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Technology experts predict that more and more people will access the Internet at a higher speed than ever before and this added speed makes getting audio or video news and information simple and fast. Keyword based video advertising will get increasingly popular as the cost of broadcasting that video over the Internet falls and as more and more people can see that video clearly (as a result of increasing access speeds). How neat would that be if we could see a video of the product or service before we actually bought it, or see the people behind the company that sell us that “catalytic converter”. Online advertising via video feeds to your cellphone from live or recorded messages are only a moment away. Technology is moving so fast even the online advertising industry can barely come up with applications that meet the changing (and better) Internet technologies. The future of online advertising looks bright and very exciting to be sure. It is up to you to make sure you understand the changes that are taking place and up to you to become part of the online advertising boom.

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According to market research sources, search engines outperform all other online advertising media in driving visitors to web sites. Moreover, consumers are five times more likely to purchase products after seeing search listings versus banner advertising. In fact, statistics show the following:

1) 77% of Internet users employ search engines more frequently than any other online advertising media, surpassing banner ads, Web links, and e-mail links as the leading tool for discovering information about a product or service.

2) 84% of Internet users who are online four or more hours each day reported they use search engines frequently to discover Web sites and find products or services.

3) 55% of Internet users are more likely to purchase online after seeing search listings versus 9% for banner advertising.

Is the Online Advertising industry shrinking, or is it growing at a reduced rate?

Growth in online advertising for the first time will shrink to single-digits in 2009, according to eMarketer – yes it is still growing despite our world wide recession. Search engine keyword based marketing, like Google AdWords, is still growing at double digit growth rates. Look at the pricing revolution online advertising news article for April. The fact remains that there may be a big pricing revolution in advertising online, however when you are focused on search engine online advertising then growth is fine. More and more business people are understanding the power and simplicity of search engine marketing and how online advertising benefits their business (in terms of sales). So yes the US economy is shrinking, ever so slightly, however online advertising (specifically search) continues to grow.

The world of online advertising can be divided into a several different advertising options. These options are not exclusively the only areas from which to choose, however they represent the most popular areas within the online advertising menu. And they are:

1. search engine advertising: more than 50% of the total spent last year in online advertising. This relates to keyword based search engine optimization and paid advertising via pay per click campaigns. The three biggest sources of this type of advertising are Google, Yahoo, and MSN. There are plenty of additional smaller online search advertising options but these three are the best of the best and each one has a pay per click advertsing interface that is simple to use. Just in case you are wondering the big three search engines represent 98% of the entire search advertising market. Get it correct with the big three search engines and you are getting it right with 98% of your keyword based search audience. The great thing about search engines is that they make it so easy to purchase traffic. In fact online advertising has now become as easy as click, setup, and pay. All you need to do is select the appropriate keyword(s) for your service offerings, select the geographic region you want to represent, and away you go. Note that search advertising is paid per visitor so if your ad is not clicked on you pay nothing. How would you like to buy a billboard on the road that you only pay when someone calls you. Experts refer to this type of online advertising as an outstanding deal. Even google will give you free credit card processing for all the goods you sell online providing you are purchasing traffic from them and providing your ROI (return on investment) is less than or equal to 1,000 percent. Even Google thinks you should be able to make ten times your online advertising spend in total revenues. That says something right there.

2. display ads: 21% of the total online advertising last year and falling fast. Banner or contextual advertising is not popular and is not working, even at these cheap cost per thousand impression rates. Here you rent space on a web site and if you get lots of visitors to your site great since you pay for the space and not for the visitors. This is not the best way to advertise, but there are plenty of places to get CPM deals in the $0.60 or lower range so why not pay next to nothing and see what sticks.

3. classified advertising: 17% of all spending last year or just over $4 billion dollars spent on classified advertising. So next time you say classifieds are not for your company or service offering you better think again. In terms of dollars spent last year classifieds came in at roughly one third of the amount spent on keyword based search. Classified ads run at a cost per space and not for visitors directed to your website so again you are paying per thousand page impressions whether people click on your ad or not.

4. lead generation: 6% of all advertising spending last year, or over $1.4 billion dollars. It is interesting to see Google use lead generation in some cases since we all know Google is getting short end of the stick on their paid keyword based advertising (per click). How do we know that? Well if I am a company and I spend $1 to make $3 from traditional advertising (TV, radio, newspaper) and now I am spending money with Google to the tune of $1 for each $9 in revenues then it stands to reason that Google is getting the sorry end of the stick compared to the cost of traditional advertising. Some argue this is exactly why keyword based search advertising is destined to grow.

5. rich media: 4% of all spending last year or almost $1 billion dollars. This sort of relates to display ads, except that these ads are video targeted and most networks know that the targeting aspect alone will improve conversion rates. In advertising the better the targeting the higher value and the greater the advertising revenues. Could this be why Google bought youtube for over $1.5 billion dollars?

6. Email: holding on at 2% of total online advertising last year. Hard to believe email advertising accounted for $500 million dollars in revenues last year. That is a lot of money spent on email advertising.

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Get Noticed with AdzZoo

The term online advertising is simply a term that relates to advertising online, or advertising over the Internet. In practice online advertising is about getting your website in front of the people who are interested in your product or service. All you have to do is find the best terms and phrases that people search for who would like to purchase exactly your goods and services. If you can do this then your online advertising will be successful, however, if you select the terms and phrases that do not relate to the goods you are selling then your keyword based online advertising efforts will likely fail. It really is as simple as that. Use AdzZoo and succeed.

In fact more and more small business owners are using online advertising to market their goods and services to their target audience testing different keywords to specific pages of their website in an attempt to get more leads from their online advertising campaigns. And guess what? Yes small business people are finding out that without a doubt advertising online is the most economical way to market their goods or services. Online advertising works, let AdzZoo technicians cost effectively do the work for you.

Why do I want to use advertising online for my web site?
First off the traffic to search engines is becoming more valuable – how can we say such a thing? Well in the latest quarterly earnings from Google it is stated: Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our AdSense partners, increased approximately 17% over the first quarter of 2008 and increased approximately 3% over the fourth quarter of 2008. A 17 percent increase in paid clicks over last year is significant considering that surfers are aware of the differences between sponsored areas and non sponsored areas in Google’s search results page.

Having your web site advertised on a search engine is important when you know recent findings on the habits of search engine users. Researchers at Pennsylvania State University found that:

1) 80% of users typically visit only the first three results from a search query.

2) 54% of the users views only one page of results in each keyword search session.

3) 19% of the users view the second page of search engine results, and less than.

4) 10% looked at the third page of search engine results.

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The latest figures on the state of the US newspaper advertising industry indicate that print advertising sales have continued to plummet. Online ad sales, however, have risen significantly, though not enough to offset the sharp decline in print ad revenue.

The Newspaper Association of America said that print ad spending fell 9% in the third quarter compared to the same period last year to $10.1 billion. Online ad spending, which rose to $770 million, makes up just 7.1% of the industry’s ad revenue, and though up sharply from 5.4% a year ago, it was still not enough to offset the declines in spending elsewhere. On the whole, newspaper ad spending fell 7.4% in the third quarter.

The biggest declines occurred in classified ads, retail ads, and national ads. The NAA blames the decline on “broader economic issues,” such as fallout from the trouble in the US home mortgage industry.

Even so, this marks the 14th consecutive quarter that online newspaper ad sales have seen double-digit percentage gains, reports Reuters. While the industry as a whole continues to suffer, the Internet may be the light at the end of the tunnel.

The winners here may end up being online advertising networks, and especially Yahoo!, whose newspaper alliance continues to grow. Two weeks ago they added the New York Daily News – the fifth largest paper in the US with a circulation of over 700,000, and last week the consortium added 17 regional papers owned by the New York Times Co. (though not the Times itself).

Yahoo!’s alliance now reaches nearly 400 papers, and though right now it only covers online job classified ad sales (via Yahoo! HotJobs branded sites for newspaper partners), it it likely that it will expand to display ads in the future, at least for some papers. Further, newspapers in the Yahoo! alliance use Yahoo! for their web site search engine, which means added search revenue for Yahoo!.

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Now that we’ve covered those aspects of online advertising, let’s turn to some of the other factors that need to be considered. 

Entrepreneurs now say the Internet is the most important marketing tool for their companies, but they primarily still use the Web for e-mail and research, according to a new survey.

The Capital Access Network Small Business Barometer, a quarterly poll of 250 business owners nationwide who accept credit cards from customers as a method of payment, found that small companies ranked an Internet presence or website as the number one method for business marketing, over such traditional tools as networking, public relations and print and radio advertising. However, respondents also said their top two online business-related activities are checking e-mail and researching business solutions.

“Our survey indicates that there is a definite disconnect between a smaller business’s needs and their goals for meeting them,” said Glenn Goldman, president and CEO of Capital Access Network. “There is this gap of understanding between the type of business and what the Web can do for you.” Capital Access Network, based in Scarsdale, N.Y., provides merchant cash advances to small businesses through its main subsidiary, AdvanceMe.

While e-mail may top the list of Internet-related activities, many small businesses have begun implementing online advertising strategies. Of survey respondents, 59 percent use online ads and 68 percent utilize search engine optimization “sometimes” or “often.”

Online social tools like blogs and message boards, however, are not as popular an option for business marketing. Almost half of small business owners never use a blog, 37 percent never visit message boards or chat rooms, and 59 percent have never tried the virtual world of Second Life.

“It’s human nature, particularly when funds are scarce, to focus on what is known,” Goldman said. “For some folks, maximum use of the Web is buying a book on Amazon.”

Business owners are making efforts to increase their Internet presence. Forty-four percent say they plan on spending more on Internet tools this year compared to 2006, while 27 percent plan to spend the same amount as last year. The amount small businesses will shell out for their Web activities varies, with the largest group (45 percent) spending less than $2,500.

On the other hand, a quarter of respondents will not spend anything on the Internet this year. Of those, 30 percent named a lack of funds as the main obstacle preventing them from using the Internet for their business. “Clearly, folks are learning the benefits of the Web but in many cases are constrained resource-wise,” Goldman said.

Overall, 46 percent of respondents say they derive at least some of their revenue from Internet sales. Based on that, Goldman said, “I think it’s safe to conclude that not using the Web results in missed opportunities.” 

Sometimes it’s tough to sort out all the details related to this subject, but I’m positive you’ll have no trouble making sense of the information presented above.

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