Online advertising refers to online marketing or Internet advertising. It is also a form of marketing and advertising used to deliver promotional marketing messages to consumers on the Internet. Online Advertising includes email marketing, search engine marketing (SEM), social media marketing, different types of display advertising (including web banner advertising) and mobile advertising etc. Online advertising also involves an advertiser and a publisher and advertising agencies, ad server and advertising affiliates etc.
Publisher integrates advertisements into its online content and the advertiser provides the advertisements to be displayed on the publisher’s content in the online advertising. Advertising agencies, an ad server and advertising affiliates are the other potential participants in online advertising.
Internet advertising revenues surpassed the advertising revenue of cable television and exceeded those of broadcast television also in the United States. Online advertising is widely used virtually in all industry sectors. It is observed that many common online advertising practices are controversial and increasingly subject to regulation. Online ad revenues may not adequately replace other publishers’ revenue streams. Some of the ad publishers undisclosed their content behind pay walls due to decline in ad revenue in the recent years.
History of Online Advertising
Online advertising was prohibited in the early days of the Internet discovery. For example, ARPANET and NSFNet, the predecessor networks to the Internet, had banned the network usage for commercial activities and profits by agencies or institutions. Online advertising was widely conducted via electronic mail or “Email” during the initial days of online advertising. Gary Thuerk, a marketer from DEC (Digital Equipment Corporation) sent an email to the ARPANET’s American west coast users, advertising an open house for a new model of a DEC computer on 3rd May 1978, which eventually became a “spam”.
Displaying ads in Online Advertising
Displaying ads and online banner advertising started in the early 1990’s as web page owners sought additional revenue streams to support their content. The first clickable web ad was sold by Global Network Navigator to a law firm in the year 1994. The first web banner advertising made through AT&T ad on Hot Wired, an online magazine had a 44% click-through rate, which directed the clickers to an online tour of art museums instead of directing to AT&T’s website. Similarly the first known large-scale non-commercial spam message was sent by a system administrator worked in Andrews University on 18 January 1994.
Search ads in Online Advertising
The first search advertising keyword auction was created by Go To.com in the year 1998. Later Google launched its “Ad Words” search advertising program in the year 2000. Similarly Quality-based ranking allocation was introduced by Google in the year 2002.
Recent trends in Online Advertising
Many companies have recently sought to merge their advertising messages into editorial content or valuable services. Examples include Red Bull’s Red Bull Media House streaming Felix Baumgartner’s jump from space online, Coca-Cola’s online magazines, and Nike’s free applications for performance tracking etc. Online advertisers are embracing social media and mobile advertising from the year 2010.
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