Nearly two decades ago when first display ad appeared on the computer screen, the Internet became one of the most promising source of reaching the wide target audience precisely .It paved the way for effectively measuring the impact of ads. Today online advertising captures significant portion of budget out of the total advertising budget set by any organization. It therefore carries strategic importance in the success of any business in industry. There are several ways in which online advertising can be accomplished successfully such as display, social network advertising and search engine marketing. Display advertising allows the use of web banners or banner ads to be placed on third party blog or website to drive traffic. This banner consist of images either in static or animated form. Moreover interactive media such as videos or audios are also used in order to attract attention. Display advertising uses cookies or user history to determine user interest, demographic and even location for targeting particular ads. The second most popular way of advertising is social network advertising. As the name refers, it is a form of advertising that uses social media as a platform for promotion. Search engine marketing (SEM) helps to promote website by increasing visibility in search engine result page. Extending this form of advertising, search engine optimization (SEO) allows website to rank high in the search result. With the advent of mobile users globally, the mobile platform based advertising has also gained momentum over the years. It is generally carried out via applications used by end-users.
The measurement of effectiveness of online advertising is utmost important for any firm. Tools such as web analytics helps an organization to collect and analyze data for the purpose of understanding and increasing the usage rate. The web analytics is bifurcated into two parts that includes on-site analytics and off-site analytics. The on-site analytics helps in analyzing the behavior of customer once they have accessed the website. It helps to gather information about customer navigation pattern, number of views each webpage receives and time spend by user on a particular website. Off-site analytics gives an extensive view about user source of web traffic so that the organization can focus on improving website traffic.
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The online advertising market is driven by growth of internet access and high speed broadband connection in developing economies, increasing budget allocation for online platform by organizations and changing consumer preferences. Currently, the consumers are spending more time online using a number of online media ranging from online news portal to online shopping sites which can be used for online advertising.
Conversely, extensive use of ad blockers in order to remove ad from the end user’s webpage is expected to affect the market in coming years. Despite several restraints, the market have several opportunities such as new social media platform for reaching the targeted customers and growing interest among consumers for online video streaming.
The online advertising market can be segmented on the basis of format such as display advertising, search engine marketing, mobile marketing, digital video advertising and Email marketing
Some of the key players in online advertising market are eBay, Inc., Google Inc., Twitter Inc., Pandora Media, Inc., Single Grain LLC, Yahoo! Inc., 6s Marketing, AOL, Inc., MobGen B.V., Microsoft Corporation, Hulu, LLC, Apple Inc., Blue Foundation Media and Facebook Inc.
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