Internet Advertising Business

With a history running back to 400 BC, advertising plays a significant role in the increasingly competitive business world. Advertising is one of the most effective marketing tools used to attract prospective customers to a particular product or service. The impact of advertising is so significant on modern day customers, that the level of advertising of a particular product or service greatly determines the firms market position and even its long term existence.

On the other hand technology plays an imperative role in the 21st century. The use of technology is not limited to a particular field or event,  instead the benefits of technology are being widely employed in all fields. One such field is the field of business and enterprises. The role of technology in today’s business world has become crucial to keep up with increasingly competitive pressures.

With the rapid growth in internet usage around the world, firms have grasped opportunities of catering to customer needs and retaining them in the market at low costs. One such opportunity arose with the introduction of internet advertising.

Internet advertising is a concept which was born with the introduction of the World Wide Web. The World Wide Web was introduced in 1991 by CERN in Switzerland. Thus since its inception the popularity of internet advertising business has been growing exponentially.

As stated above, internet advertising business is a marketing tool which involves the internet and World Wide Web. Examples of internet advertising business include search engine result pages, social network advertising, online banners, emails etc.

Internet advertising business comprises of five main types. The first being email advertising which involves marketing through emails which is some consider as spam. The second is affiliated marketing which is the concept of placing advertising campaigns on a large number of publishers. The payment involved in this type of internet advertising business is the payment made to the publisher once traffic is built to the advertiser through the affiliated site. Contextual advertising is the third form of internet advertising business. In simple terms this method of internet advertising business involves displaying advertisements correspondent to the keywords on internet search sites. Compared to the types above, contextual advertising is expected to generate higher effectiveness due to its higher ability to attract specific target customers. The last type of internet advertising business is behavioral targeting. This method uses users past click streams to identify target customers to advertise to.

One of the main advantages of internet advertising business is that it does not limit advertising through geographic boundaries or time limits. Moreover benefits of costs and efficiency have also popularized the concept of internet advertising business. Therefore it is implicit that the internet advertising business is of growing importance and its contribution to the business world has become vital to gain competitive advantages.

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Question by Jkaplan: Internet advertising and business question?
My friend and I are thinking about starting up a website. The topic we have in mind is camping in New Hampshire. He has more experience with it than I do. We would probably give information and reviews about camp sites, attractions, and tips for camping in New Hampshire. The market in New Hampshire is relatively small as it is a small state, but per capita there are definitely a lot of people interested in camping here. If the site became successful we would consider expanding to other states.

Now my question is this: I’m looking at this from a business perspective. Our target market is pretty small compared to other websites, but we expect people from other New England states who vacation in New Hampshire would also visit our site. What I want to know is how much could we expect to make in advertising money per month. How much would we make when we’re just starting our, and how much when we’re established and have a good user base? I’m new to the internet business, and I’m also wondering do sites like this ever recieve offers from other companies or individuals to sell? If so how much would a site like this sell for once it is established? I understand the value of both advertising and the site are subject to about a million factors, but a rough estimate would be nice. Unfortunately I can’t really give you an estimate of the number of users we would have to base your numbers off of. Thanks.

Best answer:

Answer by Jason O
It’s going to be very difficult to answer your question because, as you said, there are a million different factors here.

The main things that will determine if you make money is the amount of qualified traffic visiting your site, what you’re advertising, and making your site user friendly.

I personally would recommend have a very prominent sign up box on your site. Offer a free guide to camping in New Hampshire (or something along that line), to make people want to sign up to your list.

This way you are building a list of people that you can market to through email. That way you’re not only dependent on new visitors to your site.

As far as the money you can make from a website like this. It depends greatly. I think it could make some pretty decent money but getting started and tweaking things along the way is the only way you’ll know for sure.

And yes, if you have a profitable site, people would be willing to buy it.

I hope that helps a bit. It would take hours to discuss the ins and outs of all your questions but hopefully this might give you some ideas.

All the best,

Know better? Leave your own answer in the comments!

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