Chapter 5 Advertisement in Electronic Commerce

1. Chapter 5Advertisement in Electronic Commerce

2. 商業交易

3. Ad views Banner Click (ad click) Click ratio Cookie Effective frequency Hit Impressions Reach Visit Search sorting service (reposition service) Internet Advertising Terminology

4. Why Internet Advertisement? • 3/4 of PC users gave up some television time • Well educated, high-income Internet users are a desired target for advertisers • Ads can be updated any time with a minimal cost; making them timely and very accurate • Ads reach very large number of potential buyers all over the world • Online ads are much cheaper in comparison to television, newspaper, or radio ads

5. Web Advertisement 廣告深度 個人一對一直銷 Web 高 互動性 電視 報紙 廣告手冊 低 低 高

6. Figure 5-1Adoption Curves for Various Media Source: Morgan Stanley Technology Research.

7. Targeted Advertisement • 小眾、一對一one-to-one • Customize ads to fit individuals • Can be expensive as well as rewarding • Gain cost effectiveness by targeting groups (based on segmentation)

8. Pros of Internet Advertisement • Accessed on demand 24 hours a day, 365 days a year • costs are the same regardless of audience location • Accessed primarily because of interest in the content • market segmentation opportunity is large • Opportunity to create one-to-one direct marketing relationship with the consumer • Multimedia will increasingly make Web sites more attractive and compelling

9. Benefits Customized to the target audience or one-to-one ads Utilize “force advertising” marketing strategy Direct link to advertiser Multi media capabilities Limitations High cost Declining click ratio—viewers have become immune to banners Size of banners is too small Advertisement Methods- Banners Banners--banners are everywhere Keyword banners Random banners

10. Advertisement Methods (cont.) • Banner swapping • Direct link between one site to the other site • Ad space bartering • Banner exchanges • Firm submits a banner • Receives credit when shows others’ banners • Can purchase additional display credits • Specify what type of site where the banner is displayed • Usethe credit to advertise on others’ sites

11. Advertisement Methods (cont.) • Standard (pop up boxes that look like newspaper or magazine ads) and classified ads • Micro-sites • 5 advertising sizes larger than banners • Pop-up boxes at sites they are linked to • Classified ads • Special sites (classifieds2000.com) • Free or for fee depending upon size

12. Advertisement Methods (cont.) • E-mail • Several million users may be reached directly • Purchase e-mail addresses • Send the company information (low cost) • A wide variety of audiences (customer database) • Target a group of people that you know something about • Problems: • Junk mail • Spamming

13. Advertisement Methods (cont.) • Mobile phones • Interactive one-to-one ads • Location, situation, weather-related ads • Splash Screen • Capture the user’s attention • Promotion or lead-in • Major advantage: create innovative multimedia • Spot leasing • Permanent space on popular portal or Web page • Ads may be small and expensive

14. Advertisement Methods (cont.) • URL (Universal Resource Locators) • Advantages: • Minimal cost is associated with it • Submit your URL to a search engine and be listed • Keyword search is used • Disadvantages: • Search engines index their listings differently • Meta tags can be complicated

15. Advertisement Methods (cont.) • Chat Rooms • 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

16. Advertisement Strategies • Internet-based Ad Design • Visually appealing • Targeted to specific groups or to individual consumers • Emphasize brands and a firm’s image • Part of an overall marketing strategy • Seamlessly linked with the ordering process

17. Advertisement Strategies (cont.) • Internet-based ad design: important factors • Page-loading speed • Graphics and tables—simple, meaningful, and match standard monitors • Thumbnail (icon, graphs) are useful • Business content • Clear and concise text with compelling page title and header text • Minimal amount of information requested for registration

18. Advertisement Strategies (cont.) • Internet-based Ad Design: Important Factors (cont.) • Navigation efficiency and compatibility • Links—well-labeled, accurate, meaningful • Site—compatible with browsers, software, etc. • Security and privacy • Security and privacy must be assured • Must provide option for rejecting cookies • Marketing Customer Focus • Clear terms/conditions of the purchases—delivery information, return policy, etc. • Confirmation page after a purchase

19. Advertisement Strategies (cont.) • Pull (Passive) Strategy • Effective site provides helpful and attractive contents and display • Effective and economical way to advertise, unidentified potential customers worldwide • Advertising World—non-commercial site that guides the process of finding customer’s requests • Yahoo—portal search engine site regarded as effective aid for advertisement

20. Advertisement Strategies (cont.) • Push (Active) Strategy • Sending e-mails to relevant people • Obtaining mailing list—process of identifying target customers • Mailing list generation—uses agent technology, cookies, and questionnaires (filled out by customer)

21. Advertisement Strategies (cont.) • Associated Ad Display Strategy • Associate the content of a Web page with a related ad like: • Search Yahoo on a topic, a banner pops up offering “search for books at” • Amazon.com • Barnesandnoble.com • Keyword banners • Just-in-time strategy

22. Push Technology • Benefits • Requested information they delivered automatically to their desktop via Web technology and the Internet • Decreases the number of hours used to search the Web

23. Pointcasting—mass customization of information Pre-specification profile Select appropriate content Download selection 4 types of push technology Self-service delivery Aggregated delivery Mediated delivery Direct delivery Push Technology (cont.)

24. Intelligent Agents • Product Brokering • Knows the customer’s profile • Tailors ads to the customers, or asks them if they would like to receive product information • Alerts users to new releases • Recommends products based on: • Past selections • Constraints specified by the buyers

25. Exposure Models Multiple of number of guaranteed ad views Number of hits Click-Through Number of times customers click on banner Only effective for large corporations Interactivity Based on how customer interacts with the ad view How much time was spent viewing the ad Actual Purchase Referral fee based on customers moving to ad site to make a purchase Effectiveness and Pricing of Advertisement

26. Online Catalogs • Evolution of online catalogs • Merchants—advertise and promote • Customers—source of information and price comparisons • Consist of product database, directory and search capability and presentation function • Replication of text in paper catalogs • More dynamic, customized and integrated

27. Online Catalogs (cont.) • Classifications of catalogs • Dynamics of information presentation • Static catalogs—textual description and static pictures • Dynamic catalogs—motion pictures, graphics, sound • Degree of customization • Ready-made catalogs: same catalog to all customers • Customized Catalogs: customized contents and display depending upon the customers

28. Online Catalogs (cont.) • Electronic catalogs allow integration of • Order taking and fulfillment • Electronic payment • Intranet workflow • Inventory and accounting system • Suppliers’ extranet • Relationship to paper catalogs

29. Customized Catalogs • Assembled specifically for: • A company • An individual shopper • Customization systems can: • Create branded, value-added capabilities • Allows user to compose order • May include individualized prices, products, and display formats • Automatically identify the characteristics of customers based on the transaction records

30. Reposition Service • Affect the sort sequence of Google/Yahoo • Effective exposure • Search behavior • Navigation through a tree • Free text search

31. 協助中小企業提高曝光 • 前提：廣告經費有限 • 搜尋服務網站的收費高 • 明確的廣告效果和中性報導的效果 • 明顯的廣告效果較差 • 聰明排序 • 較低的廣告費用 • 較高的成效