Advantages and Disadvantages of Advertising on the Internet

Here are a few tips on the advantages and disadvantages of advertising on the internet.

ADVANTAGES
One major benefit of online advertising is the immediate publishing of information and content to the entire world immediately.

Another benefit is the efficiency of advertiser's investment. Online advertising allows for the customization of advertisements, including content and posted websites. Such as AdWords, Yahoo! Search Marketing and AdSense enable ads shown on relevant webpages or aside of search results of pre-chosen keywords.

DISADVANTAGES
There are three problems with advertising in any form, whether broadcast or online:

■Consumers do not trust advertising. It is widely viewed that messages attributed to a commercial source have much lower credibility and much lower impact on the perception of product quality than the same message attributed to a rating service. Research has completed studies that show that advertising and company sponsored blogs are the least-trusted source of information on products and services, while recommendations from friends and online reviews from customers are the highest.

■Consumers do not want to view advertising. Think of watching network TV news and remember that the commercials on all the major networks are as closely synchronized as possible. Why? If network executives believed we all wanted to see the ads they would be staggered, so that users could channel surf to view the ads; ads are synchronized so that users cannot channel surf to avoid the ads.

■And mostly consumers do not need advertising. My own research suggests that consumers behave as if they get much of their information about product offerings from the internet, through independent professional rating sites.

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Demand till drives the price
Keyword trigger ads
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How Rate of Return (ROI) works
• $2 per 100 impressions
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