Advantages of online advertising

From CEOpedia | Management online

The basis of the company's existence on the market is these days online advertising. Online advertising, also called e-marketing, web marketing, or Internet marketing, concerns the use of the Internet and digital media to encourage people to buy products or services of a particular company through advertising. Thanks to online advertising, companies can reach a large number of potential customers thus, the importance of online advertising is still increasing[1].

Advantages of online advertising

There are many benefits which the company can get through using online advertising[2]:

  1. Brand recognizability - no one wants unknown products. It is very important to introduce the product not only to the small community but to promote it all over the world.
  2. Higher probability of selling the product - online advertising is targeting the potential audience thus, it is more probable to sell offered products.
  3. CTR (click-through-rate) - because of this rate, it is possible to follow how many people have visited the advertised website.
  4. Creating a brand image - through online advertising companies are creating our imagination of the product. Showing creative and good designed ads can change the perception of the brand.
  5. Easy improvement of ads - in case the online advertisement is not attractive or creative enough, it is possible to change it at any time.
  6. The constant change of advertising possibilities - online advertising is very innovative. Ways of advertising are changing from day to day to target and find potential customers.
  7. Lower cost compared to offline media - online advertising does not need any physical involvement in creating and publishing the ad in comparison to offline media. Internet marketing is only using computer platforms wherefore it is working automatically after paying for the advertising.
  8. Simple and fast creation of your ads - nowadays various social media platforms are giving an opportunity for advertising. For example, by only one click it is possible to promote products or campaign on Facebook.

Also as an advantage, we can treat various possibilities of online advertising. Two most common are[3]:

  • Search marketing - means advertising websites that are easy to find while searching in browsers.
  • Interactive advertising - it includes all banners, rich media, video advertising and more.

According to the IAB (Interactive Advertising Bureau) report, search marketing and interactive advertising in 2018 together represented 91% of the entire advertising revenue. Video marketing has grown the most comparing to previous years[4].

Examples of Advantages of online advertising

  • Cost Effective - Online advertising is a cost-effective way for businesses to reach new customers, as well as to retain existing ones. Companies can spend relatively little money to place ads on websites, social media platforms, search engines, and other online channels. For example, small businesses can advertise on Google Ads for as little as $2 per day.
  • Targeted Reach - Online advertising allows businesses to target their ads to specific audiences. Companies can use demographic data, geographic data, and other information to determine who should see their ads. For example, a business can target its ads to people who live in a certain city, or to those who are interested in a particular type of product or service.
  • Measurable Results - With online advertising, businesses can measure the success of their campaigns in real-time. Companies can track how many people clicked on their ads, how much traffic they received, and how many sales were made as a result of their campaigns. This makes it easier for companies to determine which strategies are working and which ones need to be improved.
  • Flexibility - Online advertising is highly flexible, allowing businesses to adjust their campaigns quickly. Companies can change the content of their ads, adjust their budgets, and target different audiences on the fly. This makes it easy for businesses to respond to changes in the market and to take advantage of new opportunities.

Limitations of Advantages of online advertising

Online advertising has many advantages, but it also has some limitations.

  • Firstly, online advertising can be expensive, especially for small businesses. It can be hard for them to compete with larger companies who have bigger budgets for online advertising campaigns.
  • Secondly, online advertising can be hard to measure and track. Companies have to invest time and money in tools that can help them analyze the effectiveness of their campaigns.
  • Thirdly, online advertising can be intrusive and irritating for some people. If the ads are constantly appearing on their screens, they may opt out of them, which would mean a loss of potential customers.
  • Lastly, online advertising can be vulnerable to fraud and manipulation. Companies need to be aware of the risks associated with online advertising and take necessary measures to protect their campaigns.

Other approaches related to Advantages of online advertising

Other approaches related to Advantages of online advertising include:

  • Ease of access - Online advertising can be accessed from anywhere in the world, making it a great option for reaching a global audience.
  • Ability to target specific demographics - Online advertising allows companies to target their campaign to a specific demographic, making it more efficient for reaching the right people.
  • Ability to measure results - Online advertising allows companies to track the performance of their campaigns in real-time, making it easy to adjust and optimize their campaigns for maximum effectiveness.
  • Quick deployment - Online advertising campaigns can be deployed quickly, making it an ideal option for businesses that need to get the word out quickly.

In conclusion, online advertising offers many advantages for businesses that need to reach a large number of potential customers quickly and cost-effectively. It is an important tool for businesses of all sizes, and it is likely to become even more popular in the years to come.


Advantages of online advertising — recommended articles
Digital media marketing — Digital marketing strategy — Types of advertising — Outdoor advertising — Buzz marketing — Social network marketing strategy — Social media optimization — Influencer marketing strategy — Benefits of social media marketing — Merit goods

References

Footnotes

  1. ↑ G. Weimann 2015, chapter 4
  2. ↑ A. Tiwary 2016, p.26-29
  3. ↑ V. Davidavičienė 2012, p.823-825
  4. ↑ IAB internet advertising... 2019, p.12

Author: Anna Woroń

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