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The power of Internet marketing. The Rise of Internet Marketing Since its birth in 1989, the World Wide Web, and its worldwide use, has exploded. According to Nielsen/Net Ratings, there are now nearly 900 million Internet users worldwide, over 200 million in the United States alone. Research firm marketer reports that U.S. adult Internet users will spend an average of $878 online this year which equates to more than over 100 billion dollars in e-commerce business being generated from the United States alone. In spite of these astounding numbers, Internet marketing—which includes such marketing techniques as e-mailing, display ads or banners, rich media, and the most effective: keyword search—is only a $3 billion industry? That may seem considerable, but a study conducted by ZenithOptimedia reports that Internet marketing makes up less than 4% of global spending on advertising, putting it far behind television and newspapers which combined compose more than two-thirds of total global ad spending. However, statistics show that spending on Internet advertising is increasing at greater percentages than spending on advertising in other media. As reported by Jupiter Research senior analyst Gary Stein at the 2004 Search Engine Strategies Conference: “Spending on Internet advertising increased 27% from 2003 to 2004, while cable advertising increased 14.1%, broadcast TV advertising was up 8.2%, radio advertising was up 7.0%, magazine advertising increased 5.0%, newspaper advertising increased 4.8%, and Yellow Pages advertising was up 3.2%.” Internet advertising is growing so much faster than other forms of advertising for a reason: The Die ringer Research Group reported in late 2004 that “online product research conducted by consumers the past year was responsible for driving $180.7 billion in offline spending, compared to $106.5 billion in direct online consumer spending.” Integrand’s Business Barometer for spring 2005, a nationwide survey of over a thousand leaders of small- and medium-sized business, showed that those businesses that are applying Internet marketing techniques are getting “a clear return in top-line revenues for their investment.” The simple truth, then, is that if your company is not dedicating a significant percentage of its advertising/marketing budget to the Internet, particularly to search engine

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