From ads that dance or sing to MTV-like commercials, online advertisers are now using a new type of technology called "rich media" to attract consumers.
U.S. Internet advertising revenue will have reached about $12 billion last year, up $3 billion from 2004. Of this, advertisers spent about $1 billion on rich media, up from $800 million in 2003, according to the Interactive Advertising Bureau.
So what exactly is rich media? By definition, it is an online advertising technique that combines graphics with audio technologies, giving Internet users an interactive experience.
And with more than half of American households connected online and using high-speed connections like broadband and DSL, it means a potentially lucrative way for online advertisers to get consumers' attention.
One company taking online advertising to a different level is Centale Inc. (OTCBB: CNTL), based in Fort Lauderdale, Fla. The online marketing and technology firm offers cutting-edge technology solutions to its clients.
Centale's premier application, the Catalyst EV, is a software platform that allows companies to communicate directly to the desktop of their audience in rich media format.
The software also functions independent of e-mail. To date, studies have shown that e-mail campaigns may be decreasing in effectiveness because as the amount of e-mail increases, the likelihood of success of the solicitation or advertisement tends to decrease.
One reason that advertisers are embracing rich media is that it typically entertains and is compelling enough to capture the interest of consumers. It also allows a user a modicum of control by either stopping the ad entirely, or participating in it and clicking through to an advertiser's Web site to get more information.
While rich media may not endear advertising to online consumers, most users are finding it less intrusive than traditional pop-up, banner and text-based ads. Centale says there is a favorable market for its product, as the industry shifts away from traditional advertising such as print and radio in favor of online advertising.
Advertisers Embrace 'Rich Media' Format
Why Advertisers support Adsense
Google is the biggest search engine on the web. It controls over 40% of Internet searches, and with that it controls pay per click advertising (pay per click). PPC involves the advertiser paying a rate for every click through (CTR) in which the advertisers set. As their budget increases, their position increases, and as their position increases, they get more traffic.
This has lead to over 140,000 companies choosing to advertise with them, and they advertise in a number of ways. The first way is through is through appearing on Google searches, the second is through appearing on distributors websites, and the third is through appearing in distributors search results. As advertisers appear in Google searches, the question is sometimes asked. Why do they choose to advertise with distributors as well?
One reason for this is scalability. Those who originally choose to advertise in search results and who were getting a ROI (return on investment) will decide at one point that they need to identify other advertising opportunities. With thousands of websites which have the capacity to display their adverts the advertisers can gain further exposure very quickly.
Another reason why advertisers choose to advertise in Google distributors websites is that it gains them further exposure. 60% of internet users do not use Google, so the advertiser can appeal to a wider audience through choosing to opt for distribution channels. Many website users may be looking to buy a product such as a phone, yet instead of coming across a website which sells such a product, they come across an article. If the article is on a website which contains Adsense then inevitably advertisers can use this channel to penetrate their audience.
Another reason why advertisers choose adsense is because they trust Google. The company is renowned for being an ethical company who are fun to work whilst providing free services to millions worldwide. Advertisers feel that money invested with Google is safe. Despite the evolution of click-fraud and its inevitable disadvantages for advertisers they appear to understand that this is an issue which Google wants to stop and hopefully will eventually. Advertisers are happy that Google admits a problem exits and provides refunds accordingly.
The trust in Google also stems from a trust in pricing. The pricing is set by market forces and therefore advertisers never feel that publishers or Google are overpricing the service. This means that as long as advertisers are able to advertise they will continue to do so, if not at the same rates.
Another strong advantage for advertisers is that they can appear where publishers promote their service. An example of this can seen if you consider a publisher who is discussing the benefits of new IT software. If a software retailer appears on the website then inevitably they will be the likely source from which the web surfer will purchase the product. If the surfer is not interested then you could argue that they would not click on the advert.
The service which Google provides has created an opportunity for businesses of all sizes to advertise. Although the issue of click fraud still plagues the service it is till widely regarded as the best. New businesses attempt to promote themselves on the web, whilst established brands alike choose to attract interest in their service using the same technique.
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