Week 8

1. Week 8 Promoting Our Web Site

2. Promoting Your Web Site • General Web promotion options • Evaluate search engines as web site promotion • Review search engine use and value as promotion option • Evaluate banner advertising as a way to promote the web site • Discuss banner advertising pros and cons • Affiliate Marketing

3. Web site promotion Banners Affiliates Links Partners Community Search Engines Email Promotional Materials Printed Materials Print Advertising PR Broadcast

4. Online Advertising

5. Internet Advertising • Internet advertising revenues in the United States totaled nearly $3.3 billion for the first six months of 2003,with Q1 accounting for $1.63 billion and Q2 totaling $1.66 billion. Internet advertising revenues for the first six months of 2003 increased 10.5 percent from the same period in 2002.

6. Performance-based Advertising Continues Sharp Growth • – Keyword search (analogous to paid search) revenue increased significantly from 9 percent of 2002 second-quarter revenues to 31 percent of 2003 second-quarter revenues.

7. Keyword Search Rises Sharply as Display Advertising Continues to Decline Display advertising (replaces “Ad Banners”) accounted for 22 percent of total revenues during the second quarter of 2003, down from the 32 percent reported in the second quarter of 2002. • Keyword search (analogous to paid search) revenues continue to increase sharply, accounting for 31 percent of 2003 second-quarter revenues, up from 9 percent reported the same period in 2002.

8. Banners • Simple Banners • Animated Banners • Streaming Banners • Streaming Audio Banners • Pop-Ups • Interstitials

9. Banners • Aren’t they dead? • Banners still make up the majority of online ad spending • CTR are lower than low in most consumer categories. • Audience reach often improves regardless of whether the banner was clicked or not.

10. CP’s • Cost per Click (CPC) • # of times your banner is clicked on • Cost per Sale (CPS or CPT) • Usually paid as a percentage of a sales(excluding tax and shipping) • Cost per Action • Set fee based on the number of times a game was played, software downloaded etc.

11. Impressions • Impressions: The number of times an ad is delivered. When an advertiser buys advertising on a CPM basis, the advertiser is paying for every 1,000 impressions that the site can deliver. Different sites measure an impression differently. Some sites count an impression when an ad is requested, others only when an ad is fully downloaded

12. Interstitial • Interstitial: An advertisement that interrupts the user. This can be a full page ad that pops up on the user's screen or a pop-up window.

13. Hits • Hit: A line that is recorded in a log file when something is requested of a web server. For example, if someone goes to a web page that has five graphics, six hits will be recorded in the log file: one hit for the HTML page and one for each of the graphics. Hits are considered an inaccurate way to measure traffic and are no longer used by savy advertisers

14. Exposures • Exposures: The number of times that an advertisement is viewed. Used interchangeably with impressions.

15. CPM • CPM: CPM is the cost per thousand for a particular site. A web site that charges $15,000 per banner and guarantees 600,000 impressions has a CPM of $25 ($15,000 divided by 600). (The "M" stands for the Latin mille, meaning "one thousand.")

16. CTR • Click-through rate (CTR): The percentage of times the ad is clicked on divided by the total number of times an ad is viewed.

17. Before you buy • What are your goals • Generate Inquiries • Generate Sales • Branding and Awareness • Driving Traffic • Research/Surveying

18. Before you buy • Do a through analysis of Inventory and your campaign. • Which pages will you be on? • When? • What is your budget? How does this ad fit in? • Who else will be advertising at the same time? • How are you supporting this online? Radio, TV, paper? • Who is serving your ad? • How will you be tracking the results?

19. Plan and Contract • Plan what you are going to test • Make sure you have a good contract. • Outline dates and times • Costs

20. How to Choose • Referring URL’s • Personal experience • Good Fit • Editorial relevance • Right Market • Amazing deal • Because you want to do it.

21. Banner Tips • Someone famous said “Nobody reads ads. People read what interests them. Sometimes it is an ad” • People don’t click on great copy and design • They click on something that interests them

22. Banner Tips • Make sure that you drive the traffic from the banner directly to the page • Carefully plan the alt text for each banner as well as the text underneath the banner

23. Banner Tips • Develop a campaign not a unit (15 days) • Using questions can raise CTR by about 15% • Free works best • Free Information, free white paper, free whatever • Thank you page banners tend to work best.

24. Banner Tips • Use 25% of the space for your logo • Phrases such as “click here Now ” improve response

25. Banner Tips • Negotiating • Tell them what you want to pay—they will get to it • Remember that the 80% of space goes unsold

26. Banner Tips • Best times to negotiate • Timing • End of Month • End of quarter • End of year • Great deals when you purchase space for an entire year (this should be your best buy) • USA Today.com great site to consider

27. If we are going to sell sport outfits • “We should pay a premium to advertise on a web site devoted to sports” • Is this the right way?

28. Test • Testing is Critical • You should test the following • Creative • Offer • Ad Units • Sites • Reach vs. composition • Targeted content v.s. targeted demographics • There should be about 20000 impressions behind each test cell.

29. Ad Networks • Ad networks offer one stop ad shopping • Great for testing • Save time • Expertise • Service • Carry premium properties

30. Web Advertising Networks • Offer single point of access to advertisers that want to reach millions of consumers quickly and easily. • They acquire impressions given to them by their web site “affiliates” and sell the aggravated inventory. • This process simplifies the acts of buying and selling for both the advertiser and the web publisher.

31. Zero Based Media Buying • Testing using RON (Run of Networks) • Do, no targeting at all. • Just throw ads out there and see where you get responses. • Within a few days you can figure out where your responses are coming from. • Group your responses by category (sport, business, entertainment or people who respond to ads about my product. • You can not do that with any other media

32. Ad Networks • He (Flycast President) recommends to his clients that begin with advertising on all Flycast sites ( close to a thousand) for a week and compare the response rates. • http://www.tribalfusion.com/www/about/vision.html

33. CASIO It ran a banner ad for a digital camera. The best category for Casio digital camera ads is travel. This test can be conducted in a week sites aimed women, games and sports are definitely not winners for the product. Would anyone guessed this without the test? In a week?

34. Internet Advertising Bureau • IAB.net • Are the new banner sizes successful? • http://www.iab.net/iab_banner_standards/bannersource.html

35. Next-Generation Banners Rich MediaInteractive/Animated Banners Features- • In-the-banner interactivity • Deliver live content such as news, daily messages • Rich media contains for any bandwidths without plug-ins such as streaming audio, animations, quizes, and games Effectiveness- • Increases (CTR) click-through-ratio • Improves brand recognition http://www.freestyleinteractive.com http://www.freestyleinteractive.com/clients/ifuse/

36. Enliven and Types of Banner Ads • Enliven.com • http://www.enliven.com/campaigns/recent_campaigns.htm • Please select from ad goal and see how banners change according to your marketing goal.

37. Banner ad presentation methods • A. Pay per Click - Pay a web site every time someone clicks on your banner. • B. Pay per Lead - Pay a web site every time someone signs up for a service or free subscription (Sales leads) • C. Pay per Sale - Pay a web site every time someone actually buys the product or service. • D. Pay to View - Pay a web site to show your ad by category or randomly. • E. Banner Exchange - Display banner/button on your site in exchange for displays on others

38. Where should you place your banner ads? • In traditional advertising you use media expert. • Study demographics • Figures out which media they pay attention to. • Places ads based on careful targeting and cost. • Media targeting has been a science for 30 years • Should we (modern marketers) use the same techniques for the web?

39. 4 Steps in making a purchase • Impression: The customer clicks on a web site that has banners displayed. • 5$ to $40 per thousand impressions • Response:The person clicks on a banner in the web site, which transports the clicker to your web site • Lead: The prospect views your offering and fills out a form • Sale: The clicker buys the product

40. Objectives in Web Advertising • There are two objectives in web advertising • Image advertisers are trying to create an image in the mind of the viewer. • Response advertisers are trying to get the viewer to respond. Creative should always mirror the program

41. How web advertising differs • On the web you can change your message every hour every day • Expose one customer to many different approaches. • Rich media ads utilizing high involvement and interactive formats, hold the promise of increasing the impact and overall effectiveness of web advertising. • You get immediate feedback on what is working and what is not.

42. Ad Performance Evaluation • Yahoo Spreadsheet. • Please take a look at those sheets. • We will discuss the dynamics during our Monday chat • I am using these worksheets with permission from BMG Direct.

43. Affiliates • Partners help drive revenues

44. Affiliate Marketing • Affiliate marketing may be the fastest-growing form of online marketing today. Driving about 13% of the current online sales market, it's forecast to reach 21% by 2003, according to a report by Forrester Research Inc. • Behind that growth is affiliate marketing's ability to leverage the power of the Web and direct customers to partners on a pay-for-performance basis, said Robert Levitan, CEO of Flooz.com, New York, an online gift currency provider with an extensive affiliate network.

45. Vocabulary • Affiliate: An individual who contracts with a merchant in order to help sell that merchant’s product. • Merchant: An individual or business who has a product and, in this case, uses affiliate programs to sell this product.

46. What type of merchandise can I sellthrough affiliate marketing? • The product may be anything someone will pay for • Tangible (such as clothing), • Virtual (such as electronic books or • Downloadable software), or • Information (such as expert advice).

47. Where do I get the merchandise?Where do I store it? • In most cases, the merchant handles • the merchandise, • actual purchase, • packaging, and • shipping, • so you usually never see the actual merchandise.

48. What are my responsibilities as anaffiliate? 1. Represent a product or service • Represent the merchant’s product or service on your site through the use of links. • These links may take the form of • a banner, • a text link, • a search box, or even • a JAVA applet.

49. What are my responsibilities as anaffiliate? 2. Drive traffic (get visitors) to your site. • Establish a steady flow of targeted traffic to your site in order to increase your potential to earn commissions. Different merchants specify what constitutes an action worthy of compensation, and these can range from a • Customer just seeing the ad • Actually purchasing the product. • How much you get paid will also differ from merchant to merchant.

50. What are my responsibilities as anaffiliate? 3. Read the contract • Information should be stated clearly in a contract. It is your responsibility to read the contract, even if it is • long, • or • boring.