1. CHAPTER 7: Online Advertising & Marketing By Group H: Kim Pace Matt Kluger Tara Flynn Marc Buontempo Kavita Kusumgar BUAD477-11

2. Online Advertising Banner Ads Banner Ads -Criticized but dominant online advertising method -“A rectangular box, usually horizontal on the page that contains advertising material.”- Internet Marketing Interstitials Interstitials Aka “pop-ups” Appear while other material is loading Interfere with loading speed Click through rates higher than static banner ads

3. Banner Ads & Interstitials Static to Dynamic Static to Dynamic Rich Media Rich Media Dynamic imagesDynamic images 3-D images3-D images Mouse-oversMouse-overs Interactive Marketing Units (IMUs) Interactive Marketing Units (IMUs) 20012001 LargerLarger Meaningful graphicsMeaningful graphics flash demonstration flash demonstration What this means? – Other advertising formats are arising to take the place of the static banner Kool Design Maker Kool Design Maker Website

4. How Banner Ads & Interstitials Are Changing Ad Serving Trend Report Double Click Q3 2004 Ad Serving Trend Report Double Click Q3 2004 Online Advertising becoming like other forms of media => More Predictable Online Advertising becoming like other forms of media => More Predictable Larger Units the new standard Larger Units the new standard 1st: Banner (25.2 %)1st: Banner (25.2 %) 2nd: Leaderboard (9.3%)2nd: Leaderboard (9.3%) 3rd: Skyscrapers (10%)3rd: Skyscrapers (10%) 4th: Large Rectangles (5.3%)4th: Large Rectangles (5.3%) www.google.com/adsense/adformatswww.google.com/adsense/adformatswww.google.com/adsense/adformats Click rates more stable recently after years of decline Click rates more stable recently after years of decline

5. Doubleclick.com Trend Report Rich Media rates steady after a decline in 2003 Rich Media rates steady after a decline in 2003 Rich media click rates typically 5X higher than non-rich Rich media click rates typically 5X higher than non-rich

6. Doubleclick.com Trend Report More than 5X conversions resulted from view-through (not click-through) More than 5X conversions resulted from view-through (not click-through)

7. Frequency Capping How often user exposed to particular advertisement can be manually controlled How often user exposed to particular advertisement can be manually controlled Limits number of exposures to unique users Limits number of exposures to unique users Rarely used Rarely used Useful for: Useful for: Online reach for a given demographic groupOnline reach for a given demographic group Cap so that frequent users not overexposed & light users more likely to view adsCap so that frequent users not overexposed & light users more likely to view ads

8. Conclusion “Online Advertisers are still stretching their legs in terms of adopting various techniques to improve the performance of their online advertising.” - Double Click Q3 2004 Ad Serving Trend Report “Online Advertisers are still stretching their legs in terms of adopting various techniques to improve the performance of their online advertising.” - Double Click Q3 2004 Ad Serving Trend Report

9. Search Engines Used by virtually all internet users Used by virtually all internet users All search engines are different All search engines are different 3 primary ways to use search engines 3 primary ways to use search engines KeywordsKeywords Title TagsTitle Tags Meta TagsMeta Tags

10. Search Engines in Marketing Marketers should learn how different engines work Marketers should learn how different engines work Should adopt a forecasting plan Should adopt a forecasting plan Identifies spending in relation to sales impactIdentifies spending in relation to sales impact Determine volume with cost per acquisitionDetermine volume with cost per acquisition Select most effective mix of keywordsSelect most effective mix of keywords http://www.google.comhttp://www.google.comhttp://www.google.com http://www.yahoo.comhttp://www.yahoo.comhttp://www.yahoo.com

11. Blogcritics.org: “What are the Most Effective eMarketing Tools?” “Which ones (eMarketing Tools) do work best?.... -- the ones you can easily track and see how what you spend leads directly to sales” - Scott Frangos “Which ones (eMarketing Tools) do work best?.... -- the ones you can easily track and see how what you spend leads directly to sales” - Scott Frangos To be successful advertisers must focus on reliable eMarketing methods, mainly: To be successful advertisers must focus on reliable eMarketing methods, mainly: Affiliate ProgramsAffiliate Programs eNewsletters (a.k.a. and directly related to email marketing)eNewsletters (a.k.a. and directly related to email marketing) Pay-per-click search engine listingsPay-per-click search engine listings And to some degree RSS (Really Simple Syndication) feeds such as those you subscribed to for class through www.bloglines.comAnd to some degree RSS (Really Simple Syndication) feeds such as those you subscribed to for class through www.bloglines.comwww.bloglines.com

12. Understanding Affiliate Programs Taking advantage of affiliate programs helps to bring new customers, and clearly qualifies as a customer acquisition technique Taking advantage of affiliate programs helps to bring new customers, and clearly qualifies as a customer acquisition technique Websites can advertise each other with this method Websites can advertise each other with this method Examples on the web: Examples on the web: Amazon's Affiliate Marketing Program SiteAmazon's Affiliate Marketing Program SiteAmazon's Affiliate Marketing Program SiteAmazon's Affiliate Marketing Program Site Buad 477 Class BlogBuad 477 Class BlogBuad 477 Class BlogBuad 477 Class Blog Affiliate program directors and their participants can track per sale and/or per click and be able to determine what there cut of the transaction is. Affiliate program directors and their participants can track per sale and/or per click and be able to determine what there cut of the transaction is.

13. E-Mail Marketing Offers a fast, flexible, and highly controllable format. Offers a fast, flexible, and highly controllable format. Can be developed quickly, tested, and revised on the fly. Can be developed quickly, tested, and revised on the fly. E-mail marketing has an extremely wide reach and is cheap on a per customer contact basis E-mail marketing has an extremely wide reach and is cheap on a per customer contact basis Spam Spam Unsolicited, irresponsible, and measures are being put in place to curb itUnsolicited, irresponsible, and measures are being put in place to curb it Turntide Anti-Spam Router WebsiteTurntide Anti-Spam Router WebsiteTurntide Anti-Spam Router WebsiteTurntide Anti-Spam Router Website

14. E-mail Recipient Acquisition Techniques Opt-out Opt-out Opt-in Opt-in Double opt-in Double opt-in When searching for leads, marketers should always choose quality over quantity When searching for leads, marketers should always choose quality over quantity Privacy Policies Privacy Policies

15. Back to the Article… The author emphasizes that eNewsletters are the most effective way for reputable companies to advertise through email. The author emphasizes that eNewsletters are the most effective way for reputable companies to advertise through email. Topica provides businesses with eNewsletter servicesTopica provides businesses with eNewsletter services http://www.topica.com/?p=CNJN&l=text1http://www.topica.com/?p=CNJN&l=text1http://www.topica.com/?p=CNJN&l=text1 When commenting on why eNewsletters are so effective: When commenting on why eNewsletters are so effective: “Newsletters take time and deserve a quality editing process. The better written they are, the better are your results…A newsletter, well written, develops a sort of bond with your customers. ” “Smart” Autoresponders “Smart” Autoresponders New tools to help marketers achieve customer loyalty by easily customizing mass emailsNew tools to help marketers achieve customer loyalty by easily customizing mass emails

16. Wrapping things up… The article’s bottom line on the topic of email marketing is you have to budget your time and expense – and if that means paying more to use the opt-in technique, then so be it. The article’s bottom line on the topic of email marketing is you have to budget your time and expense – and if that means paying more to use the opt-in technique, then so be it. The author also stresses that affiliate marketing is both cost effective, fast, and far reaching in this quote: The author also stresses that affiliate marketing is both cost effective, fast, and far reaching in this quote: “A well managed affiliate program (sometimes called ‘viral’ marketing because it spreads so quickly), can pay off in a big way without any up front costs of advertising other than to install and announce it.” “A well managed affiliate program (sometimes called ‘viral’ marketing because it spreads so quickly), can pay off in a big way without any up front costs of advertising other than to install and announce it.” In summation, with eMarketing you have to In summation, with eMarketing you have to “pay for results -- not just ‘placement’, extend your reach ‘virally’, when possible, and use smart systems (like auto respondents) to get the economic advantage in your marketing.”“pay for results -- not just ‘placement’, extend your reach ‘virally’, when possible, and use smart systems (like auto respondents) to get the economic advantage in your marketing.”

17. Any Questions?