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Traditional and online advertising: an explanation of current and future

trends
Janette Hanekom; Charmaine Scriven

To cite this Article Hanekom, Janette and Scriven, Charmaine(2002) 'Traditional and online advertising: an explanation of
current and future trends', Communicatio, 28: 1, 49 — 59
To link to this Article: DOI: 10.1080/02500160208537957
URL: http://dx.doi.org/10.1080/02500160208537957

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 Communicatio, 28(1) 2002 (49-59)

Traditional and online advertising; an explanation

of current and future trends
Janette Hanekom and Charmaine Scriven'

ABSTRACT industries throughout the world. Advertising is no

exception.
New technologies such as the World Wide Web ( WWW)
Numerous different independent, and often contra-
of the Internet have allowed organisations to advertise
dictory, Internet survey statistics about the demo-
their products and services to a global target audience at a
graphics of the Internet exist but they can easily be
much lower cost than traditional advertising. This article
debated in terms of validity. Palumbo and Herbig
explores both current and future trends of traditional and
(1998:254) affirm this by disputing the lack of any
online advertising in available literature. It also discusses
scientific research to determine Internet demographics
the nature of both forms of advertising and explains a new
and this, no doubt, has a daunting effect on
communication paradigm shift which provides organisa-
segmentation for advertising on the WWW.
tions with the opportunity to advertise online to enable
The Internet in South Africa is a growing industry
them now to reach the increasingly fragmented consumer
Downloaded At: 13:54 26 February 2011

which can be underscored by recent figures released

audience in South Africa more effectively. It further
argues that traditional media will not necessarily become
obsolete.
Both traditional and online forms of advertising are
compared to indicate which form of advertising is still
preferred by organisations today. Even though there seems
to be some scepticism about the cost effectiveness of online
advertisements and that the Internet as a new medium will
eventually disappear, various scholars and theorists still
argue in favour of advertising through this new medium. It
is also predicted that current losses in online advertising
will, sooner or later, turn into profits once more advanced
application technologies and infrastructure become avail-
able, and as more consumers become educated in the use of
this new medium to enhance the qualities of their life.
Since online advertising will never replace advertising in
traditional media, an integrated approach by marketers
and advertisers appears to be the best solution.
1 INTRODUCTION
According to many scholars and theorists of the
Internet, this new communication medium is the
greatest and most significant achievement in the
history of humankind and has within only a couple
of years, changed both civilisation and communica-
tion (cf Gates 1995, Hahn & Stout 1994, and Otte
1994). Many definitions of the Internet exist of which
the most encompassing is 'a network of networks that
interconnects millions of computers and allows
information to be transported across several networks
regardless of national boundaries'1 (cf Gates 1995,
Holtz 1998, Otte 1994, Wilson 1999).
Today, the Internet has an impact on almost all
by the South African Advertising Research Founda-
tion (SAARF). According to a recent study made by
the SAARF (AMPS 2000:69), 112 000 South Afri-
cans made purchases through the Internet in 2000
compared with no purchases in 1996. Already
187 649 domain names (.za) have been registered in
South Africa, which renders the Internet a powerful
communication medium in this country (de Villiers
2001:5). In addition, Janal (1995:49) points out that
apart from the varying figures for global Internet
presence, users of online services such as Compu-
Serve, America Online, Prodigy and smaller commer-
cial online services all have access to the Internet's e-
mail, Usenet newsgroups and mailing lists, which
raises the potential global audience by millions.
Owing to more options in media consumption, the
South African target audience has followed the rest of
the world and has become more fragmented and
selective, and therefore also more difficult to reach.
Options in traditional media (television, magazines,
radio and newspapers) have increased, while the
WWW has become the media of choice for many
consumers. Advertisers now also attempt to reach
online consumers by, among other things, using
banner advertisements, pop-up windows or sponsor-
ships of content areas (cf 3.2) (Why Internet
advertising 2001).
Traditional media, however, have several advan-
tages over that of the WWW, which advertisers cannot
ignore and which will never make these advertising
media obsolete (cf 4). The WWW no doubt provides
both a powerful and measurable medium to reach the
increasingly fragmented South African consumer

* Janette Hanekom is junior lecturer and Charmaine Scriven lecturer in the Department of Communication, University of South
Africa, Pretoria, South Africa. E-mail: hanekj@unisa.ac.za and scrivtc@unisa.ac.za

49
 Communicatio, 28(1) 2002
market. In South Africa, however, online advertising is
still in its infancy with advertisers and marketers still
equipping themselves to enable themselves to make
use of all the opportunities available through this new
medium.
The Internet is here to stay. Despite the beliefs of
some theorists that the Internet has stagnated and will
eventually disappear, others believe that this medium
will continue to grow as more advanced application
technologies and infrastructure become available, and
as more consumers become educated in using this
medium to enhance the qualities of their life (Gates
1995:89).
Roets (2000:9) argues that owing to the 'prolifera-
tion of the Internet in the global marketplace',
purchasing trends on the Internet are expected to
grow which, in the near future, will make the WWW
the most widely used electronic medium for complet-
ing online purchasing transactions. He refers to an
estimate made by eStats, that the number of Internet
users worldwide will increase from 95,4 million in
1998 to approximately 282 million in 2002.
Even though online advertising benefits organisa-
tions in terms of global exposure, advertising in
traditional media, however, still has numerous advan-
Downloaded At: 13:54 26 February 2011
tages over that of online advertising which advertisers
cannot disregard.
2 THE NATURE AND DYNAMISM OF
TRADITIONAL ADVERTISING MEDIA
At present, advertisers have numerous options and
different media to choose from when communicating
an advertising message to potential buyers. The media
marketplace has become very dynamic, with tradi-
tional media continuously adapting and new media
such as the WWW emanating. Traditional, as well as
new media, present distinctive advantages to adver-
tisers and marketers, such as definite delivery, com-
pleteness, accuracy, frequency, speed, timing,
selectivity and economy. It is essential for advertisers
to know which medium to use to reach a specific
target audience. This choice has become more
difficult due to audience fragmentation (Davis &
Zerdin 1996:6).
2.1 Print media
Newspapers
Circulation and readership figures of newspapers are
generally available and therefore enable the advertiser
to deliver a detailed advertising message on a specific
day, at short notice, to an audience whose size and
composition are usually familiar (Davis & Zerdin
1996:7). Knowing that different newspapers appeal
to different types of readership, and taking into
account the type of advertising message and the
target audience, the advertiser is able to convey a
distinct advertising message to a specific audience.
Although Wells, Burnett and Moriarty (2000:234)
warn against 'clutters' of advertisements in news-
papers which may ultimately lead to an information
overload, thereby reducing the effect of any single
advertisement, Krugman, Reid, Dunn and Barban
50
(1994:425) contend that newspapers are still the
major advertising medium for advertisers, especially
retailers. Characteristics of newspapers such as
circulation distribution in the trading area, their daily
appearance, their use as shopping guides by con-
sumers and their prestige, perfectly fit the needs of the
retail industry. However, newspapers also have a very
short life span and readers spend only a short period
of time reading them and therefore, the advertisement
should make a very good and quick impression, or it
will fail (Krugman ef al 1994:431).
In South Africa recent advertising figures released
by the SAARF indicate that advertising still constitu-
tes the main source of most newspapers' income, but
that their share of advertising income is declining
mainly due to advertising money being spent in other
media groups, especially television and radio. In
addition to this, the WWW has also been competing
to attract traditional print media users and advertisers.
Against this background, newspapers have improved
their products to ensure that they remain relevant to
their readers and advertisers. The most popular
English daily newspaper in South Africa is the
Sowetan with Beeld the most popular Afrikaans daily.
Sunday Times is currently the most popular English
weekly, and Rapport the most popular Afrikaans
weekly newspapers (South African Advertising Re-
search Foundation Introduction 2001).
Although these newspapers have improved, they
still need to consider their specific niche markets
carefully in order to remain relevant to their readers
and advertisers. In South Africa, markets are extremely
segmented because of the diverse cultural composi-
tion unique to this country. But, the general growth of
the newspaper market in South Africa does not only
depend on improved products and perfect targeting,
but also on securing, for example, a stable education
system in the country. For instance, if the education
system were to improve, newspapers might become
the preferred media for the South African market and
not television and radio as is currently the situation
(South African Advertising Research Foundation
Introduction 2001).
Magazines
According to Davis and Zerdin (1996:13), magazines,
as is the case with newspapers, provide advertisers
with an opportunity to deliver a detailed advertising
message to a reader who is usually relaxed and open
to persuasion. With magazines it is also possible to
target specific segments of the audience, since
magazine readership is usually available in more
clearly defined groups than that of, for instance,
newspapers (Davis & Zerdin 1996:13).
Krugman et al (1994:442) explain that special-
interest magazines offer the manufacturer of special
products a unique opportunity to reach a selected
audience. It is, therefore, easy to be selective with the
production of advertisements in specific magazines.
The reproduction of magazines is excellent since most
are printed on good paper, which allows for a long life
span and also adds to the prestige as an advertising
medium.

However, this advantage also limits magazines in
terms of timing, as they are incapable of delivering the
advertising message on a specific day because their
'physical life' is generally elongated and the advertis-
ing message may be delivered at any time during the
reading period (Davis & Zerdin 1996:13). Advertising
in magazines can also be very expensive, which
sometimes forces advertisers to turn to more afford-
able advertising media such as the WWW (Wells et al
2000:241).
Despite the high costs, South African advertisers
still find it beneficial to advertise in magazines such as
Huisgenoot, You, Kickoff, Fair Lady, Bona and
Cosmopolitan since their readership has remained
stable over the years and has also recently shown an
increase (South African Advertising Research Foun-
dation Introduction 2001).
In addition, magazines are mobile and are read by
more than one individual at different places. This has
established magazines as a powerful advertising
medium and has also decreased the popularity of,
amongst others, the WWW.
The print media overall
Davis and Zerdin (1996:18) point out that the print
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media in general have become fast-moving and
dynamic, contrary to their previous 'static nature'.
With the emergence of electronic media, markets have
become more segmented and the print media there-
fore had to adapt by, for instance, utilising the
advancements in printing technology. Because print
media have become more dynamic, publishers com-
pete for the same markets, adapt existing publications
and launch new titles.
2.2 Broadcast media
Television
According to Krugman et al (1994:457), television is
the ideal medium for some advertisers as it provides
them with an opportunity to create dramatic and
effective advertising messages by using both sight
and sound, along with a diverse range of graphics
technology. The success of many television commer-
cials can be ascribed to repetition, which in the
process familiarise viewers with the product. How-
ever, advertising messages on television are momen-
tary and considering the costs involved, many
advertisers could regard it not worthwhile to advertise
through this medium and risk viewers not being
exposed to the commercial at all. Commercials are
often cluttered together in a short period of broad-
casting time and may confuse and annoy viewers.
However, the advertiser can demonstrate the pro-
duct's benefits on television to an audience at home in
a relaxed atmosphere. An additional advantage of
television as an advertising medium is that it enables
the advertiser to deliver the advertising message on a
specific date and time. But, as Davis and Zerdin
(1996:35) argue, the control of timing is increasingly
affected by video-recorders. Because of limited leisure
time available to viewers, they often record pro-
grammes to be watched later. When watching these
Communicatio, 28(1) 2002
recordings, they have the power to skip advertise-
ments. Aspects like these obligated television to
improve in order to prevent advertisers from turning
to other media. Television is, according to Davis and
Zerdin (1996:55), changing, but many advertisers find
these new developments insufficient and then turn to
further possibilities such as the WWW.
Despite numerous obstacles, television presents a
bright picture for South African advertisers since
recent figures indicate a steady increase in viewership
figures over the past five years. It is also expected that
regional and community television stations will
become a priority in future developments within the
South African television broadcasting industry, de-
pending on the contributions received by regional and
local advertisers (South African Advertising Research
Foundation Introduction 2001).
Radio
Radio allows the advertiser to target distinctive groups
as people listen to the radio while engaged in various
activities. As a result, listeners tend to be inattentive to
the radio, perceive it as pleasant background and do
not really listen to it carefully, which significantly
reduces the impact of the advertising message. The
composition of the radio audience varies between
different periods of the day, and selective timing can
deliver the advertising message to various target
groups, for instance, business executives (while
driving to work), housewives, teenagers and the
elderly (Davis & Zerdin 1996:60). Krugman et al
(1994:477) argue that this variation in audiences
leads to fragmentation and therefore can restrict
targeting.
Radio can also be rather inexpensive to use
compared to television, as radio commercials are
cheaper to produce than television commercials. Wells
ef al (2000:275) add that radio allows the listener to
use his or her imagination. It uses words, sound
effects and 'tonality' to enable listeners to create their
own picture of what is happening. As a result, radio is
sometimes referred to as the 'theatre of the mind', but
this lack of visuals, as well as a clutter of advertise-
ments, could also be major disadvantages in that it
expects listeners to attend to the advertisement and
not merely absorb visuals.
In South Africa, radio audiences are steadily on the
increase, although it has to compete with television
and other advertising media such as the WWW. Radio
showed significant increases in both the number of
people tuning in and the time they keep listening. It
has been a suitable advertising medium for developing
countries such as South Africa, since it enables
advertisers to reach the illiterate people in remote
areas with no electricity. It is cheap, portable and does
not require literacy, therefore, the South African
community radio stations, in particular, has shown
significant increases. Recent figures by the SAARF
indicate that the favourite national English and
Afrikaans radio stations are 5FM and RSG, and
various community stations, while Ukhozi is the
preferred Nguni/Sotho radio station, followed by
51
 Communicatio, 28(1) 2002
Umhlobo Wenene and Lesedi (South African Adver-
tising Research Foundation Introduction 2001).
Cinema
Cinema advertising presents the advertiser with many
creative advantages such as colour, stereo sound,
movement, animation, computer graphics, music and
the human voice. Davis and Zerdin (1996:24)
compare the advertising message in a cinema theatre
to that of television. In cinema the advertising
message is delivered to a 'captive' audience who face
the screen in a dark auditorium. Advertising theorists
therefore argue that the advertising message might
have more impact through this medium, but it is also
argued that target groups cannot be successfully
reached. Since only a very small number of consumers
visit cinemas, not every member of a specific target
audience is exposed to the advertising message
(Davis & Zerdin 1996:24).
In South Africa, figures indicate that cinema is not
growing and that audiences have declined signifi-
cantly. This trend can be ascribed to the history of the
South African film industry which is still highly
fragmented. The government has, therefore, since
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1994, constructively become involved in order to
assist in creating a more 'vibrant' film industry (South
African Advertising Research Foundation Introduc-
tion 2001).
2.3 Outdoor media
Advertisers have a variety of outdoor media at their
disposal, including banners, hot-air balloons, fire-
works, mobile posters, supermarket trolleys, hospital
waiting areas, livestock sales rings, sports grounds
and arenas, exhibition halls, ports and airports,
restaurants, motorway service stations and on golf
courses (Davis & Zerdin 1996:24). In South Africa,
the most popular outdoor types are billboards, trailers,
taxis and trains (South African Advertising Research
Foundation Introduction 2001).
Outdoor advertising is usually divided into 'road-
side' and 'transport' advertising. 'Roadside' advertis-
ing is familiar to consumers, as they are visible along
most of the major national routes and in cities and
towns. But because the poster is usually read at a
glance it is only suited for a brief message. Krugman et
al (1994:500) refer to this brevity of the message as a
'built-in limitation'. It is impossible to provide con-
sumers with full details and information about a
product when using outdoor advertising.
Apart from print, broadcast and outdoor media,
advertisers also use in-store media such as point-of-
sale material, shopping carts, in-store television and
radio, direct mail, exhibitions and video-cassette
commercials.
Traditional media no doubt have improved in the
last decade, mainly by changing, adapting to, and
implementing technological advancements. Despite
innovations, these media still have lost considerable
advertising revenue to online media, an emerging new
form of advertising emanating from new technologies
such as the WWW of the Internet.
52
3 ONLINE ADVERTISING: A COMMUNICATION
PARADIGM SHIFT
3.1 The W W W of the Internet has become a
powerful new advertising medium in South
Africa
The Internet, which is often referred to in earlier
literature on new technologies as the 'Information
Superhighway' (cf Gates, 1995), has opened up
numerous innovative advertising opportunities for
both South African marketers and advertisers. Internet
tools or applications such as the WWW, makes
information almost immediately available to a national
and global target audience in a very cost-effective
manner. In South Africa there has been a gradual shift
from traditional media to online media. An increasing
number of South African customers of advertising
agencies also indicate the WWW as the advertising
medium of their choice (Why Internet advertising
2001).
Advertisers now have to focus on a combination of
local, national, regional and global advertising ini-
tiatives which means that online advertising has
become a rising market in South Africa. However,
advertisements in traditional media, such as those for
print and broadcast media will not automatically
transfer to the Web. New techniques and applications
are required for online advertising, but numerous Web
publishers in South Africa make the WWW more
attractive to advertisers and advertising agencies (cf
Table 1) (Why Internet advertising 2001).
According to Accone (1998), while there is a
profusion of data about WWW usage - all with
different figures - it is clear that Internet usage has
increased and that the WWW has become an integral
part of people's daily lives in South Africa. South
African Internet users are well-educated and well-
paid individuals, who are increasingly willing to
conduct business over the Internet (cf 3.1).
Stadler (1998) affirms that the South African Web
user is highly educated, with an average level of one-
year of post-matric education and an educational level
that is rising. According to the third Internet User
Survey, which is an annual project of South Africa
Online, the most notable trend of their 1999 survey is
the increase in the number of female respondents. The
number of Afrikaans-speaking people using the Web
is also on the rise while the average income of the
South African Internet user is still relatively high at just
under R11 000 a month with most respondents, once
again, employed in the computer field. The average
age has remained virtually constant at 33 years old
(The Third South African Web Users Survey 2001).
The survey also found that books and CDs formed
the bulk of online purchases by South Africans, but
that the total number of users who purchased online
decreased, which might be ascribed to the invasion of
new users, relatively poor quality of local transactional
sites (as compared with the United States of
America), and a decline in the novelty surrounding
online purchasing (The Third South African Web
Users Survey 2001).

It should be noted, however, that theorists and
scholars debate the validity of Internet surveys.
3.2 The nature and advantages of online
advertising
According to Chapman (1998), advertisers have
various online advertising options, but he recom-
mends that online advertising should preferably be
part of an online media strategy which should include
clear goals, objectives and target markets with a
separate online marketing budget to make it more
effective.
The major advantage of online advertising is that it
can create both global and national awareness and
interest through immediate information. It also pro-
vides the opportunity to create an image for the
organisation with which to align its brand and, lastly,
involves consumers through direct response (cycle of
trial, purchase and repeat). Boone and Kurtz
(1999:614) add the advantage of personal choice,
which is not the case for traditional advertising media.
The earliest forms of online advertising represent the
following (Chapman 1998):
• Standard banners: the earliest and most popular
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type of online advertising, which includes strip
advertisements placed on the edges of larger
photos or advertisements on popular advertising-
supported Web sites.
• Pop-up windows: these automatically spring up
above the main Web page when a site is accessed
and are often used for subscription sales.
• Dual advertisements: online advertisements that
pop up on the Web site.
• Sponsorships: various sponsorship opportunities
are available to online advertisers, ranging from
naming rights to sites, overall look and feel, and
editorial sponsorships.
• Online shopping malls, for instance Kalahari.net,
Edgars.co.za and Picknpay.co.za.
• E-mail marketing: e-mail marketing is a rapid
growth area of online advertising which targets
specific users. Marketers and advertisers, however,
should adhere to the principles of 'Netiquette',
which dismisses unsolicited e-mail.
Other forms of online advertising are (Moseley
2001):
• Liquidimage advertisements: invented by Liquid-
Site, the embedded imaging technology transforms
ordinary Web images into interactive images that
reveal hidden layers of editorial content, streaming
audio and video, advertising information and e-
commerce capabilities.
• Point roll advertisements: these add interactivity to
the standard online banner. By rolling a mouse
through the advertisement, the user accesses up to
eight mini Web panels with additional messages
and possibilities. The advertisements are touted as
unobtrusive, but they rely on the user initiating
contact.
• Enliven advertisements: richly interactive media
Communicatio, 28(1) 2002
advertisements which can now offer animation
from a Macromedia Flash movie.
• Messaging plus: newly developed by Cnet Net-
works Inc, these large advertisements are displayed
on half of many computer screens and run one to a
page. Messaging Plus advertisements can serve as
miniature.
• Web pages within a larger page: allow users to
interact with them without linking to new sites.
Another increasingly popular way of online adver-
tising constitutes an approach used by the database
search organisations to sell certain words to adver-
tisers. For instance, if a user visits the Yahoo search
engine for references to a specific topic, an online
advertisement which is appropriate to the words
which were used in the search, pops up on the return
page of the citations (Heinen 1996:7).
In South Africa, standard banners, pop up win-
dows, shopping malls and sponsorships are the most
frequent types of online advertising used on popular
South African Web sites. Some of these Web sites that
are used for online advertising represent the following
(Network sites 2001):
• M-Web.co.za: currently the most-visited Web por-
tal in South Africa and one of the most exciting to
the South African advertising industry with more
than 250 000 dial-up subscribers and some of the
best content and services available in South Africa.
• Online newspapers: mg.co.za (the Mail & Guar-
dian) and bday.co.za (Business Day).
• Cartoday.com: a car magazine.
• Digitalplanet.co.za: a Web site that provides mem-
bers with content, community interaction and
commerce, as well as the ability to shop in a
comfortable and safe place for products that fall
within the niche area of information technology.
• Eyeball.co.za: an extension of the MdotNet site
focused on entertainment including news on music,
movies, celebrities, restaurants and arts.
• News.24.co.za: a Web site with local and interna-
tional news which is updated 24 hours a day, seven
days a week. News areas include sports, motoring,
politics, finance and general.
Roets (2000:9) refers to research by Forrester
Research which indicates that online advertising is
currently the main tool that organisations use, not
only to attract more visitors to their respective Web
sites, but also to retain them. According to this
research, banner advertisements are still the most
commonly used online advertisements, but it was
expected that sponsorships would surpass banner
advertisements by the year 2001.
But are online advertisements as effective as those
in traditional media?
For online advertisements to be effective, they must
capture the viewer's attention through their content,
currency, interactivity and design. Tomkins (2001)
argues that unlike television commercials or adver-
tisements in print media, banner advertisements,
unfortunately, have failed to generate enough profits
to enable advertisers to develop the eye-catching
53
 Communicatio, 28(1) 2002
material that users want to see online and which led to
a new trend in the format of online advertisements.
Bayne (2000:159) argues that graphic banner adver-
tisements 'are still receiving mixed reviews' and that
some Internet users appreciate these colourful adver-
tising messages, while others feel that 'advertising in
its various forms has littered the Internet and down-
graded its quality'. As a result, many users choose to
change the options on their Web browsers so that
graphics do not load automatically.
There are acceptable and unacceptable methods of
advertising online. Even though the Internet is still a
young advertising medium, there are already some
established norms for advertising online. Unsolicited
advertising such as junk e-mail, is still met with much
opposition, while discreet and 'well-crafted signature
blocks at the end of e-mail messages', appear to have
been accepted by Internet users (Bayne 2000:159).
3.3 A new trend in online advertising emerges
According to Wells et al (2000:366), online advertis-
ing is now moving away from banner advertisements
to that of an Internet broadcast model. This will make
online advertising resemble television advertising with
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all the visual impact but with the additional value of
interactivity.
Boone and Kurtz (1999:614) argue that this trend
resulted because of increased competition with tele-
vision commercials. Advertisers now also prefer to
create and promote their own interactive Web sites
instead of placing online advertisements on other Web
sites. The ultimate goal of online advertisers is to make
online advertisements more involving 'which will drive
brand attitudes'. Advertisers now also experiment with
new forms of online advertising, such as games and
interactive product demonstrations in new forms such
as pop-up windows and side frames.
According to Gray (2001), online advertising has
entered the next generation mainly due to the failure
of the banner advertisement to generate enough
profits. In future, online advertisements will have
bigger, more intrusive formats 'that will increase the
ratio of advertising to editorial or other content with
the ultimate goal of generating better profits'.
The Internet Advertising Bureau (IAB), a trade
group for Web publishers in the United States of
America (US), recently announced voluntary guide-
lines for seven new online advertising formats which
bear a closer resemblance to the shape of advertise-
ments in traditional print media. The bigger formats of
online advertisements were received with both criti-
cism and praise in the American advertising industry
(Gray 2001).
For advertisers, the new proposed formats will have
several advantages over the old, for instance more
visibility, enough space to convey the advertiser's full
message and greater scope for imaginative and
creative work.
4 A COMPARISON OF ONLINE AND
TRADITIONAL ADVERTISING
Marlow (1997:13) affirms arguments that advertising
54
on the WWW is different from traditional print and
online advertising in that it presents the opportunity
for advertisers to interact with potential buyers, to
generate feedback and, in the process, create a more
meaningful communication experience. Online adver-
tising does not merely constitute an electronic version
of a print, radio or television advertisement, but
requires different layout and design techniques (cf
Table 1).
Hamill and Kitchen (in Kitchen 1999:387) call for a
new 'Internet marketing mindset', which should be
directed at building long-term relationships with
customers, rather than concentrating on the 'hard-sell
approach'. Hamill and Kitchen (in Kitchen 1999:396)
also conclude that the traditional one-to-many model
which has had many implications and consequences
for marketing theory and practice, cannot be applied
to marketing on the WWW and that a new marketing
paradigm is therefore required for this new medium.
They call for a new model in which consumers are not
'passive receivers of marketing communication', but
one that provides them with 'more control over the
search for and acquisition of information relevant to
consumer decision-making', as well as allows them to
become active participants in the marketing process. It
is for this reason that they regard the main distinctive
feature of the Web (as emphasised by Hoffman &
Novak, 1996) as being a hypermedia computer-
mediated environment (CME) which contrasts with
traditional marketing communications models for
mass communication.
Since the emergence of online advertising, various
advertising models for this new form of advertising
have been proposed. Ashcroft and Hoey (2001) now
argue that the Attention, Interest, Desire and Action
(AIDA) model of advertising can also be applied to
online advertising), while Kiana (1998:191) refers to a
model by Kierszkowski, McQuade, Waitman and
Zesser (1996), which was developed around five
recommendations (to attract and retain consumers)
and which is regarded as essential factors in online
marketing and advertising.
Theorists and scholars put forward numerous
arguments about the advantages of online advertising.
Accone (1998) argues that while traditional media are
time or space orientated (which means that adver-
tisers will have to increase expenditure for larger or
longer advertisements), the WWW presents an ex-
tremely cost-effective medium for large amounts of
information in a wide range of formats (cf 3.2). The
WWW can also complement advertisements in tradi-
tional media and presents advertisers with exciting
new advertising opportunities and challenges. But as
new technologies are continuously changing, adver-
tisers will always need to make the right choice, keep
up with new technology and constantly evaluate
technological needs.
Even though the WWW is a cost-effective means of
advertising, development costs for an online adver-
tisement depend on its complexity and also on
implementation of techniques such as animation,
sound and other special effects. The cost of placing
an online advertisement also varies greatly for differ-

ent Web sites and depends on the popularity of the
host site and the audience it delivers. Most publishers
set charges by formulas per cost per thousand
impressions (CPM) which is generally calculated
monthly. An impression occurs each time a user
downloads a page with the advertisement banner
(Boone & Kurtz 1999:620).
Another favourable aspect of online advertising is
that the WWW could now be the most cost-effective
media channel at advertisers' disposal, because it has
descended from a 'premium-priced, highly targeted
interactive buy' to a potential communication channel
for many traditional marketers. The rates for Internet
advertisements are now lower than those of cinema,
television, press, magazines and radio, and more or
less the same as for outdoor rates (Web ads deserve
another look from traditional brands 2001). Produc-
tion of online advertising material is still very cost-
effective compared with that of traditional media. In
most cases it is more cost-effective to place online
advertising online than in traditional media (Chapman
1998).
But, the most outstanding advantage of the WWW
as an advertising medium is still its interactivity - a
dynamic feature which no traditional medium is yet
Downloaded At: 13:54 26 February 2011
able to match. In addition to interactivity, it is also
possible to personalise advertising messages on the
WWW and this attribute now challenges traditional
mass market organisations to personalise their com-
munications to make the advertising message more
meaningful to individual consumers (Brave new
world: Traditional companies on the Web 2000).
The nature of online advertising allows advertisers
to reach their exact target audiences while advertisers
also obtain the opportunity to brand on other popular
sites. It is generally believed that when a consumer
responds to an online advertisement, he or she is
interested in the product and 98% of the time did not
accidentally click on the advertisement. This is
ascribed to the interactive and involving nature of
online advertising which puts users in control of the
advertising exposure (Chapman 1998). Breitenbach
and van Doren (1998:561) also argue in favour of the
WWW's 24 hours a day accessibility and that Internet
media support various tools which allow users instant
access to topics and keywords.
Chapman (1998) indicates that detailed advertise-
ment reports are available from most of the sites that
sell advertising. An online advertising campaign can
also be altered at any time and advertisers are not
limited by traditional media constraints. Smith
(2000:32) elaborates on the above argument by
stating that because it is possible for Web sites to
record data such as the number of visitors, traditional
media need to become more specific about audience
measurement if they want to remain competitive
media.
Traditional media will, however, never be replaced
with online media. The WWW is rather used to
supplement messages in traditional media (Boone &
Kurtz 1999:620). According to Lyke (2000:33), the
WWW appears to have the potential to challenge the
'media status quo' of traditional advertising in that it
Communicatio, 28(1) 2002
promises consumers 'free' global exposure to hun-
dreds of millions of consumers. Many would therefore
mistakenly believe that traditional media such as
newspapers, magazines, and radio and television
stations would attract fewer advertisers. Advertising,
public relations, direct marketing and sales promo-
tions are, according to Lyke (2000:33), still the best
tools available for brand building because large
segments of consumers are often unconsciously
exposed to these media which make repetition of
brand names possible.
Bonello (2000) agrees that organisations realise
that there is still no substitute for traditional media
when it comes to generating brand awareness
effectively. Traditional media may not be as cost-
effective as online advertising, but are more functional
if advertisers want to make a huge impact quickly,
because they present concentrated forms of advertis-
ing media. Online organisations tend to focus more on
online media and public relations in the first phase of
their marketing strategy in an attempt to generate
initial traffic to their respective Web sites. Traditional
advertising methods are then used to complement the
online advertising messages.
Although it is believed that advertisers now rather
turn to online media than to traditional advertising
media, recent changes to traditional media may abate
these arguments. Television, for instance, has chan-
ged significantly over the past few years and new
dimensions, such as interactive television, have been
added to the already many possibilities of television as
an advertising medium. Interactive television changed
the traditional relationship between advertisers and
broadcasters since advertisers have always paid a
specified amount of money for advertisements of
specific length between programmes but, with inter-
active television the consumer can now choose what
to view at what time and this allowed for the
development of an entirely new paradigm (Traditional
ads are dead! 2000).
The acceptance of personal television devices or
digital video recorders present broadcasters with a
significant problem. Consumers are now able to
customise, record and watch television whenever
they want to and are also able to fast-forward or skip
through the commercials. Broadcasters and adver-
tisers dealt with this problem by analysing more
viewer data than ever before in order to deliver
targeted and customised advertising messages to
consumers. Another possibility is one of 'floating
icons'. Advertisers use this to notify the viewer that
more information is available and the viewer can, for
example, purchase a product by means of a small icon
appearing in the lower left-hand corner of the screen.
Another possible advertising method is one of 'forced'
viewing. Future personal television devices may
require the viewer to watch one advertisement before
proceeding to view the content (Traditional ads are
dead! 2000).
Owing to these new developments one can argue
that television remains an important competitor for
online advertising, but that it certainly can learn from
the WWW with regard to personalisation. Many in the
55
 Communicatio, 28(1) 2002

advertising industry believe that this sort of persona-
lisation on television will be available soon, due to the
continued 'build-out of a digital infrastructure' (Tradi-
tional ads are dead! 2000). Although to some, online
advertising represents the fastest-growing category of
advertising in the new millennium; advertising in
traditional media still provides that real experience
that consumers cannot appreciate with online adver-
tising (Block 1999:1).
Some theorists and scholars even contend that the
Internet ironically stimulates media use and spending
in a wide range of other media categories, from books
and recorded music to television and business pub-
lishing, while it was expected that it would rather
alienate users from these media (Internet to stimulate
traditional media use through 2003 2000).
Table 1
Print versus online design elements
Print Online
Fancy die cuts Transparent GIF banners,
tiled background textures
Double-page print Web pages with frames,
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advertising compared to the previous quarter. This
was the first time since the bureau began reporting
figures in 1996 that there had been a decline.
The trend was the same for Europe. Online
advertising expenditure in the United Kingdom (UK)
decreased to 17.3 million euros in December 2000,
from 17.7 million euros in November, according to
Forrester Research's, Internet AdWatch Spending
Monitor. There was a similar decline in figures in
Germany. Although more online advertisements were
sold, rates were generally down (Gray 2001).
In South Africa, R8 911 million was spent on
advertising in traditional media in 2000 compared
with R7 939 million in 1999, which shows a
significant increase. However, other media such as
online advertising are still excluded from scientific
advertising research 'as their figures can at best be
described as "Qualified Guesstimates" ' (SAARF
AMPS 2000:16).
Despite an increase in advertising expenditure in
traditional media, advertisers still claim that they have
generally lost huge amounts of advertising income to
that of online advertising (Media firms eye rebound
after Net advertising losses 2001). The effects of
online media on the traditional media sector have

ads computer monitor limits become a real threat, not only to the sales force, but
within marketing as well (Smith 2000:74). Both
Fractional consecu- Ad banners on unordered
marketers and advertisers include online media in
tive page ads and multiple Web pages
their marketing programmes and sometimes even
Preferred advertising Rotating ad banners at the exclude traditional media as online media can reach
positions top/bottom of pages many consumers at a low cost and also provide
additional advantages such as interactivity.
Catalogue order Online forms, HTML-to-
forms e-mail functions Online media have developed into a very powerful
advertising vehicle even though this is not occurring
Beginning table of Hyperlinks, Java remote as fast as some analysts have projected. There has
contents, appendixes windows, search engines been an encouraging rise in the number of traditional
Four-colour printing Hardware, software, gra- organisations attempting the WWW as an advertising
process phics and HTML limits medium (Traditional firms flock to online advertising
2000). Analysts believe that online advertising has
Metallic colours and Display variances that grown steadily, mainly because advertisers want to
varnishes change or distort experiment, understand and learn what this new
medium can do for them. Major traditional organisa-
Corporate typefaces Browser font limitations,
tions will eventually accept the WWW as an effective
viewer display preferences
advertising vehicle because online advertising will, in
(Source: Bayne 2000:19) future, resemble television advertising (cf 3.3), which
has become a familiar and trusted advertising medium
(Traditional firms flock to online advertising 2000) (cf
5 PREFERRED ADVERTISING MEDIA TODAY 3.4).
Current literature does not indicate a specific pre- Even though there seems to be some scepticism
ference, but rather that organisations prefer to about the cost-effectiveness of online advertisements
combine traditional media and online advertising in and that the Internet as a new medium will eventually
their advertising campaigns to obtain maximum disappear, various authors and theorists still argue in
exposure of the advertising message. Contrary to favour of advertising on this new medium. They also
initial expectations, the popularity of online advertise- predict that losses will sooner or later turn into profits
ments has declined in recent years, which might be once more advanced application technologies and
partly ascribed to the lack of an unified measuring tool infrastructure become available and as more consu-
for online advertising effectiveness as well as ques- mers become educated to use this medium to enhance
tionable profits. the quality of their life. The Internet is currently going
According to Gray (2001), in the US, where online through an essential refinement and readjustment
advertising had been growing at 150% a year, figures period but its future looks bright and holds enormous
released by the Internet Auditing Bureau for the third opportunities for profitability and growth (Brock
quarter of 2000 indicate a 6.5% decline in Internet 2001).

56
 Communicatio, 28(1) 2002

6 CONCLUSION sations therefore advertise the location of their Web

The current debate on whether the WWW is in the
process of 'cannibalising' traditional media and if
advertisers spend more on online advertising than on
traditional advertising is still unresolved in the
absence of any scientific advertising research figures
on online advertising expenditure in South Africa.
Advertising on the Internet is a more complex task
and requires a much more skillful approach to be
successful than is the general belief among marketers
and advertisers. After the initial rush to obtain an
online organisational presence, marketers are currently
concerned with the effective integration of the
Internet into their traditional marketing communica-
tion mix (cf Bayne, 2000, Hoey, 1998, Holtz, 1998 &
Kitchen 1999).
Despite arguments that traditional media were
defeated by the 'onslaught' of online media, there
are traditional and new media organisations who
believe that prospects will improve for both forms of
media (Media firms eye rebound after Net advertising
losses 2001).
This belief is perhaps manifested in the new trend to
integrate traditional and online media in organisa-
tions' advertising campaigns. Smith (2000:31) argues
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sites in their advertisements in traditional media. A
content analysis made by academics Pardun and
Lamb (1993:93) of 1 249 advertisements in 20
magazines in the US indicates that 42% of these
advertisements included Web addresses. By creating
an advertisement in traditional media where the
organisation also lists its e-mail address or location
of its Web site, the organisation in reality advertises
'twice'. This not only creates more awareness of the
organisation and its products, but also facilitates
contact with the consumer.
Gilbert (2000:50) agrees by explaining that the
effectiveness of online advertising is viewed in
conjunction with both direct response as well as
traditional branding campaigns. Online advertise-
ments need advertisements in traditional media to
support a unified advertising effort. He emphasises
that online advertising without any supporting adver-
tising in traditional media will unlikely be successful.
The above can best be explained by Beardi (2000)
who refers to marketers and advertisers who now use
traditional direct mail techniques to generate transac-
tions to the Web sites of organisations. He believes
that direct mail is a useful gateway to the WWW
because it is easier for marketers and advertisers to

that there will be a continued refinement in the way
online advertising efforts blend with that of traditional
advertising. He argues that there will be an increased
integration of each element of advertising and market-
ing efforts to accommodate from Web sites to
television advertisements. Smith (2000:31) states that
the future trend of choosing advertising media will
consist of the refinement of the overall marketing and
advertising strategy and a more circumspect analysis
of what media to use. This integration will ultimately
lead to 'convergence marketing' which represents the
coordinated use of online advertising, traditional
media and public relations to carry a unified advertis-
ing or brand-building message to the target audience.
As online advertising will never replace traditional
media, an integrated approach seems to be the best
solution for marketers and advertisers.
Cook and Sellers (1995:234-235) also refer to
organisations which choose to combine their existing
advertising efforts in traditional media with their
presence on the WWW. Marketers and advertisers
realise that they need to create bridges between
traditional advertising and online advertising. Organi-
obtain mailing than e-mail lists, and because con-
sumers have come to trust mail as a reliable commu-
nication vehicle.
Most online advertisers and marketers believe that
interactive and traditional agencies will ultimately
merge (Gilbert 2000:66). Bernstein (1999:81) adds
to this by arguing that online media are more powerful
when used to complement advertisements in tradi-
tional media.
While traditional media, especially outdoor and
print media, seem to be much more effective in
generating brand awareness, banner advertisements
and other online campaigns are more productive
primarily 'pushing' specific promotions. Online and
traditional media should be regarded as different tools
serving different means to different ends.
Even though the WWW does not as yet contribute
enough to organisations' branding, it does play a
significant role in increasing consumers' awareness of
an advertising campaign. The WWW should therefore
become a part of every organisations's advertising
campaign (Traditional branding may be alive ... but
not so well on the Web 2001).

NOTE
1 This definition acknowledges the Internet as a medium through which one can communicate instantly with global mass
audiences as well as a forum for 'unfiltered direct two-way communication', which open up numerous opportunities in various
industries. Some definitions only refer to the Internet as merely a computer network, or a group of computer networks that are
connected to one another.

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