All About Internet Web Ad Industry

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Technological development has not only changed the life of a mankind, but also the advertising strategies. In fact, while it allowed a slow death of the printing media, it allowed grooming of a new baby, the Internet media, in the last one decade. This has totally put behind the commercials and print ads that dominated advertising during the preceding century.

Loss In Print

As a result of advertisers moving towards digital media, Gannett Co., Inc. (NYSE:GCI) predicted a loss of over $1 billion in advertising by the newspaper industry in 2013. This represented 5.3% drop from the preceding year period. This was primarily due to shift in digital, as well as, web-based advertisements from the printing ads.

In the last few years, online marketing has witnessed significant growth and continued to expand a number of tools to enable reach consumers through the net. To name a few in the online marketing, there are social media marketing, search engine optimization, and mobile advertising. There are different ways of Internet advertising to maximize sales. However, it was important for advertisers and companies to reach the biggest rank of search queries within Google Inc (NASDAQ:GOOGL). The search engine has established AdWords and AdSense as part of their marketing tactics for advertisers to use.

Revenue

Google generates a big portion of its revenue from advertising. Both AdWords and AdSense together delivered revenue of $50 billion in 2013. This meant nearly 88% of its total revenue of $57 billion.

Following the success of Facebook Inc (NASDAQ:FB), Twitter Inc (NYSE:TWTR), advertising in social media assumed greater importance. It can be measured by either engagement or impressions by the number of times an ad is seen whether it was clicked or not.

The entry of smartphone has completely changed the way of mobile advertising. It has become the most cost effective channel for the advertisers. In 2013, ad revenue from Internet exceeded $42.8 billion representing YOY growth of 17%.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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