Facts and information about online advertising and branding. Article includes top 10 countries spending the most on online advertising and also top 10 most famous global brands.
Anyone in business knows about advertising, and so do non-profit organizations and people working in advertising agencies. Advertising is a form of communication that is intended to persuade an audience to buy products or services.
The advent of the Internet has seen proliferation of online advertising programs along with online advertising tools. Some of these programs include online email advertising and targeted online advertising.
Advertisers provide advertisements (adverts or ads as they are commonly referred to). Essentially, advertising is merely a part of the advertising mix that can contribute greatly to other activities in selling the product/s.
Advertising then becomes a part of the process of branding, a way to distinguish products from each other in terms of consumers’ minds. An example is the soft-drink Coca-Cola or Pepsi-Cola. When a consumer is sold to Coca-Cola, for example, he or she sticks to the brand no matter how the competitor improves on its product. Apart from fronting the products in websites, advertising has a role in stimulating the product distribution process.
Google, the most powerful search engine and largest organizer of information on the planet, has various forms of advertising online, offered for the big companies, small businesses, to the work from home blogger trying to monetize his or her blog.
Why do Businesses Advertise?
In the case of Internet advertising, some benefits of online advertising include the following:
- It’s a great way to develop a business profile and reach audience faster.
- It increases website traffic.
- It’s a cost-effective way of communicating with more people.
- It attracts new customers faster.
- It builds brand for the business that serves as a tool of competition as it differentiates a brand from its competitors
- It links and updates directly business information
An advertising expenditure forecast (2009) for top 10 countries spending the most on online advertising is provided by Euromonitor International, Global Market Information Database. Euromonitor is a leading provider of business intelligence and market research that covers various industry sectors.
Top 10 Countries Spending the Most on Online Advertising
(Online advertising spending, 2009 forecast, in US$)
1. USA - 21,937,370,000
2. UK - 5,721,140,000
3. Japan - 5,712,250,000
4. Canada - 1,427,310,000
5. Australia - 1,158,430,000
6. South Korea - 1,143,150,000
7. Germany - 1,027,510,000
8. Norway - 926,120,000
9. France - 790,990,000
10. Italy - 788,730,000
Top 10 total: US$ 40,633,000,000 (89% of world total)
World Total: US$ 45,470,600,000
Below are the most valuable global brands for 2010 as reported by Interbrand/Business Week. Brand consultants Interbrand use a method of estimating value that takes account of the profitability of individual brands within a business, rather than the companies that own them.
Top 10 Most Famous Global Brands, 2010
1. Coca-Cola (Beverages, US)
2. IBM (Business Solutions, US)
3. Microsoft (Computer Software, US)
4. Google (Internet Services, US)
5. General Electric (Diversified, US)
6. McDonalds (Food Retails, US)
7. Intel (Technology, US)
8. Nokia (Electronics, Finland)
9. Disney (Media, US)
10. HP (Electronics, US).
All brands are US-owned except Nokia (Finland).
Unlike the big corporations with large sums of money to spend, for small businesses, the decision to advertise can be a challenge especially with budget on the string finances. The important thing to keep in mind is that the basic task of advertising is to sell a product (or service), or to support sales. Deciding to advertise or not should be a result of careful planning and rational analysis by which business objectives are determinants.
Branding, WebGuild.org / Branding
EuroMonitor International, Global Market Information Database