Business models: Confidences of Marketing and Online Advertising

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Business models: Confidences of Marketing and Online Advertising

The technological evolution of the internet medium and the increase in its audience worldwide has generated great changes in the advertising sector. This great generational change, added to the effects produced by the recession and the economic crisis, have been enough reasons for brands and advertisers to modify their strategies and trends towards digital media and media such as the internet that continue to gain more Sri-Lanka Mobile Database confidence every day. However, despite the growing popularity of advertising and online marketing strategies, the foundations of its operation and sustainability are being questioned by the vast majority of media and supports that operate through the network. Search engines, social networks and the media account for most of the advertising pie on the Internet, but in some of these cases, the return and the benefits generated seem to be insufficient or a guarantee to sustain some of their business models. Sri-Lanka Mobile Database

In the case of digital media, establishing a business model based exclusively on advertising becomes difficult and very risky. However, for this type of media it is vital to have an important source of income that allows maintaining a competitive professional and editorial environment. The Internet seems to force a direction to follow with its own voice. The fashion trend points to social networks as the best supports for brands and advertisers. However, despite the fact that these types of networks continue to grow in audience, the effectiveness of their advertising continues to be debated and questioned. The business of internet-oriented digital advertising owes part of its success to pioneering companies that set a starting point from which to evolve. However, many of these companies have caused a devaluation of the supports and their quality, in relation to the reduction of their costs in favor of the advertisers.

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Up to this point, we could assume that this has served to drive and convince advertisers to invest in this medium. However, the problem generated is simple. Advertising is not really being a profitable business for the vast majority of professional media that operate through the network, or at least, it is not helping to achieve the ends and objectives for which it was conceived. We could use an obnoxious comparison. As is the case in sectors such as agriculture, the product has gone from Brother Cell Phone List a direct trade relationship to being distributed by intermediaries to reach the end customer, and in this process, a large part of the benefit received by the media has been lost. Despite being considered a fundamental process of trade, it is still unfair when the benefits are minimal and disproportionate. For this reason, many of the large media are beginning to dispense with this link in the chain to market their spaces in a much more direct and profitable way.

Much has been debated about the different advertising systems based on CPM, CPA or CPM. All of them maintain a common denominator for the advertiser, “seek the highest return by making the least investment.” Although in theory this statement could be counterproductive, the average cost established in the market reveals the difficulties of the supports and means to generate sufficient profits and income necessary to make their businesses profitable and sustainable. Despite the variations in the estimates and costs between each of the media or media, the market imposes its strength and quality is sometimes excluded and out of play. It loses its value.

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