NFIB

Where Do Internet Companies Advertise?
04/ 15/ 2002

Internet companies advertise online, right? Yes, they do, but statistics show that the most successful Internet companies almost always advertise in other media even more frequently than they do online. In today's Workshop, Jeffrey Moses discusses this and shows how using similar tactics can benefit your business.

While little information is available about the advertising statistics of individual businesses, a recent study by The Intermarket Group has determined that Internet companies advertise more frequently in newspapers and magazines than they do online. In fact, less than 50 percent of all Internet companies spend money advertising online, while nearly 55 percent spend money on newspaper and magazine ads.

Most newspapers have specific sections that are of interest to specific types of potential customers, and Internet companies can target their audience by placing ads in these sections. Magazines, of course, almost always have niche markets, enabling Internet companies and others to advertise with tremendous efficiency.

Only about 33 percent of Internet companies advertise using TV and radio. The reason? TV/radio ads are among the most untargeted and expensive types of advertising.

But wait. Doesn't online advertising through banner ads, partnering with other companies and sites, and search-engine placement target customers even more accurately than newspapers and magazines? Yes, it does, but research has found that banner ads traditionally haven't generated enough business to warrant basing an entire marketing campaign on them.

How does this information help you, the owner of a small business with a web presence? Simple: consider a marketing strategy that includes advertising in newspapers and magazines that have readership closely aligned with your target market. This could include local, regional, national and international newspapers/magazines.

Depending on your type of business and your target customer, you should be wary of putting too high a percentage of your ad budget into online marketing. Even if your ultimate goal is to grow the online part of your business into the greater part of your total revenue (a worthwhile goal), you should maintain your foundation by placing an appropriate percentage of your ad budget into more traditional advertising media.

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