention of most people. Discounted items will cause an

outgrowth of customers returning for more even at full price. This is a great way of having people see a glimpse or have a taste for new products and services. Ensogo is all about driving customers through your doors and provides you the opportunity to keep a new customer coming back (Ensogo, 2011). EBay, written off in recent years as a dot-com has-been, showed signs of making a comeback Wednesday as it posted a 14% jump in net income for the third quarter to $491 million, as well as a 32% rise in revenue to $3 billion; its biggest year-over-year percentage gain since early 2006 (Woo, 2011). People build their social profiles and relationships on social networking services almost every minute of everyday. They find answers to questions that puzzle them. They buy stuff just like it was a shop on an avenue on the Internet. The point is people spend time on the Internet, and sometimes they would not be able to notice what is happening in the real world. Therefore, those ads on the road, television, and other ads that could be seen in the real world will be less noticed since almost everybody is on the world of the Internet. The researchers are not saying that the traditional ads should be put down in order to make way for digital ads, they are simply stating that there is a new venture to encounter the people in the world of the internet. They also must be aware on what business has to offer to them. This is the reason why the researchers of this study conclude that investing on Internet advertising would be a good choice because if the world would be aware of what one's product and service is, then it would be known to the people and gradually will be patronized just like how people got hooked on buying products that are seen on their television sets. Overall, Social Networking Services, Search Engines, and Online Stores are the three most effective mediums of Internet Advertising.

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