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Online and Mobile Advertising: Current Scenario, Emerging Trends, and Future Directions

Venkatesh Shankar Marie Hollinger*

September 2007

* Venkatesh Shankar is Professor and Coleman Chair in Marketing and Director of the Marketing PhD.
Program at the Mays Business School, Texas A&M University, College Station, TX 77843. Marie Hollinger is with USAA, San Antonio. The authors thank David Hobbs for assistance with data collection and article preparation. They also thank the MSI review team and Thomas Dotzel for helpful comments. Please address all correspondence to vshankar@mays.tamu.edu.

Online and Mobile Advertising: Current Scenario, Emerging Trends and Future Directions, Copyright © 2007 Venkatesh Shankar and Marie Hollinger. All rights reserved.

Online and Mobile Advertising: Current Scenario, Emerging Trends, and Future Directions
Abstract
Online advertising expenditures are growing rapidly and are expected to reach $37 billion in the U.S. by 2011. Mobile advertising or advertising delivered through mobile devices or media is also growing substantially. Advertisers need to better understand the different forms, formats, and media associated with online and mobile advertising, how such advertising influences consumer behavior, the different pricing models for such advertising, and how to formulate a strategy for effectively allocating their marketing dollars to different online advertising forms, formats and media. In this article, we address these issues. We provide an overview of the current scenario with regard to online and mobile advertising. We discuss the emerging trends in these areas and offer our view of the future directions.

1. Introduction
Advertising has been an integral part of marketing since the origins of commerce and free enterprise. With the advent of printed word came a new and more widespread medium to bridge the communication gap between the producer and the consumer. To this day, print advertising can be viewed in vehicles such as

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