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Aug 14

TV advertising vs. Internet Advertising

The internet presents a whole new arena for marketing.

TV advertising Senior SalesA herd of new businesses from Google which is the world’s most effective online advertising tool masked as a search engine tool to tiny start up companies in the Silicon Valley are selling new advertising tools to advertising companies. They come in myriad forms but they have one common purpose. They wish to replace the traditional form of advertising. In the traditional form of advertising, advertisers paid to expose an audience to their message. In the newer forms of advertising, advertisers only pay for measurable results. Internet advertisers pay only if a customer clicks on a link, shares a video, makes a call, prints a coupon or purchases a product. A good example would be advertising on televisions where advertisers pay for 30 second spots. Independent survey companies like Nielsen estimate the number of TV sets which are tuned in to a particular channel at any given time. Advertisers then pay the rate based on a cost per thousand viewers.

The problem with this form of TV advertising it simply tuning a TV set to a channel does not guarantee viewership.
The viewers may have left for a cup of coffee, may have switched to a different channel during a commercial break on another, may be sleeping or on the telephone. The viewer’s age or interests may not even coincide with the message being shown on the channel. Some advertisers try to employ Segmentation by which they can target their messages to certain audiences based on their age, gender, interests etc but even then they would be blindly paying a CPM amount not knowing if the message is being viewed or not.

Instead, internet advertising models are more innovative. They let the viewer browse online and choose what they wish to see. Thus the user has the control to interact with what he finds online. For example; when a user uses a search engine to search for something, these keyword queries fetch sponsored links from advertising companies thus exposing the user to websites he would be interested in. In such cases, advertisers pay only for action; i.e. only when the user clicks on the sponsored link.

A similar concept is Google’s Adwords where links are placed next to search results.

The advertisers would be charged only for clicks and advertising is usually awarded through bids. Similarly, AdSense places sponsored internet advertising links or banner ads in WebPages, blogs and other websites where the owners agree to be part of Google’s advertising network. The popularity of this concept has caused other internet giants to also employ similar tactics of advertising. However, with Pay Per Click advertising, click fraud can be abundant. One can generate bogus clicks on a competitor’s website to make him pay for no real action. However, even with its flaws, Pay Per Click is much more efficient than traditional forms of advertising.

Based on such forms of advertising, Pay Per Print and Pay Per Call are upcoming forms of advertising. In Pay Per Call, search pages like AOL display toll free numbers which require the user to call. Pay Per Print displays coupons on search pages and websites, every time a coupon is printed, the advertiser pays the publisher. All these concepts culminate towards the final Cost Per Sale where regardless of the number of phone calls, clicks or prints, the publisher is only paid if these actions result in a sale or purchase of product/service.

With the internet proving to be successful in performance based advertising, its also helping in brand marketing.

But this also depends on the type of product being sold. Products like mortgage or auto insurance could completely be sold through performance based advertising. However for other products like cars, cosmetics, electronics, these would need branding as well. Even if customers shop for these products online, while searching for them through search pages, if sponsored links come up with known brands, they would get swayed by these tried and tested brands. Also, in the physical world, brands drive a lot of consumer decisions.

The craze of online advertising is now making its way into viral marketing. The idea is to present something that is so much fun that it will make its way into the circles by itself. People would email it to others, or display links on their websites and blogs. A successful viral campaign is one which gets produced and once sent out, is watched by millions. Because all this is new for the advertisers who have been marketing through traditional methods, advertising companies often try to educate themselves and their employees.