Why online advertising needs to be a part of your overall marketing mix

Online advertising is becoming an important part of the overall media mix. Last year, advertisers spent more than $10 billion on Internet advertising. That’s more than they spent on local radio, outdoor, or national newspapers. This year, Internet advertising expenditures are expected to increase by 15% –- a growth rate three times higher than any other advertising medium. In fact, many traditional advertising media like newspaper and print are experiencing a decrease in spending.

This increase can be attributed to several factors:

• Maturity of the medium – The Internet has finally evolved into an advertising medium that makes sense for a majority of advertisers.
• Accessibility – Companies like Google, Overture and ValueClick have made advertising on the Internet an easier alternative.
• Killer Apps – Companies like Utah’s Omniture and Salesforce have made information gathered from web marketing campaigns easier to track and use for remarketing efforts.

The more important implication, though, is the impact of this shift on small and medium sized businesses in local and regional markets. Internet advertising expenditures have historically been driven by online marketers like Amazon and Ebay and by Fortune 2000 companies with large and sophisticated marketing programs. The marked increases in the last few years would indicate the entry of new forces in the segment. We can assume that more small and medium sized businesses are dedicating a larger percentage of their budget to Internet advertising.

All of this information adds up to one important fact: If your business hasn’t already incorporated Internet advertising into its overall marketing mix, you’re likely losing prospective and existing customers to your competition. It’s not too late to rework your plan for 2007 to ensure that you have the greatest competitive edge, First you need to evaluate what your online objectives are. Depending on what kind of business you’re in your online objectives might be drastically different. Generally speaking online marketing objectives can fall into three fairly broad categories:

• Generating leads –- This applies to your company if you sell primarily offline products or services, or if the products and services you sell would fall into the category of a considered purchase.
• Conducting online commerce –- This applies to your company if you’re already selling products online, or if your products are easily transferable to an online environment.
• Supporting customers and prospective customers – This applies to your company if you can provide customers and prospective customers with information about your product and services online in an easy and efficient manner. As an added benefit, if your online efforts are effective they will also support and enhance your brand building efforts.

Once you’ve determined your objectives, you need to develop strategies and decide whether you can implement these strategies internally or if you need external assistance. The reach of online advertising today is vast, from online ads and banners to email newsletters and blogs to paid search and search engine optimization. To a large extent your strategies and tactics will be dictated by your budget, the size and experience of your in-house marketing department, and your objectives. But keep in mind that as with most marketing activities, you’ll be much better off by executing one or two online initiatives effectively and with enthusiasm.

So as you’re reviewing your plan for the upcoming year, see what percentage your budget is comprised of online (it should be somewhere between 10 and 25 percent or even higher if most of your business is conducted online), and then pick some new online initiatives to start building your business and beating your competition. Now is the time to add a dynamic and effective Internet advertising plan to your overall marketing mix. You can find out more at Redirect Relationship Marketing.