Development of Internet Marketing Paper 2 – Di Fan

Development of Internet Marketing

In the 20th century, the two most inconceivable inventions were the atomic bomb and the other is Internet.

At the ending of World War II, many countries organized their top scientists in a nuclear arms race. The result was not one fair, however human started to acquired nuclear weapons able to destroy the word again and again. Also Internet is a product of the process of inventing nuclear arms during the Cold War.

On Valentine’s Day in 1946, the first computer (Electronic Numerical Integrator and Calculator) was created at by as well as the University of Pennsylvania. It was used for measuring the distance of cannonballs, and it was also regarded as the rudiment of local area network.

People were very afraid of nuclear war, and they believed in science. They wanted to find a way to quickly get information and communicate with others. Many different universities tried to invent the new information technology. In 1981, the Internet Protocol Suite was standardized and the concept of a world-wide network of fully interconnected TCP/IP. It finally made the Internet to come true.

New Medium 

At the same time, IBM Company sold personal computers to ordinary families and offices; it also meant it was the beginning of Internet Marketing.

In 1994, Netscape created the first web advertising after the creation of Web browsers. After a year, many large corporations and brands such as AT&T, Saturn, Time and Proctor & Gamble began to create both their own websites and online advertising. Advertising has already saturated the Web; also the Internet gains broad commercial acceptance as a sales medium.

From 1995 to 1997, the increase rate of Internet user quantity was 788%. Online advertising total $301 million in1996 inthe United States, but just two years later it grew to an industry worth nearly $1 billion in 1998. During these years, AT&T and Saturn took banner ads on Pathfinder at the cost of $30,000 per fiscal quarter. And Proctor & Gamble and Kraft register a combined 184 domain names to secure their brand names in cyberspace.

By the end of 1997, using newsletters distributed via e-mail, and interactive pop-up windows became very common.



Until 2000, the number of Internet user was420,000,000 inthe world. Not only did many technology industry giants like IBM Corp. and Microsoft Corp. began dumping millions of dollars into Internet marketing, but also many smaller firms turned to highly trafficked sites.

The thing that amazes business about Google’s Ad Words program, Yahoo! and MSN’s advertising networks is that the smallest of ad budgets can easily participate.

For example, in 2002, the Google Company created Ad Words program. Their success produced all the traffic they could handle and they did not sell anything. The keyword is that text ads appeared along the right column of search results. Suddenly, lots of traffic was becoming lots of revenue. Since then, Google’s growth was 63% profit on $3.66 billion in revenue for the first quarter of 2007.

On the other hand, Yahoo!, a popular Web directory, transformed into a commercial business. It is also second only to Google as the most-visited Web destination in the United States market, bringing in 178 million unique visitors monthly in June 2011, and the revenue was $1,170,000,000 for the fourth quarter of this year.



USmarketers spend $36.5 billion on online advertising, about 10% of their total media budget in 2011. As many researchers forecasted, the Internet has already changing the world, and the old media would be replaced by it.

In fact, online marketing has changed the way consumers purchase products. People can go directly to the website of, an advertiser to buy the products or services promoted when they see an online ad. Also, online marketing companies could save more money due to the website’s necessity in reducing sales force rates and online advertising expenses. It is different from any medium before.

Compared with Internet, the life of print advertising is getting harder. Between 1950 and 2000, the Chicago Tribune’s Daily circulation declined from 933,858 to 626,728, while the Sun- Time’s went from 629,000 to 468,170, even though the metropolitan area’s population had grown by more than 40%.

So far, the Internet and TV are the most frequently used media. The Research shows that the Internet usage is growing as a percentage of time spent for the respondents, with 47% stating spend more time online in 2011. And the rate of TV watching only increased 17% in the same year. Additionally, television medium refuses small business, because they cannot pay for on TV. Television is the most expensive way to push off business marketing advertising during the prime time.

The development of technology has transformed the Internet era of business marketing.



One comment

  1. outsidetheboxseries · April 8, 2012


    This is a very good topic area. Bigger than just a technology or a singular person. This is a change in the way the world does business and how that business can be targeted and thus pushing this technology further along. It is a cycle of success that will morph and change into other areas. Once a model is successful others adopt that model and in this case this new model generates revenue which is influential. The DM business world generates over $2 billion dollars a year that is derived from only a 2% return on the offers. Out of 100 offers in direct marketing only 2 generate revenue. 98 of those offers fall apart. With this new method of targeting that number is surely to climb and also the cost to generate those revenues is diminishing – better return on investment.
    With that success opportunities die and grow, Disruptive technologies – when in the past has this happened??? And what does that tell us of what is in store in the future the future is only a repeat of the past.
    Those that ignore history tend to repeat it. So – we need to learn from history and try to do our best to go forward. The question is – what is next??? What is here now and where does it lead? What model does it work off of? Why will it work or fail?
    your last paper needs to address that as does everyone’s. “As I May Think” – what do you think will be next in your respective area of interest?


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