Contrary to popular "Web wisdom" we see a promising future for Web-based advertising. Current indicators show that well-planned advertising can add value to E-businesses. For an industry that has spent recent years operating in the red, news from market research group Jupiter Communications could indicate a turning point. According to Jupiter, on-site ad revenues will reach $403 million by 2002.
Currently CDNow Inc., Onsale Inc. and Travelocity are examples of pioneering Internet companies effectively selling advertising space on their sites.
Once your on-line branding is complete and your userbase is established the pixelspace on your Web site can become an overlooked asset. Listen to CDNow's vice president, Bob Saltzman who's anticipating 1999 revenue of $7 million from on-site advertising revenue:
"We've paid an exorbitant amount, through online and offline ads, to get prime real estate on the Net. Now it pays off. Ninety percent of our traffic at any given time isn't purchasing. Now we can 'monetize' that traffic."
The highwire act, of course, is making sure that the effective advertising on your site does not compete for the same customer dollars that you are after. Similarly your advertisers and the ad placements themselves should be carefully screened to neither be overly distracting to your visitors nor atrophy the technical functioning of your site.
Look to WorkingNet to help you navigate the shoals presented by on-line advertising so that you can reach your own "Gold Coast." With total ad revenue projections of $403 million by 2002 we think that the time to make your move is now.
Info sources: Jupiter Communications and InternetWeek