Shankar_Hollinger_MSl_2007

by Venkatesh Shankar and Marie Hollinger

This article was published as MSI Report 07-206.

Online advertising expenditures are growing rapidly and are expected to reach $37 billion in the U.S. by 2011. Mobile advertising or advertising delivered through mobile devices or media is also growing substantially. Advertisers need to better understand the different forms, formats, and media associated with online and mobile advertising, how such advertising influences consumer behavior, the different pricing models for such advertising, and how to formulate a strategy for effectively allocating their marketing dollars to different online advertising forms, formats and media. In this article, we address these issues. We provide an overview of the current scenario with regard to online and mobile advertising. We discuss the emerging trends in these areas and offer our view of the future directions.