An effective brand communication is the cornerstone of any company’s success. Especially with globalisation scaling new heights and competition in the marketplace reaching new levels, the whole game has now boiled down to “who communicates better?” There are many media such as television, newspapers and radio that companies have been using to advertise their products, but now that the whole world is going digital, the advertising space is also witnessing a shift.
Companies are now increasingly using online advertising for marketing and promotional campaigns. It is a form of advertising in which the internet is used to send across messages about a product, service or brand. People worldwide are now spending more and more time on the internet to communicate, socialise, gather news and information, and for entertainment. In order to take advantage of this huge audience, many companies are progressively increasing their marketing spends on online advertising. It’s a proven fact that online is now gaining bigger shares of the total advertising budgets of companies.
The reasons for the popularisation of online advertising are many. With many national economies witnessing downturn and while the overall economic scenario also not looking very promising; many companies have become more cost conscious than ever. Advertising costs take up the largest chunks of total costs in most of the companies operating in FMCG, telecom and many other sectors. To bring down these costs while still managing an effective line of communication, the companies have resorted to online advertising.
This is just one side of the story, apart from the monetary or economic benefits the online advertising offers many other benefits, which make it a lucrative deal for businesses. The biggest benefit of online advertising is its effectiveness, and an even bigger benefit is that this effectiveness can be measured. It is important that a company is able to calculate the success of their advertising efforts and also the consequential revenue that accrues. With online advertising, it is easier to measure how many viewers are being reached out by the advertisement and what is the success rate.
Another important benefit of online marketing is that it reaches out to the global audience. Advertisements telecasted on National television channels are able to reach out only to the audience of a specific country; on the other hand, the reach of online marketing is worldwide.
Also, online advertising can be targeted to a certain group of the audience, which is most likely to buy the product or service; this can never be achieved in traditional advertising. For example, a television commercial for baby diapers may interest only parents of small kids, but it reaches out even to youngsters and school kids. However, in online marketing, such ads can be placed on search result pages pertaining to topics about small kids, or on a website that sells baby products. That’s way the online advertising will reach out to the most appropriate set of the target audience that most likely to become customers.
The increasing popularity of search engines, social networking sites and email sites is making Online advertising even more lucrative and effective.