Digital Media and Online Advertisement – A Giant has awakened

Throughout the brief history of Internet, expectations have run high for it to “Change everything”.

Online advertising is a form of promotion that uses the Internet and World Wide Web for the expressed purpose of delivering marketing messages to attract customers. Examples of online advertising include contextual ads on search engine results pages, banner ads, Rich Media Ads, Social network advertising, online classified advertising, advertising networks and e-mail marketing, including e-mail spam.

Online Advertise is poised to boom:

Companies are moving online across the spectrum of marketing activities from building awareness to after-sales service, and they see online tools as an important and effective component of their marketing strategies. Companies use the web to reach customers throughout the decision making process. The expectation is that by 2010, a majority of their customers to discover new products or services online and a third to purchase goods there. Online ads to be as useful for brand building as for direct response. Spending is expected to increase on all types of online advertising vehicles over the next three years.

Advertisers will shift budget online for several reasons. For example, online users continue to use search engines to perform product research, which encourages retailers and marketers to increase search budgets. Also, brand advertisers have more opportunities to create engaging campaigns because most sites now support rich media and video. Finally, online advertising is incredibly measurable because performance can be proven.

The portals and agencies have placed on online advertising in the past years set the stage for a roaring comeback. For an insight: Google bought DoubleClick for $3.1 billion; Yahoo! Weighed in with $680 million for Right Media and Microsoft’s topped everyone with its $6 billion purchase of aQuantive.

US Online Advertising:

US online advertising forecast 2008 - 2010 Ad spending is growing in the midst of major changes in the online ad market. The market analysis states that ad spending will increase to $35.4 billion in 2012. Search advertising will increase at a 12 percent compound annual growth rate (CAGR) and display advertising at a 13 percent CAGR from 2007 to 2012. Major drivers of ad spending change include explosive display inventory growth, increased paid click volume, and improved targeting technology.

Technologies make it easier:

 Technologies today help marketers deploy and measure the results of advertisements. Some key examples: Behavioral ad network which processes volumes of behavioral data across sites, Yahoo! measures the referral value of a display ad on other display or search ads, and Vibrant Media and MSN can hyperlink ads into online text or video. Agencies like MediaMath; and online ad exchanges from Right Media, AdECN, and DoubleClick all push each other to improve and simplify the interactive advertising tool set. Ebusinessware is effectively involved with MediaMath LLC – “The Digital Media Trading experts” and we are collaboratively working together to build a media-trading platform, which will help the in house traders to target and manage the ads, and monitor the performance. In addition to this we are on the process of delivering high performance warehouse solutions for data management / operations.

It’s still an emerging domain, but there’s no doubt that it’s here to stay and will continue to get more influence in the marketplace and will continue to evolve.