“Half the money I spend on advertising is
wasted. The trouble is, I don’t know which half,” said John Wannamaker, who
was among the few ones who began giving advertisements in newspapers for his
store. When Wannamaker said this there was no Internet advertising which enables
companies to reach their target customer base on the basis of online activities
of the users. Their activities are traced by search engines, which have also
taken to advertising turned advertising,
on a regular basis, for example, Google and Yahoo.
The world is awash with advertising. Turn
your eyes IN any direction and you will find ads of some kind or the other.
Advertising plays a pivotal role in boosting the sale of any product. That’s
why multinational companies selling cola, health drinks or noodles spend
hundreds of crores of rupees every year on hiring models, film stars and
cricketers for their promotional campaigns and on buying space in newspapers,
TV and websites.
Websites such as Google, Facebook and
others spend huge amounts of money on developing, designing and maintenance of
their sites but don’t charge even a single penny from users. According to the Facebook
website, the website product manager Ami said that they spend about one billion
dollars to keep Facebook up and running every year.
There are many questions:
where do they earn from? How do they pay their staff? And how do they manage
other expenses? The answer is: they earn from advertising on their websites and
make their services free to attract more users.
Online advertising is a sector that is
growing bigger with each passing day unlike any other advertising sector. At
present, the sector has a turnover of over 400 billion dollars.
It is becoming popular because online advertising
enables companies to target their ads to their prospective buyers, not to all
the users. And, they can do it by spending a fraction of the price of mass
advertising. Internet advertising thrives on Cost per Mille (CPM) or Pay per
Click formula of advertising. Companies
need not pay any money if no one notices or clicks on their ads.
Behavioural
Advertising or Behavioural
Targeting is trending these days. For example, a user who searches for science-fiction books might be
presented with the ads of online book stores as he or she continues to browse
the web.Users online are concerned about their personal
information shared with advertisers.
Though the sites claim that they show
relevant advertisements on the basis of the activities of users on their pages and
do not share their personal information with advertisers. There is a company in
Canada that is working on an opt-out tool. By using it, web surfers will be
able to opt out from behavioural advertising.
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