Factors affecting online advertising revenue include the economy, market conditions, customer base, public perception, and ad design. The suitability of online advertising for the product and target audience can also affect ad revenues.
There are several factors that can affect online advertising revenue. Some of the most common ones include the general economic climate, current market conditions for the service or product being offered, and the effectiveness of using various mediums for a specific group of customers. Changes in the general perception of the company or the product being offered can also affect online advertising revenue.
Typically, the state of the economy somewhat mirrors the amount of online advertising revenue earned. This doesn’t always mean that ad revenue will go down in hard times, sometimes it will even go up. Still, any improvement is likely to be slight, and for the most part, if the economy is bad, revenues are expected to decline.
The success of online advertising revenue also depends on the robustness of the market for the offered product. While a strong advertising campaign can remedy lack of interest in an offering, if there is not a solid customer base for the product, revenues are likely to decline. This factor can become an issue over time or develop very quickly due to an unexpected event or industry innovation.
Online advertising revenue figures can also rise and fall depending on the public’s perception of a specific company or product. A company can attract interest and support with a new offering that sets it apart from competitors. On the other hand, anything from scandal to simply a loss of relevance can negatively affect the company’s perception, which can cause a drop in advertising revenue.
The suitability of online advertising for the product and target audience can also affect ad revenues. Other media, such as television, print and radio, may have more or less impact on desired customers. A different medium may also have characteristics that better fit the way the offer needs to be promoted.
Online advertising revenue can also be affected by ad design and where it is placed on the page. Some products may be easier to sell with text-heavy ads, while others may need sound or moving images to make a strong impact. If the target audience tends to be annoyed by ads that try to get their attention by popping up in another window or appearing on the page, revenue can also be negatively affected. Revenue can also be increased if an ad’s format is tuned to something the target customer finds interesting or useful.
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