Before the popularity of web and Internet, that were emerged in 90’s, the ad world was ruled by newspapers, radio, television etc… But during the middle of 90’s the internet becomes widely popular and marketer thinking of new web based ad service. Let’s take an overlook on the ad world and its new trends.
The ad world and its new trends
The online advertising or e – marketing started in 1994 and it is initiated by HotWire by selling the first banner ads to several advertisers. The change reflect in United States revenue earning as it reached its expected $7.1 billion in 2001 and almost 3.1% growth. But the dot com burst destroyed the advertising field thereafter but it again regained the momentum in 2004 by a new business model called Web 2.0.
After this the most websites begin to get revenue from the sale of advertising. In 2007 alone advertisers spend more than $10 billion in advertising which is 14% of total advertising. The advertising has find its new way to reach to the customers through social networking sites as it began to gain popularity by the year 2009.
The reason behind the growth of online advertising is the use of Internet and new emerging devices. As the devices such as mobile telephones and televisions are connected to the Internet people will spent more time on these devices as a purpose of accessing the web. The websites and other social networking sites earning big revenue through this ads along with their site content. There will be several methods for revenue earning and it is described as follows.
Pay per click (PPC)
Here the advertiser pay each time when the user clicks on the ad and is the most popular model in advertising. When user clicks on the ad it is redirected to the website of the advertiser. For the advertiser it is known as Cost per Click (CPC).
Pay per view (PPV, PPI or PPM)
In this model of advertising the advertiser will pay for each ad view or page-view. In most cases the advertiser may prefer the method as they don’t like to pay when you ignore their ad.
Pay per action (PPA or PPL)
This method is introduced few years ago as to avoid the risks of click fraud. The advertiser need to pay only if customer enters their site and proceed with any action such as filling a form etc…
As time goes the earnings from online advertisements had a great impression on economy of many countries like US. This trend is began to start during 2004. The searching gaint Google has earned 7 fold increase in market value during the period 2004 – 2007 as it is valued at $29 billion to $215 billion.
Now about 96% Google’s revenue comes from these advertisements. Google gets money from the advertising through Adwords and gives money to other sites for their content through ‘Adsense’, both are ventures started by Google. As the above mentioned table suggests Google is ruling the online ad world now. Privacy concerns are appear as the Government, consumers and media began to focus on the large amount of personal data stored in the websites.
The business began to move its platform towards the social media sites like Facebook advertisement, twitter and video sharing website like YouTube etc… As the use of these websites increases the business through these site also had an existence by taking the advantage of user’s affection towards each websites.