The issue of internet advertising effectiveness is part of
the broader question about the effectiveness of advertising
in general. As a result, internet advertising effectiveness
should be examined in a similar fashion as traditional
advertising.  

 However, internet advertising is different from traditional
advertising in that the internet has capacities to extend
the function of advertising far beyond what traditional
media are able to accomplish. Consumers can click on a
banner ad for an e-book, check the table of contents or
review others' comments, place an order, and download the
e-book to their computers, all through the internet. None of
traditional advertising media could offer such a combined
channel capacity of communication, transaction and
distribution.  

 The expanded function of internet advertising comes from
its horizontal integration of three key marketing channel
capacities (communication, transaction and distribution) and
vertical integration of marketing communications, including
advertising, public relations, sales promotion and direct
marketing. In order to better understand the effectiveness
of internet advertising, therefore, we must examine unique
characteristics of the internet advertising formats and
develop new criteria by which the effectiveness of internet
advertising can be assessed.  

 The internet provides the means for "interaction" between
buyers and sellers to such a degree that some have suggested
this is the defining characteristic of the internet. This
interaction can be human-machine, machine-machine and human
message; among others.  

 Interactive Communication refers to human-message
interaction where the user relates to and, in some cases,
modifies the message with which he/she is interacting.
Clicking on banner ad represents a low level of interaction
of this nature while choosing an ending among many for an
online movie represents a higher level of interactive
communication with a message.  

 Interactive Media on the other hand, refers to a carrier of
messages which provides for the possibility of interaction
with messages conveyed in that medium. So, the internet
including the Web is an interactive medium which provides
for the possibility of interactive communication with
messages. However, the internet is of many interactive
media. Mobile phones and interactive kiosk are also
interactive media.  

 However, the convergence which is rapidly taking place
between notebook computers, personal digital assistants,
mobile phones, and cable television make such distinctions
less clear. While it may be the case that any discussion of
advertising effectiveness in general will apply to the
internet, it may also be the case that any departures from
general understanding of advertising effectiveness issues
may be due to the special characteristics of interactivity
associated with the internet. In particular, there has been
a special interest in delineating advertiser-controlled
versus consumer-controlled aspects of the internet stemming
from interaction issues.

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