The New Trend in Advertising

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The New Trend in Advertising

Advertising may have finally found the only medium that can reach the right person with the right message at the right time. What is this groundbreaking medium? As a relatively young medium that’s shaking up the advertising world, the Internet is now considered a way to advertise to mass markets.

According to Business Week’s article ”The Online Ad Surge,” online advertising only accounts for 4.3% of advertising in the United States, yet the Internet accounts for more than 14% of the country’s media time. With predictions of $9.3 billion in online advertising spending this year, companies are beginning to recognize the Internet as a practicable advertising medium.

This essay will provide a summary of “The Online Ad Surge” and an evaluation of the article.

Article Summary

Internet advertising has undergone a dramatic change in recent years. Online ads have moved from text-only to flashy, full-motion videos. Jupiter Research analyst Gary Stein states, “A few years ago, it was kids with green hair selling ads, now Internet ads are mainstream, and part of every company’s media buy.” Although online ads aren’t going to overtake the traditional advertising mediums, the segment is growing at a rate of 7.7% a year. Within the next two years, analysts predict online advertising will be worth nearly $14 billion and will surpass the magazine industry.

Online ads offer companies the ability to track every click consumers make through a website and offer the ability to immediately measure an ad’s effectiveness. Other mediums, such as television are feeling the pressure to be more accountable. Until recently, television ratings were never available in real time; however, Nielsen Media Research has implemented technology that allows for minute-by-minute feedback in selected local television markets.

Online advertisers are beginning to bundle slots across the media mix. According to the article, “CNN…sold pricey sponsorships for Election Day coverage to companies, such as Samsung and DHL. The condition? Sponsors had to advertise on TV and the Web.” Linking several mediums together benefits both parties involved as components of the media mix can compliment each other.

The rush to online advertising has created several problems for companies. The surge in ads has led to clutter, which includes instant messaging ads targeted to the youth market. Another problem is the shortage of available advertising slots.

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