Whether is it is a small to medium sized business, a large business, or even an enterprise level company you have to decide what your advertising budget is and what percentage of it should go to online advertising.
Business Norms are that approximately 7% of the advertising budget goes to online advertising, even though about 11% of all businesses sales come from internet advertising.
In the year 2008 alone over $23.4 billion USD was spent on Internet advertising worldwide!
The leaders, at least in terms of dollars was the $46.3 billion was spent on television ads then $38 billion was spent in newspaper ads.
Behind Internet $19.5 billion was spent in radio ads and $17 billion was spent in the yellow pages ads.
The top 3 avenues for advertising in 2008 were television, newspaper and the Internet.
So in just a decade online advertising has surpassed all but two types of advertising!
In Australia those trends hold true as well and often the country is very well connected with certain technologies and websites. For some sites like Facebook the penetration rate for Australia is much higher than the worldwide Internet industry norms and which now accepts advertising as well.
The current trends show that businesses spend a bit less on online advertising than they should and that it is one of the most effective ways to advertise.
And compared to other forms of advertising online advertising gives you much better feedback on whether the ad spend is actual working.
Remember the last time you put your ad in a magazine with 100,000 circulation? How many people looked at that ad? For how many seconds? Did they eventually buy?
Almost impossible to tell.
For whatever ad spends you buy in online advertising you should have website statistics installed so that you know exactly what is happening and to help us all decide if that ad spend should be done again.
Some businesses may have reason to focus much more than 11% of their ad spend on online advertising. Online E-commerce businesses, small businesses, professional services, and other niche or regional type businesses may see significantly better results from online advertising than any other ad spend.
There is the ability to focus your online ads to the demographic market and the geographic region that your most likely customer base is. That is quite difficult with some methods of advertising and also is changeable with just a few clicks.
Now that we have talked about some of the reasons why online advertising is so effective and growing let’s now talk about some ways that it can be done. And we will talk about some of the best practices in online advertising.
