Industry News

The Digital Advertising Revolution

February 22, 2012Posts by Rona Hutchisonby

1

Technology has and continues to quickly evolve and change the way of life for all of its users.  It is now hard to remember how it was ever possible to live one day without the Internet. Do you remember reading maps for directions, looking in often-outdated encyclopedias for school research, and only being able to buy the brands and products that were found in local stores that you could actually reach by car?

image of man and woman arguing

Photo: The Telegraph

As technology has progressed, advertising has reaped the benefits. Digital advertising is more cost-efficient and has a much wider reach than most forms of traditional advertising. With the invention of DVR, how many people even watch commercials on television these days? How did we get to this point?

 

History of Digital Advertising

In 1993, the first few websites emerged on the scene—most of them originating from colleges and universities.  The first search engine was called Archie (a shortened and catchier form of ‘Archives’). Development then started to boom.


image of Archie query form
Bring forth the advertisements. A company called ProdigyCommunications used Internet advertising to promote Sears products. The first well-known clickable Web banner didn’t come along until October of 1994 when HotWired allowed AT&T to display what is now known as a banner ad on their site. It was a 468 x 60-pixel piece of work that would actually track how many people clicked on it.

image of first banner ad

In 1996, the first Internet affiliate marketing program was launched by Amazon.com after a conversation at a cocktail party. This was soon followed by the start of formal affiliate marketing networks: LinkShare and Be Free the same year and Commission Junction just two years later.

The first pay-for-placement search service was provided to GoTo.com in 1998.  In the beginning, it only allowed up to 40 matches on a single page.  To appear in these top 40 spots, advertisers were paid anywhere between a penny and a dollar.

Today, digital marketing continues to expand into different industries and technologies—especially mobile.  In 2012, online advertising spending in the United States is expected to grow by approximately 24 percent, surpassing print advertising for the first time.  By 2016, the industry is expected to reach nearly $62 billion.

Rona Hutchison, Lead Generation Program Manager, AREA203 Digital; follow… @ronabelle77

 
  • Hemant Butti

    Talking about technology evolution, in a biography I was reading about my favorite science icon “Albert Einstein”, there is a mention of the joy he felt when he first moved to a house with electric power. You are correct, technology is fast evolving and changing our lives in more ways than we can comprehend. We are indeed living in exciting times :)

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