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Impact of Digital Marketing?

The economics of Internet advertising are likely to make current business models obsolete. New capabilities will be required as creative production speeds up and becomes more closely integrated with marketing activity. A deep understanding of enabling technologies will become a prerequisite for fresh forms of advertising.
Our views on the evolution of Internet advertising and its impact on traditional marketing may seem provocative to some, premature to others. But the intriguing marketing experiments taking place on and off the Internet suggest it is time for consumer marketers to begin looking to networks for new ways of thinking about the marketing theories and approaches on which they have long relied—and to begin capturing the lessons Internet advertising holds for all their advertising practices, online and conventional.Looking at today’s Internet advertising to predict what tomorrow will bring is about as helpful as using a rear-view mirror to watch the road ahead. But a point of view about what online advertising will look like in three to five years’ time can and should influence current management decisions about how to invest marketing communication dollars on the Internet. A number of fundamental forces are currently reshaping Internet advertising: the near-daily emergence of new technologies that improve measurement, targeting, and data interpretation; the strenuous efforts of primarily entrepreneurial marketers to make business use of the Web; and the establishment of patterns in consumers’ use of these new interactive networks. Thanks to the impact of these forces, tomorrow’s ads will differ from today’s in the shape they take, in the metrics available for gauging their effectiveness, and in the pricing structure that governs their purchase and sale.

The first and most obvious change in advertising will be in what consumers see on their screens. Ads are likely to change in terms of their content, the type of customization they employ, and their delivery to the consumer.

Second, ads will be customized on the basis of information voluntarily provided by users. The key to making this approach work will be to overcome consumers’ desire for privacy or anonymity by offering them rewards for personal details in the form of special information, discounts, or promotions. On ParentTime, for example, users who enter the ages of their children receive relevant care information as well as Pampers ads geared to those age groups. Experience suggests that consumers are willing to release information about themselves as long as they are the prime beneficiaries.

As online advertising develops, advertisers will discover that the Internet is the only medium that can deliver certain types of message, such as multisensory and interactive ads. These new forms will allow advertisers to achieve several objectives—some of them unattainable via conventional media—simultaneously (Exhibit 1). They are likely to make Internet advertising more important in the overall marketing mix as marketers capitalize on their unique capabilities. At the same time, our glimpse of the emerging future casts doubt on the merit of current heavy investments in big brand sites that require content to be “pulled,” or in banner ads that—like most on the Internet today—merely replicate the forms of advertising that exist in the physical world.

Whereas marketers tend to have fairly uniform objectives in traditional media, such as shaping attitudes in television or obtaining responses in direct mail, the Internet, as we have seen, allows them to pursue several different goals simultaneously. In the same way, the standard types of pricing used in traditional media, such as CPM (the cost of exposing a message to a thousand viewers of TV or readers of print), will give way on the Internet to pricing that varies as widely as the objectives of the ads themselves. Indeed, the technology can support several pricing mechanisms at once: pay per click-through, lead, transaction, dollar spend, or conventional CPM. This kind of variegated pricing is already appearing in the marketplace: P&G has pushed for pricing per click-through; CD Now pays Web sites commissions on the transactions they generate; and Destination Florida pays according to leads generated. Similarly, DoubleClick is introducing an advertising network, DoubleClick Direct, whose rates are based on results, and has already signed up clients including Alta Vista and GTE’s Internet service.

Because of these factors, pricing for Internet advertising is likely to be multi-tiered, based on results, and tied to marketers’ objectives. At least three pricing mechanisms will coexist: pricing by exposure, response, and action

First, new ways of advertising on line will inspire new creative approaches elsewhere. Second, the Internet will prompt marketers to reevaluate their use of traditional media. Third, Internet advertising will help marketers to improve their understanding of consumers’ needs, preferences, and product usage. Finally, once marketers get a taste for the measurability of Internet ads and the tailored pricing it enables, their expectations of the effectiveness and measurability of other media will rise.

 

About the Author

Myself, Prof Soum Suvra Das, currently working with MAEER’s MIT College of Management and working as a Lecturer. My specializations are Marketing and Retail.

I am starting my new journey of life by writing articles and give more knowledge to the persons interested.

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Rethinking Marketing by Schindehutte, Minet; Morris, Michael; Pitt, Leyland Edition ILL, 1 $40.99 This book rethinks the basic building blocks of marketing with an entrepreneurial perspective. Asks questions suing a “what if?” compass in which the emphasis is on asking the right questions, rather than finding the right answers. For entrepreneurs looking to make sense of the many new contributions that have redefined marketing.  

Marketing That Works by Lodish, Leonard M. Morgan, Howard L. Archambeau, Shellye Edition , 1 $25.49 The principles and insights outlined in this highly engaging book have been invaluable to me in leading the marketing efforts at Victoria’s Secret Stores as well as on several P&G brands. —Jill Beraud, Executive Vice President, Marketing/Limited Brands and Victoria’s Secret   Differentiate yourself more effectively, protect yourself against competition, and drive higher margins   Bring entrepreneurial power to distribution, sales management, PR, promotion, advertising, and more   For marketers in every kind of company, from startup to global enterprise   Focus your marketing on what really works—and make the most of every marketing investment!   Marketing That Works introduces breakthrough marketing tools, tactics, and strategies for differentiating yourself around key competencies, insulating against competitive pressures, and driving higher, more sustainable profits.   From pricing to PR, advertising to viral marketing, this book’s techniques are relentlessly entrepreneurial: designed to deliver results fast, with limited financial resources and staff support. They draw on the authors’ decades of research and consulting, their cutting-edge work in   Wharton’s legendary Entrepreneurial Marketing classes, and their exclusive new survey of the Inc. 500’s fastest-growing companies. Whether you’re launching a startup or working inside a huge global enterprise, this will help you optimize every marketing investment you make. You’ll learn how to target the right customer, deliver the right added value, and make sure your customers will pay a premium for it—now, and for years to come.   Build the foundation for extraordinary profit Discover faster, smarter techniques for positioning, targeting, and segmentation   Drive entrepreneurial attitude throughout all your marketing functions Master entrepreneurial pricing, advertising, sales management, promotion—and even hiring   Maximize the value of all your stakeholder relationships Profit by marketing to investors, intermediaries, employees, partners, and users   Generate, screen, and develop better product ideas Engage combat on the right battlefields   Launch new products to maximize their lifetime profitability Stage the winning rollout: from fixing bugs to gaining reference accounts   Every dime you spend on marketing needs to work harder, smarter, faster. Every dime must differentiate your company based on your most valuable competencies. Every dime must protect you against competitors and commoditization. Every dime must drive higher profits this quarter, and help sustain profitability far into the future.   Are your marketing investments doing all that? If not, get Marketing That Works—and read it today.   Includes online access to state-of-the-art marketing allocation software!   ABOUT THE AUTHORS Le

Maximum Marketing, Minimum Dollars by Gordon, Kim T. Edition , 0 $13.99 Ask small-business owners to name their number one goal, and they’ll tell you their chief priority is to increase sales. The trouble is, while entrepreneurs are often terrific at their core businesses, most have little or no marketing experience or know-how. In fact, the U.S. Small Business Administration confirms the two biggest reasons for small business failure are lack of effective marketing programs and undercapitalization.In Maximum Marketing, Minimum Dollars, small business marketing expert Kim T. Gordon reveals a wealth of new twists on tried-and-true marketing methods. Gordon, whose friendly, sage advice counsels three million business owners monthly in Entrepreneur magazine, here leads readers step-by-step through 50 innovative, affordable tactics to generate sales.Maximum Marketing, Minimum Dollars addresses every element of small-business marketing—from creating an online marketing program and winning referrals to forging alliances and establishing a public relations program. Gordon tells the marketing success stories of small businesses nationwide to demonstrate how to fuel business growth using aggressive, targeted, but inexpensive methods.Maximum Marketing, Minimum Dollars reveals the marketing lessons essential to entrepreneurial success.HighlightsSmall-business owners and entrepreneurs will learn how to:• Implement powerful marketing tactics while staying on budget.• Identify the right market niches and conduct customer research.• Leverage the marriage of marketing and new technology—email lists, Web sites, and online public relations. • Reinvent traditional tactics such as trade magazine, radio, and TV advertising. • Combine sales and marketing for a low-cost one-two punch.

Entrepreneurial Finance, 2nd Edition $143.49 In finance, it’s all about smart decisions. ENTREPRENEURIAL FINANCE closely follows the life-cycle of a financial firm and shows you sound financial management practices that will enable you to run and grow your business venture. By introducing the theories, knowledge, and financial tools needed by an entrepreneur in starting his or her own business, ENTREPRENEURIAL FINANCE gives you the information you need to succeed. And because it’s easy to understand and full of study tools, with ENTREPRENEURIAL FINANCE you’ll succeed in class as well.