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Why is Online Advertising Necessary for Offline Businesses

Business world and the digital age:

We are living in a world which is increasingly becoming digitalized day by day. With the arrival of internet much of the information now is present in the forms of bits and bytes. Internet acts as a data stream which receives and delivers information at a high speed in a more efficient manner. This revolution of technology has more or less turned our world into a ‘web world’.

In this era of cyberspace many people prefer buying online because online transactions are easier and fast, so the companies and the brands also have to change their ways to win this business race in intense competitive environment. These companies and brands have to reach out to the consumers too in a manner which is both reliable and effective to serve the customer’s needs. This two way flow of business information gave rise to online business, which is also called ‘e-business’.

“E-business involves the use of electronic platforms, such as intranets, extranets, and the internet to conduct a company’s business”. (Philip Kotler and Gary Armstrong 2003, p.74)

Online advertising:

E-business gave rise to a marketing phenomenon ‘online advertising’. Online advertising refers to promotion of a product on the internet using various internet features. Kotler and Armstrong (2003,p.89) defines online advertising as the advertising which is visible to the consumer while they are browsing the web and this type of advertising mainly includes banner and ticker ads, interstitials, sky scrapers and other forms.

Need for online advertising:

When the brands and the companies went online, they felt a need for advertising their products in the wired world. This gave rise to online advertising or e-advertising. The basic motive behind online advertising of any company is to become global and attract more business. Advertising online offers a new dimension and a unique charm to the product which is an additive advantage.

How it works for offline businesses:

A question might arise in one’s mind that how and why a car company located in Japan would like to reach to a person in a Middle Eastern country? Well, the answer is quite simple, for why we could say ‘more business’ and for how the answer is ‘online advertising. Online advertising offers many benefits to the offline businesses, such as

Monetary advantage:

Online advertising provides monetary gains to a business which it can’t gain locally. These financial benefits would ultimately lead to a more progressive business which is the dream of every single dweller of the corporate sector. Online advertising might just provide the chance to a local offline business to claim its share in the global market.

Wider recognition:

Online advertising provides an offline business a wide spectrum of recognition. If, an advertisement is posted on the billboard the amount of people noticing it would be way less than the people noticing an advertisement pasted on the internet that is because of more usage rate and also because no time limitations. By advertising online a local business company might just be a global brand one day.

More reach:

Online advertising produces a chance of world wide reach to a company. For an offline business it could offer it international outreach and diverse consumers. Philip R.Cateora and John L.Graham (2003, p.245) says “Internet cuts transaction costs and reduce economies of scale from vertical integration; it reduces the economically optimal size for firms. Lower transaction costs make it easier for companies to develop a global reach”.

High profitability and Security:

Online advertising provides a business with high profitability and makes it secure in competition of international marketing. A secure business is more beneficial and reliable and offers the owner much more satisfaction then an insecure one.

Conclusion:

The art of advertising is necessary for the survival of every business but if you want to succeed you would have to go a step ahead and that is ‘online advertising’. For an offline business it is necessary to make sure that they do not lag behind in this intense race so therefore they to make sure of their grounds in this competitive atmosphere, to fight they would need to advertise and to conquer they would need to advertise online.

About the Author

Creating and Capturing Customer Value (part 2)

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