Internet Advertising

Many companies believe they know how the Internet works after reading an Internet book. This is not possible. The Internet requires learning by doing. The best advice is, get on-line and get a feeling of what is happening on the Internet. That is the first step to becoming a successful advertiser on the Internet or even Internet Advertising. The Internet is connecting advertisers and marketers to customers from Boston to Bali with text, interactive graphics, video and audio. If you're thinking about Internet Advertising, remember that many of the same rules that apply to other forms of advertising apply to Internet Advertising.

Internet Advertising is becoming part of some companies marketing strategy. However it requires new strategies and thinking. The benefits of Internet Advertising are its ability to cover all promotional objectives from awareness to action by leveraging all 5 elements in the promotion mix. The Internet is also a highly selective, cost effective media with greater measurability than any other media. Despite higher global reach, Internet is not yet a local mainstream media. The Internet offers companies targeting well educated, innovative, affluent males or students, great potential for success as their segments are highly represented. Products with high information intensity and high buyer involvement are also appropriate for Internet promotion due to its large information capacity at low costs.

Internet Advertising demands management understanding and commitment for success. Management must determine Internet objectives and strategies to allocate efficient resources such as capital, equipment and people. Research validated that the Internet should be integrated in the companies overall marketing strategy. The marketing department together with a competent advertising agency should therefore manage the site. The IT departments together with multimedia agencies lack the strategic marketing knowledge which is required for Internet Advertising implementation. 

However, their competencies in technology should be utilized and be incorporated which calls for a closer working relationship across departments and industries. Understanding the Internet, following the guidelines and recommendations, should ensure that Internet Advertising works effectively in the future.

The Federal Trade Commission Act allows the FTC to act in the interest of all consumers to prevent deceptive and unfair acts or practices. In interpreting Section 5 of the Act, the Commission has determined that a representation, omission or practice is deceptive if it is likely to: 
· Mislead consumers and 
· Affect consumers' behavior or decisions about the product or service. 
In addition, an act or practice is unfair if the injury it causes, or is likely to cause, is: 
· Substantial 
· Not outweighed by other benefits and 
· Not reasonably avoidable.

Internet Advertising agencies or website designers are responsible for reviewing the information used to substantiate ad claims. They may not simply rely on an advertiser's assurance that the claims are substantiated. In determining whether an ad agency should be held liable, the FTC looks at the extent of the agency's participation in the preparation of the challenged ad, and whether the agency knew or should have known that the ad included false or deceptive claims.

To protect themselves, catalog marketers should ask for material to back up claims rather than repeat what the manufacturer says about the product. If the manufacturer doesn't come forward with proof or turns over proof that looks questionable, the catalog marketer should see a yellow "caution light" and proceed appropriately, especially when it comes to extravagant performance claims, health or weight loss promises, or earnings guarantees. In writing ad copy, catalogers should stick to claims that can be supported. Most important, catalog marketers should trust their instincts when a product sounds too good to be true.