Gone are the days when print and broadcast advertising dominated the marketing business, and when only giant corporations had the ability to reach millions of people with their advertisements. Today, the ubiquity of the internet has lead to the rise of internet marketing in all its myriad forms.
Marketing on the internet is divided into a few major areas, the first of which is pay-per-click advertising. With this type of marketing, a company can create digital ads that are placed on websites. The company then pays the hosting website for the ad space based on the number of times that potential customers click on the ad.
The primary models for pay-per-click payment are flat-rate and bid-based. In flat-rate payment, the advertiser pays the host an agreed-upon fee each time the ad is clicked. In bid-based pay-per-click, the advertiser decides a priori upon a bid for ad space, and each time a visitor to the hosting web site opens a page, an automated auction decides which ad is placed in the space.
In contrast to buying ad space, search engine optimization seeks to drive traffic to a web site in an organic way by trying to increase the likelihood that the web site will appear high in the results whenever a web search is initiated on a search engine by a potential customer.
Search engine optimization attempts to combine aspects of how search engines work, how people use search engines to locate information, and specifically what people type into search engines in order to optimize the position within the results. This is achieved by making changes to the web site’s coding and content, and is typically contracted out to expert consultants (or in the case of larger companies, in-house web designers).
The third broad class of internet marketing is social media marketing. This is the most recent development in internet marketing, and perhaps the most powerful tool for smaller businesses to advertise themselves.
Social media marketing includes viral marketing (e.g., creating a video advertisement that “goes viral” on YouTube), promotional campaigns (e.g., offering coupons to customers who “Like” the company’s Facebook page or Twitter feed), and things like email newsletters.
While many types of internet marketing are designed to spread the word about a product far and wide (e.g., the social media marketing and search engine optimization previously described), the internet has also enabled companies to be much more targeted with their marketing models as well. For instance, the pay-per-click marketing described above is often combined with internet cookies (information stored on individual computers about browsing habits) to customize adds to the specific users. For instance, users of an online email service may notice that adds for online sports ticket sellers will start appearing on the sidebars of their email client after they send emails to their friends about sporting events.
Other examples of customized marketing include lead-based marketing, which resembles “old fashioned” real-world marketing in that online vendors develop relationships with existing customers (i.e., “leads”) to whom they can sell more products. Niche marketing targets specific interest groups. An example would be placing ads for telescopes on an astronomy website. Geo-targeting analyzes the physical location of the internet user, and tailors advertising to their geographic area. This is often seen in adds for dating websites that display information regarding singles in the area.
With so many options for internet marketing available, companies often choose to hire consultant firms to aid in the marketing process. However a company decides to engage in internet marketing, it is clear that advertising online has become a vital resource, especially for smaller businesses that would have struggled, in years gone by, to be seen by potential customers.
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