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It comes as no surprise to see advertisements all over the Internet. Advertising online is a booming industry where the top 5% controls 85% of the marketing space on the web. Big budgets reign supreme for the top 5% online advertiser, but where does the little guy fit in?

Welcome to the Poor Man’s Guide for Online Marketing. Within these contents you will find how you can make your site, product, or service visible to the masses while keeping your wallet in tact.

Let’s go over the forms of online advertising briefly so all avenues are explored.

• Banner Advertisements
• Text Link Ads
• Pay per Click (Search Engine Ads) (more…)

AOL Time Warner will join Microsoft and Google with major purchases of online advertising companies. AOL will purchase Quigo for around $300 million. The deal is expected to close by the end of 2007.

The 23% drop in profits is clearly something to be worried about as AOL looks to strengthen their advertising platform. AOL will now gain advertising rights on Quigo’s current partners ESPN, Disney and ABC.

Rumors continue to swirl about the possibility of Google releasing a competitor for the Apple iPhone. It’s speculated title is the gPhone, and it is rumored to be bigger and badder than the iPhone. Not in looks, but in functionality and features.

In other words, don’t expect a fancy touch-screen, which would only raise prices. Do expect a lot of applications, all of which will probably have advertising built-in. Google maps, Gtalk, search, and many more features will be readily available. Another way they plan to keep the cost down is by not making the actual phone themselves, rather they will contract another company to design the phone, and they will supply the software bundle that will make the phone a Google device. In a way, the Google phone will be more like a mini-computer than a cell-phone, with an easy to use operating system making the gPhone a great buy for all levels of cell phone users.

Interactive marketing is evolving and being implemented at a rapid pace.  In fact, the industry will grow by over 27% per year over the next 5 years.  This means an increase in interactive marketing spending from $18.4 billion in 2007 to over $61 billion in 2012.  According to Internet Retailer, the fastest growth will come from online video ads and emerging marketing vehicles, for example, social media, widgets, mobile and gaming.

Not surprisingly online video ads is and will continue to grow at the most rapid pace.  What is interesting, is that interactive marketing spending is less that 10% of total online advertising spending.   By 2012, interactive marketing will account for close to 20% of advertising spending.  Search engine marketing and social media marketing will also grow rapidly.  There is no better time to join the market than now, because it is only going to grow.

100 YouTube publishers have been recruited by Google to offer up videos for Adsense publishers to use on their sites.  Adsense wants to give their publishers more options on the content front, and now Publishers can host videos on their sites that work the same way as normal Adsense ads.

This move by Google wasn’t an unexpected one considering they are always improving Adsense.  Options are somewhat limited in the categories offered for video content, but Google is expecting to expand deeper breadth-wise and create a number of niche categories.

Everyone knows of MicroSoft purchasing aQuantive for $6 billion earlier in the summer. The move foreshadows MicroSoft’s newest direction online. MicroSoft says the move to buy aQuantive is not a fluke, and to expect online advertising to become a major player in their overall business strategy.  Expect 25% of MicroSoft’s business functions to directly or indirectly come from online advertising.

The online advertising market continues to grow at a rapid pace, and with major players Yahoo and Google participating heavily in online advertising, it should come as no surprise that MicroSoft wants to compete with the major players. Google has made their own purchase this summer when they bought DoubleClick for a little over $3 billion. Yahoo is the only major player who hasn’t made a purchase of a noted advertising agency. The next few years should be interesting as the online advertising battle heats up.

Online advertising is up 27% with revenues of over $10 billion in the first half of 2007.  Search Marketing Accounted for $4.1 billion of all online advertising revenue.  Rich media and video ads accounted for over $3 billion of online advertising revenue.

Expect the numbers to rise further as we approach the busiest time of the online year as we get closer to the holiday season.  I still don’t believe that the online advertising industry is about to hit its peak, as MSNBC reported.

Source:  MediaPost