You can’t cover the full spectrum of Internet marketing without addressing online advertising. When it comes to b-to-b lead generation and qualification, however, online advertising is losing its luster. Banner advertising in particular has been under attack because of dropping clickthrough rates. Yet there are effective ways to apply online advertising, as you will see in this chapter. Internet advertising continues to grow, even if at a slower pace than previously. The Interactive Advertising Bureau (www.iab.net) reported in April 2001 that online advertising in 2000 reached $8.2 billion, up from $4.6 billion the prior year. Although this was an increase of 78%, the IAB said it was lower than in past years. Banner advertising made up 47% of the year’s ad revenue, with sponsorships accounting for 28%. AdRelevance (www.adrelevance.com) says about 54% of b-to-b online ads are direct response ads, mostly to drive traffic to Web sites. Forrester Research (www.forrester.com) believes online advertising in the United States will reach over $25 billion by 2004, with online advertising in Europe expected to hit about $5.4 billion by 2005.
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