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• Advertising is an attempt to disseminate information in order to affect buyer–seller transactions
– In traditional marketing, advertising was impersonal, one-way mass communication that was paid for by sponsors • interactive marketing Online marketing, facilitated by the Internet, by which marketers and advertisers can interact directly with customers, and consumers can interact with advertisers/vendors
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 4-1
Publishing as Prentice Hall 4-2 .Copyright © 2010 Pearson Education. Inc.
• The Advertising Cycle – ad views The number of times users call up a page that has a banner on it during a specific period. Inc. may contain downloadable software – page An HTML (Hypertext Markup Language) document that may contain text. Publishing as Prentice Hall 4-3 . may be generated statically or dynamically Copyright © 2010 Pearson Education. and other online elements. such as Java applets and multimedia files. images. known as impressions or page views – button A small banner that is linked to a Web site.
– 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 – CPM (cost per thousand impressions) The fee an advertiser pays for each 1. Publishing as Prentice Hall 4-4 .000 times a page with a banner ad is shown – conversion rate The percentage of clickers who actually make a purchase Copyright © 2010 Pearson Education. Inc.
Publishing as Prentice Hall 4-5 .– click-through rate The percentage of visitors who are exposed to a banner ad and click on it – 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 attracting visitors to click on the ad – hit A request for data from a Web page or file Copyright © 2010 Pearson Education. Inc.
a pause of a certain length of time ends a visit – unique visit A count of the number of visitors entering a site.– visit A series of requests during one navigation of a Web 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 Copyright © 2010 Pearson Education. Inc. Publishing as Prentice Hall 4-6 .
such as brokering ads and targeting ads to select groups of consumers Copyright © 2010 Pearson Education.– Advertising Online and Its Advantages • • • • • • • Cost Richness of format Personalization Timeliness Location-basis Linking Digital branding • advertising networks Specialized firms that offer customized Web advertising. Publishing as Prentice Hall 4-7 . Inc.
a graphic advertising display linked to the advertiser’s Web page – keyword banners Banner ads that appear when a predetermined word is queried from a search engine – random banners Banner ads that appear at random.• BANNERS – banner On a Web page. not as the result of the user’s action Copyright © 2010 Pearson Education. Inc. Publishing as Prentice Hall 4-8 .
Inc. Publishing as Prentice Hall 4-9 . 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 Copyright © 2010 Pearson Education.– Benefits and Limitations of Banner Ads • major benefit is users are transferred directly to an advertiser’s site.
Inc. after. Publishing as Prentice Hall 4-10 . or during Internet surfing or when reading e-mail – 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 • E-MAIL ADVERTISING • NEWSPAPER-LIKE AND CLASSIFIED ADS Copyright © 2010 Pearson Education.• POP-UP AND SIMILAR ADS – pop-up ad An ad that appears in a separate window before.
Publishing as Prentice Hall 4-11 . and tailors the ad accordingly Copyright © 2010 Pearson Education. the optimizer uses the ranking algorithm of the search engine (which may be different for different search engines) and best search phrases.• SEARCH ENGINE ADVERTISEMENT – URL Listing – Keyword Advertising – search engine optimization (SEO) The craft of increasing site rank on search engines. Inc.
• GOOGLE—THE ONLINE ADVERTISING KING • ADVERTISING IN CHAT ROOMS • OTHER FORMS OF ADVERTISING – – – – Advertising in Online Newsletters Posting Press Releases Online Video Ads advergaming The practice of using computer games to advertise a product. or a viewpoint Copyright © 2010 Pearson Education. Inc. an organization. Publishing as Prentice Hall 4-12 .
Publishing as Prentice Hall 4-13 . Inc.• 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 Copyright © 2010 Pearson Education.
Publishing as Prentice Hall 4-14 . Inc.• VIDEO ADS ON THE WEB AND IN SOCIAL NETWORKING – Tracking the Success of an Online Video Campaign • Web video analytics A way of measuring what viewers do when they watch an online video • viral marketing Word-of-mouth marketing by which customers promote a product or service by telling others about it – Viral Marketing in Social Networks Copyright © 2010 Pearson Education.
Publishing as Prentice Hall 4-15 . in categories selected by the user Copyright © 2010 Pearson Education.• OTHER ADVERTISING STRATEGIES – affiliate marketing A marketing arrangement by which an organization refers consumers to the selling company’s Web site – Ads as a Commodity (Paying People to Watch Ads) – Selling Space by Pixels – Personalized Ads • Webcasting A free Internet news service that broadcasts personalized news and information. Inc. including seminars.
PROMOTIONS. Inc. Publishing as Prentice Hall 4-16 . AND ATTRACTIONS – Live Web Events • mobile advertising Ads sent to and presented on mobile devices – Mobile Marketing Copyright © 2010 Pearson Education.• ONLINE EVENTS.
Publishing as Prentice Hall 4-17 . Inc.• PERMISSION ADVERTISING – spamming Using e-mail to send unwanted ads (sometimes floods of ads) – permission advertising (permission marketing) Advertising (marketing) strategy in which customers agree to accept advertising and marketing materials (known as opt-in) Copyright © 2010 Pearson Education.
Publishing as Prentice Hall 4-18 . especially large-scale ones – Ad Exchanges – Advertisement as a Revenue Model – Measuring Online Advertising’s Effectiveness Copyright © 2010 Pearson Education. Inc.• SOME IMPLEMENTATION ISSUES – admediaries Third-party vendors that conduct promotions.
Publishing as Prentice Hall 4-19 .Copyright © 2010 Pearson Education. Inc.
. tracking viewers.g.• ad management Methodology and software that enable organizations to perform a variety of activities involved in Web advertising (e. Inc.g.. country) to a form culturally and linguistically acceptable in countries outside the original target market Copyright © 2010 Pearson Education. Publishing as Prentice Hall 4-20 . rotating ads) • localization The process of converting media products developed in one environment (e.
Publishing as Prentice Hall 4-21 . Inc. and other entertainment.– Automatic Versus Manual Web Page Translation – Using Internet Radio for Localization • Internet radio A Web site that provides music. from a variety of radio stations • AD CONTENT • INTELLIGENT AGENTS APPLICATIONS Copyright © 2010 Pearson Education. both live and stored. talk.
Publishing as Prentice Hall 4-22 .Copyright © 2010 Pearson Education. Inc.
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