There are other reasons why advertising on the Net is not currently seen by advertisers as cost-effective. One of them is the quality of desired responses. In many cases, sums spent on advertising on the Net has not been deployed properly. There are instances where advertisements have just been lifted and put on the banner. Though there are many early adapters in India, there is a big gap between these adapters and the mainstream users. And most advertisers have too small budgets for advertising on the Net to be bothered about wastage.
There could be wastage in online advertising, but one should not forget that interactivity is the hallmark of online advertising and here it is possible to target the audience by demography, psychography and technography. So, advertising agencies need to take into account these factors while developing strategies.