Advantages
Internet marketing is relatively inexpensive. Companies can reach a wide audience for a small fraction of traditional advertising budgets. The nature of the medium allows consumers to research and purchase products and services at their own convenience: An internet marketing campaign puts an organization’s message in front of consumers precisely when they want it.
However, internet marketing isn’t a panacea. It still requires intelligent planning and careful execution. Emphasize business goals and use methods such as CVP analysis when determining strategy and the overall effectiveness of marketing campaigns.
There are a few important characteristics that differentiate Internet marketing from “off-line marketing”:
- One-to-one vs. one-to-many approach: The targeted user is typically browsing the Internet on their own, and the marketing messages reach them personally. This can be very clearly seen in search marketing, where the users find advertisements targeted to specific keywords that the users asked for(1).
- Demographics targeting vs. behavioral targeting: off-line marketers typically segment their markets according to age group, sex, geography, and other general factors. Online marketers have the luxury of targeting by activity. This is a deeper form of targeting, since the advertiser knows that the target audience are people who do a certain activity (upload pictures, have blogs, etc.) instead of just expecting that a certain group of people will like their new product or service.
- Measurability: Almost all aspects of an online campaign can be traced, measured, and tested. The advertisers either pay per banner impression (CPM), pay per click (PPC), or pay per action accomplished. Therefore, it is easy to understand which messages or offering are more appealing to the audience.
- Response and immediate results: Since the online marketing initiatives usually require users to click on the message, go to a website, and perform a targeted action, the results of campaigns are immediately measured and tracked. On the other hand, someone driving a car who sees a billboard, will at best be interested and might decide to get more information at some time More