COMM 3353: Communication Web Technologies I Chapter 7a: Advertising Chapter 7a: Advertising

COMM 3353:Communication Web Technologies I

COMM 3353:Communication Web Technologies I

Chapter 7a:Advertising

Chapter 7a:Advertising

www.class.uh.edu/comm/classes/comm3353/ppt/_Pres7a.html

AdvertisingAdvertising

Advertising and the World Wide Web Advertising Rates Selling the Medium Web Ratings and Measurement

Advertising and the World Wide Web Advertising Rates Selling the Medium Web Ratings and Measurement

Advertising and the World Wide WebAdvertising and the World Wide Web

The Internet and WWW as a Catalyst: An element that effects change without actually

being changed itself.

Changing advertising strategies for the way goods and services are sold: Online Services Multimedia Information Interactive Technology

The Internet and WWW as a Catalyst: An element that effects change without actually

being changed itself.

Changing advertising strategies for the way goods and services are sold: Online Services Multimedia Information Interactive Technology

A Brief History, Revisited. . . The Internet was initially envisioned as an

educational resource. No intention of misuse or use for marketing,

advertising, and sales. No security issues were ever taken into

consideration. No evidence of advancement in technology or

the way Internet functionality would change.

A Brief History, Revisited. . . The Internet was initially envisioned as an

educational resource. No intention of misuse or use for marketing,

advertising, and sales. No security issues were ever taken into

consideration. No evidence of advancement in technology or

the way Internet functionality would change.

Advertising and the World Wide Web, Continued…


The emergence of the World Wide Web brought about change to the initial intent of the Internet. Interactivity is the driving force behind this

change. New kind of advertising, new kind consumer.

The advertising community is struggling to keep up and is involved in a major race to establish its place on the web.

The emergence of the World Wide Web brought about change to the initial intent of the Internet. Interactivity is the driving force behind this

change. New kind of advertising, new kind consumer.

The advertising community is struggling to keep up and is involved in a major race to establish its place on the web.



The Web creates a Global marketplace: By virtue, presents a fresh approach to

advertising. It creates a competitive online market.

Vast amounts of room for growth and expansion.

Unlimited resources for exploration. The more the Web grows, the more

prosperous it becomes.

The Web creates a Global marketplace: By virtue, presents a fresh approach to

advertising. It creates a competitive online market.

Vast amounts of room for growth and expansion.

Unlimited resources for exploration. The more the Web grows, the more

prosperous it becomes.



Web Advertising vs. Web Marketing Web Marketing:

An organization establishing a Web site to promote itself and its products.

Presentation of products Providing ordering information Allowing for customer feedback

Web Advertising vs. Web Marketing Web Marketing:

An organization establishing a Web site to promote itself and its products.

Presentation of products Providing ordering information Allowing for customer feedback



Web Advertising An organization contracts or makes financial or

trade arrangements to post their logos and product information on someone else’s Web site.

Web Advertising An organization contracts or makes financial or

trade arrangements to post their logos and product information on someone else’s Web site.



Types of Web Advertising Banner Ad

Earliest type of Web Ad and currently most widely used.

Banners are generally active links.

Spamming Ad Sending mass text docs to an enormous

number of email recipients at the same time. Can cause server problems.

Types of Web Advertising Banner Ad

Earliest type of Web Ad and currently most widely used.

Banners are generally active links.

Spamming Ad Sending mass text docs to an enormous

number of email recipients at the same time. Can cause server problems.



The Transition to Internet Advertising 1980s vs. 1990s:

The 80’s saw a majority of advertising resources on print and broadcast media.

The early 90’s brought about new budgeting ideas and funding possibilities that began identifying the online audience.

The late 90’s have seen a major advancement toward internet advertising and the funding that goes with it.

The Transition to Internet Advertising 1980s vs. 1990s:

The 80’s saw a majority of advertising resources on print and broadcast media.

The early 90’s brought about new budgeting ideas and funding possibilities that began identifying the online audience.

The late 90’s have seen a major advancement toward internet advertising and the funding that goes with it.



Benefits of Online Advertising Advertiser’s Perspective

Advertisers are turning to the Internet to sell their goods and services for a variety of reasons:

1) World Wide Marketplace. 2) Ideal for selective advertising. 3) free from time / space constraints. 4) updating / changing can be done more efficiently. 5) less expensive. 6) web advertising is considered “prestigious.”

Benefits of Online Advertising Advertiser’s Perspective

Advertisers are turning to the Internet to sell their goods and services for a variety of reasons:

1) World Wide Marketplace. 2) Ideal for selective advertising. 3) free from time / space constraints. 4) updating / changing can be done more efficiently. 5) less expensive. 6) web advertising is considered “prestigious.”



Consumer’s Perspective Consumers buy online for many reasons,

including: Convenience. Single, unified shopping interface. Browsing / buying is instantaneous.

(delivery is a different matter)

Consumer’s Perspective Consumers buy online for many reasons,

including: Convenience. Single, unified shopping interface. Browsing / buying is instantaneous.

(delivery is a different matter)



Advertising RatesAdvertising Rates

Advertisers are concerned about cost / benefit ratio of online advertising.

(Is It Worth It. . .?)

CPM (Cost per Thousand) CPM is calculated by dividing the cost of an Ad by the

number of individuals (in thousands) that the Ad reaches. CPM were initially developed and used in print and broadcast

media. Currently the most effective means of cost / benefit analysis.

Advertisers are concerned about cost / benefit ratio of online advertising.

(Is It Worth It. . .?)

CPM (Cost per Thousand) CPM is calculated by dividing the cost of an Ad by the

number of individuals (in thousands) that the Ad reaches. CPM were initially developed and used in print and broadcast

media. Currently the most effective means of cost / benefit analysis.

Size-Based Pricing Calculated by the size (in sq. pixels) of the

online Ad. Sq. Pixel area is calculated by multiplying the

Height in pixels (X) Width in pixels of the Ad. A fee is then generated based on the sq. pixels

used.

Size-Based Pricing Calculated by the size (in sq. pixels) of the

online Ad. Sq. Pixel area is calculated by multiplying the

Height in pixels (X) Width in pixels of the Ad. A fee is then generated based on the sq. pixels

used.

Advertising Rates, Continued…Advertising Rates, Continued…

Click-Through Rates Based on the percentage of visitors who click

through a banner Ad. Calculated by dividing the number of visitors

who see the Ad by the number of visitors who actually click on it.

Click-Through Rates Based on the percentage of visitors who click

through a banner Ad. Calculated by dividing the number of visitors

who see the Ad by the number of visitors who actually click on it.


Result-Based Fees Allowing an Ad to be placed for little or no

charge, but accumulating fees when the Ad is actually used.

Difficult today because of the potential for misrepresentation of users.

Result-Based Fees Allowing an Ad to be placed for little or no

charge, but accumulating fees when the Ad is actually used.

Difficult today because of the potential for misrepresentation of users.


Advertising Exchanges: Companies agree to grant space to advertisers in

exchange for a small space on the other’s site.

Discounts: Discounts for Ads that are “Web ready.”

What Advertisers Want to Pay: Push Services use Click = Through Fees Brand Awareness = CPM Most Advertisers want a Hybrid of pricing styles.

Advertising Exchanges: Companies agree to grant space to advertisers in

exchange for a small space on the other’s site.

Discounts: Discounts for Ads that are “Web ready.”

What Advertisers Want to Pay: Push Services use Click = Through Fees Brand Awareness = CPM Most Advertisers want a Hybrid of pricing styles.


Selling the MediumSelling the Medium

There are three main components to Selling the Web for Advertising: Sales Force

Separate Web Ad Sales Forces to sell space for Ads on its Web Site.

Online Campaign Management Keeping track of online Ad placement and

management.

There are three main components to Selling the Web for Advertising: Sales Force

Separate Web Ad Sales Forces to sell space for Ads on its Web Site.

Online Campaign Management Keeping track of online Ad placement and

management.

Advertising Sales and Buys Advertising online can occur in almost any way

imaginable. The most common, most successful to date are:

Banner Ads Classified Ads Coupons Email Ads

Advertising Sales and Buys Advertising online can occur in almost any way

imaginable. The most common, most successful to date are:

Banner Ads Classified Ads Coupons Email Ads

Selling the Medium, Continued…Selling the Medium, Continued…

Web Ratings and MeasurementWeb Ratings and Measurement

Web Ratings Evolution of classical media included reliable

methods of rating medium. Because Web technology is rapidly changing,

and given that it is relatively new, reliable rating methods are not yet in place.

As with any new technology, many organizations and individuals are attempting to implement a reliable form of web rating.

Web Ratings Evolution of classical media included reliable

methods of rating medium. Because Web technology is rapidly changing,

and given that it is relatively new, reliable rating methods are not yet in place.

As with any new technology, many organizations and individuals are attempting to implement a reliable form of web rating.

Web Auditors Many companies that measure Web site

traffic are third-parties. Monitor click-through rates Verify visibility of rotating banner Ads. Report on Ad placement within the page. Provide user technology information. Through survey, provide demographics.

Web Auditors Many companies that measure Web site

traffic are third-parties. Monitor click-through rates Verify visibility of rotating banner Ads. Report on Ad placement within the page. Provide user technology information. Through survey, provide demographics.

Web Ratings and Measurement, Continued…


Some New Web Rating Technologies: Web-O-Meter

Measures web use in a sample of the population through proprietary software.

Attaches a “meter” to participating web site which show how many users hit a particular Ad or Site.

Also reports on software and hardware configurations of the users, and reports update and upgrade information.

Some New Web Rating Technologies: Web-O-Meter

Measures web use in a sample of the population through proprietary software.

Attaches a “meter” to participating web site which show how many users hit a particular Ad or Site.

Also reports on software and hardware configurations of the users, and reports update and upgrade information.



Web Auditing Many media buyers require site audit

information prior to any deal being made. Most still do not.

Measurement Standards Without measurement standards, it’s nearly

impossible to make site comparisons. The entire industry is calling for some

standardization.

Web Auditing Many media buyers require site audit

information prior to any deal being made. Most still do not.

Measurement Standards Without measurement standards, it’s nearly

impossible to make site comparisons. The entire industry is calling for some

standardization.



The Internet and theWorld Wide Web

The Internet and theWorld Wide Web

• End Chapter 7, Part I.

• End Chapter 7, Part I.

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COMM 3353: Communication Web Technologies I Chapter 7a: Advertising Chapter 7a: Advertising