B2Bs internet marketing will be the future, according to a leading research firm.The new report, from Strategy Analytics, warns that B2b marketers will be able to reach more customers through mobile and video in the next five years than ever before."It is clear that the current landscape for internet marketing has shifted dramatically and that B 2B marketing will have to adapt," the report states....
Internet marketing is booming, with companies making more than $100 billion in revenue each year, according to research firm eMarketer.
However, the revenue generated by internet marketing companies is largely dependent on what kinds of services they offer and how much they charge.
A recent report from eMarketers shows that if a company offers a product or service that is not in the mainstream of the market, it could be subject to a tax.
Internet marketing taxes are typically applied to products and services that don’t compete directly with other services, such as search engines or social media, and those that are considered a premium service or premium bundle.
For example, if a site sells an ad on Facebook that competes directly with a competitor like Google or Facebook, then it would likely be subject a tax, said Dan Friesen, an analyst at eMarkers.
“The only way to get rid of this tax is to get out of the internet marketing business,” he said.
In the United States, online advertising has a sales tax of 15% on all advertising revenue.
However in Europe, it’s a much lower rate of just 2%.
“There is no tax on the sale of any kind of online advertising,” said Eric Tassler, chief economist at research firm CB Insights.
“There’s no tax, no duty, no surcharge.
All you have to do is make sure that the advertising is legitimate.”
In Canada, internet advertising is exempt from the sales tax.
But there is a surcharge for products and service sales over $1 million.
For products and subscriptions over $10,000, the surcharge is $2,500.
Tassler added that it’s very hard to measure the actual amount of tax paid by online marketers.
“They have to collect a certain amount of data and collect that data from customers, which they have to make sure they’re collecting the right data,” he explained.
“It’s not an exact science.”
Tasslers research indicates that most of the online advertising revenue generated is generated by online marketing companies, but some companies may also be offering paid services, like ads and products that they collect online.
The industry is estimated to generate more than half a trillion dollars a year in revenues, but a lot of that revenue is made up of advertising.
Online marketing tax has a lot to do with who is getting the tax breaks, according Chris Wahlstrom, president of the National Association of Internet Marketing Association.
“This is a way to subsidize advertising,” Wahlstrum said.
“You have a company like Google, which makes more money selling ads than it is actually doing with their advertising.”
The internet marketing tax is set to expire in 2020, which means there are a lot more online marketers out there than there are internet advertising companies, and many are trying to make up for lost revenue by offering paid or premium services.