Current Trends in Internet Marketing

Abstract

Internet marketing uses the power of electronic commerce to sell and market products. Electronic commerce refers to any market on the internet. Electronic commerce supports selling, buying, trading of products or services over the internet. Internet marketing forms a subset of electronic commerce. With the outburst of internet growth, internet marketing has started becoming very popular. It is said that Internet marketing first began in the beginning of 1990 with just text-based websites which offered product information. [PUBLICATION ABSTRACT]

Headnote

Key words: internet marketing, electronic commerce, trends

Abstract:

Internet marketing uses the power of electronic commerce to sell and market products. Electronic commerce refers to any market on the internet. Electronic commerce supports selling, buying, trading of products or services over the internet. Internet marketing forms a subset of electronic commerce. With the outburst of internet growth, internet marketing has started becoming very popular. It is said that Internet marketing first began in the beginning of 1990 with just text-based websites which offered product information.

With growth in internet, it is not just selling products alone, but in addition to this, information about products, advertising space, software programs, auctions, stock trading and matchmaking. A few companies have revolutionized the way, internet can be used for marketing, such as Google.com, Yahoo.com, Amazon.com, Alibaba.com and Youtube.com. Internet marketing has brought forth so many strategies such as affiliate marketing which consists of pay per click, pay per view , pay per call, pay per click advertising. Affiliate marketing also includes banner advertisements. In addition to this e-mail marketing, viral marketing, interactive advertising, blog or article based marketing are also popular. There are newer marketing techniques being invented all the time. It is important to know how the trend would be. Companies are inventing new techniques to find better ways to make revenue and establish their brand on the internet. Consumers are becoming more and smarter. They don't want to be a party to the internet advertising campaigns made by companies unless they get some incentive in doing so. They would be quite keen in participating in campaigns provided they are compensated in someway by the companies. There are usually 2 or 3 parties involved in internet marketing. It is companies and end users or companies, internet marketing companies and end users. If it is a two party model then companies themselves directly gets revenue from the end users. If it is a three party model then internet marketing service providers acts as intermediate revenue providers for companies. In order to attract end users they can share a part of their revenue which they receive from the companies with them. Internet marketing serves three business models. They are the B2B model, B2C model and P2P model. The B2B model deals with complex business to business transactions and internet advertising helps bring revenue to both. B2C model involves direct interaction between the business and customer. P2P model involves distributed computing which exploits individual exchange of goods and services. P2P model was mostly useful for distribution of video and data. But due to copyright problems P2P models have had troubles.

Companies have to take into consideration many parameters during their presence in the internet marketing arena. Some of the companies may be new entrants into internet marketing. They could be driven by various factors. Companies may have to understand which marketing channel is better for which of their products or services. On providing products they need to keep mind how much of information and disclose and how to provide security for information which is put up on the web to prevent hackers and malicious people from getting access to it. They should be in a position to build confidence in the minds of buyers so that they can make purchases without the fear of credit card frauds.

Different techniques are used in internet marketing. They are as follows affiliate marketing, viral marketing, email marketing.

Affiliate marketing

An affiliate marketing scheme is also known as associate marketing scheme. This establishes a relationship in which a merchant pays the affiliate for links that are generated from the affiliate site to the merchant site. A simple example for this would be a merchant wanting to sell his products through affiliate marketing. He would offer a affiliate marketing program say X affiliate marketing program. They would provide a link or a banner advertisement to an affiliate who becomes their member. Once the affiliate is a member he can put up that link on his website. Once somebody makes a sale through his website, the merchant can track which affiliate was responsible for that sale and pay a suitable commission to them. This is the most common affiliate marketing scheme available. This is typically called pay per sale or pay per action. But some of the companies want results for survey or want leads generated for them. They take the help from affiliates and pay them a commission when ever an affiliate gets a survey form filled through his site or generates a lead. This is typically called pay per lead. (Libai Barak et al 2003) in his publication compared why these schemes pay per lead and pay per action prevail and under what conditions one is advantages over the other. The authors find that pay-per lead is more profitable when a merchant and affiliate have a separate deal with each other. Merchant negotiates the deal in this case. In such a scenario, pay-per-conversion is not optimal for the affiliation alliance because it leads to suboptimal pricing by the merchant. On the other hand, pay per lead is less profitable than pay-per-conversion for a merchant if he works with a large number of affiliates such that all of them are under the same terms. It is less profitable because of the problems encountered due to fraud referrals that cannot be converted to customers. Some of the companies want their presence felt and this is possible through clicks on their websites generated for them through affiliates. Pay per click is when companies pay affiliate who generate traffic for them thru clicks. Companies believe that clicks could result in potential sales. This is the reason why companies pay affiliates who generate clicks. Sometimes companies like to pay affiliates who can generate banner impressions for them. This is called pay per impression. Companies believe that banners once displayed by the affiliate can generate potential leads so they pay them for the banner impressions. Some companies provide direct affiliate programs and reach out to consumers directly. Some companies don't directly provide affiliate programs. Instead some of them hand over that responsibility to a affiliate junction which takes care of doing the same. The affiliate marketing junctions are responsible in match making between merchants and affiliates. They charge companies a suitable amount for running their marketing companies and provide services like pay per click or pay per lead or pay per sale as requested by the companies. They share an amount of the commission they charge companies to the affiliates. Affiliate junctions act as a bridge between companies and consumers.

Search engine marketing

There are several categories of search engine techniques included in this. They are listed as follows.

∞ Search engine optimization attempts to improve rankings for relevant keywords in search results by improvising on various attributes of a web site be it structure or content.

∞ Pay per click advertising makes use of sponsored listings. The companies bids for search terms, and the search engine ranks ads based on certain criteria.

Search engine optimization

This can be treated as a subset of search engine marketing. This is used to improve the quality of the traffic which arrives at a website from search engines. When ever users search for a particular key word and find a match, they see a few sites which are visible on the first page of search engine result. SEO's objective is precisely this. They want their client websites to be listed higher in search engine results. This way they give their clients i.e. companies a better chance to be noticed by consumers. SEO's can target various searches such as image searching, local searching or vertical search engines. People involved in search engine optimization are called search engine optimizers. They could be either company personnel trained in search engine optimization or 3rd party agencies who take the responsibility from the company. Typically SEO personnel have to understand how search engines actually rank pages. This could involve attaining knowledge in search engine algorithms extensive knowledge of search engines through the mechanism of patents. SEO personnel may need to modify their client web pages by adding unique content. Since they have to modify web pages associated with companies, some companies may be reluctant in divulging information as it could be private and there may be several security risks related to this. Companies could hire SEO personnel to train their staff. The companies then may do SEO work themselves. There are two categories of SEO personnel white and black. White hat SEO personnel use techniques which search engines find acceptable. Black hat SEO personnel use techniques which could case link spams. Their goal is to improve page ranking no matter what it takes. This is typically a black hat principle. The black hat can provide one version of a page to search engine spider and another version to consumers and this is called cloaking.

Social networking and social media based advertising

Many sites have been responsible for creating social networks where people post their information and also connect to each other either for business networking or dating. Some of the prominent web-sites are tribe.net, myspace.com, orkut.com, linkedin.com. Initially they all started as sites which connect people. Some of them have make revenues through marketing. Linkedin.com provides banner based advertising which focuses on specific targets. Youtube.com can be treated as social media based advertising trendsetter. For example Youtube.com allows users to capture their videos and put it up on the site for sharing with others. Unregistered users can watch most videos on the site. It provides features to rate videos and also keep track of number of times the video has been watched. But only Registered users have the ability to upload an unlimited number of videos.

Blog - based marketing

A blog is a website that provides an individuals opinion on a particular subject. Some of the blogs act as personal diaries. A typical blog consists of text, images, and links to other blogs, web pages, and other media related to its topic. Some of the blogs consist of photos, video, audio, pod casts. Every individual given an opportunity would like to express his feeling uninhibited given a chance. Today even a common man could become popular by bringing out his views through blogging. Blogs encourage this. So in my opinion it is bound to grow. In the past only celebrities or selected few who have access to media could express their views.

There are several types of blogs:

Companies can advertise on blogs through banner ads or with the help of third party blog advertising networks(such as Pheedo.com or Blogads.com). Either the company or the 3rd party agency must ensure that these banners are regularly replaced so as to always convey relevant content. The advertisements can be targed for a specific group or sector based on requirement. An example for this is Payperpost.com which provides an opportunity for advertisers to decide what feedback they want from the bogglers. The bogglers on providing feedback get paid by Payperpost. In addition to companies even advertisers also get benefited.

Email marketing

This is a form of marketing which exploits the power of electronic mail. Emails are sent primarily to improve the relationship with the old/new consumers or other old/new customers. Emails could include advertisements/newsletters which are meant to tempt new or older consumers to make purchases or inform them of new products/services.

Advantages of using email marketing:

∞ Email marketing campaigns are cost effective when compared to campaigns such postal campaigns or printed newsletters.

∞ Email arrives quicker than post.

∞ The companies can do mass mailing with the help of mailing list. This helps distribute quality information to a specific range of consumers/customers.

∞ Companies can easily track their returns when they use this scheme. They can also track how many campaigns were successful or how many failed etc with the help of read receipt, un-subscribed or messages that bounced on failure.

∞ Advertisers are able "push" the message to consumers where as website marketing has to attract customers to come to the advertiser. So reach is better.

∞ Companies that use html based email can provide other links which can generate further leads for them.

∞ Companies can also know the tastes of consumers by sending emails which ask for opinions from consumers.

∞ Companies can target based on consumers interest i.e. only after taking consumers interest when he signs up for a particular email service.

∞ Email marketing does not take up paper so it is environmental friendly.

Disadvantages of using email marketing:

Spamming is one of the biggest problems and it is very difficult to distinguish between genuine email marketing and spamming. Many of the companies install spam filters but filters end up preventing even genuine emails from reaching. Most of the companies are taking all efforts to prevent Spam. Email marketing needs to be done carefully in order to be not treated as spam.

Viral marketing

Viral marketing also termed as viral advertising consist of marketing techniques that that use already existing social networks to increase brand image with help computer virus like techniques. It is also called word of mouth marketing. This technique encourages consumers to pass on marketing message in voluntary way. Viral promotions could involve video clips, interactive flash, images, or even mobile messaging such as SMS. It works on the belief that consumers who are impressed would tell people what they like and also tell people what they would not like. This basic behavior can be exploited to encourage viral marketing. Gender's role role in viral marketing campaigns are also given importance. Only targeted viral marketing campaigns based on brand, product or service can succeed in convincing the audience. Also, viral marketing offers other advantages such as low cost, reduced response time and increased potential for impact on the market.

The future trends of Internet marketing include an understanding of the globalization of not only the economy but of communication. When most people think about the World Wide Web, they think in terms of the western community of online users who make up over the 180 million American surfers alone. The age of global communication is pushing the new global economy to a future level unseen in our lifetime. The effect on the future trends on marketing could be huge in the next few years.

As other continents open up to more and more web access to its citizens, there will likely be an influx of new web users who will impact consumer interests and the world wide financial landscape. It has been suggested that countries within Asia could impact this landscape phenomenally the next few years as its citizens become more sophisticated technology and realize its commercial advantages. The western world will no longer have a corner on goods and services to the world as the future trends of Internet marketing take on a new face through world wide competition.

These trends may result in a world wide level of competition that will bid for every consumer's interest no matter where the product or service is marketed. It is expected that Americans in part and the west in general will no longer be the only ones drawing in business through lucrative web activity through an exclusive market. Future trends of Internet on marketing suggest that the only thing that will stand in the way of Asia as well as other areas of the world from being added to the competitive layer of global advertising will be language barriers and advertising techniques.

However, just as many businesses can hire professionals to help them reach consumers outside their comfort zone, so will many entrepreneurs abroad. Future trends of Internet on marketing are pointing to a rise in global awareness within less sophisticated countries due to television and radio as well as other conventional forms of communication. Many countries are developing general access online for their mass populations and it will only be a matter of time before just as many users abroad hook up online as do users in North America.

As these new entrepreneurs become more educated as to the potential of online communication, they will also tap into the marketing and advertising techniques that have until this point, been an exclusive knowledge of the western world. The future trends of Internet on marketing seem to encompass these new arrivals to the world scene and their new found technological savvy will translate into big bucks within areas of the world that until now have missed a piece of the pie. They will also hire marketing professionals who can help them overcome the language barriers through production of marketing strategies that will be accepted to western Internet users. The future trends of Internet marketing will be impacted around the world by these new entrepreneurs.

The influx of new competition from other countries who have as yet to tap into the Internet world could have a staggering effect on the competition level with western companies and individually owned web businesses that are almost cornering their market. China alone has a huge population that is rapidly becoming educated, sophisticated in western influences and could become a powerhouse of competition to westerners who have not up until now had to consider the influential future trends of Internet on marketing that other countries are on the verge of affecting. Even with the obvious barriers to success that many of these countries will face, the solutions can readily be found through assistance in language and current marketing strategies.

Companies and individuals that make their living through the Internet would do well to see future trends of Internet on marketing as it turns to the unexplored territories of India, China or Africa. Going with the flow of future trends of Internet marketing may become necessary to compete and succeed in a rapidly growing global economy.

A factor that pushes global effects includes increased speed of the Internet with broadband connections that affect multi media capabilities on the web for almost any user. Also, the huge potential that is growing for new markets and needs among worldwide surfers will affect future trends of Internet marketing. Westerners can easily miss the signs as their attention is diverted to the rapid development of Internet capabilities within their own sphere. It will be important, however, to jump on the band wagon in exploring the ever increasing consumer marketplace of the world beyond.

As long as there are products and services to sell and people with money to spend, advertisement and business opportunities will exist. However, with time the shape and form of merchandising changes. New avenues become old with some failing by the way side to make room for newer marketing models and opening new business's.

Sometimes the mode of marketing is all that it takes to grab the attention of the target audience. Internet related business opportunities are widely helping this cause with its broad spectrum and versatile utilities. There is an overload of advertising and advertisements about products and different companies and individuals who are striving to make their business prosper. The devious world of viral marketing is playing a crucial part in the progress of online business opportunities. Viral marketing cannot exist in isolation. It requires latching on something, just as viruses work. Blogs, videos, songs, interactive flash games, in game advertisements and chatting sites are all platforms that support this form of marketing resulting in business revenues.

Internet is a mass medium of communication and it allows access to global markets and more users can make use of it with easy access to different products. There are many web sites and web portals which are providing online business to both consumers and companies. Online marketing campaigns are proving quite a useful tool in developing and promoting business of any particular type. The idea behind online business and related marketing, more specifically behind viral marketing is to influence the consumer without letting them realize that they are being targeted. In other words, without annoying users with unwanted advertisements about different products and giving them more options to make a selection of the products of interest. Web is the testament to the phenomenal exponential growth that is achieved through online related business and strategies to support certain products, their sale and even purchases. Nowadays many large marketing firms are trying to incorporate such strategies to boost their business. There are also schemes which offer referral options for winning gifts and promoting particular business. There is very thin line between e-marketing for online business and spamming. Predictably spam remains the easiest and most effective approach for promoting or selling products due to its nature of sending bulk e-mail messages and targeting users to achieve the desired results. This method is also problematic for individual as they have to filter such e-mails, resulting in time and energy wastage.

Online business and advertising is a space that is continually growing and it seems that it may nibble at the traditional methods of business, mainly because of the increasing number of users and the time being spent online. There is immense room for improvement in this realm. Companies are getting more business and individuals are getting more chances to inter act while making decisions about any selected product without leaving their homes. Web based business opportunities are very diversified as computer technology is advancing. So the possibilities of better prospects and earnings are increasing.

It is getting easier and becoming cost effective and cheaper to establish online business, selecting any product line and gaining specific clientele with in a limited time frame.

References

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