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E-COMMERCE Learning Unit 4: ADVERTISING IN E-C0MMERCE

E-COMMERCE Learning Unit 4: ADVERTISING IN E-C0MMERCE. OUTCOMES: Understand the objectives of web advertising, its types and characteristics. Describe and understand the major advertising methods used on the Web, including banners and chat rooms.

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E-COMMERCE Learning Unit 4: ADVERTISING IN E-C0MMERCE

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  1. E-COMMERCELearning Unit 4: ADVERTISING IN E-C0MMERCE

  2. OUTCOMES: • Understand the objectives of web advertising, its types and characteristics. • Describe and understand the major advertising methods used on the Web, including banners and chat rooms. • Describe various web advertisement strategies. • Describe various types of promotions on the Web.

  3. Terminology in E-Advertising • Ad views: Number of times users call up a page that has a banner on it during a specific time period. • Button: A small banner that is linked to a website. • Page: HTML document. • Click: A count made each time a visitor clicks on an advertising banner to access the advertiser’s website

  4. CPM (Cost per Thousand impressions): Fee an advertiser pays for every 1 000 times a page with a banner ad is viewed. • Hit: Request for data from a webpage or file. • Visit: A series of requests during one (1) navigation of a website; a pause of request for a certain length of time ends a visit.

  5. Major Advertising Methods used on the Web • Traditional mass media employs one-to-one communication Content Medium Firm

  6. Interpersonal and computer- mediated communication permits interactive exchange between buyers and sellers Content Medium Firm

  7. Internet permits many-to-many exchanges. It is cost effective and interactive exchanges • Internet communication: Also known as hypermedia – network that links many parties, simultaneous communication with ease and speed

  8. Types of online communication • Internet presence sites: Provides information to customers on the products, services, hours of business, telephone numbers, etc • Email: Companies send emails to customers to keep them informed. Unsolicited, unwanted mail is called spam

  9. Pop ups: Online adverts that appear on screen without the user requesting them. • Banners: Small box like icons that display simple messages or logos. A banner is a hyperlink to a company. • Viral marketing: Users of a product encourage their friends/ family to use it, by providing their details. • Affiliate programs: Host site directs visitors to other related sites. • Virtual stores: Designed to facilitate online trade. Includes shopping baskets and payment facilities.

  10. Example of e-commerce ad

  11. Advantages of Online Communication • Round the clock access to information on a 24/7 basis. • More relevant information and people are able to filter effectively. • Flexible and adaptable advertisements that can be revised easily. • Direct transactions whereby consumers have the opportunity to purchase immediately.

  12. Production quality of online pictures can match the actual product. • Lack of familiarity leads to consumers finding online shopping a novelty. • Interactive communication whereby consumers can communication directly regardless of distance an time. • Flow and telepresence which absorb surfers in virtual reality.

  13. Interactive communication Three (3) key dimensions of interactivity: • Control: Users are in control of what they navigate. • Two way communication: Instant feedback is possible on the Internet. • Synchronicity: Refers to the instantaneous communication between parties.

  14. Effectiveness of Online Ads • Online advertising must be evaluated in terms of hard and soft factors. • Example of a banner ad

  15. Banner Advertising Process Visit website of Company A Customer Click to banner ad of company B Visit company B website Increase Interaction Purchase

  16. Stages for determining the effectiveness of banner advertisements: • Exposure: Number of people who see the banner. • Click-through: Number of people who click on the banner and view its website hyperlink. • Interaction: Length of time people spends on the site. • Outcome: Number of purchases made by people who clicked through

  17. Web Promotional Strategies • Internet presence sites; • Interactive sites; • Customer service sites; • Distribution sites.

  18. Example of Internet Presence Site

  19. Branding on the Web • A brand is a collection of attributes and associations that represent the identity of the product or service offering. Role of branding • Have clear customer promises • Understand its customers • Decide on role that the Internet will play in brand strategy • Establish brand awareness • Deliver consistent brand experience • Integrate all experiences of the brand

  20. Does following website meet requirements Key success factors of online brand experience • User friendly site; • Value added service; • No technical glitches; • Look of the site; • Navigability of the site; • The way customer service people respond; • Speed of delivery; • Ease of returns.

  21. Questions to ask about the nature of a product or service when selling online • Is the service local or global? • Is the service high-touch or low-touch? • Is the service high in search qualities? • Is the service high in experience qualities? • Is the service high in credence qualities?

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