Online Advertising Overtakes Radio

When we talk about the potential value of online markets, we are still met with scepticism in some quarters. After decades in which radio, television and press advertising has been all powerful, it is hard for many people to accept that the internet is rapidly making these mediums look like a poor investment. New figures however, should lay the debate to rest.

As The Times reports, more money will be spent on online advertising this year than on radio. This year, spend on programs such as Google AdWords and Yahoo! Search marketing is estimated to reach £12.6 billion worldwide.

That’s a lot of cash.

So Why Is This Happening?

Traditional advertising platforms such as TV or press are essentially ’hit and hope’ in their nature. By purchasing an advertisement, you are hoping to show your ad to as many people as possible. So a TV advert on a primetime slot on ITV might be seen by 10 million people. Of those 10 million people, you’re hoping for one of two things:

• That they’ll see your ad, like what they see and mentally note down the name of your company so they might buy from you in the future.
• That they are actively looking for your product or service right now, and you’ve got a compelling enough message to get them into your shop rather than your competitors.

There’s nothing wrong with this is a model - and it has worked for decades. But when you think of why internet advertising is so much more cost-effective, then it isn’t even funny.

Online Advertising: The Right Audience at the Right Time

When someone types in ’welsh nose flutes’ on Google, you know with amazing certainty that they are likely to be buying a welsh nose flute in the next hour or the next few days. And if you can put your ad in front of them at that moment, there’s every chance of you claiming the sale.

By comparison, if you put your advert in the middle of Coronation Street, you are hoping that some small percentage of the people viewing are looking for welsh nose flutes, and that they’ll remember your name when they make their purchasing decision. Doesn’t sound as likely, does it?

Of course, of the millions of people watching Corrie there will be many of them popping out to make a cuppa during the ads. Worse still, other advertisers are also there, trying to sell the alluring charms of Scottish nose flute, distracting their attention away from you. The swines.

But, with online advertising, you know that people who type in ’welsh nose flutes’ are distinctly not interested in anything else. And because you only pay to reach those specific people, the cost per acquisition is incredibly low.

Today’s Moral

For advertisers used to buying huge audience blocks on a ’hit and hope’ basis at vast expense, moving their budgets to online advertising has to be a no-brainer. And that’s why spending on the internet is surging. And if the big boys are doing it, why aren’t you? Set up an effective online advertising campaign in partnership with a professional agency and you can start to see your online business grow today.