There is a rapid growth of people spending more time on the Internet, and this growth has generated a new market for advertising; the digital advertisement. Traditional advertisement such as News Papers, TV and Radio are still being used but there is a drastic shift from traditional to digital advertisement.
According to a Wall Street Journal article "The digital marketing research firm says U.S. spending on online ads will hit $25.8 billion, surpassing the $22.8 billion spent on print ads in newspapers”. Companies are spending more on internet ads because they are looking for away to specifically market to people that will actually purchase their product. Online advertisement does just that, it guarantees that the people who are viewing your ads are the one who will most likely purchase it. Online Advertisement is able to do this by using program like Google’s Adwords and AdSense. The functions of these programs are used to match up advertisers with targeted individuals verse a wide audience traditional advertisement.
"U.S. users spend 12 hours per week online, which represents about 32 percent of their media time. However, online advertising makes up only 13.6 percent of advertising spend in the U.S." Susan Wojcicki, VP Public Policy and Communications, Google
There is a Wall Street Journal article that argues “There's a realization that online advertising, in general, is not as effective as advertising during big events” For example the Grammy’s and the Superbowl attracts a large audience. People are more focused and are interested in the advertisements. However, traditional Advertising can be very expensive, a magazine ad can cost several hundred dollars, radio and television commercials are even more. During a major event the prices are even more money. If your company has a small budget, internet advertising can be also much more cost efficient. In a Huffingtonpost article, Pepsi started its shift to a Direct Response Marketing during the 2011 SuperBowl. Pepsi moved their entire TVC to online advertisement and social media.