Anthony J. Pennings, PhD


Advertising, E-Commerce and the Power of Search

Posted on | December 10, 2010 | No Comments

At the core of global e-commerce’s extraordinary potential is the power of search engines and the new advertising strategies they enable. Search engine based advertising has continued to increase rapidly and drive e-commerce with it. The Interactive Advertising Bureau (IAB) reported that Internet advertising revenues in the U.S. totalled nearly $6.5 billion during the third quarter of 2010, a 17% increase over the same period a year earlier.

Source: IAB Internet Advertising Revenue Report/PwC (

Advertisers have steadily moved to online marketing and advertising instead of traditional media outlets. Especially smaller businesses, often requiring stricter quantitative accountability for their expenditures in terms of how many people are viewing their ads, actual site visits and even directly quantifying sales in relation to their expenditure have combined advertising strategies with search capabilities, providing a powerful tool for small and large businesses as well as other organizations that need to reach out to customers and/or other targeted audiences.

Gateway sites that use specialized search engines and software-based “spiders” search the global infosphere cataloging information and responding nearly instantly to investigating queries with extraordinarily fast results. Google has climbed to the top of the search business and has capitalized on this success to become a major force in the web advertising business with over $20 billion in 2009 revenues, far outpacing the other advertising behemoths such as Omnicon and WPP.

What made Google so successful? Primarily it was an innovative method of ranking websites based on searching for links to that site. Google “crawls” the Internet using robotic “spiders” and uses PageRank, which assigns a numeric value how how significant a page is based on the links found to that site. It analyzes inbound and outbound links and uses a mathematical equation to determine the pages rank. This is something that a webmaster cannot tamper with to increase the website’s rank.

In fact, Google added a new twist this Fall. They changed their search algorithm when a online vendor claimed to the New York Times that the large number of complaints they were getting actually increased their page rank and consequently increased their profits.




Anthony J. Pennings, PhD has been on the NYU faculty since 2001 teaching digital media, information systems management, and global communications.


Comments are closed.

  • Referencing this Material

    Copyrights apply to all materials on this blog but fair use conditions allow limited use of ideas and quotations. Please cite the permalinks of the articles/posts.
    Citing a post in APA style would look like:
    Pennings, A. (2015, April 17). Diffusion and the Five Characteristics of Innovation Adoption. Retrieved from
    MLA style citation would look like: "Diffusion and the Five Characteristics of Innovation Adoption." Anthony J. Pennings, PhD. Web. 18 June 2015. The date would be the day you accessed the information. View the Writing Criteria link at the top of this page to link to an online APA reference manual.

  • About Me

    Professor and Associate Chair at State University of New York (SUNY) Korea. Recently taught at Hannam University in Daejeon, South Korea. Moved to Austin, Texas in August 2012 to join the Digital Media Management program at St. Edwards University. Spent the previous decade on the faculty at New York University teaching and researching information systems, media economics, and strategic communications.

    You can reach me at:

    Follow apennings on Twitter

  • Traffic Feed

  • Recent Posts

  • Pages

  • RSS – RSS Channel – App Tech Section

    • Untitled
      Just as we now realize that fast food was "engineered to addict us," says author Franklin Foer, we must recognize the role that Big Tech plays in "shaping our future as a species."
    • Untitled
      One Russian-linked campaign posing as part of the Black Lives Matter movement used Facebook, Instagram, Twitter, YouTube, Tumblr and Pokémon Go and even contacted some reporters in an effort to exploit racial tensions and sow discord among Americans.
    • Untitled
      The Rosetta spacecraft was launched in 2004 and arrived at Comet 67P/Churyumov-Gerasimenko on August 6, 2014, becoming the first probe to rendezvous with a comet. On November 12, Rosetta dropped its Philae lander to the comet's surface -- another first. But Philae bounced and didn't grab onto the comet in its designated landing spot. After […]
    • Untitled
      Digital artist Jan Frojdman spent three weeks shifting through 33,000 images obtained from NASA to create this 3D model of Mars.
    • Untitled
      Members of the Cassini mission say goodbye to the spacecraft, their coworkers and some long-held traditions.
  • October 2017
    M T W T F S S
    « Aug    
  • Crossword of the Day

  • Disclaimer

    The opinions expressed here do not necessarily reflect the views of my employers, past or present.