What are the Advantages of Advertising on the Internet?
The introduction of online advertising has made it easy for businesses to run ad campaigns, target customers, determine what advertising efforts bring success and in return maximize their ad investments.
1. The ability to target desired consumers
- Online advertising has made it easy for businesses to put their ads in front of their targeted audiences, on the pages where they spend most of their time.
- Search Engine ad platforms are able to target specific sites where consumers might be. For example, an ad for a dog sitter may be placed on related sites like pet supply and pet food websites or a pet rescue website. This allows businesses to target the right audiences and put their ads in front of consumers with related interests.
- Facebook's ad platform has also made it possible to target specific audiences, with the ability to hyper-target an ad to include geographic area, marital status, age, income and hobbies of potential customers.
2. Advertising for any budget
- Online advertising is more cost-effective and affordable compared to other advertising formats.
- Businesses are able to set a budget for a campaign to be spent over a period of time or a daily budget to be spent each day of the ad campaign. Online advertising is flexible and allows businesses with a low budget to put up ads.
- Some ad platforms also allow businesses to set up test campaigns for as little as $5/per day.
- Note: Campaigns with larger budgets often receive preferential listings and see quicker results. However, campaigns with smaller budgets can still be effective with the ability to target audiences and track success.
3. Tracking and analytics
- Traditional forms of advertising (i.e tv, magazine) have no way of tracking performance or success of ads.
- Internet ads allow businesses to track their ad campaigns from start to finish.
- Internet ads allow businesses to track:
- How many times an ad was placed on a site or social media platform
- The number of people that saw the ad
- Click-through rate (CTR)
- How many time an ad was opened
- Web analytics can determine site sessions and conversions that were a result of the internet ads.
- Businesses can use CTR and conversions to fine tune their campaigns.
- For example:
- If your ad gets a lot of clicks, but no purchases - there may be a problem with your website. Consider: language, pricing, the look and feel of the site.
- If your ad gets few clicks, but everyone that clicks makes a purchase - you may want to consider testing out other ad layouts to see if other ad content can drive more traffic and as a result sales.
- For example:
4. Cost-effective split testing
- Split testing also known as A/B testing is the process of creating two different ad strategies and comparing the results (examining the result differences between ad A and ad B).
- The difference between the two ads could be
- A difference in style or format of the ad
- Different demographic groups or information
- Narrowed or expanded targeted customer information
For example: Ad A may target married couples between the age of 35 and 45 and Ad B may target married couples between the ages of 45 and 50. These two ads can be tested against each other to see which ad audience performs better.
- The difference between ad A and B may be very subtle. However, following analytics and performing split tests can help to ensure businesses target the right audiences and maximize their advertising dollars.
Online advertising platforms available include:
- Social media
- Search engine
- Website sponsorships