COMM 3353: Communication Web Technologies I Chapter 7a: Advertising Chapter 7a: Advertising

Advertising  Advertising and the World Wide Web  Advertising Rates  Selling the Medium  Web Ratings and Measurement  Advertising and the World Wide Web  Advertising Rates  Selling the Medium  Web Ratings and Measurement

Advertising and the World Wide Web  The Internet and WWW as a Catalyst:  An element that effects change without actually being changed itself.  Changing advertising strategies for the way goods and services are sold:  Online Services  Multimedia Information  Interactive Technology  The Internet and WWW as a Catalyst:  An element that effects change without actually being changed itself.  Changing advertising strategies for the way goods and services are sold:  Online Services  Multimedia Information  Interactive Technology

 A Brief History, Revisited...  The Internet was initially envisioned as an educational resource.  No intention of misuse or use for marketing, advertising, and sales.  No security issues were ever taken into consideration.  No evidence of advancement in technology or the way Internet functionality would change.  A Brief History, Revisited...  The Internet was initially envisioned as an educational resource.  No intention of misuse or use for marketing, advertising, and sales.  No security issues were ever taken into consideration.  No evidence of advancement in technology or the way Internet functionality would change. Advertising and the World Wide Web, Continued…

 The emergence of the World Wide Web brought about change to the initial intent of the Internet.  Interactivity is the driving force behind this change.  New kind of advertising, new kind consumer.  The advertising community is struggling to keep up and is involved in a major race to establish its place on the web.  The emergence of the World Wide Web brought about change to the initial intent of the Internet.  Interactivity is the driving force behind this change.  New kind of advertising, new kind consumer.  The advertising community is struggling to keep up and is involved in a major race to establish its place on the web. Advertising and the World Wide Web, Continued…

 The Web creates a Global marketplace:  By virtue, presents a fresh approach to advertising.  It creates a competitive online market.  Vast amounts of room for growth and expansion.  Unlimited resources for exploration.  The more the Web grows, the more prosperous it becomes.  The Web creates a Global marketplace:  By virtue, presents a fresh approach to advertising.  It creates a competitive online market.  Vast amounts of room for growth and expansion.  Unlimited resources for exploration.  The more the Web grows, the more prosperous it becomes. Advertising and the World Wide Web, Continued…

 Web Advertising vs. Web Marketing  Web Marketing:  An organization establishing a Web site to promote itself and its products.  Presentation of products  Providing ordering information  Allowing for customer feedback  Web Advertising vs. Web Marketing  Web Marketing:  An organization establishing a Web site to promote itself and its products.  Presentation of products  Providing ordering information  Allowing for customer feedback Advertising and the World Wide Web, Continued…

 Web Advertising  An organization contracts or makes financial or trade arrangements to post their logos and product information on someone else’s Web site.  Web Advertising  An organization contracts or makes financial or trade arrangements to post their logos and product information on someone else’s Web site. Advertising and the World Wide Web, Continued…

 Types of Web Advertising  Banner Ad  Earliest type of Web Ad and currently most widely used.  Banners are generally active links.  Spamming Ad  Sending mass text docs to an enormous number of recipients at the same time.  Can cause server problems.  Types of Web Advertising  Banner Ad  Earliest type of Web Ad and currently most widely used.  Banners are generally active links.  Spamming Ad  Sending mass text docs to an enormous number of recipients at the same time.  Can cause server problems. Advertising and the World Wide Web, Continued…

 The Transition to Internet Advertising  1980s vs. 1990s:  The 80’s saw a majority of advertising resources on print and broadcast media.  The early 90’s brought about new budgeting ideas and funding possibilities that began identifying the online audience.  The late 90’s have seen a major advancement toward internet advertising and the funding that goes with it.  The Transition to Internet Advertising  1980s vs. 1990s:  The 80’s saw a majority of advertising resources on print and broadcast media.  The early 90’s brought about new budgeting ideas and funding possibilities that began identifying the online audience.  The late 90’s have seen a major advancement toward internet advertising and the funding that goes with it. Advertising and the World Wide Web, Continued…

 Benefits of Online Advertising  Advertiser’s Perspective  Advertisers are turning to the Internet to sell their goods and services for a variety of reasons:  1) World Wide Marketplace.  2) Ideal for selective advertising.  3) free from time / space constraints.  4) updating / changing can be done more efficiently.  5) less expensive.  6) web advertising is considered “prestigious.”  Benefits of Online Advertising  Advertiser’s Perspective  Advertisers are turning to the Internet to sell their goods and services for a variety of reasons:  1) World Wide Marketplace.  2) Ideal for selective advertising.  3) free from time / space constraints.  4) updating / changing can be done more efficiently.  5) less expensive.  6) web advertising is considered “prestigious.” Advertising and the World Wide Web, Continued…

 Consumer’s Perspective  Consumers buy online for many reasons, including:  Convenience.  Single, unified shopping interface.  Browsing / buying is instantaneous.  (delivery is a different matter)  Consumer’s Perspective  Consumers buy online for many reasons, including:  Convenience.  Single, unified shopping interface.  Browsing / buying is instantaneous.  (delivery is a different matter) Advertising and the World Wide Web, Continued…

Advertising Rates  Advertisers are concerned about cost / benefit ratio of online advertising.  (Is It Worth It...?)  CPM (Cost per Thousand)  CPM is calculated by dividing the cost of an Ad by the number of individuals (in thousands) that the Ad reaches.  CPM were initially developed and used in print and broadcast media.  Currently the most effective means of cost / benefit analysis.  Advertisers are concerned about cost / benefit ratio of online advertising.  (Is It Worth It...?)  CPM (Cost per Thousand)  CPM is calculated by dividing the cost of an Ad by the number of individuals (in thousands) that the Ad reaches.  CPM were initially developed and used in print and broadcast media.  Currently the most effective means of cost / benefit analysis.

 Size-Based Pricing  Calculated by the size (in sq. pixels) of the online Ad.  Sq. Pixel area is calculated by multiplying the Height in pixels (X) Width in pixels of the Ad.  A fee is then generated based on the sq. pixels used.  Size-Based Pricing  Calculated by the size (in sq. pixels) of the online Ad.  Sq. Pixel area is calculated by multiplying the Height in pixels (X) Width in pixels of the Ad.  A fee is then generated based on the sq. pixels used. Advertising Rates, Continued…

 Click-Through Rates  Based on the percentage of visitors who click through a banner Ad.  Calculated by dividing the number of visitors who see the Ad by the number of visitors who actually click on it.  Click-Through Rates  Based on the percentage of visitors who click through a banner Ad.  Calculated by dividing the number of visitors who see the Ad by the number of visitors who actually click on it. Advertising Rates, Continued…

 Result-Based Fees  Allowing an Ad to be placed for little or no charge, but accumulating fees when the Ad is actually used.  Difficult today because of the potential for misrepresentation of users.  Result-Based Fees  Allowing an Ad to be placed for little or no charge, but accumulating fees when the Ad is actually used.  Difficult today because of the potential for misrepresentation of users. Advertising Rates, Continued…

 Advertising Exchanges:  Companies agree to grant space to advertisers in exchange for a small space on the other’s site.  Discounts:  Discounts for Ads that are “Web ready.”  What Advertisers Want to Pay:  Push Services use Click = Through Fees  Brand Awareness = CPM  Most Advertisers want a Hybrid of pricing styles.  Advertising Exchanges:  Companies agree to grant space to advertisers in exchange for a small space on the other’s site.  Discounts:  Discounts for Ads that are “Web ready.”  What Advertisers Want to Pay:  Push Services use Click = Through Fees  Brand Awareness = CPM  Most Advertisers want a Hybrid of pricing styles. Advertising Rates, Continued…

Selling the Medium  There are three main components to Selling the Web for Advertising:  Sales Force  Separate Web Ad Sales Forces to sell space for Ads on its Web Site.  Online Campaign Management  Keeping track of online Ad placement and management.  There are three main components to Selling the Web for Advertising:  Sales Force  Separate Web Ad Sales Forces to sell space for Ads on its Web Site.  Online Campaign Management  Keeping track of online Ad placement and management.

 Advertising Sales and Buys  Advertising online can occur in almost any way imaginable. The most common, most successful to date are:  Banner Ads  Classified Ads  Coupons  Ads  Advertising Sales and Buys  Advertising online can occur in almost any way imaginable. The most common, most successful to date are:  Banner Ads  Classified Ads  Coupons  Ads Selling the Medium, Continued…

Web Ratings and Measurement  Web Ratings  Evolution of classical media included reliable methods of rating medium.  Because Web technology is rapidly changing, and given that it is relatively new, reliable rating methods are not yet in place.  As with any new technology, many organizations and individuals are attempting to implement a reliable form of web rating.  Web Ratings  Evolution of classical media included reliable methods of rating medium.  Because Web technology is rapidly changing, and given that it is relatively new, reliable rating methods are not yet in place.  As with any new technology, many organizations and individuals are attempting to implement a reliable form of web rating.

 Web Auditors  Many companies that measure Web site traffic are third-parties.  Monitor click-through rates  Verify visibility of rotating banner Ads.  Report on Ad placement within the page.  Provide user technology information.  Through survey, provide demographics.  Web Auditors  Many companies that measure Web site traffic are third-parties.  Monitor click-through rates  Verify visibility of rotating banner Ads.  Report on Ad placement within the page.  Provide user technology information.  Through survey, provide demographics. Web Ratings and Measurement, Continued…

 Some New Web Rating Technologies:  Web-O-Meter  Measures web use in a sample of the population through proprietary software.  Attaches a “meter” to participating web site which show how many users hit a particular Ad or Site.  Also reports on software and hardware configurations of the users, and reports update and upgrade information.  Some New Web Rating Technologies:  Web-O-Meter  Measures web use in a sample of the population through proprietary software.  Attaches a “meter” to participating web site which show how many users hit a particular Ad or Site.  Also reports on software and hardware configurations of the users, and reports update and upgrade information. Web Ratings and Measurement, Continued…

 Web Auditing  Many media buyers require site audit information prior to any deal being made.  Most still do not.  Measurement Standards  Without measurement standards, it’s nearly impossible to make site comparisons.  The entire industry is calling for some standardization.  Web Auditing  Many media buyers require site audit information prior to any deal being made.  Most still do not.  Measurement Standards  Without measurement standards, it’s nearly impossible to make site comparisons.  The entire industry is calling for some standardization. Web Ratings and Measurement, Continued…

The Internet and the World Wide Web End Chapter 7, Part I.