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Why Internet Advertising?
c 3/4 of PC users gave up some television time
c Well educated, high-income Internet users are a desired
target for advertisers
c Ads can be updated any time with a minimal cost;
making them timely and very accurate
c Ads reach very large number of potential buyers all over
the world
c Online ads are much cheaper in comparison to
television, newspaper, or radio ads
Why Internet Advertising?
c Web ads effectively use text, audio, graphics, and
animation
c Ads easily combine games, entertainment, and
promotions
c Web TV and Internet radio are attracting more people
c Web ads can be interactive and targeted
c The use of the Internet is growing very rapidly
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J Internet advertisements are accessed on demand 24
hours a day, 365 days a year, and costs are the same
regardless of audience location
J Accessed primarily because of interest in the content,
so market segmentation opportunity is large
J Opportunity to create one-to-one direct marketing
relationship with the consumer
J Multimedia will increasingly make Web sites more
attractive and compelling
J Internet is the fastest growing medium in history Ȃ
(4 years to reach 50mil ppl)

nline Advertising Methods
3anners
Pop-ups
Interstitials
E-mail advertising
URLs
Newspaper-like standardized ads
Advertising in chat rooms
3 nners

J 3anners are electronic billboards

J Gateway to a firm on the net
J Keyword banners and random banners
J 3anner most common promotes brand recognition
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3 nners:  
 

3 nner types
c Keyword banner
c Random banner
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Interstiti l or dop-Up

J An initial Web site page or a portion of that is used to

capture the userǯs attention for a short time
J Ability to create innovative multimedia effects and
interactivity
J Most however, non-interactive and interruptive
J Popular with advertisers since they perform well in
creating brand recall and have a higher click-through
rate than banners
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c Argued to be the most effective marketing
communication tool for acquiring and retaining
customers
c Several million users may be reached directly
c Send the company information (low cost)
c A wide variety of audiences (customer database) -
Purchase e-mail addresses
c Target a group of people that you know something about
- messages can be targeted
c When permission has been granted email marketing is
more personal and less intrusive
c Problems: Junk mail & Spamming
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oc tors)
c Advantages:
c Minimal cost is associated with it
c Submit your URL to a search engine and be listed
c Keyword search is used
c Disadvantages:
c Search engines index their listings differently
c Meta tags can be complicated
e rch angines

J Important part of Internet strategy since firms need to

be found
J The top 10 spots on a search list are difficult and
expensive to get
J Alternatives:
3uy rankings or keywords, so firm appears first
Have banner appear when a search word is entered
Google gives search results based on number of
links leading to the site
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Virtual meeting ground

Free addition to a business site
Allows advertisers to cycle through messages and
target the chatter again and again
Advertising can become more thematic
More effective than banners
Used for one-to-one connections
ADVa IING  AaGIa
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Associ ted Ad Displ y tr tegy

Associate the content of a Web page with a related

ad like:
J Search Yahoo on a topic, a banner pops up offering
Dzsearch for books atdz
Amazon.com
3arnesandnoble.com
J Keyword banners
Just-in-time strategy
Affili te drogr ms
J A particular site directs users to an e-commerce
site and in turn receives a commission for sales
generated by the user.
J Affiliate programs involves independent
advertising by firm A of firm 3ǯs products
J If products sold then firm A receives a
commission
Ads s commodity

People are paid for the time spent viewing an ad

J Direct payment made by the advertisers for ads
viewed
J Consumers fill out questionnaires
J CyberGold distributes targeted banners
J Reader clicks the banner, passes some tests on its
content, and is paid for the effort
Vir l m rketing

Word-of-mouth over the Internet

Easily forwarded e-mail messages from sites
Forward sites by filling out e-mail addresses
DzAdvocacy marketingdzȄhotmail.com
J Each e-mail sent invited free hotmail service
J Company grew from 0 to 12 million in 18 months
Downsides
J E-mail hoaxes
J Spread of viruses
{ustomized d str tegy

Filtering the irrelevant information by providing

customized ads
One-to-one advertisement
Customized ads in Webcasting
J Personalized news and information by category
J Users select specific categories they want to receive
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av
ts, Pr ti s, a 
ttracti s

J Enticing Web surfers to read Internet ads

Yoyodine, Inc.
J Give-away games, discounts, contests, sweepstakes
J Entrants agree to read product information of
advertisers
Netzero and others offer free Internet access in
exchange for viewing ads
Offer free samples (freesamples.com)
Use company logo as cursor
Internet-b sed d design:
import nt f ctors
c Page-loading speed
c Graphics and tablesȄsimple, meaningful, and match
standard monitors
c Thumbnails (icon, graphs) are useful
c 3usiness content
c Clear and concise text with compelling page title and header
text
c Minimal amount of information requested for registration
Internet-b sed d design:
import nt f ctors
c Navigation efficiency and compatibility
c LinksȄwell-labeled, accurate, meaningful
c SiteȄcompatible with browsers, software, etc.

c Security and privacy

c Security and privacy must be assured
c Must provide option for rejecting cookies

c Marketing Customer Focus

c Clear terms/conditions of the purchasesȄdelivery
information, return policy, etc.
c Confirmation page after a purchase
Internet-b sed d design:
import nt f ctors
c Navigation efficiency and compatibility
c LinksȄwell-labeled, accurate, meaningful
c SiteȄcompatible with browsers, software, etc.

c Security and privacy

c Security and privacy must be assured
c Must provide option for rejecting cookies

c Marketing Customer Focus

c Clear terms/conditions of the purchasesȄdelivery
information, return policy, etc.
c Confirmation page after a purchase
affectiveness nd dricing of
Advertisement
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c Multiple of number of c 3ased on how customer
guaranteed ad views
interacts with the ad view
c Number of hits
c How much time was spent
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viewing the ad
c Number of times customers click
on banner c ‘ 
c Only effective for large c Referral fee based on customers
corporations moving to ad site to make a
purchase