Online Advertising Strategy for Sme

Topics: Online advertising, Pay per click, Advertising Pages: 23 (6701 words) Published: February 2, 2013
The appearance of online ads has reformed the entire advertisement industry, which highly improved the ads efficiency compared with traditional advertising. Nevertheless the efficiency of traditional online ads, such as online banner ads and e-mails, has kept decreasing as 21st century coming. New platform for online ads, social network, has affected SMEs advertisement strategy deeply and further improved the efficiency of advertisement. Michael Porter’s five forces model is used in this paper to analyze the situation of SMEs on advertising strategy. Plenty of SMEs’ cases are also listed to enhance the content and analysis. At last, a prediction is made - future online ads will be based on “Big Data” and SMEs will benefit a lot from the “Big Data” as its high efficiency and low cost. Finally, we believe that a powerful mapping tool combined with “Big Data” platform will come out.

Traditional Online Advertisement
October 14th, 1994 is a day we should remember in the history of advertising, when “Wired”, an American famous magazine launched an online version of Hotwired, whose home page began to release 14 advertising banners including AT&T. From then on, advertisements have paced from traditional media age to the Internet one.

In the past hundreds of years, advertising is being crucial to not only giant Multi-National Corporations listed in stock markets around the world but also ordinary individual operators because advertising can attract customers and thus boom the revenues. However, traditional advertising methods like newspaper, magazine, broadcast and television do not have as much revolutionary impact on so many people as internet ads do. The Internet advertising discussed in this part is the traditional online ad, which can be categorized into six types: floating ad, expanding ad, trick banner, pop-up, video ad, entire page and e-mail.

Large companies spend billions of dollars using e-mail network, searching companies’ web competitive ranking to put ads to the world while small and medium enterprises (SMEs) utilize internet business platform to attract buyers’ eyes. Professional advertising companies are not the sole provider for commercial publicity; instead, a personal blog may have more effect on selling products or services in multiple areas.

Through the review of the development history of Internet advertisement, the internet advertisement’s advantages can be concluded as:

Traditional online ads advantages
1. Combination of various Medias Internet advertisement combines text, image, sound and video, providing more information, stimulating consumers’ senses and making them feel more about the commodities or services.

2. More customers

Internet users have dramatically increased in the past decade, which means that internet advertising can go beyond the limitation of time and space and serve users in the whole country and even the world. In addition, the Internet can serve the most valuable consumer group: In US 95 percent of those families earning more than $75,000 use the internet and phones and 70 percent of households earning less than $75,000 use the internet.(1) People are prone to receiving news from various resources, especially from mobile devices.

Therefore, the internet advertising targets on the group who has high social status, good education, high income and high purchasing power.

3. Interactions The Internet advertising is quite different from traditional one. Once the users are interested in the advertisement, they can simply click the link and get more detailed information, or even directly fill in and submit the order online. Manufacturers can get valuable user feedback information to modify their products and services, which further reducing the distance between customers and them.

4. Effective measurements of advertising effectiveness By monitoring the indexes such as click rates, that is click-through rate (CTR), the statistics that how many people...
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