| Introduction | | | | advertising has increased by thirty five percent in the |
| Traditional media should pave way for the new wave | | | | year 2006; they are now standing at almost |
| in advertising; the internet. | | | | seventeen million dollars. This means that there are |
| Today, Industry players agree that internet advertising | | | | serious indications that advertisements on traditional |
| is a force to recon with. According to research carried | | | | media are declining but a quantifiable figure needs to |
| out by centre for research in electronic commerce, | | | | be reached. This will form the bulk of the research |
| internet advertising is predicted to revolutionise | | | | work. (Flaming and Connor, 2006) |
| industries in the 21st century. Economy of the internet | | | | Indicative mythology |
| continues to increase robustly. Many companies both | | | | The research aims at the following; |
| new and well established continue getting profits | | | | - Estimating how many people are influenced by online |
| through internet advertising. Internet advertising still has | | | | advertisement |
| a big market which has not been tapped. As Hoffman | | | | - Determine the percentage reduction in use of |
| & Novak (1996) points out its effects on industrial | | | | traditional media |
| economy may be compared to what happened when | | | | - Determine perceptions of people with regards to |
| the world shifted from agricultural to industrialisation in | | | | online advertisement |
| the 17th century. Since customers today want more | | | | The research will be done by mean of a questionnaire. |
| information about a company and their services | | | | There are a number of advantages that come out of |
| before buying its products or services then this mode | | | | use of this method of research; the first being that it is |
| of advertising is quite ideal. | | | | easy to quantify data as all the answers will lie within a |
| Traditional media has been in place ever since time | | | | uniform range. It is therefore easy to verify or nullify a |
| immemorial but technology has brought something | | | | given hypothesis using this method. The method allows |
| fresh in the advertising industry. There are a number of | | | | researchers to lead on members under survey. This is |
| reasons why traditional media was and still is being | | | | because other research tools like interviews tend to |
| used by Companies. This does not undermine the | | | | generate answers that may dig race from what the |
| importance of web advertising. All these reasons will | | | | researcher is looking for. |
| be examined in detail in the subsequent sections of the | | | | An investigation seeking online advertisers will be |
| essay. | | | | posted online from a given date to another. This will be |
| Literature review | | | | for duration of about a month. The investigation will be |
| The decline of traditional media has been recorded by | | | | tied to 150 Web advertisements and 15 advertisement |
| research companies and bodies conducting surveys. | | | | oriented bulletin boards and a similar number for |
| There are statistics that support the latter statement. | | | | electronic mailing lists. Respondents will also include a |
| Here are some sample findings to support this view; | | | | survey from announcements forwarded to |
| Newspapers have recorded reduced circulation. In the | | | | advertisement-oriented chat rooms and to bloggers |
| US, newspaper sales have gone down by about three | | | | who consented to send the survey URL. On top of |
| percent from what they were last year. This has been | | | | this, a run on technique will be used where readers can |
| backed by the job cuts observed in most newspaper | | | | automatically forward the survey to fellow readers |
| Companies in that country. Carr (2007) of the New | | | | when they want to. (Flanigan, 2004) |
| York Times reports that the Los Angeles Times | | | | There are a number of research questions that will be |
| dismissed eighty five of its employees, the Philadelphia | | | | asked in regards to this research. People surveyed will |
| Inquirer eliminated five percent of its employees, and | | | | be asked to give information concerning how online |
| similarly the Chicago Tribune has eliminated one | | | | advertisements influence their purchases. They will be |
| hundred of its staff members from its payroll. All the | | | | asked to rate the degree to which an online |
| above findings go to show that there is serious | | | | advertisement caused them to purchase the item |
| decrease in the demand of this traditional medium | | | | advertised. Their answers will lie within four points. The |
| implying that there must be an underlying factor | | | | choices are; |
| causing the shift in preference; internet use and internet | | | | - Never influenced by the online advert |
| advertising. | | | | - Somewhat influenced by the online advert |
| There are increased sales of published materials | | | | - Moderately influenced by the advert |
| placed on the internet. For example, articles written by | | | | - Influenced largely by the advert |
| well known columnists have been posted. These | | | | Then the percentages will be added up and the overall |
| articles require subscription prior to viewing. The idea | | | | result calculated. The word ‘influence' in the |
| has received a very positive response from readers | | | | questionnaire can be interpreted differently. This could |
| meaning that advertisements placed on those articles | | | | mean getting an idea of a purchase, getting a reminder |
| can also be viewed through these subscriptions. | | | | of the item and hence purchasing it or getting the |
| In the United States, research has shown that close to | | | | immediate compulsion to but the item and actually |
| ten million homes have digital video recorders. This | | | | purchasing it. (Perrier and Jeffay, 2002) |
| means that these people can be able to send and | | | | Questions will also be asked with regards to traditional |
| receive images via the net. Companies using this mode | | | | media. The choices above will be the same ones |
| of advertising will also be favoured because most | | | | asked in the latter part of the essay but this time, the |
| people relate to it. It has been estimate that this | | | | questions will be in reference to five categories of |
| number will increase by threefold within the next five | | | | traditional media. These are; cable television, |
| years. Such statistics from the US give n indication of | | | | newspapers, magazines, broadcast television and |
| what is to follow in other developed countries including | | | | radio. All the numbers will be assigned to a specific |
| the United Kingdom. | | | | category and overall percentages determined. If online |
| It was also shown that print advertisements have | | | | advertisements yield the highest response in the |
| reduced in terms of the kind of profits they generate. | | | | ‘influenced largely category' then it will certify that |
| Currently they bring sixty six percent of earnings for | | | | use of traditional media is declining |
| Companies engaging in advertisement. The remaining | | | | Timetable for research within twelve weeks |
| percentage has gone to internet advertising. And | | | | Duration |
| judging by the looks of things, these percentages are | | | | Activity |
| most likely going to increase with time. | | | | Week 1-2 |
| Online advertising has caused the decline of use of | | | | Generate sample questions |
| traditional media because there are some advantages | | | | Week 3-4 |
| it offers that are exclusive to that form of advertising. | | | | Get consent from Google and Yahoo |
| (Kilter, 2006) The first is that it is now possible to track | | | | Week 5-9 |
| sales that come from the use of online advertising. In | | | | Start the survey and monitor responses |
| other words, Complies can be able to monitor the | | | | Week 10-12 |
| effect of their efforts and quantify them. This is | | | | Compilation of data and coming up with conclusion |
| because it is very easy to measure the number of | | | | Contingency plan |
| people that visit/click through a certain website | | | | If it is impossible to get consent from the respective |
| containing advertising information and it is also easy to | | | | Companies, then another form of research shall be |
| track the lead that followed a click on an online | | | | carried out. This will be through interviews of randomly |
| advertisement. This feature is something that is unique | | | | selected people within the surrounding environment. |
| to that form of advertisement. Traditional media does | | | | The same questions will be asked as those ones in |
| not offer that option as estimates of who has viewed | | | | the questionnaire mentioned above, the only difference |
| a given message and the effect it has on them is quite | | | | is that this will be done on a personal level. |
| ambiguous. This is an essential aspect because | | | | Conclusion |
| businesses now want to gauge their return on | | | | Finally, Internet advertising for businesses has |
| investment. They now want to now whether a | | | | advanced into different sectors over time and it has |
| business undertaking like advertising yields the desired | | | | continued to grow. (Hoffman, 2006) The most popular |
| results. | | | | feature for this form of advertising is that it can offer |
| Another feature that can only be found in online | | | | a simple yet effective way of measuring returns on |
| advertisement is ‘search based advertisement.' It | | | | investments. It is considered that the internet has taken |
| was found that in the year 2006, Google attributed | | | | advertising to higher heights and this will be proved |
| forty percent of their profit to search advertisement | | | | through the research findings. |
| while other forms of advertising for the Company like | | | | Reference: |
| banner advertisement brought in thirty percent of | | | | Hoffman, D. and Novak, T. (2006): Marketing in |
| earnings. This goes to show that there is a new | | | | Hypermedia Computer-mediated Environments: - |
| aspect to this medium that is only exclusive to it. In this | | | | Conceptual Foundations: Journal of Marketing, Vol. |
| form of advertisement, consumers can be able to | | | | 60(July), pp 50 - 68 |
| specify what they are looking for by the use of key | | | | Flanigan, G (2004). Internet Applications New York |
| words. This form of advertisement is important to both | | | | publications |
| parties involved because Companies can be able to | | | | Kilter, P (2006): Principles of Marketing: Stages of |
| influence a customer's choice to a large extent; when | | | | customer relationships. 4th European Edition Prentice |
| they are searching for advertisements, then they are | | | | Hall Harlow (UK) |
| very close to purchase and more advertising seals the | | | | Parries, M K. and Jeffay, F.D (Dec.2002); the |
| deal. These consumers are spared from having to | | | | proceedings of the 9th International workshop on |
| wait for an advert and can find it at their own | | | | internet interface elements |
| convenience. Besides, companies can be able to track | | | | Flaming, L. and Connor B. (1999), Real-Time internet |
| the effect of their advert more precisely. | | | | applications; Linux Journals pp |
| Justification of study | | | | 5-12 |
| The Pricewaterhouse and Coopers Company have | | | | Mark, D. (2001): Principles and Practice of Marketing; |
| done a survey on how online advertisements have | | | | 3rd Edition of Chartered Institute of Marketing, |
| been revolutionised. The results are that a huge | | | | Washington, U.S |
| percentage of expenditure on advertising is going | | | | Connor, B. (1999), Internet advertisement; Linux Journals |
| online. This has been proved by the continuous rise in | | | | pp |
| profits of well-known internet Companies like Google, | | | | 5-12 |
| Yahoo and MSN. It was seen that profits from online | | | | Corr, R. |