Publish

1. Advertisement in Electronic
Commerce
Chapter 4

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Online catalogs
 Static catalogs/Dynamic catalogs
 Readymade/Customized catalogs
 Interactive catalogs
 Customized catalogs assembled specially a
customer/company

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. 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.  Localization needs
 Language, graphics, dates formats
 Major web ads players
 Advertising agencies
 Developers/ASPs
 ISPs
 Market researchers
 Traffic analyst