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Online advertising refers to promotional messages that appear on a computer screen, while mobile advertising communicates messages to consumers via handsets. A PEST analysis was conducted on the online and mobile advertising industry. Politically, companies face pressure around privacy and censorship issues. Economically, the industry remains strong as internet and mobile ads are integral to society and commerce. Socio-culturally, internet and mobile use is increasing globally across all ages and cultures. Technologically, video, cloud computing, and 4G technology are driving growth in online and mobile platforms.

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Pest

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Xi Zheng
137 views2 pages
Online advertising refers to promotional messages that appear on a computer screen, while mobile advertising communicates messages to consumers via handsets. A PEST analysis was conducted on the online and mobile advertising industry. Politically, companies face pressure around privacy and censorship issues. Economically, the industry remains strong as internet and mobile ads are integral to society and commerce. Socio-culturally, internet and mobile use is increasing globally across all ages and cultures. Technologically, video, cloud computing, and 4G technology are driving growth in online and mobile platforms.

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Online advertising refers to promotional messages that appear on a computer screen, while mobile advertising communicates messages to consumers via handsets. A PEST analysis was conducted on the online and mobile advertising industry. Politically, companies face pressure around privacy and censorship issues. Economically, the industry remains strong as internet and mobile ads are integral to society and commerce. Socio-culturally, internet and mobile use is increasing globally across all ages and cultures. Technologically, video, cloud computing, and 4G technology are driving growth in online and mobile platforms.

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Attribution Non-Commercial (BY-NC)
Download as DOCX, PDF, TXT or read online from Scribd
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137 views2 pages

Pest

Uploaded by

Xi Zheng
Online advertising refers to promotional messages that appear on a computer screen, while mobile advertising communicates messages to consumers via handsets. A PEST analysis was conducted on the online and mobile advertising industry. Politically, companies face pressure around privacy and censorship issues. Economically, the industry remains strong as internet and mobile ads are integral to society and commerce. Socio-culturally, internet and mobile use is increasing globally across all ages and cultures. Technologically, video, cloud computing, and 4G technology are driving growth in online and mobile platforms.

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Definition of online and mobile advertising industry

“Online advertising” refers to the use of the internet as an advertising medium where
promotional messages appear on a computer screen (Business insights, 2010: 17).

“Mobile advertising” refers to a form of advertising that is communicated to the


consumer/target via a handset (Business insights, 2010: 18).

PEST analysis of online and mobile advertising industry

 Political and Legal

Take Google, one of the giants in online and mobile advertising industry, as an example, formal
institutions have not significantly affected Google’s operations, although it has faced pressure from the
Department of Justice in the US to relinquish archived search terms and from the Chinese government
to censor search results. Google’s “Don’t be evil” mantra has also been put to the test as users ask
whether cooperation with governments undermines their privacy and freedoms (Edelman & Eisenmann,
2010).

Additionally, it is worth mentioning that there is concern on copyright issues and privacy rights in online
and mobile advertising industry. More exactly, key players in the industry store copies of third party web
pages and images on their servers without permission from online publishers or authors. Meanwhile, the
legitimacy of collecting users’ information and behaviour online or through mobile phone is always
controversial as it may cause problems such as making personal contacts go public.

 Economic

The world is currently in a period of recession, however, the companies of online and mobile advertising
industry are relatively isolated because search and consequently internet-based advertisements have
become a staple to the world society and economy, as well as mobile advertisements.

The online and mobile advertising services reduce transaction cost, so they can add value or contribute
to the efficient operation of relevant markets. As a result, the demand for online and mobile advertising
services is derived from the value the services create in other markets, which is for final consumer
goods and services (B2B or B2C). The crucial need to stay informed and constantly connected keeps
such services vibrant in spite of the parched surroundings.

 Socio-Cultural

The world is increasingly becoming more connected due to the means of communication available
through the internet and mobile phones. To be more exact, internet and mobile use increases among all
age groups and across all cultures (Morrow, 2008). In addition, most new cell phones are internet
capable devices. People will use these devices for driving directions, to locate restaurants, check sports
scores, download music, and even quick research. Furthermore, people tend to spend more time on
social media like social networking and blogs, which may bring a revolution into advertising industry.

 Technological

Video technology has been developing rapidly, both to refine the behavioral/targeting component, and to
deliver it in real-time to each individually targeted customer. It is gradually becoming the engine of the
online and mobile advertising industry.

Cloud computing is where computing resources are accessed from a virtual online 'cloud' rather than a
local desktop or organisational data centre. It is a rapidly growing trend and is highly interlinked with the
development of Web 2.0 and online advertising.

With the rapid development of telecom technology, 4G technology, which is basically the extension in
the 3G technology with more bandwidth and services offers in the 3G, has driven the mobile advertising
to become the biggest advertising platform.

Reference

Business insights. (2010). The global online and mobile advertising industry outlook.
Business Insights. 2010: 17-18.

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