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There are a number of ways to maximize your profits and often they have nothing to do with increasing revenue. Case in point, if you are pulling in $1,000 a week in your internet business and spending $1,100 you are losing $100 and if you are pulling in $400 and spending $300 you are making a $100 profit. Sadly, many people look at the person "earning" $1,000 as successful despite the fact that this person is overspending with little result. Such is the case when it comes to online marketing and the traditional banner advertisements and email campaigns of prior years.
Yes, at one time these methods of advertising were successful ways of drawing in a potential buyer. Placing a low cost banner advertisement on a website leads drew great attention to products in the past. Ditto email marketing which essentially took the age old concept of direct mail marketing and made it electronic. Times, however, have changed and these methods of marketing - while still somewhat useful - really can no longer be the strategic basis of a marketing campaign.
With banner advertisements the actual purchases on "click throughs" have diminished. Also, the number of people clicking on banners has diminished as well. Part of the reason for this is that people have become wary of the spyware intrusions that banner ads often bring. For email marketing, it was overexposure that killed the beast. Essentially, people have become tired of receiving absurd amounts of "spam" emails everyday and this has led to greatly tuning out on advertisers who use such campaigns. This is to say nothing of the increased costs of dealing with bulk email marketing providers.
One can simply take a test of their own daily internet activity to prove that these methods no longer work as effectively. People spend more time on social networking sites like Facebook and Myspace and video sharing sites like YouTube than reading through emails or clicking on banner ads. This alone is proof that the internet is moving in a different direction to which there are no signs of turning back. People are searching for content, and it makes far more sense to advertise for little to no cost on these types of sites versus paying thousands for outdated methods.
The landscape of internet marketing has changed greatly from prior years. These days, it would be far more effective to look into search engine optimization, blog advertising et al for ones online marketing needs. Economics simply dictate as such.
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