Since many of the Internet marketing programs and metrics were introduced in the 1990s, they are still relatively new and continuously changing. Internet marketing techniques that may have worked well in the late 1990s and in the early 2000s may have decreased in effectiveness or even be not usable now.
Promotion Saturation (Ad Blindness)
Promotion saturation is the over promotion of a product or service. When consumers are overwhelmed by media promotions, they become desensitized and ignore or bypass advertising promotions. This results in much lower response rates. An example of promotion saturation is the overuse of banner ads. As a result, the click through rate for banner ads has decreased to below ½%.
Customer Ad Filtering (Ad Blocking)
In response to over promotion, customers are setting up ad filters (such as SPAM filters) to remove unwanted promotion messages. This means that it is getting much harder to reach prospective customers even when the ad is actually sent to their address.
Shift to Pull Marketing
Marketing programs are shifting from one-way broadcast promotions (TV, radio, and magazines) to interactive advertising (Internet portal ads and search marketing). The revenue streams for pull marketing programs are increasing by more than 70% compared to stagnant or decreasing marketing dollars spent on traditional broadcast media.
Increasing Internet Marketing Costs
Internet marketing costs have been increasing as more companies discover how to effectively use them. An example of increasing Internet marketing costs is the pay per click cost trend in keyword advertising programs (search marketing). When they were introduced in the early 2000s, the cost per click was low (about 5-10 cents per click) and the response rates (2% to 5%) were high. As keyword advertising programs evolved, the cost per click has increased (now over $1 per click) while the response rates (about 1/2% to 1%) have decreased.