The worldwide online adverting market dropped by five percent in Q2 of 2009 when compared to corresponding period in 2008, according to market research company IDC. The total online ad spending in Q2 of 2009 is $13.9 billion dropped from $14.7 billion in Q2 of 2008. Among the online advertising categories such as online ads, display ads and classifieds, search ads are the least affected.

The vital region for the global market was US online advertising market that dropped 7 percent during Q2 year over year. The US online ad market is now worth $6.2 billion in Q2 of 2009, while it was $6.6 billion in the corresponding period last year. The only region that remained positive globally was Asia/Pacific and Japan with slight gains.

The effect of economic crisis on various online advertising like social media, mobile ads and display ads are as follows:
•    Advertisers are shifting their ad budgets from digital media to most proven traditional Medias such as television ads, newspaper ads.
•    The search advertising became a dominant player in the entire Internet advertising. It captured one-third of all annual online ad spending worldwide despite global economic downturn.
•    Display ads will be the next largest tool in online advertising. It is expected to capture 20 percent of all annual ads spending worldwide by 2011, followed by Classified ads with 19 percent.

The factors that support online ad spending:
•    Improved ad budgets
•    High cost for advertising in other medias
•    More companies are including Internet advertising as a part of their total advertising campaign
•    Ad budgets tilt from other medias to Internet

Mobile Internet ad spending will increase $2 billion by 2014 from $500 million in 2009, according to Juniper Research. The main reason behind this is, the growth driven by new markets such as China and India where fixed line Internet access is less. The growing mobile Internet access across the globe irrespective of the economies is likely to fuel the further growth of online ad spending.

However, Internet advertising received only a small portion of marketing budgets in the current season, it is expected to improve in the coming years. In a similar report, GroupM predicts that if the worldwide ad spending reaches to $58.17 billion by the end of 2009, online advertising will be 13.2 percent of total ad spending and it will further increase up to 14.6 percent in 2010.

Because of the global economic crisis, marketers decreased ad budgets to advertise on new social networking. The impact of economic crisis on online advertising industry specifically and the advertising industry overall is expected to continue in 2010 as well. In this period, the traditional media advertising is most likely to be affected than online advertising.

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Search advertising revenue share increased 1.7% in the total Internet advertising in first six months of 2009, when compared to the first half of 2008. According to the Internet Advertising Bureau (IAB) report, total Internet advertising revenues were $10.9 billion in first half of 2009, declining 5.3% when compared to the corresponding period last year. The revenues were $11.5 billion for the first six months of 2008.

Search ad continue as the top revenue generator
Search advertising revenue accounted 47% in first six months of 2009. Display ads and classifieds are next to search advertising respectively. In absolute numbers, search ad revenues totaled $5.1 billion for the first six months of this year, with no change reported in the corresponding period of 2008. However, the share in the total Internet advertising increased by 1.7% as the other segments’ share decreased. This shows that, there is no improvement in search ad revenue. The only difference is in terms of search advertising revenue percentage in the total revenue.

The most costly online display advertising revenues declined by 1.1% in the first half of 2009 when compared to the first half of 2008. The total revenues were $3.8 billion with 34% in first six months of 2009. The display related advertising revenues including banner ads generated $2,394 million with 22% of the total Internet advertising revenues. Rich media generated $704 million with 7% share, digital video ads generated $477 million with 4%, and sponsorship ads generated $184 million with 2% of total Internet ad revenues.

First time negative trend in first half revenues in 2009, since 2002
If the historical revenues trends are observed during the last seven years, for the first time there was a negative trend in year over year revenue growth in 2009 first half. The revenues were $2,978 million in 2002, $3,292 million in 2003, $4,590 million in 2004, $5,787 million in 2005, $7909 million in 2006, $9,993 million in 2007, $11,510 million in 2008 and $10,900 million in 2009. Earlier a negative growth trend was seen in 2000-2001 and 2001-2002. This trend appeared three times in the last ten years and first time in the last seven years.

Overall, search advertising revenues show positive trend, though there is a drop across all other advertising format revenues in the first half of 2009. It indicates that people who invested in search advertising got better revenues when compared to others who invested in other online advertising formats.

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The ever-increasing popularity of mobile phones vindicates a good opportunity to attract prospects through mobile marketing. Text messaging is one of the few efficient mobile marketing tools that are adopted by mobile marketers. Mainly, there are two methods to send text messages, Short Message Peer to Peer Protocol (SMPP) and Simple Mail Transfer Protocol (SMTP). For a mobile marketer it is important to understand which method to adapt to send text messages in mobile marketing.

SMPP Is Better Than SMTP:
There are many advantages of using Short Message Peer to Peer Protocol (SMPP) over Simple Mail Transfer Protocol (SMTP). Messages through SMPP are secured, reliable in delivery, carrier supported, extended information, and have legal protection unlike SMTP. SMTP messaging is permitted only for personal use, not for business use.

Direct Communication To Carriers And Instant Delivery:
SMPP is a direct connection to carriers and provides instant delivery. SMTP messages have higher rate of failing. Messages sent over SMTP roam around the Internet from server to server before they get delivered. If servers are fully loaded, they can take up to 24-48 hours to get delivered.

Real Time Message Delivery Reports:
SMPP offers status delivery reports. They provide information on successful and failed deliveries. Besides, SMPP provides the reasons for failed deliveries also. On the contrary, SMTP does not provide any delivery reports.

Usage of ‘Short Code’:
SMPP access the advanced solutions by using ‘short code’. This enables the customers to quickly and easily subscribe or unsubscribe themselves from a client’s database just by replying to the clients’ messages. On the contrary, SMTP doesn’t support this feature.

Clients Can Reply:
SMPP offers complete two-way text messaging. Clients can get important feedback by creating a dialogue with their customers. SMPP provides a good communication between a client and his customer. When it comes to SMTP, it is not possible for the customers to reply to message they got.

The cost of sending text messages through SMTP is low compared to SMPP, but it is not worthy to risk your business just for few pennies. A mobile marketer should make a smart choice by using SMPP method to stay ahead of their competitors.

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The Indian Higher Education System has a history of imparting quality education. This was a major strength and competitive advantage of India. During the years when offshoring was not yet popular, the PowerPoint presentations created for top management of North American / European companies would include several slides on the quality of education in India and the difficulty of getting admission into higher education. However, this major strength and competitive advantage has rapidly eroded in the past decade.

Currently, even mediocre talent can easily get into professional colleges
Earlier, many talented people could not join professional courses, now even mediocre talent can easily get admission in AP. The number of engineering seats in Andhra Pradesh increased from about 4000 in 1989 to about 1.5 lakh by 2009. Even the number of MBA seats grew to about 20,000 from 2000 in just 10 years. However, the number of regular graduate students has remained about the same. This rapid growth in number of seats created a dearth of competition among students. It declined the caliber of students joining these courses.

This situation has been worsened by the greed of both students and their parents. When a professional course is paying good salaries to fresh graduates, many have succumbed by opting for such courses despite their interests/ capabilities not matching with what is required to be successful in that field.  Earlier many of such students would not have got admission into professional colleges.  However, today because of the manifold increase in the educational institutions offering such courses they can easily get admission in professional courses. This awareness that they will anyway get into a professional college further removes incentives for students to compete and strive hard to get into a professional course.

Lack of quality teaching staff
In the late 90’s, while the number of educational institutions was increasing manifold, many of the competent junior faculty left for lucrative careers in corporate sector. Over the years, the senior faculty have retired, while the remaining junior faculty got promoted as principals / Head of Departments of the new colleges. The existing educational system at that time had a limit on the number of quality teaching faculty they could generate. This combination of factors, manifold increase in colleges, retiring of senior faculty, good mid-level faculty leaving education system for lucrative corporate careers and limit of the number of good new teaching faculty that could be generated, dramatically led to the lack of quality teaching staff in professional colleges, as we see today.  This lack of quality teaching staff seriously impairs a systematic and disciplined imparting of education. Thus, it has caused a dramatic fall in educational standards across the entire state.

Social welfare measures providing free education destroyed the value of education
As a social development initiative, the government has with good intentions provided free education to students from some backgrounds who joined professional courses. However, human nature typically tends to value that are expensive and difficult to get. When education was made free, this move possibly led to undervalue the education.  The commitment level to pursue education was lowered due to the low out-of-pocket expenses. There was little to lose by neglecting their studies. However, this remains only a secondary issue.

Shift in importance to style rather than substance
Since it is not possible to deliver on teaching / educational standards, the new colleges have conveniently shifted focus to style and drama.  Fancy things like great looking college buildings, appearance of college buses, student dress codes, college events, and size of the campuses were given more priority than the quality of education. Such fancy things have caused further damage to quality education since the students in their formative years have been exposed to fancy ideas. These fancy ideas have become deeply ingrained due to the mass hysteria created by so many colleges preaching the same message.

This document was drafted many months before the Yashpal Committee report was made public. Even this report says, “Mushrooming engineering and management colleges, with some notable exceptions, have largely become, mere business entities dispensing very poor quality education.”

The end result today is large number of students who have neither the knowledge, the stamina to do quality work, the skills or caliber that is required of employees today to be able to deliver in the competitive, dynamic and global market environment today. This was before the recession hit the world and made things even more difficult for businesses to be viable.

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The marketing activity is changing more dynamically than ever due to the economic realignment in the recent times. The vital part of any marketing initiative is market research. Comprehensive market research provides insights to marketers on target markets and customer segments. It provides information that facilitates strategic and informative business decisions to target the most profitable market.

The label ‘desk research’ is more appropriate to online secondary research, as a market researcher collects data to the most extent without moving from his desk from Web. With the change in business environment, the market research requirements became more demanding that made online desk research appropriate and viable to most of the businesses.

Variety of Sources
Internet has around 238 million websites as of June, 2009, according to Netcraft. These websites represents many kinds of sources such as competitor companies, trade bodies, research organizations, industry experts etc. They give the required diversity of the resources to market research to evaluate the data from various angles and perceptions.

Latest Information
Internet provides the latest insights into an issue from various sources instantly. The researcher doesn’t have to wait for the data to be physically published and shipped to him. Latest information is available online and is accessible from any corner of the world within no time.

Time Effective
Online desk research can provide a quick glance of the already existing information without much effort. In examining information like social, economic or demographic trends often, it is a better method than primary research. When a business needs to have a quick view of a market situation, online desk research is a better option rather than opting for traditional research.

Cost Effective
Online desk research can be done efficiently with less cost than traditional research as it takes less time and effort of the researchers. One more advantage of online desk research is, businesses can outsource the research to specialists that saves more expenditure while maintaining the quality.

The revolution of information access on the Internet continues to affect both market and societal environments, which is very important for businesses to keep a tap on. The changing business scenarios stress more on this opportunity and should not be overlooked.

Marvist Consulting is an Internet marketing research company firm providing professional seo, pay per click management and web analytic services to help companies to increase online sales and improve their profitability. Marvist Consulting also provides custom internet market research Services (Professional and affordable) to find, analyze and summarize published information by our expert researchers to help you find information for decision making.