CHAPTER 7: Online Advertising & Marketing

1. CHAPTER 7:Online Advertising & Marketing By Group H: Kim Pace Matt Kluger Tara Flynn Marc Buontempo Kavita Kusumgar BUAD477-11

2. Banner Ads Criticized but dominant online advertising method “A rectangular box, usually horizontal on the page that contains advertising material.”- Internet Marketing Interstitials Aka “pop-ups” Appear while other material is loading Interfere with loading speed Click through rates higher than static banner ads Online Advertising

3. Banner Ads & Interstitials • Static to Dynamic • Rich Media • Dynamic images • 3-D images • Mouse-overs • Interactive Marketing Units (IMUs) • 2001 • Larger • Meaningful graphics • flash demonstration • What this means? • Other advertising formats are arising to take the place of the static banner • Kool Design Maker • Kool Design Maker Website

4. How Banner Ads & Interstitials Are Changing • Ad Serving Trend Report Double Click Q3 2004 • Online Advertising becoming like other forms of media => More Predictable • Larger Units the new standard • 1st: Banner (25.2 %) • 2nd: Leaderboard (9.3%) • 3rd: Skyscrapers (10%) • 4th: Large Rectangles (5.3%) • www.google.com/adsense/adformats • Click rates more stable recently after years of decline

5. Doubleclick.com Trend Report • Rich Media rates steady after a decline in 2003 • Rich media click rates typically 5X higher than non-rich

6. Doubleclick.com Trend Report • More than 5X conversions resulted from view-through (not click-through)

7. Frequency Capping • How often user exposed to particular advertisement can be manually controlled • Limits number of exposures to unique users • Rarely used • Useful for: • Online reach for a given demographic group • Cap so that frequent users not overexposed & light users more likely to view ads

8. Conclusion • “Online Advertisers are still stretching their legs in terms of adopting various techniques to improve the performance of their online advertising.” -Double Click Q3 2004 Ad Serving Trend Report

9. Search Engines • Used by virtually all internet users • All search engines are different • 3 primary ways to use search engines • Keywords • Title Tags • Meta Tags

10. Search Engines in Marketing • Marketers should learn how different engines work • Should adopt a forecasting plan • Identifies spending in relation to sales impact • Determine volume with cost per acquisition • Select most effective mix of keywords • http://www.google.com • http://www.yahoo.com

11. Blogcritics.org: “What are the Most Effective eMarketing Tools?” • “Which ones (eMarketing Tools) do work best?.... -- the ones you can easily track and see how what you spend leads directly to sales” - Scott Frangos • To be successful advertisers must focus on reliable eMarketing methods, mainly: • Affiliate Programs • eNewsletters (a.k.a. and directly related to email marketing) • Pay-per-click search engine listings • And to some degree RSS (Really Simple Syndication) feeds such as those you subscribed to for class through www.bloglines.com

12. Understanding Affiliate Programs • Taking advantage of affiliate programs helps to bring new customers, and clearly qualifies as a customer acquisition technique • Websites can advertise each other with this method • Examples on the web: • Amazon's Affiliate Marketing Program Site • Buad 477 Class Blog • Affiliate program directors and their participants can track per sale and/or per click and be able to determine what there cut of the transaction is.

13. E-Mail Marketing • Offers a fast, flexible, and highly controllable format. • Can be developed quickly, tested, and revised on the fly. • E-mail marketing has an extremely wide reach and is cheap on a per customer contact basis • Spam • Unsolicited, irresponsible, and measures are being put in place to curb it • Turntide Anti-Spam Router Website

14. E-mail Recipient Acquisition Techniques • Opt-out • Opt-in • Double opt-in • When searching for leads, marketers should always choose quality over quantity • Privacy Policies

15. Back to the Article… • The author emphasizes that eNewsletters are the most effective way for reputable companies to advertise through email. • Topica provides businesses with eNewsletter services • http://www.topica.com/?p=CNJN&l=text1 • When commenting on why eNewsletters are so effective: “Newsletters take time and deserve a quality editing process. The better written they are, the better are your results…A newsletter, well written, develops a sort of bond with your customers. ” • “Smart” Autoresponders • New tools to help marketers achieve customer loyalty by easily customizing mass emails

16. Wrapping things up… • The article’s bottom line on the topic of email marketing is you have to budget your time and expense – and if that means paying more to use the opt-in technique, then so be it. • The author also stresses that affiliate marketing is both cost effective, fast, and far reaching in this quote: • “A well managed affiliate program (sometimes called ‘viral’ marketing because it spreads so quickly), can pay off in a big way without any up front costs of advertising other than to install and announce it.” • In summation, with eMarketing you have to • “pay for results -- not just ‘placement’, extend your reach ‘virally’, when possible, and use smart systems (like auto respondents) to get the economic advantage in your marketing.”

17. Any Questions?