The marketers are targeting customers through online advertisement because its easy to market through Internet. It is also found that people in US are spending more time online rather watching television. The marketing firms can measure their campaigns and can target the ad to the required customers.
Kelly group has estimated about 28% growth in online display, 26% growth in the text advertisement and it projected that online advertisement revenue will be $147 billion by 2012. It has predicted that the online advertisement from US alone will be around $22.5 billion to $62.4 billion. It has also estimated that the local advertisement to generate US$ 1.5 billion by 2012. Further, small businesses are expected to allocate 11.6% of their budgets to video advertisement by 2012.
Factors for growth of online advertising:
Many businesses are looking for effective strategies to reduce business costs by reducing operating costs in order to stay competitive and profitable. As online advertising requires low budget, it is being implemented by businesses to promote their products.
Changing from traditional advertisement to online advertisement:
In the past few years it is seen that a change took place in the form of advertising from traditional to internet marketing. News papers, magazines had fall in demand, while the online publications had increased demands through online advertisements. There is also growth seen in video and mobile advertisement as they reach maximum number of customers.
Apart from other factors, some other factors include change in consumer behavior and lifestyle.