2 Web Advertising Introduction: Advertising is an attempt to disseminate information in order to affect buyer-seller transactionsInteractive marketing: Online marketing, enabled by the Internet, in which advertisers can interact directly with customers and consumers can interact with advertisers/vendors
3 Web Advertising (cont.) Internet advertising terminologyad views: The number of times users call up a page that has a banner on it during a specific time period; known as impressions or page viewsButton: is a small banner that is linked to a web site. It may contain downloadable software.Page : is HTML document that may contain text, images and other online elements( java applets and multimedia files)
4 Web Advertising (cont.) Click (click-through or ad click): A count made each time a visitor clicks on an advertising banner to access the advertiser‘s Web siteCPM (cost per thousand impressions): The fee an advertiser pays for each 1,000 times a page with a banner ad is shownHit: Request for data from a Web page or file
5 Web Advertising (cont.) Visit: A series of requests during one navigation of a Web site; a pause of request for a certain length of time ends a visit.Unique visit: A count of the number of visitors to a site, regardless of how many pages are viewed per visit.Stickiness Characteristic that influences the average length of time a visitor stays in a site.
6 Why Internet advertising? The major traditional advertising media are television (about 36%),newspaper(about 35%), magazines(about 14%),and radio(about 10%).Although internet advertisement is small percentage (about 4%) in It is evolving drastically!!!
7 Web Advertising (cont.) Why Internet advertising?Television viewers are migrating to the InternetStatistics are not readily available on ads in a print publication or on TVCost: online ads are sometimes cheaper than those in other media. in addition,adscan be updated at any time with minimal cost.Richness of format: web ads can effectively use the convergence of text,audio,graph and animation. in addition games, entertainment and promotions can easily be combined in online advertisements.Personalization: web ads can be interactive and targeted to specific interest groups and individuals.Timeliness: internet ads can be fresh and up to the minute.Participation: web is a participatory tool. Many people can communicate with each other in the context of an online community.Location-basis:using wireless technology( sent to any whre)Digital branding: these brands may be click and mortar brands(ex.P & G), or dot coms such as amazon.com
8 Web Advertising (cont.) Advertising networksadvertising networks: Specialized firms that offer customized Web advertising, such as brokering ads and helping target ads to selected groups of consumersOne-to-one targeted advertising and marketing can be expensive, but it can also be very rewarding.
9 Banner AdsBanner: On a Web page, a graphic advertising display linked to the advertiser’s Web pageKeyword banners: Banner ads that appear when a predetermined word is queried from a search engineRandom banners: Banner ads that appear at random, not as the result of the viewer’s action
12 Banner Ads (cont.) Benefits of banner ads users are transferred to an advertiser’s site, and frequently directly to the shopping page of that sitethe ability to customize some of them to the targeted individual surfer or market segment of surfers“forced advertising”—customers must view ads while waiting for a page to load before they can get free information or entertainment that they want to see (a strategy called)banners may include attention-grabbing multimedia
13 Banner Ads (cont.) Limitations of banner ads High cost of placing ads on high-volume sitesLimited amount of information can be placed on the bannerClick ratio: ratio between the number of clicks on a banner ad and the number of times it is seen by viewers; measures the success of a banner in attracting visitors to click on the ad
14 Banner Ads (cont.)Banner swapping: An agreement between two companies to each display the other’s banner ad on its Web siteBanner exchanges: Markets in which companies can trade or exchange placement of banner ads on each other’s Web sites
15 Advertising Methods (cont.) Pop-up ad: An ad that appears before, after, or during Internet surfing or when readingPop-under ad: An ad that appears underneath the current browser window, so when the user closes the active window, they see the ad.
16 Advertising Methods (cont.) Other intrusive advertising methodsMouse-trapping: disables the user’s ability to go back, exit or close while viewing the page.Typo-piracy and cyber-squatting : uses misspellings and derivations of a popular brand to deliver traffic to an unintended site.Unauthorized software downloads :leaves behind software that can contain embedded ads or tracking capabilities. download occurs regardless of whether ‘yes’ or ‘no’ is selected.Changing homepage or favoritesFraming :keeping the customer on the original site while the customer views contents of another site through the original site’s window, can then use higher visit time statistics to attract advertisers.Mislabeling links: falsely labels hyperlinks that send the shopper to an unintended destination.
17 Advertising Methods (cont.) Interstitial:a type of pop-up ads. An initial Web page or a portion of it that is used to capture the user’s attention for a short time while other content is loadingUsers can remove these ads by simply closing them or by installing software to block them
18 Advertising Methods (cont.) advertising:mailing lists via apopular way to advertise on the internet is to send company or product information to people or companies in mailing lists via electronic mail- .advantageslow costthe ability to reach a wide variety of targeted audiencesinformation on how to create a mailing list, consult groups.yahoo.com (the service is free), factory.com, or topica.com
19 E-Mail Advertising (cont.) advertising management includes:preparing mailing listsDeciding on contentmeasuring the resultsCompanies that help with advertisingworldata.comresults.com
21 E-Mail Advertising (cont.) advertising methods and successespromotions—E-Greetings Network (egreetings.com)Discussion lists—Internet Security Systems (ISS)list management—L-Soft’s Listserv
22 Advertising Methods (cont.) Newspaper-like standardized adsstandardized ads are larger and more noticeable than banner adslook like the ads in a newspaper or magazineClassified ads :Another newspapers-likethese ads can be founded on special sites(infospace.com) as well as online newspapers, exchanges and portals.
23 Advertising Methods (cont.) URLs (Universal Resource Locators)Search engines allow companies to submit URLs for free.Difficult to make the top of several lists.Improve ranking in the search engine by simply adding, removing, or changing a few sentences.Paid search engine inclusion.
24 Advertising Methods (cont.) Advertising in chat roomsvendors frequently sponsor chat roomsadvertisers cycle through messages and target the chatters again and againadvertising can become more thematicused as one-to-one connections between a company and its customers
25 Advertising Strategies and Promotions Associated ad display (text links): An advertising strategy that displays a banner ad related to a term entered in a search engineAffiliate marketing: A marketing arrangement by which an organization refers consumers to the selling company’s Web site
26 Advertising Strategies and Promotions (cont.) 3. ads-as-a-commodity: people paid for the time that is spent viewing an admypoints.comclickrewards.comCustomers fill out data on personal interests and then they receive targeted banners based on their personal profiles.4.Viral marketing: Word-of-mouth marketing by which customers promote a product or service by telling others about it. (can be done by )
28 Advertising Strategies and Promotions (cont.) 5.Customizing adsfiltering irrelevant information by providing consumers with customized ads can reduce this information overloadWeb casting: A free Internet news service that broadcasts personalized news and information in categories selected by the user
29 Advertising Strategies and Promotions (cont.) 6. events, promotions, and attractionsLive Web eventsCareful planning of content, audience, interactivity level, preproduction, and scheduleExecuting the production with rich mediaConducting appropriate promotionPreparing for quality deliveryCapturing data and analyzing audience response for improvement purposes
30 Advertising Strategies and Promotions (cont.) 2.Admediartion:Third-party vendors that conduct promotions, especially large scale ones.Example: mypoints.com
31 Advertising Strategies and Promotions (cont.) Major considerations when implementing an online ad campaigntarget audience of online surfers should be clearly understoodpowerful enough server must be prepared to handle the expected volume of trafficassessment of success is necessary to evaluate the budget and promotion strategycobranding—many promotions succeed because they bring together two or ore powerful partners
33 Economics of Advertising Pricing of advertising:Justifying the cost of internet ads is more difficult than doing so for conventional ads.Pricing based on ad views, using CPM : it is very important that ad views are measured accurately in the context of the advertising business model.Pricing based on click-through: in this model , the payment for banner ad is based on the number of times visitors actually click on the banner.Payment based on interactivity: the interactivity model suggests basing and pricing on how the visitor interacts with target ad. ( duration of the time spent viewing the ad, the number of pages of the target ad accessed ,the number of additional clicks generated) obviously this method is more complex to administer than the previous methods.Payment based on actual purchase: affiliate programsmany advertisers prefer to pay for ads only if an actual purchase has been made. such arrangements usually take place through affiliate programs.
34 Economics of Advertising (cont.) Advertising as a revenue modelmany dot-com failures were caused by using advertising income as the major or the only revenue sourcea small site can survive by concentrating on a niche areaplayfootball.com
36 Economics of Advertising (cont.) Measuring advertising effectivenessReturn on investment is used to measure the benefits received from their online advertising campaignsMeasuring, auditing, and analyzing Web traffic:Before accompany decide to advertise on someone’s web site, it should verify the number of ads views,hits,click through or other data reported by the space sellers.Audience tracking: advertisers are interested in gathering as much as information as possible about the acceptance of ads, both online and offline.
37 Special Advertising Topics Permission advertising (permission marketing): Advertising (marketing) strategy in which customers agree to accept advertising and marketing materialsAd management: Methodology and software that enable organizations to perform a variety of activities involved in Web advertising (e.g., tracking viewers, rotating ads)
38 Special Advertising Topics (cont.) Features that optimize the ability to advertise online:The ability to match ads to specific contentTrackingRotationSpacing impressions
39 Special Advertising Topics (cont.) 3. Localization: The process of converting media products developed in one country to a form culturally and linguistically acceptable in countries outside the original target market4. Internet radio: A Web site that provides music, talk, and other entertainment, both live and stored, from a variety of radio stations
40 Special Advertising Topics (cont.) 5.Wireless advertising: content is changed based on the location
41 Special Advertising Topics (cont.) 6.Ad contentcontent of ads is extremely important.companies use ad agencies to help in content creation for the Web .Akamai Technologies, Inc. (akamai.com)writing and editing of the advertising content itself (copyright) is of course important.ebookeditingservices.com
43 Software Agents in Customer-Related and Advertising Shopping
44 Software Agents in Customer-Related and Advertising Shopping (cont.) Framework for classifying EC agentsAgents that support need identification (what to buy)Agents that support product brokering (from whom to buy)Agents that support merchant brokering and comparisons . Comparison agents
45 Software Agents in Customer-Related and Advertising Shopping (cont.) Agents that support buyer–seller negotiationAgents that support purchase and deliveryAgents that support after-sale service and evaluation
46 Software Agents in Customer-Related and Advertising Shopping (cont.) 7.Character-based animated interactive agents.Avatars: Animated computer characters that exhibit humanlike movements and behaviorsSocial computing: An approach aimed at making the human–computer interface more naturalChatterbots: Animation characters that can talk (chat)
47 Software Agents in Customer-Related and Advertising Shopping (cont.) 8. Agents that support auctionsact as auction aggregators, which tell consumers where and when certain items will be auctioned9.Other EC agentssupport consumer behavior, customer service, and advertising activities
48 Unsolicited Electronic Ads UCE (unsolicited commercial )Spamming: Using to send unwanted ads (sometimes floods of ads)What drives UCE?80 percent of spammers are just trying to get people’s financial information—credit card or bank account numbers—to defraud them
49 Unsolicited Electronic Ads (cont.) Why is it difficult to control spamming?spammers send millions of s, shifting Internet accounts to avoid detectionuse cloaking, they strip away clues (name and address) about where spam originatesserver substitutes fake addressesmany spam messages are sent undetected through unregulated Asian routesspamming is done from outside the U. S.
50 Unsolicited Electronic Ads (cont.) Solutions to spammingantispam legislation is underway in many countriesISPs and providers (Yahoo, MSN, AOL)junk-mail filtersautomatic junk-mail deletersblockers of certain URLs and addressesSpam-filtering site for a country
51 Internet References: 1. www. prenhall. com 2. www. pinacol. com 3. www Internet References: –web-marketing.com