1. ELC 200 Day 14 Copyright © 2007 Pearson Education, Inc.

2. Agenda Exam 2 will be Nov 8 Questions? Assignment 5 posted
Due Oct 28, 11:05 PM
assignment 5.pdf
Assignment 6 will be posted by next class
2 left after the 6th
Exam 2 will be Nov 8
Chap 6, 7 & 8
Same format as before 70 min
Points penalty for going over time limit
Begin E-commerce Marketing Communications

3. Time Penalty for Exam 2 1 Min  -1 points 2 Min  -2 points
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4. Chapter 7 E-commerce Marketing Communications
Copyright © 2009 Pearson Education, Inc.
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5. Marketing Communications
Online marketing communications:
Methods used by online firms to communicate with consumer and create strong brand expectations
Promotional sales communications:
Suggest consumer “buy now” and make offers to encourage immediate purchase
Branding communications:
Focus on extolling differentiable benefits of consuming product or service
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6. Online Advertising $24.5 billion in 2009
15% of all advertising by 2013
Advantages:
Internet is where audience is moving
Ad targeting
Greater opportunities for interactivity
Disadvantages:
Cost versus benefit
How to adequately measure results
Supply of good venues to display ads
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7. Online Advertising from 2002–2013
Figure 7.1, Page 430
SOURCES: Based on data from eMarketer, 2009a.
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8. Forms of Online Advertisements
Display ads
Rich media
Video ads
Search engine advertising
In-game ads
Social network, blog, and game advertising
Sponsorships
Referrals (affiliate relationship marketing)
marketing
Online catalogs
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9. Copyright © 2010 Pearson Education, Inc.

10. Display Ads Banner ads Pop-up ads http://www.travelocity.com/
Rectangular box linking to advertiser’s Web site
IAB guidelines
E.g., full banner is 468 x 60 pixels, 13K (changed in 2009)
IAB-Ad-Unit-Guidelines-Update pdf
Pop-up ads
Appear without user calling for them
Provoke negative consumer sentiment
Twice as effective as normal banner ads
Pop-under ads: open beneath browser window
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11. Rich Media Ads Use Flash, DHTML, Java, JavaScript
About 7% of all online advertising expenditures
Tend to be more about branding
Boost brand awareness by 10%
IAB standards limit length
Interstitials
Superstitials
Rich media Example
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12. IAB Guidelines
For Rich media
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13. Video Ads Fastest growing form of online advertisement IAB standards
Linear video ad
Non-linear video ad
In-banner video ad
In-text video ad
Formats: pre-roll, mid-roll, post-roll
Ad placement
Video advertising networks
Advertising exchanges
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14. Search Engine Advertising
Almost 50% of online ad spending in 2009
Types:
Paid inclusion or rank
Inclusion in search results
Sponsored link areas
Keyword advertising
E.g., Google AdWords
Network keyword advertising (context advertising)
E.g., Google AdSense
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15. http://www. billhartzer
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16. Copyright © 2010 Pearson Education, Inc.

17. Search Engine Advertising
Issues:
Appropriate disclosure of paid inclusion and placement practices
Search engine click fraud
Who’s Clicking the AD?
Ad nonsense
For a Small business Search Engine Optimization, SEO, is the best “bang for your buck”
mother-would-love/6760/
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18. Sponsorships and Referrals
Paid effort to tie advertiser’s name to particular information, event, venue in way that reinforces brand in positive yet not overtly commercial manner
Referrals
Affiliate relationship marketing
Permits firm to put logo or banner ad on another firm’s Web site from which users of that site can click through to affiliate’s site
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19. E-mail Marketing and the Spam Explosion
Direct marketing
Low cost method
Primary cost is purchasing addresses
Spam: unsolicited commercial
80%–90% of all purportedly is spam
Efforts to control spam:
Technology (filtering software)
Government regulation (CAN-SPAM and state laws)
Voluntary self-regulation by industries
DMA
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20. Percentage of E-mail That Is Spam
Figure 7.6, Page 444
SOURCE: MessageLabs.com, 2009.
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21. Spam Categories Figure 7.7, Page 445 SOURCE: Symantec, 2009.
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22. Equivalent of paper-based catalogs
Online Catalogs
Equivalent of paper-based catalogs
Graphics-intense; use increasing with increase in broadband use
Two types:
Full-page spreads, e.g., Landsend.com
Grid displays, e.g., Amazon
In general, online and offline catalogs complement each other
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23. Uses digitally enabled networks to spread ads
Social Marketing
“Many-to-many” model
Uses digitally enabled networks to spread ads
Blog advertising
Online ads related to content of blogs
Social network advertising
Ads on MySpace, Facebook, YouTube, etc.
Game advertising
Downloadable “advergames”
Placing brand-name products within games
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24. Web as “Database of Intentions” Behavioral targeting
Combines real-time information on visitors online behavior with offline identity, consumptive information
Data analyzed to develop profiles
Ads delivered based on profile
Hundreds of versions of ad for different profile groups
One of fastest growing online marketing techniques
Raises privacy concerns
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25. Mixing Offline and Online Marketing Communications
Most successful marketing campaigns incorporate both online and offline tactics
Offline marketing
Drive traffic to Web sites
Increase awareness and build brand equity
Consumer behavior increasingly multi- channel
60% of consumers research online before buying offline
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26. Why did Neiman Marcus’ first effort fail?
Insight on Business Are the Very Rich Different from You and Me? Class Discussion
Why have online luxury retailers had a difficult time translating their brands and the look and feel of luxury shops into Web sites?
Why did Neiman Marcus’ first effort fail?
Why did Tiffany’s first effort fail?
Visit the Armani Web site. What do you find there?
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27. Online Marketing Metrics: Lexicon
Measuring audience size or market share
Impressions
Click-through rate (CTR)
View-through rate (VTR)
Hits
Page views
Stickiness (duration)
Unique visitors
Loyalty
Reach
Recency
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28. Online Marketing Metrics
Conversion of visitor to customer
Acquisition rate
Conversion rate
Browse-to-buy-ratio
View-to-cart ratio
Cart conversion rate
Checkout conversion rate
Abandonment rate
Retention rate
Attrition rate
metrics
Open rate
Delivery rate
Click-through rate ( )
Bounce-back rate
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29. An Online Consumer Purchasing Model
Figure 7.9, Page 465
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30. How Well Does Online Advertising Work?
Ultimately measured by ROI on ad campaign
Highest click-through rates: search engine ads, permission campaigns
Rich media, video interaction rates high
Online channels compare favorably with traditional channels
Most powerful marketing campaigns use multiple channels, including online, catalog, TV, radio, newspapers, stores
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31. Comparative Returns on Investment
Figure 7.10, Page 467
SOURCE: Industry sources; author estimates.
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32. The Costs of Online Advertising
Pricing models
Barter
Cost per thousand (CPM)
Cost per click (CPC)
Cost per action (CPA)
Online revenues only
Sales can be directly correlated
Both online/offline revenues
Offline purchases cannot always be directly related to online campaign
In general, online marketing more expensive on CPM basis, but more effective
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33. Web Site Activity Analysis
Figure 7.11, Page 472
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34. What are some of the services offered by Omniture’s SiteCatalyst?
Insight on Technology It’s 10 P.M. Do You Know Who Is on Your Web Site? Class Discussion
What are some of the services offered by Omniture’s SiteCatalyst?
Why would you as a Webmaster be interested in these services?
Why is site analysis and customer tracking so important to online marketing?
How did HP use SiteCatalyst?
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35. The Web Site as a Marketing Communications Tool
Web site as extended online advertisement
Domain name:
First communication e-commerce site has with prospective customer
Search engine optimization:
Register with as many search engines as possible
Ensure keywords used in site description match keywords likely to be used as search terms by user
Link site to as many other sites as possible
Get professional help
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36. Web Site Functionality
Main factors in effectiveness of interface
Utility
Ease of use
Top factors in credibility of Web sites
Design look
Information design/structure
Information focus
Organization is important for first-time users, but declines in importance
Information content becomes major factor attracting further visits
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37. Factors in the Credibility of Web Sites
Figure 7.12, Page 477
SOURCE: Based on data from Fogg, et al, 2003.
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38. Table 7.9, Page 478
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39. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
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Publishing as Prentice Hall
Copyright © 2010 Pearson Education, Inc.