Deciphering the Internet Advertising Puzzle

Marketing Management, Vol. 9, No. 3, pp. 34-39, 2000

5 Pages Posted: 22 Jan 2005

See all articles by Sandeep Krishnamurthy

Sandeep Krishnamurthy

University of Washington, Bothell - E-Commerce and Marketing


Internet advertising presents a puzzle to advertisers. On the one hand, total spending on Internet advertising has exploded and everybody (including your competition) seems to be advertising on it. On the other, click-through rates on banners have dropped to about 0.5% and the most basic measures of ad viewership and effectiveness have been called into question. In this article, our goal is to provide you with some guidelines on how to think of Internet advertising. We summarize the measurement problems with banners and introduce you to the concepts of permission and viral marketing. We end with six prescriptions to keep in mind when you are putting together your campaign. The Internet is evolving rapidly and managers interested in advertising on it must be prepared to adapt in real-time if they are to be successful.

Keywords: Internet Advertising, Banner, Click-Through

Suggested Citation

Krishnamurthy, Sandeep, Deciphering the Internet Advertising Puzzle. Marketing Management, Vol. 9, No. 3, pp. 34-39, 2000, Available at SSRN:

Sandeep Krishnamurthy (Contact Author)

University of Washington, Bothell - E-Commerce and Marketing ( email )

Business Administration Program, UW-1-233
18115, Campus Way NE
Bothell, WA Washington State 98011
United States
(425) 352 5229 (Phone)
(425) 352 5277 (Fax)


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