Monday, August 3, 2009

Advertising Online - A Guide to Successful Market Penetration Part One: Why Internet Advertising

Online advertising in the past year has proven to be no longer an option, but a requirement. With billions of pages on the web, companies are increasingly feeling the pressure to advertise online to bolster corporate presence, B2B and B2C revenues and to also turn their websites into sources for acquiring client information. Indeed, statistics show that more and more business is being conducted online, and a recent study conducted from Ernst and Young reveals that 74% of Americans purchased online in the last year.

Accordingly, of all Internet users in the US, 94% of them query search engines to find information on the Web (Nielson-Net Ratings). Even more appealing is the fact that 81% of people querying search engines find the information every time they search (NPD). Considering these numbers and how relatively inexpensive and risk free Internet advertising is compared to other types of traditional media, it is a wonder why more businesses are not optimizing their sites on search engines (aka SEO � Search Engine Optimization) to bolster online presence.

This is Part One of a three-part article on successful online advertising.

Part Two will discuss Search Engine Strategies.

Part Three will cover Geographical Targeting and Fraud Prevention Programs. 

Reaching the ever-increasing number of online users is critical to complementing your offline advertising efforts as well as establishing your corporate presence on the net. Corporate websites should be information rich for both returning users and new users. They should also be a platform for your company's values and offering. Attracting your clients, or potential business partners to your website is therefore the key to not only forging long-term relationships, but also bolstering online sales.

CEOs and marketing directors need to acknowledge the power of search engine marketing. It's one of the most cost-effective marketing tools available, yet most companies spend little on search engine optimization. In a recent study from Marketing Sherpa, "more than 90 percent of the Fortune 100's websites not optimized properly". This is a striking statistic when considering that next to email, search engines are the most widely used application on the Internet (Market Leap).

A fully integrated marketing campaign should therefore include aggressive Internet advertising, which consists of listings on search engines, portals, directories and banners on strategic portals and large sites. Most importantly, listing your site on search engines with a broad reach is important to expose your product and/or services. Search engines will provide the technology to bring your corporation to people who are actively looking for your solution. And since over 80% of web site traffic is guided by search engines (Forrester Research), the question remains: how do you use search engines effectively in order to draw clients, partners and industry experts to your site?

To support online initiatives, listing and ranking high on search engines is a critical step towards garnishing success. In the industry, the top 10 results receive approximately 80% more traffic than those in positions 11-30 (I search). Now, how do you achieve that top rank?

There are various ways to approach getting top listing with the large search properties. Some sites use specific keywords and phrases to allow large indexing engines to recognize the validity of the site to the users, some also purchase relevant keywords and phrases from content suppliers who feed this information to the large search properties. Most of these content suppliers charge per referral.

There are many different types of pricing structures, the two most popular being bidding and CPC. The later version charges only when a user clicks on the search result (CPC- Cost per Click- Model), and redirects the user to your site. There is little risk in comparison to traditional advertising media, which charges strictly on demographics, circulation, and the likelihood of how many people will see or hear your message. Paying a content supplier on a "cost per click" referral is akin to having someone deliver a bus load of people to your store and charging you pennies for every potential customer who steps through the door. In this scenario, even if two people purchase, you will have been successful in your online marketing efforts. 


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