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ADVANCED TOPICS Marketing and Advertizing on the Internet |
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WHY ARE BUSINESSES INTERESTED IN THE INTERNET? The Internet has become a hot spot in the world of marketing because of its rapidly expanding consumer base. Corporate leaders have been concentrating on using this new medium for the purpose of marketing because of the 'huge potential of customers and consumers' that is characteristic of this "beast" . It is for this reason that businesses are scrambling to get on the web and trying to attract the attention of a vast clientele that holds great marketing prospects. However, corporate circles are also finding it difficult to strategize for this business opportunity because the volatile nature of the Internet makes it very unpredictable and hence very difficult to keep up with: 'In order to successfully cultivate online market share, companies are compelled to design marketing strategies specifically for the information highway.' This confusion regarding the prospects that the Internet holds for the future is reflected in the discrepancy in statistics about the Internet's future as quoted by various research groups. For example figures for the revenue generated by Net transactions by the year 2000 vary from $1 billion to $5 trillion. |
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AT WHAT RATE HAS BUSINESS INVOLVEMENT IN THE INTERNET EXPANDED? Despite the slow initial momentum that is generally considered to be the case at present, 'the prospect of (reaching out to) millions of bright, well-educated, upwardly mobile people' that make up the Internet's users has caught the attention of many businesses. For example, by November 1995 the number of web sites was doubling every 2.5 months. At this rate this figure would have reached 25 million by the end of 1997. Online revenues from merchants totaled $20 million in 1994 and are expected t o shoot up to $6.5 billion by the year 2000 Similarly, revenues form Net transactions totaled $20 million in 1994, with estimates taking the figure up to $5 trillion by the end of the millennium despite the fact that there has been confusion and skepticism about online commerce from both businesses and consumers; Some businesses have been too flabbergasted by the competition while consumers have had security concerns and in general not trusted business on the Internet. Gauging from the impressive progress of commerce on the Internet in the recent years, it would be quite reasonable to say that business on the Internet is expected to grow in scale and efficiency. This would result in a more competitive marketing trend on the Internet . |
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HOW HAVE BUSINESSES CHANGED THE INTERNET? Positive marketing trends on the Internet help bring about an environment in cyberspace where Internet services supported by advertisements are offered for free to Internet users. A successful case in hand is Juno , the email service which provides free email accounts to anyone who wishes to have one. Juno uses its consumer base to attract money from advertisers who are interested in advertising to Juno's subscribers. Hence an example of the way marketing through advertisement on the Internet leads to equality in Internet access. This trend is one which brings us closer to the concept of the Internet as an information medium which is available to everyone as a source of learning and exposure. This access extends to all Internet users across the globe rather than just those in the United States since 'communication costs on the Internet are independent of distance (and which) suggests that, in the long run, global opportunities will be more important than domestic opportunities.' A positive trend is reflected in the increasing amounts that advertisers have been spending in the recent years. This amount jumped from $43 million in 1995 to $343 by 1996, increasing at a rate of $22 million a quarter. |
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