Actual Findings on Internet Advertising

Although Web advertising becomes a significant portion of marketing budgets, advertisers are still unsure on how to unlock the potential of the Internet. Current findings show that:

- Consumer brands spend only a fraction of their advertising budget on on-line advertising.

- Technology companies spend five times more on advertising in the WWW.

- While banner campaigns are still popular, there is no standardized solution for on-line advertising.

- Ad pricing is based on CPM (costs per 1.000 visitors), rather than on results.

- Personalized targeting has not yet taken hold. Instead advertisers mainly target on content.

At the moment three dominant models are used for Internet advertising:

Destination Sites: They use entertainment, high production values and information to pull users in and bring them back again.

Micro Sites: Content sites or networks host small clusters of brand pages.

Banner Campaigns: Those include other forms of Web advertising like sponsorships.

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Caching

Caching generally refers to the process of making an extra copy of a file or a set of files for more convenient retrieval. On the Internet caching of third party files can occur either locally on the user's client computer (in the RAM or on the hard drive) or at the server level ("proxy caching"). A requested file that has been cached will then be delivered from the cache rather than a fresh copy being retrieved over the Internet.

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