online marketing

1. Online marketing Submitted by: mandritaroy

2. Index Sr. no. topics 1 introduction 2 objectives 3 features 4 Types of online marketing 5 Business models 6 Cloud marketing 7 Internet marketing plan 8 Advantages & limitations 9 Social media marketing 10 Case study 1-barack Obama 11 Case study 2- dell computers 12 Analysis of growth of online marketing. 13 bibliography

3. Internet marketing, also known as digital marketing, web marketing, online marketing, search marketing or e-marketing, is the marketing (generally promotion) of products or services over the Internet.Online marketing is the marketing of products or services over the internet and it ties together creative and technical aspects of the Internet, including design, development, advertising and sale. Internet marketing is considered to be broad in scope because it not only refers to marketing on the Internet, but also includes marketing done via e-mail and wireless media. Digital customer data and electronic customer relationship management (ECRM) systems are also often grouped together under internet marketing. Internet marketing ties together the creative and technical aspects of the Internet, including design, development, advertising, and sales. Internet marketing also refers to the placement of media along many different stages of the customer engagement cycle through search engine marketing (SEM), search engine optimization (SEO), banner ads on specific websites, email marketing, mobile advertising, and Web 2.0 strategies. In 2008, The New York Times, working with ComScore, published an initial estimate to quantify the user data collected by large Internet-based companies. Counting four types of interactions with company websites in addition to the hits from advertisements served from advertising networks, the authors found that the potential for collecting data was up to 2,500 times per user per month. Objectives of Internet Marketing Advertising: As far as advertising on the Internet goes, all advertisements will serve to attract the user's attention and draw him to the company, which is advertising. Build brand awareness: Direct or indirect methods can be used on the websites to build brand awareness of the different brands of a company. This is where the Internet scores traditional media and methods as explained below. Stimulate direct action: Visitors to a company's web site should get involved with the offerings on the site. Valuable customer information can also be captured and tracked for future marketing initiatives. Promote its brands: Promotional give - away or contests generate excitement while simultaneously promoting your brands online, aiding off - line sale. Building a culture around its brands: This goes along with that company's traditional advertising. Surrogate advertising: This is another means of surrogate advertising of the company, where all forms of traditional advertising fail. Surrogate advertising can be proved to be positive in case of advertising on the Internet.

4. Features of Internet Marketing Advertising on the Internet has certain unique features that differentiate it from other forms of advertising. They are as follows: Member registration: Member registration is an efficient tool that is used by firms to create their database. Such a database may be used to design promotional campaigns. Allowing registered users to participate in various events can follow systems of free registration. Online opinion polls: Opinion polls are conducted to obtain the responses from users regarding the firms' products and services besides including topics of general interest. Newsletters: Regular newsletters are sent especially to registered users. These contain information about current updates on the site and activities being performed by the company. Contests and sweepstakes: Contests are useful in attracting new users to websites. They may be for simple things depending on the product or service being advertised. The prizes offered are in a wide range and usually have the logo of the company and the homepage address displayed prominently. Content: The content of the advertisement can be regularly updated with news regarding the activities of the firm. A fact-based section showing the manufacturing processes of a company may also be included. The use of multimedia tools can make this more interactive. E-cards: Users send free cards via e-mail from the site of the company advertising the product. The card prominently displays the logo or the baseline of the brand. The cards may be for different occasions such as birthdays, festivals, birthdays, etc. These cards are used to reinforce brand identity. Star endorsers of the brand may also be included in the picture postcard themes. Downloads: Downloads may include various utilities for the computer such as icons, desktop patterns, screensavers, themes, etc. Registered users get the opportunity of downloading software. Charts and other informative articles may also be included. Coupons: Coupons are used to promote sales off-line. Sending discount coupons for the products and services of the company on special occasions can do this.

5. Types of Internet Marketing E-mail advertising: Legitimate Email advertising or E-mail marketing is often known as "opt-in e-mail advertising" to distinguish it from spam. Display advertising: It is a type of advertising that typically contains text,logos, photographs or other images,location ,maps and similar items. In periodicals, display advertising can appear on the same page as, or on the page adjacent to, general editorial content. In contrast, classifiedadvertising generally appears in a distinct section, was traditionally text-only, and was available in a limited selection of typefaces. Display advertisements are not required to contain images, audio, or video. Textual advertisements are also used where text may be more appropriate or more effective. An example of textual advertisements is commercial messages sent to mobiledevice users, emails, etc.One common form of display advertising involves billboards. Affiliate Marketing: Affiliate marketing is a form of online advertising where advertisers place campaigns with a potentially large number of small (and large) publishers, whom are only paid media fees when traffic to the advertiser is garnered, and usually upon a specific measurable campaign result (a form, a sale, a sign-up, etc.). Today, this is usually accomplished through contracting with an affiliate network. The online retailer used its program to generate low costbrand exposure and provided at the same time small websites a way to earn some supplemental income.

6. Contextual advertising: Many advertising networks display graphical or text-only ads that correspond to the keywords of an Internet search or to the content of the page on which the ad is shown. These ads are believed to have a greater chance of attracting a user, because they tend to share a similar context as the user's search query. For example, a search query for "flowers" might return an advertisement for a florist's website. Another newer technique is embedding keyword hyperlinks in an article which are sponsored by an advertiser. When a user follows the link, they are sent to a sponsor's website. Behavioral targeting: In addition to contextual targeting, online advertising can be targeted based on a user's past click stream. For example, if a user is known to have recently visited a number of automotive shopping / comparison sites based on click stream analysis enabled by cookies stored on the user's computer, that user can then be served auto-related ads when they visit other, non-automotive sites. Pay per Click: Search engines place your website on their front page and you pay a set amount per click-through. Sites like Overture also run bids for certain keywords - the more you bid, the higher your site appears on the first page of the search results. Properly run, these campaigns can bring a lot of extra traffic to your website. Search Engine Optimization: This is an online advertising service provided by many web media companies. They will look at your target audience, your competitors and the keywords for your business and optimize your website content so that it has a much better chance of appearing on the first page of the search results. You will pay a fee to the consultants for this service. Studies have shown that many searchers prefer to use the "natural" listings provided by the search engines, rather than the paid-for listings. Sponsorships: Website sponsorship can come in two formats; regular sponsorship where the advertiser has a space to place the logo and company message, and content sponsorship where the advertiser has limited control and submits their own content to the site as well as having an advert on the page. These sponsorships will be for fixed periods, and need to be on targeted websites to reach the right audience. Online Directories: The online equivalent of Yellow Pages, or Industry Directories, these give you basic or enhanced listings on the website. Your details will come up if your sector, location or company name is searched for. Enhanced listings will allow users to click-through to your site. Online directory listings are often offered in conjunction with an entry in the printed version of the directory. Banner Ads: Banner advertising was the first kind of advertising ever done on the net. A banner can highlight your product/service/offer and by clicking on it the user will be taken to your website, where you can create a suitable landing page to provide his further information. Banner spaces are usually sold by impressions, or banner views, but it is sometimes sold by click-thru, when you pay only when the user clicks on the banner. Usually horizontal bars across the top of a web page, they offer color, graphics and often animation, together with the ability to click through to the advertiser's own website.

7. Pop-up Ads: These are the small windows that appear when you first get onto a website. Pop- ups appear on your screen in full, pop-downs appear on the bar at the bottom of your screen and you have to open them to get rid of them. Interstitial Adverts: These adverts sometimes referred to as Bridge Adverts, pop up as you move between pages on a site. You have no choice as to whether you view them or not, although you can close them down. Floating Ads: These ads appear when you first go to a webpage, and they "float" over the page for five to 30 seconds. While they are on the screen, they obscure your view of the page you are trying to read, and they often block mouse input as well. These ads appear each time that page is refreshed. Floating ads are popular for several reasons: They grab the viewer's attention and cannot be ignored. They are animated They have audio/video content like TV ads They can take up the entire screen, therefore from a branding standpoint, they are much more powerful than a banner ad or a sidebar ad They have a high click-through rate of about 3 percent However, many users get highly irritated because of these ads. Unicast Ads: A unicast ad is basically a TV commercial that runs in the browser window. It has enriched audio/video content. The ads can last anywhere from 10 to 30 seconds. These ads have similar branding power as a TV commercial. However, a unicast ad offers something that TV ads cannot -- the ability to click on the ad for more information. These ads are getting very effective, as the average click-through rate is 5%. Takeover Ads: Viewers visiting the website will see a large ad when they first come, and then the continuity is maintained by reiterating the same message throughout the site in the form of banners, side bars or buttons. The approach works very well for branding because the brand is visible to viewers throughout the visit to the site. Click-through rates are also high. Advertising industry: In addition to the major effect internet marketing has had on the technology industry, the effect on the advertising industry itself has been profound. In just a few years, online advertising has grown to be worth tens of billions of dollars annually. PricewaterhouseCoopers reported that US$16.9 billion was spent on Online marketing in the U.S. in 2006.This has caused a growing impact on the United States' electoral process. In 2008, candidates for President heavily utilized Internet marketing strategies to reach constituents. During the 2007 primaries candidates added, on average, over 500 social network supporters per day to help spread their message. President Barack Obama rose over US$1 million in one day during his extensive Democratic candidacy campaign, largely due to online donors. Several industries have heavily invested in and benefited from internet marketing and online advertising. Some of them were originally brick and mortar businesses such as publishing, music, automotive or gambling, while others have sprung up as purely online businesses, such as digital design and media, blogging, and internet service hosting.

8. Internet marketing is associated with several business models: E-commerce: a model whereby goods are sold directly to consumers (B2C), businesses (B2B), or from consumer to consumer (C2C). Lead-based websites: a strategy whereby an organization generates value by acquiring sales leads from its website. Similar to walk-in customers in retail world. These prospects are often referred to as organic leads. Affiliate Marketing: a process wherein a product or service developed by one entity is sold by other active sellers for a share of profits. The entity that owns the product may provide some marketing material (e.g., sales letters, affiliate links, tracking facilities, etc.); however, the vast majority of affiliate marketing relationships come from e- commerce businesses that offer affiliate programs. Flash Marketing: Its refers to messages that jump onto your screen and often move around. They can be hard to close andannoying, but effective to gain attention. Pay per click advertising refers to marketers paying to have their web pages placed high on search engine results pages. These are also called sponsored links. Local Internet marketing: a strategy through which a small company utilizes the Internet to find and to nurture relationships that can be used for real-world advantages. Local Internet marketing uses tools such as social media marketing, local directory listing, and targeted online sales promotions.

9. One-to-one approaches: In a one-to-one approach, marketers target a user browsing the Internet alone and so that the marketers' messages reach the user personally. This approach is used in search marketing, for which the advertisements are based on search engine keywords entered by the users. This approach usually works under the pay per click (PPC) method. Appeal to specific interests: When appealing to specific interests, marketers place an emphasis on appealing to a specific behavior or interest, rather than reaching out to a broadly defined demographic. These marketers typically segment their markets according to age group, gender, geography, and other general factors. Niche Marketing: Niche and hyper-niche internet marketing put further emphasis on creating destinations for web users and consumers on specific topics and products. Niche marketers differ from traditional Internet marketers as they have more specialized topic knowledge. For example, whereas in traditional Internet marketing a website would be created and promoted on a high-level topic such as kitchen appliances, niche marketing would focus on more specific topics such as 4-slice toasters. Niche marketing provides end users of such sites very targeted information, and allows the creators to establish themselves as authorities on the topic or product. Geo-targeting: In Internet marketing, geo targeting and geo marketing are the methods of determining the geo-location of a website visitor with geo-location software, and delivering different content to that visitor based on his or her location, such as latitude and longitude, country, region or state, city, metro code or zip code, organization, Internet Protocol (IP) address, ISP, and other criteria. Cloud Marketing Cloud Marketing refers to any and all marketing efforts that take place on the Internet, aka the Cloud provided as a service. The terminology is best understood in the context of the history of Internet marketing terminology. SEO stands for Search Engine Optimization. SEM stands for Search Engine Marketing. Over time, both abbreviations came to be slightly misleading. SEO now refers to the optimization of websites for all organic listings, or the listings for which one does NOT pay an advertising fee to the search engine. This is the section of a SERP (search engine results page) that 'organically' or 'naturally' come up when you search for a specific term. So it might be said that SEO is the art of

10. getting the appropriate page of your website to the top of the search engines when people are looking for your products or services. SEM or Search Engine Marketing would seem intuitively to encompass SEO issues, but again over time, it has come to refer to the paidside of Internet Marketing, specifically PPC (Paid per Click advertising). In the broadest sense, one can understand the term, "Cloud Marketing" to encompass both issues, as well as a wider set of organic marketing issues, including social media marketing (SMM), mobile media marketing (MMM), banner and contextual advertising, even hosting and domain issues. If the marketing effort is performed or results in online expression and is provided by a professional in the field as a service, with detailed online reporting, it's called 'Cloud Marketing', now literally meaning 'marketing in the Cloud". Internet marketing plan Now many business owners just implement a set of tactics in a very haphazard way with no planning or well thought through outcomes. These same business owners then give up as soon as the outcomes are not what they expected. Instead, what you need to have in place is a solid internet marketing plan. 1. Set Your Objectives: What do you want your website to achieve? To sell your products? To create leads? For positioning? To educate your visitors? 2. How Are You Going To Make Money? What‟s your business model? Do you have a funnel in place that offers low end products first and then over time you sell more expensive products to them? Do you know EXACTLY how you are going to make money? 3. Marketing Budget How much do we want to spend up-front and then each month on advertising, content product etc. 4. Target Market: Get to understand the target market very closely. What are their needs and requirements? We need to know everything about them.Market survey plays a very important role. 5. The Competition:

11. Who are they? What do they do? What are they better than you at? What are you better than them at? How do they market themselves online? What‟s their online profile like? What‟s their business model? Keep friends close and your enemies even closer! 6. USP’s: Be very clear on what your Unique Selling Propositions are. Sometimes you think they are unique when they are not! 7. Assess Your Current Website: Does your website match up with the points above? Conduct a thorough audit. 8. Traffic Generation: Based upon your available budget, what internet marketing methods are you going to use to drive traffic to your website? There are countless ways to do this: SEO, pay-per-click, banners, text ads, adverts, link swaps, social media, joint ventures, articles, content generation, posting blog comments on others siteetc. Advantages of Internet marketing: Internet marketing is inexpensive when examining the ratio of cost to the reach of the target audience. Companies can reach a wide audience for a small fraction of traditional advertising budgets.[citation needed] The nature of the medium allows consumers to research and to purchase products and services conveniently. Therefore, businesses have the advantage of appealing to consumers in a medium that can bring results quickly. The strategy and overall effectiveness of marketing campaigns depend on business goals and cost-volume-profit (CVP) analysis. Internet marketers also have the advantage of measuring statistics easily and inexpensively; almost all aspects of an Internet marketing campaign can be traced, measured, and tested, in many cases through the use of an ad server. The advertisers can use a variety of methods, such as pay per impression, pay per click, pay per play, and pay per action. Therefore, marketers can determine which messages or offerings are more appealing to the audience. The results of campaigns can be measured and tracked immediately because online marketing initiatives usually require users to click on an advertisement, to visit a website, and to perform a targeted action.

12. Limitations: However, from the buyer's perspective, the inability of shoppers to touch, to smell, to taste, and "to try on" tangible goods before making an online purchase can be limiting. However, there is an industry standard for e-commerce vendors to reassure customers by having liberal return policies as well as providing in-store pick-up services. Information Security is important both to companies and consumers that participate in online business. Many consumers are hesitant to purchase items over the Internet because they do not believe that their personal information will remain private. Some companies that purchase customer information offer the option for individuals to have their information removed from their promotional redistribution, also known as opting out. However, many customers are unaware if and when their information is being shared, and are unable to stop the transfer of their information between companies if such activity occurs. Additionally, companies holding private information are vulnerable to data attacks and leaks. Internet browsing privacy is a related consumer concern. Web sites routinely capture browsing and search history which can be used to provide targeted advertising. Privacy policies can provide transparency to these practices. Spyware prevention software can also be used to shield the consumer. Another consumer e-commerce concern is whether or not they will receive exactly what they purchase. Online merchants have attempted to address this concern by investing in and building strong consumer brands (e.g., Amazon.com, eBay, and Overstock.com), and by leveraging

13. merchant and feedback rating systems and e-commerce bonding solutions. All these solutions attempt to assure consumers that their transactions will be free of problems because the merchants can be trusted to provide reliable products and services. Additionally, several major online payment mechanisms (credit cards, PayPal, Google Checkout, etc.) have provided back- end buyer protection systems to address problems if they occur. Usage trends: Technological advancements in the telecommunications industry have dramatically affected online advertising techniques. Many firms are embracing a paradigm that is shifting the focus of advertising methodology from traditional text and image advertisements to those containing more recent technologies like JavaScript and Adobe Flash.As a result, advertisers can more effectively engage and connect their audience with their campaigns that seek to shape consumer attitudes and feelings towards specific products and services. Effects on industries: The number of banks offering the ability to perform banking tasks over the internet has increased. Online banking appeals to customers because it is often faster and considered more convenient than visiting bank branches. Internet auctions have become a multi-billion dollar business. Unique items that could only previously be found at flea markets are now being sold on Internet auction websites such as eBay. Specialized e-stores sell a vast amount of items like antiques, movie props, clothing, gadgets, and so on.

14. As the premier online reselling platform, eBay is often used as a price-basis for specialized items. Buyers and sellers often look at prices on the website before going to flea markets; the price shown on eBay often becomes the item's selling price. SOCIAL MEDIA MARKETING Twitter, Facebook, YouTube, Blogs Social networking websites allow individuals to interact with one another and build relationships. When products or companies join those sites, people can interact with the product or company. That interaction feels personal to users because of their previous experiences with social networking site interactions. Social networking sites like Twitter, Facebook, You Tube and blogs allow individual followers to “retweet” or “repost” comments made by the product being promoted. By repeating the message, all of the user‟s connections are able to see the message, therefore reaching more people. Social networking sites act as word of mouth. Because the information about the product is being put out there and is getting repeated, more traffic is brought to the product/company. Through social networking sites, products/companies can have conversations and interactions with individual followers. This personal interaction can instill a feeling ofloyaltyinto followers and potential customers.Also, by choosing whom to follow on these sites, products can reach a very narrow target audience. Twitter Twitter allows companies to promote products on an individual level. The use of a product can be explained in short messages that followers are more likely to read. These messages appear on followers‟ home pages. Messages can link to the product‟s website, Facebook profile, photos, videos, etc. This link provides followers the opportunity to spend more time interacting with the product online. This interaction can create a loyal connection between product and individual and can also lead to larger advertising opportunities. Twitter promotes a product in real-time and brings customers in. Facebook Facebook profiles are more detailed than Twitter. They allow a product to provide videos, photos, and longer descriptions. Videos can show when a product can be used as well as how to use it. It can include testimonials as other followers can comment on the product pages for others to see. Facebook can link back to the product‟s Twitter page as well as send out event reminders. Facebook promotes a product in real-time and brings customers in.

15. Blogs Blogs allow a product or company to provide longer descriptions of products or services. The longer description can include reasoning and uses. It can include testimonials and can link to and from Facebook and Twitter pages. Blogs can be updated frequently and are promotional techniques for keeping customers. Web analytics is the measurement, collection, analysis and reporting of internet data for purposes of understanding and optimizing web usage. Web analytics is not just a tool for measuring website traffic but can be used as a tool for business research and market research. Web analytics applications can also help companies measure the results of traditional print advertising campaigns. It helps one to estimate how changes traffic to a website after the launch of a new advertising campaign. Web analytics provides information about the number of visitors to a website and the number of page views. It helps gauge traffic and popularity trends which is useful for market research. There are two categories of web analytics; off-site and on-site web analytics. Off-site web analytics refers to web measurement and analysis regardless of whether you own or maintain a website. It includes the measurement of a website's potentialaudience (opportunity), share of voice (visibility), and buzz (comments) that is happening on the Internet as a whole. On-site web analytics measure a visitor's journey once on your website. This includes its drivers and conversions; for example, which landing pages encourage people to make a purchase. On- site web analytics measures the performance of your website in a commercial context. This data is typically compared against key performance indicators for performance, and used to improve a web site or marketing campaign's audience response.

16. Cell Phones Cell phone usage has also become a benefit for social media marketing. Today, many cell phones have social networking capabilities: individuals are notified of any happenings on social networking sites through their cell phones, in real-time. This constant connection to social networking sites means products and companies can constantly remind and update followers about their capabilities, uses, importance, etc. Because cell phones are connected to social networking sites, advertisements are always in sight. CASE STUDY 1 Barrack Obama It was the launch of the brand „Barack Obama‟ for the US Presidential 2008 campaign. It wasstarted in January 2007 and was first of its king campaign in Politics

17. The successful campaign invited all marketers to forget all that they had learned the last 10years and to look with a new and fresh look at Barack Obama‟s strategy: It‟s a New Daypeople, let‟s start with a fresh look today! Most brands shout through advertising. We are cool! We are the best. Buy us!!! But modernconsumers do not believe all these shouting ads any longer. Consumers are not led by ads. Consumers are influenced by their peers. They only buy a brand and their products/servicesif their peers have written a positive review about it. Modern consumers have somany options, so many choices. Obama really wanted to become part of consumers, in an authentic way. Most marketersshout at consumers via one way mass communications. Marketers have learned to do thissince the industrial revolution. Due to interactive media, consumers started to interact withbrands. Consumers started conversations about brands within blogs, forums and socialnetworks. At YouTube consumers started to criticize brands, their ads, their products, their services. And the worst part of it all; brands were not even aware of these conversations amongst peers. Marketers did not even know what was being said about them…But Obama had seen the mistakes brands make. He tapped into online conversations with an extended conversational tracking program; Mapping where the conversations took place, who were the social influencers per topic/theme. By listening to peer conversations within the social space, Obama gained great insights about consumer‟s behavior and emotions. And he tapped into these conversations in a very smart way. Learning Most marketers used “the internet” for shouting banner campaigns. The power of the web was peer communications, sharing, interaction, building relationships, entertainment, sharing opinions and more. Many marketers use broadcasted media to reach people. Many marketers use viral videos for short campaigns. Obama embraced the long tail, and used content to build his brand in the long term. But most marketers are only measuring online campaigns by: hits, views, clicks, and more web analytics. With a viral that is really viral, smart social media planning, strong seeding skills you‟re viral will become a weapon of mass affection. Most brands focus at campaigns and spend their money on media. But their websites are awful and scare away leads immediately. Obama had noticed that the most important part of the marketing campaign was his website! The secret behind the Obama website: Great architecture and functional scope. Invest in brand architects and functional scope before you built a very expensive website that does not deliver your brand, marketing, communications and sales goals. Your website is your greatest brand interaction asset. Use your website to create engagement. Invite people to participate and create a movement of brand ambassadors. Poeple are smart and willing to help. CASE STUDY 2 Dell Computer :It all started with a post. June 21, 2005 “I just got a new Dell laptop and paid a fortune for the four-year, in-home service. The machine is a lemon and the service is a lie. I'm having all kinds of trouble with the hardware: overheats,

18. network doesn't work, maxes out on CPU usage. “And there was no stop to it…it gained momentum…and even more momentum…leading to dedicated haters. The whole thing started with one post. I t was followed another, then there were many. DELL HELL was started. It ruined the sales of Dell computers. The only reason was, Dell didn‟t update themselves with the internet proceeding. It all happened without the knowhow of dell. When they realized it was too late. Dell learned fast, they opened their blog Direct2dell, which answers all the queries and problems about anything and everything about the dell laptops. It was followed by Dell Idea: Storm, a collaborative blogging site where one can give their own ideas and discuss about general technology, computers etc. They blogging was internal as well as external for the overall development of the company and its image. The whole exercise took 3 years to be back on track. Learning This case study gives a good reason to be updated with the happening of the social networking sites. Blogging and forums are the new influencers of today. They form the root of the brand image. One needs to keep a track of this for a successful outcome. Statistics of the Internet The Internet has made distances shorter and the world smaller. However, the great divider that stands in the way of a truly global society is fact that there are many different different languages spoken in our planet Earth. The following table shows the usage of internet in the world. WORLD INTERNET USAGE AND POPULATION STATISTICS March 31, 2011 Population Internet Users Internet Users Penetration Growth Users % World Regions ( 2011 Est.) Dec. 31, 2000 Latest Data (% Population) 2000-2011 of Table Africa 1,037,524,058 4,514,400 118,609,620 11.4 % 2,527.4 % 5.7 % Asia 3,879,740,877 114,304,000 922,329,554 23.8 % 706.9 % 44.0 % Europe 816,426,346 105,096,093 476,213,935 58.3 % 353.1 % 22.7 % Middle East 216,258,843 3,284,800 68,553,666 31.7 % 1,987.0 % 3.3 % North America 347,394,870 108,096,800 272,066,000 78.3 % 151.7 % 13.0 % Latin America / Carib. 597,283,165 18,068,919 215,939,400 36.2 % 1,037.4 % 10.3 % Oceania / Australia 35,426,995 7,620,480 21,293,830 60.1 % 179.4 % 1.0 % WORLD TOTAL 6,930,055,154 360,985,492 2,095,006,005 30.2 % 480.4 % 100.0 %

19. GROWTH OF ONLINE MARKET

20. Economic Recession The economic recession has forced businesses to rethink their strategy and reduce business costs. Most businesses have had to reduce operating costs in order to remain competitive and profitable during volatile economic conditions. Marketing and advertising have been one of the worst hit activities of a company. Lower working capital has forces companies to lower advertising and marketing expenditure. While larger companies have seen huge reductions in marketing budgets smaller companies and are more cautious in spending on marketing and promotional activities. Shift from traditional advertising to internet marketing The last few years have seen a shift from traditional marketing methods towards advertising on the internet. Leading newspapers, magazines and other publications have seen a fall in demand while online publications and portals have benefited from increasing advertising demand. Search engines such as Google and Yahoo have seen one of the largest increase in demand over the last few years. Changes in Consumer behavior There are approximately 1.5 billion internet users in the world today and the it is growing every month. The sheer size of internet population provides businesses with a global platform to do business in. In many countries, Ecommerce sales are growing faster than traditional high street sales. Online sales in UK for 2008 crossed the 50 billion mark, which was an increase of almost 27% from the previous year.

21. Growth of video advertising The growth of Video on the internet has also been an instrumental factor in the emergence of online advertising. The continued rise of broadband is a key factor in its growth. Video on demand over the internet has proved popular among businesses who are now able to deliver a level of interactivity that was previously unimaginable. Marketing Experts predict online video advertising to be one of the fastest growing marketing channels in the coming years. Video over the internet allows businesses to deliver innovative TV style advertising at a much lower cost. Growth of Mobile advertising The rise internet usage on mobile devices offers a new advertising channel on the internet. Mobile internet has been one of the fastest growing areas of the internet. The wide availability of low cost, high quality multimedia phones and wide availability high speed mobile networks are largely attributed to be the main factors for the exponential growth of internet usage on handheld devices. Mobile advertising thus offers a great opportunity for marketing.

22. BIBLIOGRAPHY: DigiMarketing – The Essential Guide to New Media & Digital Marketing - Kent Wertime, Ian Fenwick Principals of Advertising and IMC - Tom Dunkan Consumer Behavior WEBLIOGRAPHY: http://www.wikipediaorg/ http://www.wisegeek.com/ http://www.geert-hofstede.com/ http://www.truckads.com/ http://www.afaqs.com/ http://www.buzzmachine.com/archives/cat_dell.html NOTES: (1) Internet Usage and World Population Statistics are for March 31, 2011. (2) CLICK on each world region name for detailed regional usage information. (3) Demographic (Population) numbers are based on data from the US Census Bureau . (4) Internet usage information comes from data published by Nielsen Online, by the International Telecommunications Union, by GfK, local Regulators and other reliable sources.

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