Until the late 1940s, when television began finding its way into American homes, companies relied mainly on print1 and radio to promote their products and services. The advent of television brought about a revolution in product and service. Between 1949 and 1951, advertising on television grew 960 percent. Today the Internet is once again transforming promotion. By going online, companies can communicate instantly and directly with prospective customers. Promotion on the World Wide Web2 includes advertising (usually in the form of banners3 across the top of Web sites),4 sponsorships, and sales promotions like sweepstakes,5 contests,6 coupons, and rebates.7 In 1996 World Wide Web advertising revenues topped $300 million.

Effective online marketers don't merely transfer hard-copy ads8 to cyberspace.9 Successful sites blend promotional and non-promotional information indirectly delivering the advertising messages. To encourage visits to their sites and to create and cultivate customer loyalty, companies change information frequently and provide many opportunities for interaction.

A prototype for excellent online promotion is the Ragu Web site. Here visitors can find thirty-six pasta recipes, take Italian lessons, and view an Italian film festival, but they will find no traditional ads. So subtle is the mix of product and promotion, visitors hardly know an advertising message has been delivered. Sega of America, maker of computer games and hardware, uses its Web site for a variety of different promotions, such as introducing new game characters to the public and supplying Web surfers10 the opportunity to download games. Sega's home page averages 250,000 visits a day. To heighten interest in the site, Sega bought an advertising banner on Netscape,11 thereby increasing site visits by 15 percent. Online participants in Quaker Oats' Gatorade promotion received a free T-shirt in exchange for answering a few questions. Quaker Oats reports that the online promotion created product loyalty and helped the company know its customers better.

Yoyodyne Entertainment, creator of Internet promotions, develops online game shows for customers like Internet MCI,12 AT&T, and NBC.13 One of its most successful games is the "Get a Little Closer" promotion for Arrid XX deodorant. After they input their E-mail addresses, contestants receive two trivia questions, each accompanied by advertising, once a week. Later in the week, they receive a hint and more information about the product. Correct answers earn them points, and winners are chosen from top scorers. Prizes include weekend gateways, CD collections, and Ticketmaster gift certificates.14 Because the game lasts eight weeks, participants receive twenty-four different E-mail messages about Arrid during the game. The game appears to be working. Of the 45,000 participants, 25 percent purchased Arrid XX during the game, and brand recognition doubled.

To target specific Internet users, an increasing number of companies are using "push"15 technology, which automatically delivers customized news and other information to users' computers when they log onto the Internet.16 Although organizations like Nielsen Media Research are developing technologies to enhance audience measurement and tracking, it remains difficult to assess how many times the same person looks at an ad and who that person is. Although online promotions can be glamorous and sophisticated, they are not perfect. For a well-designed marketing mix,17 industry experts advise companies to use the Internet as a supplement to other advertising media.