Online marketing, also known as Internet or digital marketing, involves using the Internet to promote a business. Instead of churning out pretty banners, placing them wherever budget dictates and touting a vanity metric (such as impressions) as the win; our display advertising strategists use a wealth of data and custom created metrics to descend upon your customers and only your customers.
Here is a great video by Google explaining how to use the Google Website Optimizer tool (Update: June 1, 2012, The Google Website Optimizer was replaced Content Experiments, a Google Analytics – see official announcement on the Google Analytics blog ) which is a free A/B website testing tool for Internet marketers.
Like if a company specializes in designing diet plans and want to help out people who had disappointing results from their individual diet plans, and the company chooses to advertise a full page in the local paper instead of running advertisement in a health magazine, obviously not many of the dieters will notice the advertisement and the advertisement doesn’t get the desired attention.
In traditional advertising campaigns, your reach is limited to local populations; couple this with a decline in circulation of local newspapers and you are faced with a significant decline in the number of consumers who will view your advertisement.
Greg Stuart, the author of a forthcoming book on the industry and the boss of the Interactive Advertising Bureau, a trade association, estimates that advertisers waste—that is, they send messages that reach the wrong audience or none at all—$112 billion a year in America and $220 billion worldwide, or just over half of their total spending.