Invention of Online Marketing and Advertising

Online advertising, also referred to as e-marketing, online marketing or Internet marketing, is the act of promoting and marketing various types of services and products through the Internet. E-mail marketing, e-mail spam, online classified advertising, pages banner ads, dynamic banner ads, social network advertising, blogs, rich media ads, interstitial ads, and cross-platform ads are examples of online advertising. An ad server delivers most of these advertisements.The history of online advertisingAccording to records, online advertising was initiated in 1994 at the time HotWired traded its pioneer banner advertisements to a number of advertisers who had shown interest in the banner ads. In 2001, revenue in the U.S is said to have grown to about $7.1 billion or 3.1% of the total expenditure on advertising. Most of the players in the advertising industry were either destroyed or weakened by the dot com bust greatly reducing the demand for online advertising and other services linked to it.When the business model for “Web 2.0” was assembled by the year 2004, the industry recouped its impetus. This led to more companies being established leading to purchasing and selling of advertising columns on web pages.Some companies which had previously operated web portals decided to use the conventional “Free-TV” model which meant creating traffic by simply distributing the content and in turn, selling it to buyers in the advertising industry. Majority of these websites, excluding business-oriented websites like eBay, create most of their income by selling inventories (the space set aside for promotion ads) to willing buyers in the industry. In the first 6 months of 2007, more than $10 billion was spent by advertisers on websites in the United States. This reflected to approximately 14% of the total amount spent on advertising.It is believed that in a few years time, there will be a considerable increase in the online advertising industry. This is attributed to the steady rising number of devices such as television and mobile phones which are greatly linked to the Internet. This is evident going by the valuations being made on businesses linked to online advertising by capital markets. During the month of August 2004, its total market value was placed at $29 billion and in December 2007, Google had recorded a tremendous increase in its market value which stood at $215 billion. During that same year, a number of companies in the online adverting business were traded at the rate of 10 to 15 times of their revenues per annum.2007 saw the advertising industry become more popular to the public. What drew much of this attention was the escalated stock price of Google as well as its inroads into other related industries like online payments, mobile telephones and word processing software. It was during this year that over 500 commentaries on Google featured in various magazines including Wall Street Journal, New York Times as well as in the Financial Times. This led to the European Commission and U.S Federal Trade Commission to conduct a detailed fraudulent inquiry in the acquisition of the DoubleClick which was used by Google to offer services and software knowledge to publishers and internet marketers.At the time when government agencies and consumers decided to focus their attention on the large amounts of individual data stored and used by online advertising businesses, concerns about privacy came into focus. As from 2009, most businesses turned to social media for their business advertisements. Social networking devices like Twitter, social news (Digg Propeller, Reddit), Facebook, Hi-5, social photo and video sharing (Flickr, Photobucket, YouTube), and Social bookmarking tools (Simpy, Del.icio.us) are among the social media that have been largely turned to.The social media tools have shown one great advantage; being more accurate on the market trends as they focus on utilizing the provided demographic information of the users. However, the only disadvantage with the social media as a means of advertisement is the inability to provide actual information; whether the number of “follows”, “friends” or “likes” reflect the actual picture in sales or not.

How to Switch Your Advertising From Garbage to Gold

Adverts generally fit into one of these categories:• Institutional or Image advertisements (I call this garbage)
• Direct-response advertisements (I call this gold, if used correctly it’s worth more than gold.)What Are Institutional Advertisements?Institutional or image advertisements make up 90% of most publications. These adverts generally emphasise the business name in big letters across the top. They provide a list of the products and services that they sell. Occasionally they’ll provide prices on a product and often they will have an image or a photo. The address and phone number are usually at the bottom.This is just a generalized version, there are many different layouts. Basically this form of ad is passive and does not persuade the reader to buy. In essence it just says “this is me, this is what I do and this is how to contact me”.Most small businesses use this format because they don’t know any different. They have been led to believe that this is the ‘right’ way to advertise. This form of advertising focuses on the business, not the customer, selling is only a by-product.Graphic designers and advertising sales representatives love these ads. They are fast and easy to create and their performance can’t be measured.Although I call these types of ads garbage, they do have their place in the advertising world. Institutional ads are fine for the big corporations with their multi-million dollar advertising budgets.Institutional advertising is very good at ‘image’ creation. The problem with these advertisements is although they can be good at ‘selling’ a corporate image – they aren’t good at selling products and services.What Are Direct Response Advertisements?Direct response advertising originated through mail-order companies. Mail-order companies basically can only survive if their ads generate orders – they have to get it right or lose money. Because of all the measuring and testing carried out by these companies over the last century, the results generated have proved without doubt what works in direct response advertising.In relation to institutionalized ads, readers respond to direct-response ads in significantly greater numbers. Institutionalized ads require the prospect to be actively looking for your product in order to generate an inquiry, whereas direct response advertising makes them act regardless if they are actively looking for the product or not.One of the things that make direct response advertising so effective is that each component of the ad is tested. This allows things to be changed and altered to see the best response; nothing is included unless it proves to increase responses.Direct response advertising has proven itself to be an effective method throughout businesses in all countries. The fundamentals of direct response are adaptable to any type of business in any type of media. Even though I primarily focus on print marketing, these concepts can be carried over to the web, television or radio too.If it’s not already obvious, here’s the difference.Institutionalized Vs Direct Response It’s not rocket science to work out which of these ads are going to pull more sales, but most people are oblivious to the fact that they even use institutionalized ads. They don’t know that there’s an alternative.With institutional ads, you just say who you are, what you do and how to get in touch. There is nothing special or unique about your ad. If you’re lucky the reader sees your ad, but they see it as a just another business advertisement. They are just like every other institutionalized ad – which essentially only says “This is my business, this is what I sell and this is how to get in contact with me”With direct-response ads, you are actually advertising a specific offer, with a straight forward, compelling and detailed message that answers the reader’s favorite question “what’s in it for me?” A direct response advert not only attracts the reader to the offer, it actually motivates the reader to order now or to fill in the coupon or give you a call. This is what is often referred to as a “call to action”. You actually ask your prospect what to do.Direct Response Breakdown An effective direct response ad can be broken down into two main parts:• The Offer
• The CompositionIn order for an ad to succeed, it must be solid in both these areas.If you have an amazing offer and a weak composition – very few people will notice, let alone read your ad and learn about the great offer. Alternatively, an ad that is composed according to the successful principles of direct response marketing, but only has an average offer will get read, but the readers won’t have sufficient reason to respond because of your weak offer.You need to have an advertisement with a good offer. It needs to have value to the reader. As long as the ad is composed using the following components, you will see amazing response rates.
There is a step by step sequence that has been proven to work time and time again for the past 100 years:• You make a specific promise and/or offer
• You present your features and benefits
• You prove that you can deliver using social proof
• You remove risk using a guarantee
• You appeal to their emotions
• And you ask for an action.That is essentially all there is to it. These response-generating, money-making strategies have proved themselves to be more efficient than any other method of advertising. When you apply these strategies to your ads, you will notice a dramatic increase in responses.The beauty is that you do not have to spend a cent more on advertising. All you’ll do it use your current budget and change your current institutionalized ads into direct response ads. You’ll see an amazing change in the effectiveness of your advertising.

Few Deadly Sins of Automotive Marketing

The boom for an Automotive Industry has always been drastically increasing. This makes you to think the ways and means to attract customers with the latest and innovative marketing techniques. So, one of the great techniques is advertisement.Throwing money into this arena gets you remarkable fame in the market. At the same time, in order to market your business effectively and earn good profits, you need to be guided thoroughly for making resistant or strong dealerships. Basically there are five major pitfalls, you must be well aware and we will shed light on the same for you to increased profits by remaining stable in the market:1. Understand the meaning of marketing is null or illogical. Any marketing process should direct to sales. Every individual understand its meaning in their own terms or misguided by others. There is a drastic difference between sales and marketing. The word ‘sales’ meaning executing the product by understanding your customer requirements thoroughly and present them vibrantly with passion and make them to buy for its usage.It requires lot of passion, energy and enthusiasm to have a sales presentation whereas, marketing lays the foundation for pre-selling and placing you to sell the product. The success of selling the product depends on your demonstration to make it clear about the features or explaining them about the product.2. Lack of having an effective marketing strategy. The goal with any strategy will not give you success. Any job in order to do it productively and fruitfully, you must have a proper plan and well aware of reaching to achieve it. Marketing strategy is not just a spray and pray, you must aim for some result or outcome. Otherwise the efforts become vain.It must be situational and it has to be changed as blog reviews and when required. It’s like a melodious and harmonious score, as the stage is set with the beautiful tones and mood.Think the ways to integrate some direct or education based strategies to get the best results and get the desired profits.All the above are the few deadly sins of automotive marketing. If you want more information on this issue then you can search various websites based on this topic. You can find the websites link from the automotive blog reviews.