In the world of advertisement, there is only one recent arrival, which is taking a good bite out of the total of $1.85 trillion that is 7 percent of the total sales of $28 trillion in the US according to Direct Marketing Association. The recent arrival, the Internet marketing gets $284 billion of the total sales getting ahead of newspapers ad of $213 billion and DRTV’s of $150 billion. The number one undisputed medium is non-catalog direct mail sales, which amounted to $483 billion followed by telephone marketing $402 billion.
What could be read from this is the Internet marketing will close the existing gap within the coming few years with a projected percentile growth of 12.6 percent followed by radio of 7.5 percent and TV and magazine advertising of 6.4 percent. When seen from the perspective of buyers, one of the main reasons cited for putting the blimp behind Internet marketing is the real time buying phenomenon that is unmatched by the other mentioned mediums except telephone marketing, which can close a deal immediately. Nonetheless, buyers could get their lead from print media like magazines and newspapers or from watching TV or listening to the radio. Then they will have to take a mind note either to visit the store or the Web site.
The reason why Internet buying is on the rise is, traditionally there had always been two approaches toward sales, where either the buyers will have to be approached directly, cold calling or direct marketing techniques like direct mail, indirectly through ad display or buyers go out and search for what they are looking for. There had never been a medium that combined both with a relative ease. It avails a huge number of choices, offers, comparison of prices, verification of quality of products, even delivery, as there are digital products that can be downloaded immediately. Hence, it is not surprising if the Internet is gaining on the traditional mediums, which are becoming more of a cold medium.
It does not mean there is no room for innovation among the old mediums, but that innovation will have to be introduced through technology, which is giving the leg-up to the Internet, because the possibilities are unlimited. The genre of the advertising method of the Internet is on the rise, whereas the other mediums have a lot to do in that respect.
The Internet started out with email marketing that had to grow hand-in-hand with the number of the Internet users, which would have been a painful growth if there were not an explosion in the number of Web surfers.
Email got enhancing from text and banner ads that did not only revolutionize the Internet marketing, but snatched a lot of business from the traditional mediums. Then search came into the picture that is not different from going out and shopping except that it availed a lot of variety, possibilities, and convenience under one roof, through one medium when compared with catalog sales, for example, that has no choice other than to be very much limited with what it can offer. Once there is a build up of constant visitors flocking to the various search engines, paid search was introduced so that those who can pay could get the cream of the crop, and the unbeatable powerful engine of the Internet till date had come into existence with it.
Lately, video advertising had been introduced, and it is adding to the genre since it is better situated in presenting products and services than text and the static banner ads to capture the attention of buyers, within the split seconds that ads have to do the trick in presenting what is up for the grab. In this particular area, ads on prints like newspapers or inserts that could take a whole page could present to visitors more in one quick glance. Yet, they do not come near Web sites with their rich resources and they are always a click away for those who want to know more about a product or a service once their ads are encountered by those who are conducting search and they can do business in real time unlike most of the mediums.
If there is anything touted to wrestle back this new attained customer allure from the Internet, it is interactive TV, which is said to be on the making to avail more possibilities for the viewers than the passive flipping through the numerous channels. Viewers could have a lot of access depending on how much and how fast the technology is developed, and what it is going to mean is bundling TV viewing and Internet surfing together, which will definitely bring back what direct marketing through TV had lost. People can do everything that they are doing on the Internet by using computers, this time by simply using their specially equipped TV sets and their remote control, which is going to be buying right off the TV ad. Which one will be a more enjoyable medium remains to be seen.
When we see it from the point of view of advertisers, most probably Internet has evolved beyond anyone’s speculation, because it is driving traffic in a big number for many businesses who would have still stayed in the yellow pages and the classified section of print media, as the rest of advertising mediums were not attainable because of the high advertising cost involved.
But now, even if the bidding could raise the mark, if keywords are chosen carefully, the Internet is affordable. It is not only that advertisers might not have to spend a dime if they have the time, or a very reasonable amount if they want to go the generic way, which could avail the same opportunity of being found by paying search to a certain extent. However, the pay search for sure will avail a sure shortcut and a huge break for those who had been paying a lot to advertise on the various expensive mediums like TV, newspaper, magazine, and radio.
That being said if there is one thing discomforting, the line is blurring between getting a big share of the ad money and doing the job. An ad on a yellow page or on a classified section of a local newspaper has more visibility because everyone who goes through the classified section will see it, and the same applies with everyone who picks the yellow pages. Whereas, because of how the number of the impressions are working on Internet advertising, and because of the lack of matching between the keywords businesses choose and buyers use, even the highest bidding businesses could lose customers, and the statistics is not coming clearly yet on where businesses are getting their most business from, since it is a known reality that when it comes to advertising, most businesses mix mediums.
The conclusion is the new arrival on the ad scene will eventually get away with the big chunk of the ad money and most of the traditional mediums cannot do much to deter it except withering away by changing their form. They might have to take the plunge into the Internet, as people are using it, more and more, to obtain their information too, and almost all popular publications have their Web presence, yet what they generate in a form of ad revenue is miniscule for the most part. The good news is the print media still has its readership even if its ad share had been eroded and it is not in an immediate danger of being extinct.
Radio is riding the storm out because people have to move from place to place, whether they are biking, hiking, driving, even flying, and more. Radio is the only medium that could accompany them, even while they are doing things, which sends a signal to advertisers that they can have access to many people through this particular medium, and they will be willing to pay.
For users the new technology makes their life easier, while at the same time it makes advertising cheaper for businesses even if the cost is slowly creeping up, and unless it is backed with result the anxiety could subside and things could go back to the old way of doing things.