For most established businesses, the Web's main role is either to reduce costs or to add value for existing customers, but it also has a potential role in customer acquisition, and in the case of a web startup. It is a critical role. The aim of this research is to find out how the Internet is impacting advertising. The study was carried out through a questionnaire of the top executives of 200 firms in the services sectors in Abu Dhabi, UAE (Banking and Insurance industries). It examined their attitudes about the effect of advertising through the Internet.
Research findings conclude that the scope of the Internet usage in advertising is affected by managements' perceptions of the effectiveness of their web sites as a marketing tool. Result indicates that negative attitudes towards advertising through the Internet are associated with the Banking and Insurance businesses, which are the largest two sectors in the services industry.
These findings suggest that managers believe there are no economic benefits for advertising through the Internet. Based upon the sample size the researcher believes that the findings may prevail in other service industries in Abu Dhabi in particular and, the UAE in general.

Khalid Alrawi