Lastly, the most recent and one of the most effective means of online advertising and marketing is online video. It is common for anyone visiting a site to have an interruption for fifteen seconds as a video plays from a sponsor while the page loads. Whether people watch an online episode of their favorite television series or simply catch some of the highlights from the game last night, online videos consistently interrupt as a means to help the video provider offset costs and advertise their products in a quick and effective manner. With the growing popularity of online video marketing and the given, stable success of banner advertisement, banner videos are the fastest growing means of online advertising. What better suits a company than having a banner play video or animation for at least fifteen seconds? The growing popularity of video banners caused the formation for a group known as POOL. POOL is an organization of online marketers that regulate the format of online videos and banners. The need for reformation in the industry occurred due to the needs for marketing departments and online advertising organizations to have a single coding of online video in order to simplify production and use. Since the inception of POOL the only major question that arose from the online marketing sector of videos and video banners is whether to choose a pre-roll (one that is prior to sight or video), mid-roll (one that occurs during a video or site function), or post-roll (one that follows the viewing of a video or site). Most advertisers refuse to use a post-roll setup because the common occurrence of consumers is a lack of interest after viewing a site or video. Lloyds TSB Bank
Therefore, the most prevalent method is pre-roll, which accounted for almost 83% of online video advertising; however, over the past years, online sites such as Hulu and television stations (ABC, NBC, CBS, etc.) offer online viewing of complete television series episodes. Thus, the growing popularity of mid-roll advertisements increased in popularity. One example is the preroll and mid-roll advertisements of companies like Amazon.com during videos of Monty Python on
YouTube. According to Google, those advertisements helped surge the DVD sales of the British Comedy Group on Amazon.com by 23,000% (MacMillan, 2009).
Internet advertising is a major, growing area of marketing. While an economic recession is in effect, the sheer power of an online presence is still enough to amass billions in online advertising. The Internet is the most viable means of advertising. According to aPress Release on www.comscore.com, Americans conducted 18.6 billion search queries in January 2011. Google sites ranked first with 12 billion searches, followed by Yahoo! sites with 3.3 billion, and Microsoft sites pulling 2.4 billion. With 203 million Americans (70 percent of the population), accessing the Internet each month there is no other method of advertising capable of reaching such a diverse group of consumers. With its ability to offer video, banner, and other methods such as social marketing, the Internet reigns supreme in the marketing world. The only downfall to using an online marketing process is the discriminatory traits of online consumers. A company may have a terrific site full of bells and whistles, but if it does not load quickly or does not function properly, it has nothing. Research shows that 75 percent of users do not search beyond the first page of a site that does not deliver. Instead, consumers look elsewhere, thus taking their purchasing power with them (Gould, 2009).
The Internet is undoubtedly an increasing tool for consumers, especially those under the age of thirty (Grant, 2005). Therefore, in order to solidify a place in an online commerce world, companies must advance their marketing and advertising techniques to include an Internet heavy presence. United States online ad spending will post growth well above 20% again this year to reach nearly $40 billion. Proof of such realization comes from the projected amounts of spending by United States companies for online advertising, see Appendix(US online ad spending, 2012).
After discussing the research, there is one major nugget of information to pull from the literature. The Internet is here to stay and growing rapidly; however, there is one concern facing the online marketplace. The Internet works the same way as land on earth does. Companies purchase their piece of cyberspace to display themselves. With the growing number of online domain applicants, the amount of Internet names such as Amazon.com or Google.com is shrinking. Thus, the new aspect of name or brand association for the Internet is allowing gTLDs. Instead of typing www.amazon.com to access Amazon, the gTLD allows the use of new addresses such as .Amazon. This is a viable solution to the growing concern of the lack of online addresses available. In addition, gTLDs prove better brand association addresses than traditional URLs. The purchase of a gTLD occurs in rounds on a limited basis until another possible marketing strategy exists; however, the downfall is that gTLDs have a preliminary cost of $185,000. The question remains, is it worth the amount of money to have an address such as .coke or would traditional means suffice, especially in the crowded Web (Sisun, 2009)?
Considering all of the literature found, there are some major issues that arise out of the midst of praise of how the Internet redefines the marketing strategies of companies. With the slimming Internet domain and the growing abilities of consumers to find out any possible information about a product or service via the Internet, one might be skeptical of the Internet as a means of marketing and advertising.
Many believe that the Internet has too many controversial transactions and limited areas of consumer retention amongst the easily entered marketplace.