Online advertising earnings grossed almost $6 billion in the opening quarter of 2009, a slight drop compared to the previous calendar year. This obviously, is primarily due to the difficult economic climate and small incomes that businesses were producing. The latter implicitly leads to budget cuts and one of the first to be cut is the marketing budget. However, the way that the marketing budget was being used before should also be analyzed.

One of the major difficulties that advertisers experienced was that many of their advertisements were not meant to sell their products, but to earn the advertising firm an award, no matter how many sales the advert delivered. Basically, companies had huge marketing budgets that were spent without due regard for the outcome. This was true for the offline advertising medium as well as online marketing.

The severe economic climate has forced businesses to stop and take stock of their finances, which should have been done long ago. They are developing more efficient processes and are attempting to reorganize their business for increased returns on their investment. The point to all this is that despite the fact that there has been a small decline in internet advertising revenue, the near future will most likely bring an explosion in those same returns. The reason is simple: no other form of marketing can provide such quick feedback or such an accurate evaluation of the ROI that every single ad produces.

Thus, although some might feel that online advertising is much too costly, the cost as opposed to the return is a ratio that most companies will find more than pleasing. If internet advertising is regarded as expensive, then what can a Super Bowl ad be regarded as when one can not even track how many people viewed the commercial let alone made a purchase as a direct result? Online advertising provides this and much more.

Online marketing is fast becoming a boon for the marketing community and the latest figures released by the Interactive Advertising Bureau indicate that American internet advertising revenues for the third quarter of 2011 were $7.88 billion. This is an increase of 22 percent on the last quarter of 2010.

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