Skip to main content

Digital advertisement spending - A Boon or a Wane for the online sellers?


  Advertising is the lifeblood of the digital economy.
- Nick Stringer

The year is 1994 - First time in the history of world wide web a digital advertisement banner appeared on the web.   Within a span of 25 years, inspired by its tremendous growth, the digital advertisement spending has surpassed the conventional advertisement in the United States of America (in 2019). Mind boggling - so quick, so much in a so short span of time. In comparison with the TV with Print Media advertisement spending, calculating from the date of the first TV advertisement which appeared on 1st July 1941, the TV advertisement spending has taken 77 Years to surpass the Print Media.

Billions of dollars piped-in to the digital advertisement every year due to more and more businessmen converting their advertising activities to digital and also more and newer modes of digital advertisement platforms entering the market.  Why these huge spending on digital advertisement platforms? Whether we can get back the returns equal to the spending? These are the questions looming large in the minds of the business community. In this blog, we would like to analyse these factors.

Why huge spending on digital advertisements?

The fabulous advancement in digital technology and the tremendous improvement in the speed of the internet coupled with the habitude towards mobiles have influenced the huge spending on the digital advertisement. In this century,  Digital advertisements have propelled themselves to more-reach than conventional advertisements. The advent of Artificial Intelligence (AI) has made it easier for digital advertisers to hit on the bull's eye of the targeted audiences.

Statistics show that four billion people spending an average of six hours every day using internet-powered devices or services. It is the imminent fourth revolution ( digital) and the Moor's Law which are making it possible. In the year 1965, Scientist and Co-founder and Chairman Emeritus of Intel Corporation, Gordon Earle Moore said that the number of transistor fit on a computer chip doubled every year.  He accurately forecasted, because of this effect the computer power would continue to double biennially for the next ten years.  This awesome growth of the computer unified with the astounding speed of the internet leads to this huge spending on digital advertisements.

Whether the returns equal the investment in digital advertisement spending?

John Wanamaker, an American and proponent of advertisement once said with regard to conventional advertisements: " I know half the money I spend on advertising is wasted; the trouble is I don't know which half." Yes, this is applicable to the digital advertisement also. 

When we go through the statistics of the digital advertisement effects, the conclusion comes to us as a surprise.  As an example, the statistics say only 40% of the digital advertisements are seen more than 1.1 seconds.  But till date, no foolproof method evolved to deliver these metrics and a lot of controversial debates going on in the advertising industry on the methodology.  The quote of John Wanamaker is applicable to any advertisement industry whether it is digital or conventional and the words are true to be specific.  

Poster of  film Singularity 
The day is not far off, and it is also the ultimate prediction of the peers that Artificial Intelligence (AI) is going to rule all industries within a few decades.  At that point in time, Artificial Intelligence can create machines that are smarter than humans known as SINGULARITY (the name derived from the 2017 movie with the name SINGULARITY). It is predicted by Ray Kurzweil, the engineering director of Google, that this SINGULARITY shall be feasible by the year 2045, supporting the incoming of the fourth revolution (It is the real) featuring the "blurring lines between physical, digital and biological worlds"  and the humans becoming " a hybrid of biological and non-biological thinking." Digital advertising industry shall be one of the benefactors of Artificial Intelligence.
Dear Readers, of course, at that time without a doubt, there will not be any wasted half of the digital advertisement spending.

SELLinALL with its futuristic software analyse the sellers' need and helps them with their products selling at the online markets.  Their business wing takes care of their advertisement and promotional need also.

      - MagicInian@magicinian.com                                                                                                                                                           -       

Popular Posts

5 Major challenges faced by e-Commerce sellers and ways to overcome it!

Based on a report by Google and Temasek Holdings, Southeast Asia’s (SEA) digital market could exceed US$200 billion before 2025. Southeast Asia’s digital economy is forecast to triple its size in the next 5 years. Read more on the challenges faced as a seller in the E-commerce marketplace, to help you decipher and be part of this immensely growing economy. E-commerce stores are on the rise due to a numerous reasons.  As far as market association is concerned, E-commerce sites already have an existing network of buyers. So, selling your products becomes relatively easy as branding and advertising is already taken care of.As  Sigmund Freud 's had rightly said  “ I carefully consider my decisions as everything comes with pros and cons! ”  Marketplace Management When it comes to South-East Asian E-commerce market, the most underestimated struggle is  Fragmentation  i.e. there are a number of e-commerce platforms in ASEAN countries attracting significant traffic, making

What you need to know about Gross Merchandise Value

Gross Merchandise Value (GMV) is defined as the gross sales revenue generated over a period of time by an e-commerce platform before any deduction for fees or commission . It is used to track the growth rate of an e-commerce business since it measures the value of the total merchandise that has been sold through the site for a specific time period, quarterly, bi-annually, or annually. Gross Merchandise Value = Number of Goods sold x Price of goods sold This metric is useful for e-commerce businesses that buy and store the merchandise from suppliers and delivers to customers when purchases are made. However, it cannot be used as a standalone metric for all online retail platforms. For e-commerce sites that operate as a Customer-to-Customer (C2C) business, they do not physically manage the goods. The total commissions generated and accrued expenses, such as delivery fees, advertising, return expenses incurred are more important to track for this business model. This is also known as Gro

Buy Online, Pickup in Store

A National Retail Federation study on Consumer Views in late October 2019 revealed that70% of the survey participants would pay for a Buy-online, pick-up-in-store service (BOPIS). BOPIS has emerged as a convenient option not only for consumers but retailers that invested in brick-and-mortar stores. Growth in online retail sales was overtaking traditional brick-and-mortar retail before the pandemic and BOPIS was being adopted by top retailers. With the onset of the pandemic in 2020, a Digital Commerce 360 survey in late 2020 showed results that 43.7% of the top 500 retailers with physical stores were offering BOPIS — up from 6.9% before the pandemic started. BOPIS, also known as click-and-collect or curbside- pickup provides a safe, contact-free way to shop online and pick up the ordered items. In order to implement BOPIS, a retailer needs to implement the following tools: 1) A website or app where customers can shop and place orders for the products online 2) A brick-and-mortar locatio

Search This Blog