Challenges Associated with Web-Based Strategies: Implications for Electronic Advertising

ABSTRACT

As the Internet diffuses into the economy and firms adopt web advertising, firms have a need to understand current customer trends towards technology. Web advertising, only six to eight years old, is in its infancy and may not be fully understood by many advertisers. This paper suggests a deconstruction of web advertising's value chain that may lead to answers for advertiser–which may lead into question several standard methods of evaluating Web advertising, such as banner ads and intrusive pop-ups. The current challenges faced by the industry will cause Web-based advertising agencies to improve the ads they develop, and Web-based ads in the future promise to become more dynamic, interactive, and targeted. Major obstacles to overcome in the world of Web advertising include methods of measuring ad performance and the ethical issues associated with the gathering of customer information on the Web. Once these obstacles are addressed and ad technologies currently in development become more widespread, Web-based advertising will begin to meet its vast potential as an advertising medium.

KEYWORDS:

• E-commerce
• on-line ads
• web advertising
• web-based marketing and strategy