Deciphering the Internet Advertising Puzzle

Krishnamurthy, Sandeep
September 2000
Marketing Management;Fall2000, Vol. 9 Issue 3, p34
Internet advertising presents a puzzle to advertisers. On the one hand, total spending on Internet advertising has exploded and everybody (including your competition) seems to be advertising on it. On the other hand, click- through rates on banners have dropped to about .5% and the most basic measures of ad viewer-ship and effectiveness have been called into question. This article provides some guidelines on how to think of Internet advertising. The author summarizes the measurement problems with banners and introduces the concepts of permission and viral marketing. He also supplies six prescriptions to keep in mind when you are putting together your campaign. The Internet is evolving rapidly and managers interested in advertising on it must be prepared to adapt in real-time if they are to be successful.


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