In addition to being expensive, traditional methods of advertising only target a small subset of the population.
Effective advertising is important to the survival of any business. A variety of media exist for getting the word out, but historically, they have been very expensive--prohibitively so for individuals and small businesses. The advent of online advertising has been a boon for businesses everywhere. Now millions of people can get individually targeted messages for a fraction of the cost of traditional methods.
Affordable
Website advertising is one of the most affordable kinds of advertising. Depending on your location, advertising on a billboard could run you anywhere between $700 and $2,500 per month for each billboard. Radio ads can cost over $40 for a single 30 second spot, and television ads only cost more. What's worse is that people often walk away during television commercials, or aren't actively listening to those on the radio. Website advertising can be integrated into the content of a website, making users more likely to pay attention to an ad. Additionally, online advertisements are flexible, often allowing you to choose between being billed per click or per 1,000 views. Whichever you choose, you can generate a large amount of interest on high traffic sites without breaking the bank. At a rate between 25 cents and 50 cents per click, online advertising is extremely cost effective.
Effective
A variety of websites perform analysis on the surfing habits of users, building an anonymous profile of their behaviors. Others take account information and correlate it to determine user interests which may translate to purchases. These allow for extremely targeted advertisements which are most likely to generate sales. In spite of the specificity of these ads, the sheer number of people who use the Internet makes for a wide audience--much wider than billboard, television or radio ads when it comes to the younger generation.
Equally important is the ability for users to act on an ad immediately. The advertisement is right in front of the potential customer, and a mere click will take them to a website where they can learn more. Making a purchase based on an online sales pitch is extremely easy.
Feedback
When analyzing sales data, it is easy for online advertisers to determine the effectiveness of their approach. Website logging utilities allow businesses to see exactly which keywords were used in a search that led to their website. Software to track which banners were clicked and from which sites customers came is also available. Businesses can even track conversion percentage with ease. This information makes it easy to gradually refine an advertising campaign until it reaches peak profitability.
