With the increased amount of time being spent by people online it makes sense that online advertising is becoming a huge industry. The advantages are, the cost for these ads are usually much lower than traditional media, the ads are more targeted to their audience and the analytical data about these ads is much more precise.
The fist online ads began to appear in the mid 1990s, these where mostly banners and towers which linked to the advertisers website. By the late 1990s animated and interactive ads had become more popular. Investors rushed to put money into online companies and the market soared until the dotcom bubble burst in 2000.
The first online ad-serving company began in 1996, not long after remote serving was launched which is the process of allowing a specialist company to manage advertising on any clients website that installed their code.
Statistics on performance are measured and targeted adverts shown based on user behavior and website content.
In 2000 Google launched AdWords which allowed users to buy small text ads that would be displayed alongside certain search results. This was the business model that grew into it’s main source of income. Clients wanting to advertise paid on a cost per impression rate. In 2002 they moved to the pay per click system where the the advertisers only are charged when the ad is click on. In 2010 Google’s advertising revenues were over US$28 Billion.
In 2003 Google launched AdSence which allowed website owners to sign up and use Google as their ad server.
In 2008 Google purchased DoubleClick, a major ad-serving provider, they then controlled 70 per cent of the world’s ad-serving business.
The increasing amount of streamed media online has led to the embedding of ads in video and sound. It has been estimated that most users will tolerate up to minute of ads in exchange for free streamed audio or video. Some computer games are embedded with advertising too inside the “game world”, so a wall in the game might have an advert on it just like in real life.
Social media has become a a big focus of online ads recently such as Facebook and Twitter.
Digital Advertising is the worlds fastest growing advertising market today.