Wednesday, 29 July 2015

Strengths & Weaknesses of Advertising Online

Advertising on the Internet definitely has a number of positive attributes, such as the wide variety of budgets that can access this marketing medium as well as the massive readership base well-targeted online advertisement can reach. However, marketing as an online business tactic is not without its flaws, particularly due to fraudulent activity that mimics legitimate advertising traffic.

The Wide Reach of Internet Marketing
Facebook, the popular social networking website, boasts more than 500 million subscribed users. With such a massive captive audience, it quickly becomes clear how ads on Facebook and other similar social media sites can put a company's ad directly in front of a very targeted consumer audience. The level of personal information users choose to share freely with the public also dictates to an extent how closely ads can zero in to focus on their particular interests. Some consumers may find the notion of what they watch watching them understandably chilling, though the pattern for targeted marketing is already well-established, making such concerns largely moot. Less targeted platforms for Internet marketing, such as Google AdSense, expand the opportunity for online marketing to virtually every corner of the Internet, offering the chance to monetize virtually any sort of highly trafficked online content.

Online Advertising Fraud
In a spirit somewhat similar to the snake oil salesmen of a bygone era, online fraudsters try to manipulate people's needs into their own gain by creating computer programs to input fake ad clicks as a means of artificially manipulating ad revenue share payouts. The practice is widely considered black hat and arguably even fraudulent; however, for the most part, online advertising agencies police their own systems by removing repeat offenders from their services. The countermeasures relating to catching these online scam artists are exceedingly intricate and somewhat beyond the grasp of the average computer user, but the process starts by tracing the suspected fraudster's IP address.

Open-Ended Versus Direct-to-Merchant Website Ads
Open-ended advertising does a fine job of advertising a general company's brand name and is especially well-suited to products that do not lend themselves to online purchasing, such as automobiles and consumable grocery store products. Products with extended shelf lives, such as electronics, books and other media are better suited to drive traffic directly to their merchant website, resulting in actual sales. Tracking statistical software integrated directly into a business website can help merchants determine which ads are referring most customers, and of those referred customers, who among them are finalizing their purchases.

Overall Profitability Outlook
Virtually any business with an online merchant component stands to directly benefit in terms of profitability from a more in-depth online advertising campaign. However, it is important to research and verify the legitimacy of each possible ad agency, since some less reputable online advertising mediums are susceptible to fraudulent abuse.

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