Advertisement in Electronic Commerce

Chapter 4

Advertisement

Advertisement is an attempt to spread information in order to influence a buyer–seller transaction. In tradition sense, advertising is impersonal

One way mass communication Direct marketing: but very expensive

Web Advertisements

Unlike traditional advertising on TV or newspapers which is impersonal, one-way mass communications,

Internet advertising is media-rich, dynamic, more accurate, target specific and interactive.

The most common advertising methods online are banners, pop-ups, and e-mails.

Internet Advertising Terminology

Impression, (call up a page with banner ) banner, clicks, click ratio, cookie, CPM, Hit, Interactive Advertising, meta tags, reach, Page visit

Why Internet Advertisement

Updated anytime, Accessed on demand 24 hours, 7 days a week Cost is same regardless of audience location Access due to primary interest Provide opportunity to create one to one relationship More attractive ,Multimedia advertisements Distribution cost is low Contents can be updated frequently Ease of logical navigation Global reach enormous growing area (as compare to TV, newspapers

table 4.2 ,figure 4.1)

Advertising Methods

Banners Forced advertisement Banners are electronic billboards and is the

most commonly used form of advertising on the Internet

Keyword banners appear when a predetermined word is queried from a search engine.

Random banners appear randomly

Advertising Methods

Banner Swapping Banner exchange

Exchange services arrange for banner display Paid advertisement Splash screen / pop ups /pop behind Spot leasing in search engines URLs, SEO E-Mail Advertising Chat rooms(2000 chats generate 8 billion hour of

internet usage and billion dollars) Forms

Advertisement Strategies

Visually appealingTargeted to specific groupContent should be valuable to customersEmphasize brands and firm’s imageMust be part of an overall marketing

strategySeamlessly linked with ordering process.Placements of internet ads (click zone)

Advertisement Strategies

Designing Internet Ads (five major areas) Page loading speed Business content Navigation efficiency Security and privacy Customer focus

Passive pull strategy Waiting to customers

Active push strategy Actively advertise to customers

Associated ads display Ads as commodity (sold as product)

Implementation of strategies

Customizing adsInteractive adsComparison as medium of advertisingAttracting visitors to site

Short list top search engines, improve company ranking to in these

Online events, promotions and attractions like special sales bargains, incentives

Advertisement Considerations

Target audience need to be surferTarget audience needs to be understoodTraffic of site should be estimatedEstimate the results Consider co-branding

Push Technology Push direct delivery of information

Point-casting instead of broadcasting Streaming web pages from a web server to web

browser Mass customize to suit customer needs Self service delivery: allow surfers to download

pages Aggregated delivery: wide variety of contents Mediated delivery: surfer controls the information Direct delivery: PC interface pulls information

Push Technology

User gets involved in three steps Creation of profile Selection of content Downloading the content

Push on intranet Toady’s competitive environment push technology is used to

deliver information to workers. Intelligent agents:

Applications that creates and knows the customers profile and it can tailor an ad to the customer . This type of agents called product brokering

Economics and effectiveness of advertisementIts difficult to measuring the results of

advertisements Model based on CPM (click per thousand

impressions) Click through Interactivity Actual Purchase Fixed monthly fees User registrations

Online catalogs

Static catalogs/Dynamic catalogs Readymade/Customized catalogs Interactive catalogs Customized catalogs assembled specially a

customer/company

Advantages and Disadvantages of e-catalogs Advantages of e-catalogs

Easy to update Search and comparison capabilities Able to integrate Timely updates Global reach Multimedia support Cost saving Easy to customize (Table 4.3)

Special Advertisement topics

How much to advertise Advertising objectives Capabilities of spending Short term needs Long-term commitment to the medium

Analyzing web traffic (Audit) Impartial and external review is crucial

Internet ethics or standards cookies

Localization needs Language, graphics, dates formats

Major web ads players Advertising agencies Developers/ASPs ISPs Market researchers Traffic analyst