CS5038 The Electronic Society
Lecture 4: Advertising
Lecture Outline
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Web Advertisement Terminology
Why Internet Advertisement?
Advertisement Methods
Considerations in Internet Ad Design
Advertisement Strategies
Effectiveness and Pricing of Advertisement
Online Catalogues and Customisation
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Web Advertisement
Advertising is an attempt to disseminate information
in order to affect a buyer-seller transaction.
Internet Advertising Terminology
 Ad views or Impressions
 Hit – request data from webpage,
counts every part (images etc.)
 Banner
 Pageview – count entire page as a
 Click (ad click)
whole – more informative
 Click ratio = clicks/views
 Cookie – stored on user HD  Reach – number of people or
households exposed
 CPM – cost per 1000 views
 Visit – after last request if timeout
is 15-30 mins then it is a new visit
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Targeted Advertisement (one-to-one)
The DoubleClick (DC) Approach—3M, wants to advertise
its $10,000 multimedia projectors
 DC monitors people browsing the Web sites of
cooperating companies
 Matches them against a database
 Finds those people working for advertising agencies
or using Unix system (potential buyers)
 Builds a dossier on you, your spending, and your
computing habits using ‘a cookie’
 Prepares an ad for 3M projectors targeted for people
whose profile matches what is needed for 3M
 DoubleClick shares revenue with cooperating
partners
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Why Internet Advertisement?
1. Ads can be updated any time with a minimal cost
2. Ads reach large number of buyers all over the world, accessed
24 hours, 365 days
3. Target is Well educated and high-income
4. Accessed primarily because of interest in the content
 Market segmentation opportunity is large
5. Web ads can be targeted at specific interest groups
 Opportunity to create one-to-one direct marketing
relationship with the consumer
6. Can measure effectiveness as never before
7. Effectively use text, audio, graphics, and animation
8. Easily combine games, entertainment, and promotions
9. Cheaper than television, newspaper, or radio ads
10. 3/4 of PC users gave up some television time for Internet
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Internet Growth
Prentice Hall, 2002
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Prentice Hall, 2002
Advertisement Methods
Banners - Keyword banners, Random banners
 Customized to the target audience or one-to-one ads
 “force advertising” – must wait for banner to load
 Direct link to advertiser
 Multi media capabilities - Flash
 Banner swapping, banner exchanges - bcentral.com
 Disadvantage: High Cost
Standard sizes (5) larger than banner, links inside - nytimes
E-mail – can purchase targeted lists
Mobile phones – Interactive one-to-one, context specific
Splash Screen – good for multimedia
Spot leasing - permanent spot on popular portal or Web page
Submit URL to a search engine and be listed
Chat Rooms – users spend longer time, can cycle messages
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Considerations in Internet Ad Design
Visually appealing – e.g. Flash
Targeted to specific groups or to individual consumers
Emphasise brands and a firm’s image (what’s distinct)
Part of an overall marketing strategy - coordinated
Seamlessly linked with the ordering process
Page-loading speed - graphics simple and meaningful
Business content - clear and concise
Navigation efficiency (links) and compatibility
 Links—well-labeled, accurate and meaningful
9. Security and privacy - option for rejecting cookies
10. Marketing Customer Focus
 Clear terms/conditions of the purchases - delivery
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information, return policy, etc.
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Advertisement Strategies
Pull (Passive) Strategy – e.g. Yahoo portal search engine site
 Effective site provides helpful and attractive contents
Push (Active) Strategy – e.g. targeted spamming
Associated Ad Display Strategy – e.g. Keyword banners
 Associate the content of a Web page with a related ad
Ads as a commodity – pay consumer to watch ad
 e.g. MyPoints.com - Consumers fill out questionnaires
Viral marketing — word-of-mouth over the Internet
 “Advocacy marketing” — hotmail.com includes free invite
 E-mail game/picture to friend
Comparisons as medium for advertisement – pay to be listed
Customised ad strategy - Personalised news and information
 Users select specific categories they want to receive
 Webcasting – personalised news and information
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Online Events, Promotions, and Attractions - freesamples
Effectiveness and Pricing of Advertisement
How to measure effectiveness and price ads
1. Exposure Models
 Multiple of number of
guaranteed ad views
2. Click-Through
 Number of times
customers click on
banner (1-3% of views)
3. Interactivity
 Based on how customer
interacts with the ad view
– duration, clicks
4. Actual Purchase
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Online Catalogs
Information can be dynamic - motion pictures, graphics, sound
Information can be customised - depending on the customer profile
 Allows user to compose order
 Individualised prices, products, and display formats
 Automatically identify the characteristics of customers based on the
transaction records
 Adds to customer experience  brand loyalty
Electronic catalogs allow integration of
 Search Capability
 Order taking and fulfillment
 Electronic payment
 Intranet workflow software and systems
 Inventory and accounting system
 Suppliers’ or customer’s extranet
 Relationship to paper catalogs
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Summary
Web Advertisement Terminology
Why Internet Advertisement? – cheap, targeted, accessible
Advertisement Methods – banners, standard ads, e-mail
Considerations in Internet Ad Design
Advertisement Strategies – pull, push, associated, viral
How to Measure Effectiveness and Price Ads
Online Catalogues and Customisation
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Quiz 5
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Managerial Issues:
Should we advertise anywhere but our own site?
How to consider all facets of advertising strategy.
How to coordinate with offline advertising.
How to integrate online and offline campaigns?
Ethical issues to consider?
Has advertising been integrated with ordering and other
business processes?
How important is branding?
What is the right amount of advertising?
How to assess success?
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