The History of Online Marketing

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online marketing

Online Marketing explained …

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With the growing advancements in technology traditional marketing strategies have been pushed aside, and taken over by new innovative ones. Online marketing is the new norm. But what exactly is online marketing?

Online marketing is the promotion and sale of products and services over the internet. It is also known as “online advertising”, “internet marketing” or “e-marketing”.

One major benefit of online marketing is the immediate publishing of information and content that is not limited by geography or time.

Examples of online marketing include contextual ads on search engine result pages, banner ads, blogs, rich media ads, social network advertising, interstitial ads and even e-mail marketing, including e-mail spam.

Online advertising has taken the world by storm, since its introduction in the 1990s.

It is a huge part of our life as it impacts us every day, whether we realize it or not. Therefore it is useful to understand it. I came across an article, “The Rise and Fall of Online Advertising” by Rachel Arandilla and in her article Rachel runs us through the various forms of Online Advertising. She starts off by introducing us to the earliest form of Online Advertising and then talks us through its evolution into what it is today.

“Spamming – Earliest Form of Online Advertising”

”The internet was intentionally created as a military and educational tool, and never intended for what it is now: a huge networking, communications and moneymaking machine.”

The word spam was first introduced through a 1970’s British comedy by the name of Monty Python.

In the 1990s online marketers began to over post and flood internet groups and emails with junk mail – spam.

“Over 90 million spam emails are sent every day. 85% of our emails are actually spammed. But its level of effectiveness in promoting or selling a product is very low—it now barely exists as a nuisance to all.”

Thanks to advancements in technology most of the spam mail is directly sent to the junk mail section of our accounts, however this has still not prevented spam senders from being a nuisance to all internet users.

“The Era of Banner Ads”

”The first online advertisement appeared on the web in 1994, prompting the beginning of the online advertising world. The first part was the period of experimentation by the advertisers and publishers, pioneering in ad formats and technology. In 1995, DoubleClick was launched, one of the first ad-serving technologies.”

In the late 1990s online advertising was at its peak. The internet was the new playing field and investors loved the novelty factor of it. No one wanted to be left behind this money making machine.

These ads were, however, not that effective. They were expensive and had a very low return. Soon advertisers too realized that these online banner ads failed in contrast to the 30-second TV commercials and full page print ads.

 “Dot Com Bubble Burst”

By mid-2000 the huge influx of money that created the online advertising bubble started to dry up. Companies were no longer interested in online advertising and thus the online advertising bubble burst. As a result of this stock markets collapsed. The dot com ‘bubble’ lasted roughly four years, between 1997 and 2000.

“Enter Google: The Era of Google Ads”

Despite the bubble burst and thus the decline of advertising on the internet, search engine technology was becoming increasingly popular.

 At first Google had been just a search engine. But at the start of the millennium, Google AdWords was born. Google revolutionized online advertising by selling text ads which are based on search engines and are kept disjointed from the main results.

Google’s text ads succeeded where the banner ads failed. This is because Google knew the weight of relevancy. They introduced the click-through rate, creating a ranking algorithm to measure the advertisements’ relevance. Google only requires payment when the people click on them. It also introduced Page Rank.

”Although these models are open to abuse through click fraud, Google and others have devised automated systems against corrupt advertisers or competitors.”

“Advertising through Social Media”

In lay man’s terms, social media is a social tool for communications and networking. The website doesn’t just provide information anymore. They are more interactive now; providing you the means to share your likes, dislikes and opinions with the world.

“There are four types of Social Media:

1. Social Networking Tools – Facebook, Twitter, Hi-5

2. Social News – Reddit, Digg Propeller

3. Social Photo & Video Sharing – Photobucket, Flickr, YouTube

4. Social Bookmarking – Del.icio.us, Simpy”

The biggest advantage of social media advertising is target marketing, by utilizing the user’s demographic information.

Due to the popularity of the internet, it is no surprise that Social media is more effective than traditional advertising. Nearly all businesses have a page or an account on social networking sites like Facebook, Twitter and LinkedIn.

Social media is the best thing online advertising could get: it’s free, it’s far and wide-reaching (500 million users) and it’s viral. The disadvantage is probably measuring effectiveness of social media advertising, whether or not the number of ‘likes’, ‘friends’ or ‘follows’ could convert to actual sales.

“Online Advertising as of Today”

Online advertising has recovered since 2004. Advertisers have finally understood the importance of online advertisements. Due to the large number of hours spent by users on the internet, it has become essential that companies adapt and introduce new and innovative, catchy campaigns to grab the user’s attention. Today, companies make use of Flash and JavaScript to improve graphics and interactivity. There are now online blogs, social media, SEO marketing, and more.

Viral marketing has also become increasingly popular. Companies now make use of video ads to market a product or service. One popular example is the Old Spice video. To date, it has over 45 million views and counting. Other examples include Levi’s, Guitar Hero and The Super Bowl.

This does not mean that Online Advertising has now been perfected. Annoying pop up and pop under ads still persist. For example, the pre-roll ads that now appear on YouTube.

What now?

The question that now arises is what will happen next? What is the future of online advertising? Some fear another “Internet Bubble” burst. Let us hope that it doesn’t. Nowadays millions of people rely on the internet as a means of employment.

What do you believe will be the next big thing to come along and compete with social media marketing? Please add your comments below.

Online Marketing history source

 

Leave a Comment

{ 28 comments… read them below or add one }

  1. Arrie

    Hi Chris. I’m currently reading google cash, I must say awesome stuff. However all the links and videos have been removed from your page it seems. Please advise. I’m also trying to get the Google Cash Detective.

    Kind Regards

    Reply

  2. Chris Carpenter

    Yes the Google Cash ebook is quite outdated and most of the links don’t work. However the concepts in there are still sound.

    You can pickup my Info Cash course which is the latest updated material:

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    Also GCD has turned in to Ad-Spy.

    If you purchase Info Cash at the link above, you will see that Ad-Spy is the upsell and you can get lifetime access to it for $147

    Thanks,
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    Reply

  3. Mitchell Thomas

    Very nice article on the history of “internet marketing.” Although I did cringe at every new marketing phase. Each marketing phase brought back memories of the non creative marketers in the free market. These are the people who use a strategy long after its effectiveness.

    We all want and need the new strategy that will capture our market’s discressionary spending dollars. From my Marketing 101 class, we need to give the sense of urgency, define the complete need for our product, and demonstrate value. Oh, also be listed on the top of a google search.

    Reply

  4. Patrick

    I just want to say thank you very much Mr Chris for your consistence and many are affected positively in your all marketing research so far. well done and keep it up.

    Reply

  5. Ed MacDonald

    I think that instant mobile video and audio blogging will be the next big thing to come along and compete with social media marketing. Or…what if every car on the road becomes a travelling billboard with programmable messages displayed on specialized glass on the rear and side windows without obscuring the driver’s view.

    Or…what about using the windows in our home to advertise the stuff we’ve bought and like…and just like having a certain recognizable brand of car in your driveway…you only get to ‘advertise’ an item in your home…if you own it… and you would be paid an ‘affiliate like’ commission for anyone within a certain postal code radius that purchases your home advertised item. It would put a whole new slant in the ‘Trying to Keep Up with the Jones’s’ saga…and… would be one ugly neighborhood.

    Reply

  6. Chris Carpenter

    Ha ha yeah that would be one ugly neighborhood for sure.

    Interesting idea about the instant mobile video blogging.

    Reply

  7. Elizabeth

    This was a great walk down online marketing memory lane. It’s amazing how far thing have come. Social media has really taken over but I know something else will take its place in the future. It’s always interesting to see how the online world progresses and what great things will emerge. Also, it’s great to see you back to blogging and I look forward to your posts.

    Reply

  8. Chris Carpenter

    Thanks Elizabeth!

    Reply

  9. Bill Martin

    Good article. You write well. I guess the next thing will be a more simplified and enhanced medium that will incorporate visual, audio and just make them a better experience, not just for children but everyone. Best regards. Bill.

    Reply

  10. paul dewsbury

    this is a very good blog

    Reply

  11. hacenatek

    Important ideas in a smooth and understandable. Thank you

    Reply

  12. Randy King

    I was one of the geeks in the 80′s present at the inception of all this – I actually hosted the 13th computer on the network inside of what was then Bell Telephone Labs/Western Electric.

    It’s just amazing and fun to see the geometric progression of the collective knowledge and how we have bent the internet to serve us. It’s a great study in human evolution, actually. It’s kind of the creation of an entire society. Have we done better with this creation? I think so.

    Reply

  13. Chris Carpenter

    It really is amazing to see all of the changes taking place every year. It will be interesting to see where things go from here.

    Reply

  14. Wicharn Ruankam

    Yes. I subscribe on your website that I think can help me make money online
    but I don’t have skill and experience and not good in English language.I’m afraid to hard understand to learn the process to make money.Can you explain or advise me or suggest me by step?
    ฺำBest regards

    Reply

  15. Chris Copland

    Monty python did have a hilarious sketch about spam though the word spam was also used pre-monty python by the military as Specialy-Prepared-Army-Meat. so in fact spam was linked to the military as well….loosly or was it?

    Reply

  16. Chris Carpenter

    You are probably right.

    Reply

  17. Adewale Adelani

    Thanks Chris for the background information and returning to your blog post. Mobile advertising and video in my opinion is the future. Thanks again.

    Reply

  18. Ahmed Dikko

    The next level will still be the anoying regime of under pop up adds. Thanks

    Reply

  19. Billy

    I see FB advertising taking over #1 SOON. Go Info cash**_**

    Also with smart phones my company has a vision on what the
    trends are heading to.

    Reply

  20. George

    Hello Chris!
    Glad that you’re blogging again. Great post on Online Marketing — Hopefully the Internet will remain Business friendly for us little guys.
    Currently learning the ropes with your InfoCash program. Take it easy!

    Reply

  21. Chris Carpenter

    Thanks for visiting my blog George! Lot’s more good stuff in the works.

    Reply

  22. niranjan

    The next big thing which we already see is
    mobile internet.
    Mobile banking, shopping, we chat,whats-app
    many other applications have a great future.

    Reply

  23. Chris Carpenter

    This is true. Mobile is where it is at! What a great time to get in on the ground floor!

    Reply

  24. Andres Torres, Jr.

    Hi Chris, This is wonderful very interesting and informative. I am a retired IT executive and never so it coming. I am glad that people like you had the sense to see it. Thanks a lot.

    Andres, Miami, Florida

    Reply

  25. John T. Jones, Ph.D.

    Thank you for asking me to comment on this history. You drew a good picture which should be of interest to many. Are you in Mexico still? John

    Reply

  26. Paul

    Interesting summary note the rise and fall of the various methods BUT quality always shines :-) interesting where video will end up and the Amazon, Bing, Facebook and Google / google+ battleground. Thank you Chris for the background understanding :-) and look forward to making some of the new methods work with your help :-)

    Reply

  27. Chris Carpenter

    Yes it will be interesting to see what happens with video online.
    Thanks for leaving a comment Paul!

    Reply

  28. laurynas

    Thanks for sharing the history of online marketing.
    Chris, you’ve raised an interesting question. I haven’t thought about it yet as I’m still trying to catch up with existing marketing sources. As the technology moves up so fast we will see something new soon for sure. I’ll think about that :)

    Reply

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