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1 ECONTECHMOD : An International Quarterly Journal on Economics of Technology and Modelling Processes

1 2017

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Internet advertising: the specifics, tendencies of development and impact on sales

Horbal N., Naychuk-Khrushch M., Orlykova B.

ECONTECHMOD : An International Quarterly Journal on Economics of Technology and Modelling Processes

2017

Vol. 6, No 1

37--46

The article is aimed at the disclosure and analysis of the role and place of the Internet tools in advertising and promoting of goods and services by marketers and their impact on sales. So, the article determines the essence of advertising on Internet, theoretical, methodological and practical issues of development and functioning of Internet advertising and, in particular, the use of Internet advertising as the means of promoting products and services. The development of online advertising is analyzed in global and national scope and trends are highlighted. Also, the forecast of total worldwide retail Internet sales till 2020 (which is expected to increase twice) is represented. The model of main features, which characterize Internet trade and marketing, is designed by the authors and represented. The main and most innovative Internet advertising instruments are described and characterized. The issues related to the differences between means, types, advantages and disadvantages of the Internet marketing were described. Also the main advantages (benefits) and challenges (difficulties) of Internet tools for advertising and promoting products are described, detailed and ranked by their importance for business. Thus, it was found out that the main risks and difficulties of the Internet tools for advertising and promoting products are: cyber risks, high competition and the choosy behavior of consumers. Those factors deserve close attention from the marketers.