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Online Advertising Strategy for Sme

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Online Advertising Strategy for Sme
Abstract
The appearance of online ads has reformed the entire advertisement industry, which highly improved the ads efficiency compared with traditional advertising. Nevertheless the efficiency of traditional online ads, such as online banner ads and e-mails, has kept decreasing as 21st century coming. New platform for online ads, social network, has affected SMEs advertisement strategy deeply and further improved the efficiency of advertisement. Michael Porter’s five forces model is used in this paper to analyze the situation of SMEs on advertising strategy. Plenty of SMEs’ cases are also listed to enhance the content and analysis. At last, a prediction is made - future online ads will be based on “Big Data” and SMEs will benefit a lot from the “Big Data” as its high efficiency and low cost. Finally, we believe that a powerful mapping tool combined with “Big Data” platform will come out.

Traditional Online Advertisement
October 14th, 1994 is a day we should remember in the history of advertising, when “Wired”, an American famous magazine launched an online version of Hotwired, whose home page began to release 14 advertising banners including AT&T. From then on, advertisements have paced from traditional media age to the Internet one.

In the past hundreds of years, advertising is being crucial to not only giant Multi-National Corporations listed in stock markets around the world but also ordinary individual operators because advertising can attract customers and thus boom the revenues. However, traditional advertising methods like newspaper, magazine, broadcast and television do not have as much revolutionary impact on so many people as internet ads do. The Internet advertising discussed in this part is the traditional online ad, which can be categorized into six types: floating ad, expanding ad, trick banner, pop-up, video ad, entire page and e-mail.

Large companies spend billions of dollars using e-mail network, searching companies’ web competitive

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