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Chp4 advertisement in electronic commerce

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Chp4 advertisement in electronic commerce

  1. 1. Advertisement in Electronic Commerce Chapter 4
  2. 2. 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
  3. 3. 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.
  4. 4. Internet Advertising Terminology  Impression, (call up a page with banner )  banner,  clicks,  click ratio,  cookie,  CPM,  Hit,  Interactive Advertising,  meta tags,  reach,  Page  visit
  5. 5. 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)
  6. 6. 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
  7. 7. 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
  8. 8. Advertisement Strategies Visually appealing Targeted to specific group Content should be valuable to customers Emphasize brands and firm’s image Must be part of an overall marketing strategy Seamlessly linked with ordering process. Placements of internet ads (click zone)
  9. 9. 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)
  10. 10. Implementation of strategies Customizing ads Interactive ads Comparison as medium of advertising Attracting visitors to site  Short list top search engines, improve company ranking to in these  Online events, promotions and attractions like special sales bargains, incentives
  11. 11. Advertisement Considerations Target audience need to be surfer Target audience needs to be understood Traffic of site should be estimated Estimate the results Consider co-branding
  12. 12. 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
  13. 13. 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
  14. 14. Economics and effectiveness of advertisement Its 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
  15. 15. Online catalogs  Static catalogs/Dynamic catalogs  Readymade/Customized catalogs  Interactive catalogs  Customized catalogs assembled specially a customer/company
  16. 16. 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)
  17. 17. 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
  18. 18.  Localization needs  Language, graphics, dates formats  Major web ads players  Advertising agencies  Developers/ASPs  ISPs  Market researchers  Traffic analyst