Online marketing is also referred to by a string of other names that include, i, web, e and search engine marketing. Companies that engage in this line of business are referred to as online marketing companies. So what do these companies do? Unfortunately or fortunately the answer to that query is both complex and ever changing. It is complex because a firm that sells its goods or services on the web, a firm that does this on behalf of firms or individuals by way of affiliated marketing, as well as firms with websites that facilitate advertising of products and services belonging to other parties are all considered as online marketing companies. It is ever changing simply because that is the nature of the web world and the internet so much so that today you find marketing practices that did not exist less than two years ago. All of this coming into existence and then being fuelled by the rapid development of technology is resulting in the ever increasing reach of online marketing companies and dictating the terms on how modern day business is being conducted.
Online marketing companies by nature of their business reap significant advantages that conventional firms simply cannot. Key amongst this is the cost effectiveness which results from the fact that a website costs next to nothing to set up and maintain. Once this is done a web site can reach a far greater audience than conventional and costlier advertising mediums can. Whats more, online marketing companies also have the advantage of being able to measure and research the numbers as anything on the web can be measured or calculated through systems such as pay per click or pay per view.
The risks associated with online marketing companies and their practice of business is that they depend almost entirely on modern and web based mediums of advertising. This means they will be unable to reach people who are still not online. Reaching those with internet connections can also be affected by slow internet connections available to intended targets. Yet another limitation is that people are still in the process of getting to know how the online world works. While the young and trendy may know the intricacies of a web based world, more mature or conservative audiences may not be so tech savvy enough to be reached via these means. Finally security concerns as well as non ethical practices such as spamming have also caused online marketing companies to suffer from bad publicity and increased difficulty in getting through to potential clients.