GROUP 2
Caga, Jherrelee
Calisay, Christopher
Dela Cruz, Leizel
Fajardo, Claudine
Farinas, Mark
Kim, Seongeun
Lesino, Hylene
Ondevilla, Arvin
Rubang, Jefte
Song, In Ho
Tablac, Charlene May
Villanueva, Kenneth
I.
MKTMAN8
12:30-2:00TTh
Web Advertisement
In the beginning, "advertising" on the Internet meant "banner ads" -- ads you see at the
top of almost all Web pages today.
History of Web advertising
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In 1998 or so, banner advertising was a profitable business. Popular sites like Yahoo
could charge $30, $50, even $100 per thousand impressions to run banner ads on their
pages.
At some point, advertisers came to the conclusion that banner ads were not as effective
as full-page magazine ads or 30-second TV commercials.
Thousands of sites had a million or more page impressions available per month → rates
began to plummet.
Sidebar Ad
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A sidebar ad is similar to a banner ad, but it is vertically oriented rather than horizontally.
A typical sidebar ad has a click-through rate of 1 percent (10 clicks per 1,000
impressions)
Advertisers will typically pay $1.00 to $1.50 per 1,000 run-of-site impressions for sidebar
ad placement.
Small Ad
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Sites don't get paid much for smaller ads
Click-through rates are low. But by putting 10 ads on the page, it can add up to $2 per
1,000 page impressions.
Pop up Ad
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Annoy many users because they clutter up the desktop and take time to close.
Much more effective than banner ads.
Average 30 clicks per thousand impressions.
Typically, a pop-up ad will pay the Web site four to 10 times more than a banner ads.
That is why you see so many pop-up ads on the Web today.
Floating Ad
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These are ads that appear when you first go to a Web page, and they "float" or "fly" over
the page for anywhere from 5 to 30 seconds.
While they are on the screen, they obscure your view of the page you are trying to read,
and they often block mouse input as well.
The high click-through rate means that advertisers will pay a lot more for a floating ad -anywhere from $3 to $30 per 1,000 impressions depending on the advertiser and the
ads.
Unicast Ad
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A Unicast ad is basically a TV commercial that runs in a pop-up window.
The ads can last anywhere from 10 to 30 seconds.
5-percent click-through rate (50 clicks per 1,000 impressions of the ad) is not
uncommon.
Because Unicast ads have branding power and because people click on them, $30 per
1,000 impressions is a common rate paid to Web sites.
Types of ads
Create advertisements by visiting 'create content' on your website and choosing
'X_advertisement' as the content type in where
X can be:
a. Text
b. Image
c. Flash
Text Ads
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Text ads are very simple, requiring that you fill out only 3 fields of information.
Destination URL where you want people to be redirected when they click on your text
ads.
The header that links to the Destination URL.
Finally, you need to specify the body of your ads.
Image Ads
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Image ads depend on the dual core Upload module for managing the actual images.
We need to specify the Destination URL where you want people to be redirected when
they click on your image ads.
Ad groups
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Ads can be organized into groups.
When displaying ads, you typically tell the ad module to display ads from a certain group
and then the ad module randomly selects an active ad from the specified group.
Each ad can be a member of any number of groups.
Ad status
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II.
Pending state is one that has recently been uploaded and is waiting to be approved by a
privileged user.
Approved state is one that has been approved by a privileged user but is not actively
being displayed, the ad could be waiting on an auto activation event.
Active state is being actively displayed.
Offline state is approved but is currently
Advertisement Methods
1. Banner
 On a Web page, a graphic advertising display linked to the advertiser’s Web page
2. Keyword Banners
 Banner ads that appear when a predetermined word is queried from a search engine
3. Random Banners
 Banner ads that appear at random, not as the result of the user’s action
*Banner Swapping
An agreement between two companies to each display the other’s banner ad on its Web
site.
*Banner Exchanges
Markets in which companies can trade or exchange placement of banner ads on each
other’s Web sites.
4. Pop-up Ad
 An ad that appears in a separate window before, after, or during Internet surfing or
when reading e-mail
5. Pop-under Ad
 An ad that appears underneath the current browser window, so when the user closes
the active window the ad is still on the screen
6. Interstitial
 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 loading
7. E-Mail Advertising
 E-mail advertising management
 E-mail advertising methods and successes
8. Newspaper-Like and Classified Ads
9. Search Engine Advertisement
 Improving a company’s search-engine ranking (optimization)
 Paid search-engine inclusion
 Associated ad display (text links)
 An advertising strategy that displays a banner ad related to a key term
entered in a search engine
10. Advertising in Chat Rooms, Blogs, and Social Networks
III.
Advertisement Strategies
1. Passive Pull Strategy
The passive pull strategy is effective and economical when advertising to open,
unidentified potential customers worldwide. However, there are so many Web pages pen to all
customers; there is a need for a directory that can guide customers’ targeted sites.
2. Active Push Strategy
If customers do not visit the merchants sites voluntary, merchants need to actively
advertise to the targeted customers. One option of this strategy is sending emails to relevant
people. The first issue to consider to be considered by merchants adapting this is strategy is to
how to obtain the mailing list of the target customers.
3. Associated Ad Display Strategy
With a banner, a display may be organized independently of who reads it and when is
read. If the merchant can identify the person and the characteristics of accessed pages,
displaying an associated ad can be a very effective advertisement.
4. Ads as a Commodity
According to this strategy, an ad is sold as a product, using the approach of cyber gold
and others. Interested consumers read the ads in exchange for direct payment made by the
advertisers. Consumers will fill out data on personal interest. Then cybergold distributes
targeted banner based on the personal profiles. Each banner is denoted with the amount of
payment for reading it. If interested, the reader clicks the banner to read it and, passing some
texts on its contents, is paid for the effort.
5. Customizing ads
There is too much information on the interest for customers to view. So filtering the
irrelevant information by providing customized ads can be way to reduce the information
overload. The software One to One allows the rapid creation and alteration of secure and robust
visitor centric websites.
6. Interactive Ad Strategies
The ads on the internet can be passive (view only) or interactive. Interaction maybe
executed online using chatting and calls center service or synchronously using web screens and
emails. These interactions can be used to supplement web pages.
7. Push technology
The explosion of the internet phenomenon has led to a growing acceptance of electronic
messaging and news transformation. In respond to this trend, several new vehicles for
information transmission are appearing on the internet. Push technology allows the direct
delivery of information to an individual’s computer desktop.
8. Push on the internet
Push offers corporations a cheap and easy way to deliver everything from training
materials to a cafeteria menu. Direct marketers can also using push technology to deliver
promotions to the desktops of targeted customers.
9. Intelligent agents
It is collecting information about customers. The purpose of such collections is to create
a customer’s profile. If the company knows the profile, it can tailor an ad to the customer or ask
the customer if he or she would like to receive product information. This type of agent is called
product brokering.
IV.
Push Technology and Intelligent Agents
Push-Pull Technology
Currently, one of the most fashionable technologies within the Internet is “Push”
technology. Contrary to the “Pull' world of web pages where users request data from another
program or computer, via a web browser, “Push” enables services to be targeted at the user,
without them having to initiate the information collection activity. Instead, information finds the
user. In other words, an automated retrieval of data from the Internet, corporate data sources
and e-commerce web sites, is delivered directly to specific user populations in a personalised
manner.
“Push” Technology allows you to become an integral part of your customers daily lives
by enforcing your brands and services directly to them every day. Key messages and
personalised information that they have requested, and critical information can be delivered to
their desktop, screen saver, any wireless device, mail account and more. “Push” amplifies and
extends your current Web presence while providing new and valuable services. Your customer
is directed back to your Web site for more in-depth information. This technology eliminates the
need to wait for customers to visit your site, instead, allowing an organisation to take their
business to their customer base.
In order for companies to be able to use this technology, they require their customers to
download and install a piece of client software onto their computers. The software interacts with
the Web, and provides the interface through which context sensitive content is delivered.
Infogate, a Web based company, claim to have over 10 years experience delivering critical
content on behalf of partners to their customers and end-users, and also claim to increase
customer retention, and thus increase revenue.
- www.infogate.com
Another good example of “push” technology is the PointCast news system that
broadcasts the news, sports and weather, covering topics selected through the desktop client.
In the case of PointCast, they are then displayed as an attractive screensaver saver application.
- www.pointcast.com
Perhaps, an unusual point about “push” broadcasters is that they still use the HTTP
protocol, and though they are called “push”, it is the client that starts the session with the server
using HTTP commands.
BackWeb is another Web based company also offering “push” technology. However,
BackWeb do not use HTTP protocols, but has its own set of propriety protocols that allow a nonHTTP session to be established between the client and the server, again, client software is
required, and has to be downloaded from their site.
- www.backweb.com
Another method of creating a “push” server, is to program exactly the type of broadcast
station you want. A good software development system for such, is Marimba’s Castanet
software that is designed to push Java applets and Shockwave animation, entertainment and
interactive multimedia content to specific users.
Marimba's Server Management also includes integration with Microsoft Internet
Information Server (IIS). This functionality allows Marimba’s Server Management product family
to package and distribute commonly used server applications that are based on Microsoft IIS,
such as Microsoft Commerce Server 2000 and Allaire’s ColdFusion.
Marimba’s solutions can be priced by following the “About Us” link on their Web site, were
contact information is available. Also, the Marimba site offers Flash demos, white papers,
datasheets and Web seminars for download by following their “Product” link.
- www.marimba.com
Push (or "server-push") is the delivery of information on the Web that is initiated by the
information server rather than by the information user or client , as it usually is. An early Web
service that specialized in "pushing" information rather than having it "pulled" as the result of
requests for Web pages was Pointcast, a site that provided up-to-date news and other
information tailored to a previously defined user profile. Marimba was a somewhat similar site
(and product) that pushed information to the user on a predefined schedule.
In fact, the information pushed from a server to a user actually comes as the result of a
programmed request from the client in your computer. That is, any information pusher on the
Web requires that you download a client program. This program captures your profile and then
periodically initiates requests for information on your behalf from the server.
A truer form of push is broadcast information. In this case, the information is pushed to
everyone that has access to a particular channel or frequency. Broadcast usually (but not
always) involves a continuous flow of information.
Another form of "pushed" information is e-mail. Although the e-mail client in your
computer has to occasionally go to your local e-mail server to "pick up" the e-mail, the e-mail
arrived because someone sent it (pushed) it to you without a one-for-one request having been
made.
Intelligent Agents
What could an intelligent agent do?
Imagine a system in which when a customer lifts the handset of a telephone to dial a
long-distance phone call, an agent within the telephone automatically collects bids from the
various carriers and decides which carrier to use. The telephone companies have an agent that
automatically declares the price per minute for which it is willing to carry the call. The agent in
the telephone decides which bid to accept, using an appropriate auction method (such as best
bid wins and gets second best price).
Imagine a system in which when a person wants to place an international phone call to a
customer who does not speak the same language, an agent automatically translates the
conversation between the two languages.
How far is this from reality? What is needed to make this a reality?
Examples of Problems in e-Commerce appropriate for Agents
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Procurement: obtaining materials, services. managing inflow into the organization
towards the end user.
Brokering Services: finding information about products, sellers, and prices, providing
protection for privacy, validating purchasers credit, billing and accounting, etc.
Digital Libraries and Recommending Services: retrieving information from distributed
sources, filtering information on contents, collaborative filtering.
Notification Services: notifying of new books or CDs, notifying when specific products
are available at a specific price.
How large is the market for E-Commerce?
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On-line retail sales were more than $2 billions in 1997 and are expected to reach $17
billions in 2001.
On-line business-to-business sales were $8 billions in 1997 and are expected to reach
$327 billions by 2002. (from Forrester Research & Yankee Group 1997)
The percentage of revenue obtained in business to business sales on the Internet is
expected to increase from 15% in 1997 to 42% in 2000. (from Hambrecht&Quist survey
1997)
Essential Functions of Markets and Agents
1. Yannis Bakos (CACM 1998) has identified the following essential functions of a market:
2. matching buyers and sellers (determination of product offerings, search of buyers for
sellers and sellers for buyers, price discovery);
3. facilitating transactions (logistics, settlement, trust);
4. providing institutional infrastucture (legal, regulatory).
Existing software agents mostly help to search for product and price information,
negotiation mechanisms are limited to auctions.
Stages of Consumer Buying Behavior and Representative Agents
1. Identification of need.
2. Information retrieval and product brokering.
Examples: PersonalLogic, Firefly.
3. Brokering of merchant.
Examples: Bargainfinder from Anderson Consulting, Excite's Jango.
4. Negotiation.
Examples: Kasbah and Tete-a-Tete (MIT Media Lab), AuctionBot (University of
Michigan), Magnet (University of Minnesota)
5. Purchase and delivery.
6. Service and evaluation.
V.
Economics and Effectiveness of Advertisement
Advertising is a way of informing the public about the producer's own activities, products,
services for the purpose of establishment, or increasing the market needs and thereby
increasing the profit of a company which uses this advertising.
Nobel Laureates in economics, Dr. Kenneth Arrow and the late Dr. George Stigler,
praise the value of advertising: “Advertising is a powerful tool of competition. It provides
valuable information about products and services in an efficient and cost-effective manner. In
this way, advertising helps the economy to function smoothly - it keeps prices low and facilitates
the entry of new products and new firms into the market.”
Advertising is the lubricant that oils the gears of the free market economy. A new
ingredient has now been added to the lubricating oil of this mechanism in the form of online
advertising. It does not replace the normal oil, but adds a new characteristic that make it better
than before. Online advertising can take many forms and be applied to many different situations
and purposes.
Methods for measuring advertisement, conducting cost-benefit analysis, and for pricing ads:
1. Exposure models that are based on CPMs
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CPM stands for the cost per thousand people. Traditional pricing has been a
common advertising rate-pricing tool for websites. CPM chargers on the Web
vary widely, on average they have been at higher levels than they are in most
other media because of small supply of highly trafficked Web sites.
2. Click-through
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Advertising pricing based on click-through is an attempt to develop a more
accountable way of charging for web advertising. The payment for a banner
advertisement is based on the number of times a visitor actually clicks on it.
DoubleClick Inc. reports that only 4% of visitors exposed to the banner
advertisement the first time click on the advertisement. Thus, payment based
upon click-through guarantees not only that the visitor was exposed to the
banner advertisement but actively decided to click and become exposed to the
target advertisement (Hoffman & Novak, 2000)
3. Interactivity
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An interactivity measure could be based on the duration of time spent viewing the
advertisement, the number of pages of the target advertisement accessed, or the
number of repeat visits to the target advertisements.
4. Actual purchase
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The ultimate outcome of an advertisement is a purchase. In an outcome-based
approach to pricing, web advertising begins by specifying exactly what the
marketer would like the target advertising to do.
Other Methods:
1. The use of the gross number of visits as a possible measure of effectiveness is also
inadequate.
2. The number of “unique users” at a site during a specific time can be calculated by
recording some form of user registration or identification.
3. Many advertisers charge a fixed monthly fee, regardless of the traffic.
4. An interesting approach is to let the market determine prices.
VI.
Online Catalogs
Online advertising also called online marketing or Internet advertising, is a form
of marketing and advertising which uses the Internet to deliver promotional marketing
messages to consumers. It includes email marketing, search engine marketing (SEM),
social media marketing, many types of display advertising (including web banner
advertising), and mobile advertising. Like other advertising media, online advertising
frequently involves both a publisher, who integrates advertisements into its online content,
and an advertiser, who provides the advertisements to be displayed on the publisher's
content.
The number of internet users is on a rapid rise worldwide and the internet is
being used by people of all age and types. Internet has become one of the major medium
for communication, entertainment and is indeed in the process of replacing traditional
entertainment, promo products, and informative media. Some businesses are finding that
handing out a promo product such as pens, business cards, and mugs are too costly and
yield little results. Likewise, traditional marketing forms such as television, radio, newspaper,
magazines, etc., are becoming a thing of the past.
Internet has also undoubtedly become a major and effective medium for
advertising and it can clearly be predicted that the online advertising and marketing is very
soon going to replace the advertising through traditional medias such as television, radio,
newspaper and magazines. Most of the companies and organizations are relying on digital
advertising and marketing techniques to improve their overall sales and revenue.
The advantages of online advertising are many when compared with the
traditional advertising and marketing techniques.
1. Wider Coverage
 The online advertising gives your ads a much wider global coverage and this
helps in making your online advertisements reach more audiences, which
may ultimately help you in getting better results through your online
advertising campaign. With internet advertising, you can also specify the
range of your advertisement coverage which helps you to enjoy a better
advertisement campaign.
2. Targeted Audiences
 When compared with offline advertising, online advertising always helps you
to reach the targeted audience and this helps in making your campaign more
profitable and getting more relevant leads.
3. Affordable
 Another main advantage of online advertising or marketing is the much
affordable price when compared with the traditional advertising costs. With a
much lesser cost you can advertise on the net for a wider range of audience
and geographical locations.
4. Easy to Track and Measure Conversion
 Measurability and easiness to track the conversion makes online advertising
miles ahead on the traditional advertising methods. A lot of effective analytics
tools are available to measure online advertising campaigns which helps in
more improvisation of the ads.
5. Speed
 Online advertising is faster than any of the offline advertising activities and
you can start sending out your online ads to a wider audience, the moment
you start your advertising campaign. So if you have a large targeted
audience online at the time of triggering your online advertisements, then
your ad will be served to majority of the audience in no time.
6. Informative
 In online advertising, the advertiser is able to convey more details about the
advertisement to the audience and that too at relatively low cost. Most of the
online advertising campaigns are composed of a click-able link to a specific
landing page, where users get more information about the product mentioned
in the ad.
7. Flexible Payment
 Payment flexibility is another added advantage of online advertising and
marketing. In offline advertising you need to pay the full amount to the
advertising agency irrespective of the results. But in online advertising there
is the flexibility of paying for only qualified leads, clicks or impressions.
8. Better ROI
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Since online advertising is mainly focused on performance based payment,
you ROI is sure to be far better when compared with offline advertising. You
can also easily track and analyze the performance of your online
advertisements and adjust them so as to improve your ROI.
9. Easy Audience Engagement
 Most of the online advertisement platform makes is easy for the audience to
engage with your ads or products. As an advertiser we would be able to get
more feedback from the audience and thereby improve the quality of our ads
going forward.
10. Better Branding
 Any form of advertising helps in improving the branding and online
advertising stands a notch high in improving the branding of your company,
service or product. If your digital advertising campaign is well planned, you
have the chances of getting your brand name spread virally over a larger
audience.
Display advertising conveys its advertising message visually using text, logos,
animations, videos, photographs, or other graphics. Display advertisers frequently target
users with particular traits to increase the ads' effect. Online advertisers (typically through
their ad servers) often use cookies, which are unique identifiers of specific computers, to
decide which ads to serve to a particular consumer. Cookies can track whether a user left a
page without buying anything, so the advertiser can later retarget the user with ads from the
site the user visited
Web banner or banner ad is a form of advertising on the World Wide Web
delivered by an ad server. This form of online advertising entails embedding an
advertisement into a web page. It is intended to attract traffic to a website by linking to the
website of the advertiser. The advertisement known as a "click through." In many cases,
banners are delivered by a central ad server.
*Frame ad (traditional banner)
Frame ads were the first form of web banners. The colloquial usage of "banner
ads" often refers to traditional frame ads. Website publishers incorporate frame ads by
setting aside a particular space on the web page. The Interactive Advertising Bureau's Ad
Unit Guidelines proposes standardized pixel dimensions for ad units
Pop-up ads or pop-ups are often forms of online advertising on the World Wide
Web intended to attract web traffic or capture email addresses.[1] Pop-ups are generally
new web browser windows to display advertisements. The pop-up window containing an
advertisement is usually generated by JavaScript using cross-site scripting (XSS),
sometimes with a secondary payload using Adobe Flash,[2] but can also be generated by
other vulnerabilities/security holes in browser security.
Floating ad, or overlay ad, is a type of rich media advertisement that appears
superimposed over the requested website's content. Floating ads may disappear or become
less obtrusive after a preset time period.
An expanding ad is a rich media frame ad that changes dimensions upon a
predefined condition, such as a preset amount of time a visitor spends on a webpage, the
user's click on the ad, or the user's mouse movement over the ad.[30] Expanding ads allow
advertisers to fit more information into a restricted ad space.
Trick banners is a banner ad where the ad copy imitates some screen element
users commonly encounter, such as an operating system message or popular application
message, to induce ad clicks. Trick banners typically do not mention the advertiser in the
initial ad, and thus they are a form of bait-and-switch.
Text Ads displays text-based hyperlinks. Text-based ads may display separately
from a web page's primary content, or they can be embedded by hyperlinking individual
words or phrases to advertiser's websites. Text ads may also be delivered through email
marketing or text message marketing. Text-based ads often render faster than graphical ads
and can be harder for ad-blocking software to block.
Search engine marketing (SEM) is a form of Internet marketing that involves the
promotion of websites by increasing their visibility in search engine results pages (SERPs)
through optimization and advertising.[1] SEM may use search engine optimization (SEO),
which adjusts or rewrites website content to achieve a higher ranking in search engine
results pages, or use pay per click (PPC) listings.
Search engine optimization (SEO) is the process of affecting the visibility of a
website or a web page in a search engine's "natural" or un-paid ("organic")search results. In
general, the earlier (or higher ranked on the search results page), and more frequently a site
appears in the search results list, the more visitors it will receive from the search engine's
users. SEO may target different kinds of search, including image search, local search, video
search, academic search,[1] news search and industry-specific vertical search engines.
VII.
Special Advertisement Topics
1. Permission Advertising
 Spamming
- Using e-mail to send unwanted ads (sometimes floods of ads)
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Permission advertising (permission marketing)
- Advertising (marketing) strategy in which customers agree to accept advertising
and marketing materials (known as “opt-in”)
2. Advertisement as a Revenue Model
3. Measuring Online Advertising’s Effectiveness
4. Ad management
- Methodology and software that enable organizations to perform a variety of activities
involved in Web advertising (e.g., tracking viewers, rotating ads)
5. Localization
- The process of converting media products developed in one environment (e.g.,
country) to a form culturally and linguistically acceptable in countries outside the
original target market
6. Internet radio
- A Web site that provides music, talk, and other entertainment, both live and stored,
from a variety of radio stations
Sources:
Book: Electronic-commerce
http://www.slideshare.net/amlincms/economic-effects-of-advertisements
http://books.google.com.ph/books?id=nCXOKPG841gC&pg=PA337&lpg=PA337&dq=cost+
benefit+analysis+for+internet+advertising&source=bl&ots=UlsPlawM2&sig=QFuYx40KUbWo81cDgeGaJvf950Q&hl=en&sa=X&ei=TvdLVKyTLYHNmwXvgIL
4Aw&sqi=2&ved=0CCoQ6AEwAg#v=onepage&q=cost%20benefit%20analysis%20for%20in
ternet%20advertising&f=false
http://www.manipalitdubai.com/material/Lecture_Notes/ETM301/Module_6_eCommerce_Ad
vertisements.pdf