Electronic Commerce Advertising and Promotion in ECommerce Agenda

Electronic Commerce Advertising and Promotion in ECommerce

Agenda: What and why web advertising. Methods of Web advertising. Advertising strategies. Models of pricing Web advertising. Measuring the efficiency and effectiveness of Web advertising. 2

Web Advertising -- What Advertising is an attempt to disseminate information in order to affect a buyer-seller transaction 3

Web Advertising -- Why internet advertisement? Three-quarters of PC users gave up some television time Internet users are well educated with highincome, which makes them a desired target for advertisers Ads can be updated any time with a minimal cost; Therefore they are timely and very accurate 4

Web Advertising (Cont. ) Internet is the fastest growing medium in history Adoption Curves for Various Media - The Web Is Ramping Fast 5

Web Advertising – Why (Cont. ) Ads can reach very large number of potential buyers all over the world. Online ads are much cheaper in comparison to television, newspaper, or radio ads. Such ads are expensive since they are determined by space occupied, how many days (times) they are shown, and on how many national and local television stations and newspapers they are posted. Web ads can be media rich, including voice and video. Web ads can be interactive and targeted. The use of the internet is growing very rapidly. 6

Web Advertising –Conclusion Pros of Internet Advertisement ØInternet advertisements are accessed on demand 24 hours a day, 365 days a year, and costs are the same regardless of audience location ØAccessed primarily because of interest in the content, so market segmentation opportunity is large ØOpportunity to create one-to-one direct marketing relationship with the consumer ØMultimedia will increasingly make Web sites more attractive and compelling 7

Web Advertising –Conclusion (cont. ) Distribution costs are low (just technology cost), so millions of consumers are reached at the same cost as that of reaching one Advertising and content can be updated, supplemented, or changed at any time, and are therefore always up-to-date Ease of logical navigation — you click when and where you want, and spend as much time as you desire them 8

Advertising Methods 9

Advertising Methods URL (Universal Resource Locators) URL Listing Keyword Advertising Search engine optimization • The craft of increasing site rank on search engines; the optimizer uses the ranking algorithm of the search engine (which may be different for different search engines) and best search phrases, and tailors the ad accordingly Advantages: minimal cost is associated with it submit your URL to a search engine and be listed keyword search is used Disadvantages: search engines index their listings differently meta tags can be complicated 10

Advertising Methods (cont. ) BANNERS banner On a Web page, a graphic advertising display linked to the advertiser’s Web page random banners Banner ads that appear at random, not as the result of the user’s action keyword banners Banner ads that appear when a predetermined word is queried from a search engine 11

Advertising Methods (cont. ) Benefits and Limitations of Banner Ads • major benefit is users are transferred directly to an advertiser’s site, often the shopping page • major disadvantage of banners is their cost 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 12

Advertising Methods (cont. ) Banner Exchanges Swapping is a problem : a match is frequently not possible Banner exchange organizations • • a firm submits a banner receives credit when shows others’ banners can purchase additional display credits specify what type of site the banner can be displayed on use the credit to advertise on others’ sites credit ratio of approximately 2: 1 Example : Link Exchange acts as a banner-ad clearing house for more than 200, 000 small Web sites. It offers help in banner design, provides membership in newsgroups, delivers HTML tutorials, and even runs contests. It also monitors the content of the ads of all its members. 13

Advertising Methods (cont. ) POP-UP AND SIMILAR ADS pop-up ad An ad that appears in a separate window before, after, or during Internet surfing or when reading email 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 14

Advertising Methods (cont. ) E-mail Several million users can be reached directly Purchase e-mail addresses Send the company information; low cost A wide variety of audiences; customer database Problem: Junk mail or spamming Target a group of people that you know something about 15

Advertising Methods (cont. ) Chat Rooms Virtual meeting ground Can be added to a business site for free Allows advertisers to cycle through messages and target the chatter again and again Advertising can become more thematic More effective than banners Used in one-to-one connection 16

Advertising Methods (cont. ) Ad as a Commodity Cyber. Gold • exchange of direct payment made by the advertisers for viewing ads • consumers fill out questionnaires • Cyber. Gold distributes targeted banners • the reader clicks the banner to read it and, passing some tests on its content, is paid for the effort 17

Advertising Methods (cont. ) social network advertising Online advertising that focuses on social networking sites Types of Social Network Advertising • Direct advertising that is based on your network of friends • Direct advertising placed on your social network site • Indirect advertising by creating “groups” or “pages” Sponsored Reviews by Bloggers 18

Advertising Methods (cont. ) viral marketing Word-of-mouth marketing by which customers promote a product or service by telling others about it Viral Marketing in Social Networks 19

Advertisement Strategies 20

Advertisement Strategies Passive Pull Strategy ØCustomer will visit a site if it provides helpful and attractive contents and display ØEffective and economical way to advertise to unidentified potential customers worldwide ØAdvertising World is a non-commercial site that can guide the process of finding the customer’s wish ØYahoo is a portal search engine site which can be regarded as an effective aid for advertisement 21

Advertisement Strategies (cont. ) Active Push Strategy ØSending e-mails to the relevant people ØObtaining the mailing list is the process of identifying target customers ØMailing list generation is done in companies by using agent technology and cookies as well as by filling out questionnaires (by customers) 22

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AD Design 24

AD Design Advertisements should be visually appealing Advertisements must be targeted to specific groups or to individual consumers Advertisements must emphasize firm’s image and brands Advertisements must be part of an overall marketing strategy Advertisements should be seamlessly linked with the ordering process 25

AD Design (cont. ) Internet-based Ad Design: Important Factors ØPage-Loading Speed • Graphics and tables should be simple and meaningful. • They need to match standard monitors. • Thumbnail (icons graphs) are useful. ØBusiness Content • Clear and concise text is needed. • A compelling page title and header text is useful. • The amount of requested information for registration should be minimal. 26

AD Design (cont. ) Internet-base Ad Design: Important Factors Navigation Efficiency • Well-labeled, accurate, meaningful links are a must. • Site must be compatible with browsers, software, etc. Security and Privacy • Security and privacy must be assured. • Option for rejecting cookies is a must. Marketing/Customer Focus • Clear terms and conditions of the purchases, including delivery information, return policy, etc. must be provided. • Confirmation page after a purchase, is needed. 27

Web Advertising Terminology CPM (cost per thousand impressions) The fee an advertiser pays for each 1, 000 times a page with a banner ad is shown click (click-through or ad click) A count made each time a visitor clicks on an advertising banner to access the advertiser’s Web site click-through ratio The ratio between the number of clicks on a banner ad and the number of times it is seen by viewers; measures the success of a banner in 28 attracting visitors to click on the ad

Web Advertising Terminology hit A request for data from a Web page or file visit A series of requests during one navigation of a Web site; a pause of a certain length of time ends a visit unique visit A count of the number of visitors entering a site, regardless of how many pages are viewed per visit stickiness Characteristic that influences the average length of time a visitor stays in a site 29

Web Advertising Terminology conversion rate The percentage of clickers who actually make a purchase 30

Advertising Pricing 31

Advertising Pricing Payments are based on: Exposure Models (CPM) The fee an advertiser pays for each 1, 000 times a page with a banner ad is shown Click Through (PPC) Interactivity / Cost Per Action (CPA) Out-Come-Based or Actual Purchase 32

How Does an Organization Measure the Efficiency of an Ad?

Converting Prospects to Customers A Six stage process Surfer Awareness Attraction Measure the success of each stage Contact Conversion Retention 34

Converting Prospects to Customers 35

Converting Prospects to Customers -- Efficiency Measures Awareness Attraction Contact Conversion Retention 36