Growth of Digital Advertising is changing and shaping the Advertising and Marketing Industry


Digital advertising, also known as online advertisement, internet marketing, online marketing or e-marketing, is the marketing and promotion of products or services over the Internet. Online advertising began in 1994 when Hotwired sold the first banner ads to several advertisers. With more than 80% of the population in the US using the Internet, no wonder why companies are more and more switching to digital advertising.

People get most of the information they need online. Therefore, if companies want to reach their customers or potential customers about an existing product or service, or about a new product or service, they will have to put that information where their target is more likely to find it. For example, I own a TV, and I haven’t turned my TV on since last December. That’s more than 4 months without using the TV. Don’t get me started on radio and newspapers. Does that mean that I don’t read or watch the news? Does that mean that I don’t watch my favorites TV shows and programs? Of course, not. I do all these things online.

For example, if Clinique wants to reach me and try to convince me to try their new line of skin care products, they will have to find me where I am.

This is the main reason why nowadays companies are doing more and more online advertising. It is the easiest and the most effective way to reach current and potential customers. Online advertising is taking over the marketing and advertising industry, and is giving a hard time to radio and print to get their hands on advertising revenues. In fact, digital marketing produced $36, 6 billion in revenues in 2012, according to the LA times.

The only way radio and print can increase their revenue through advertising is by using their online presence. It is only this way that they will attract companies that are more interested in reaching as many people as possible.

TV is the only medium that is currently resisting to internet marketing. In fact, TV advertising is still dominant and still growing. Most of the revenues that TV gets from advertising come from the Super Bowl. Regardless of how fast online marketing is growing, research shows that

Digital advertising can’t stop the rise of US TV ad spending, though the pace of growth of TV ad dollars is much slower. Still, eMarketer predicts US advertisers will spend $66.35 billion on TV this year, up from $64.54 billion in 2012 and set to rise to over $75 billion by 2017.

Although TV is still the may medium for advertising, the Internet is shaping the future of the Advertising and Marking industry. It will continue to grow and generate more revenues, not only in the US, but also in other parts of the world because of the fast growth of  internet usage.



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