ADVERTISING IN ECOMMERCE
By Prof Harman Mangat
OBJECTIVES OF THE STUDY
To understand the advertising methods.
 To realize and practically try find out how to
make more profits through the advertising on Ecommerce.
 How are newspaper advertisements similar to ECommerce advertisements.
 What is an EPS, and the working of the EPS.

ADVERTISING METHODS
Banners
1)Keyword banners
2)Random banners
3)Static banners
4)Pop-up banners

BENEFITS & LIMITATIONS OF BANNERS
Users are directly transferred to the site
 Customization for individual suffers
 Viewing of banner is fairly high

Disadvantages
 Cost
 Limited amount of information
 Click through rate is declining
BENEFITS & LIMITATIONS OF BANNERS
Banner swapping
 Banner exchanges
 Pop up ads
 Interstitials-a type of pop up ad, is a page or box
that appears after user clicks a link.
 If one doesn't want these ads ,then these can be
blocked by using special soft wares

NEWSPAPER-LIKE STANDARD ADS
Classified ads
 Search engine adv.
 Advertising in chat rooms
 Advertising in newsletter-eg.Ec times

ADVERTISING STRATEGIES
Associated ad display
 Posting press release online
 Google targeting
 Ads as a commodity
 Viral marketing
 Customized ads
 Online events, promotions, attractions

ADMEDIATION

People who specialize in promotions and develop
a model that shows the role of third party
vendors which they call ADMEDIARIES
SELLING AND TRADING ONLINE
ADVERTISING SPACE

E-advertising is another type of direct marketing
which makes use of e-mail as a mode of
communicating fund raising or commercial
messages to the customers. Every e-mail that is
received by a potential client can be regarded as
e-advertising.
E-MAIL ADVERTISING
Benefits
 Low cost
 Wide variety of audiences can be targeted
 Interactive
Disadvantages
 Spamming
 blockers
DIRECT ADVERTISING OPTIONS
1.Creating banner and text link advertisements
2.Creating a mini network for collective advertising
3.Offering content sponsorship opportunities
4.Creating a donation page to attract link hungry
sponsors
5.Selling paid reviews on your blog
6.Using feed based direct advertising
7.Experimenting with pixel/ favicon style ads.
8.Selling contextual text links for existing content
9.Looking for interactive internet broadcast
sponsors
10.Selling ads in e-mail newsletter
SELLING OF SOFTWARE OF OTHER
DOWNLOADABLE GOODS

Product cart ,a robust shopping cart program
developed by early impact, inc. is a typical Eg. of
this. the shopping cart has following features:
1.Selling digital products effectively
2.Using a hidden download link
3.Using an expired download link
4.Requiring serial number or license delivery
CHARGING VISITORS FOR ACCESS TO YOUR
WEBSITE

Any transfer of funds initiated through a
telephone instrument ,electronic terminal or
magnetic tape or computer so as to authorize
order, or instruct a financial institution to credit
or debit an account is known as electronic
payment system or EPS.
MAIN CATEGORIES OF
EPS:
1.Banking and financial payments
-large scale or whole payment
-small scale or retail payment
-home banking
2.Retail payments
-credit cards
-private label credit/debit cards
-charge cards
ONLINE E-BUSINESS PAYMENTS
This category is divided further in 2 parts
-electronic token based system
1.Electronic cash
2.Electronic cheques
3.Smart cards or debit cards-credit card based payment systems
Encrypted credit cards
Third party authorization no.
TOKEN BASED EPS
Earlier token as a form of monetary instrument
was available. now, e-token in the form of
electronic cash/cheque has been developed. it is
recognized as equivalent to cash and is backed by
banks.
 Types of e-token:3 types
Cash or real time.
Debit or prepaid.
Credit or post paid.

ELECTRONIC CASH
E-cash is a form of electronic payment system
based on encryption. this means it is a secure
payment system. before a product is bought or
services availed cash has to be obtained from a
currency server. the safety of e-cash is
scrutinized by digital signatures:
 Buying of e-cash from an online currency saver
involves 2 steps:
- Establishing an account
- Keeping an adequate amount of money in the
bank to back the purchases
- In e-cash ,transactions take place in 3 steps. the
are:

GETTING E-CASH
(i) The consumer requests his/her bank to transfer
money to the currency server to get e-cash.
(ii) The consumer bank transfers money from the
consumers account to the currency server.
(iii) The e-mint sends e-cash to the consumer. the
consumer recieves his /her cash.
PURCHASING WITH E-CASH
1.
2.
3.
The consumers select the goods & transfer the
e-cash to the merchant
The product is made available to the customers
by the merchant.
Redeeming cash by the merchant
The merchant may send the e-cash to its bank
and the bank in turn redeems the money from
the currency saver
CURRENCY SERVER
The currency server is a special term used in
EPS. the customer and merchant can exchange
the different currencies depending upon the
machine used. currency server can be a type of
ATM machine.
 Advantages of e-cash
-Best suited for small transactions
-Authentication is not an issue.

ELECTRONIC CHEQUES

E-cheque is a form of e-token.
Working of an E-Cheque :
1.Purchasing goods
-The consumer selects the goods and purchases
them by sending an E-cheque to the merchant
-The merchant may validate the E-cheque with its
bank for payment authorization
-Assuming the cheque is validated the merchant
closes the transactions
ELECTRONIC CHEQUES
2.Depositing cheques at the merchants bank
The merchant electronically forwards the cheque
to the bank
 The merchant bank fwd’s the E-Cheque to the
clearing house for cashing
 The clearing house with the consumer bank
clears the cheque and transfers money to the
merchants bank
 The consumer bank updates the consumer with
the wthdrawl information.

ADVANTAGES OF E-CHEQUES
It is similar to traditional cheques
 E-cheques are much faster than e-cash
 The risk is taken care by the accounting server.
 The following 2 systems provide e-chques for
online payment
 Financial services technology corporation
 Cyber cash

SMART CARDS
Smartcards containing microprocessors are able
to hold more information than cash based on the
traditional magnetic strips.
 2 types of smart cards:

- Relationship based smart credit cards
- Electronic purse and debit cards
CREDIT CARD
Consumer should have a legitimate credit card
no. and expiration date while placing an order.
 Credits cards use personal information no.
 Pin prevents the misuse of the card in case it is
stolen.

SUMMARY
The term internet marketing is interchangeably
used for web marketing, e-marketing, internet
advertising and online marketing
 Wide availability of www allows businessman
across the world to millions of potential
customers
 In the world of advertising ,internet marketing is
one of the popular sources for promoting
business, business products and services
 The EPS is becoming central to e-commerce as
companies look for ways to serve the customers
faster and at a lower cost.

REVIEW QUESTIONS
What was the exact method adopted by P&G to
promote its product
 Was it the rite way to throw Colgate Palmolive
out of competition
 What other strategy could be adopted by P&G to
increase online sale
 What acc to you was the business model adopted
by P&G.
