1 Ravi Vatrapu Effectiveness of Internet Advertising Formats Li, H., & Leckenby, J. (2007). Examining the Effectiveness of Internet Advertising Formats. Chapter 09 of Internet Advertising. Course Portal: Facebook: Etherpad: Thursday, 03-Mar-2011 EB22: Online Marketing: Lecture 14 Auditorium 4, ITU, Copenhagen, Denmark

Online Marketing  Vertical Integration of Channel Capacities  Communication  Transaction  Distribution  Horizontal Integration of Marketing Communications  Advertising  Public Relations  Sales Promotion  Direct Marketing 2

Conceptualizations  Interactivity  Consumer-Controlled  Advertiser-Controlled  Advertising Objectives  Serve as criteria and provide decision-making direction  Provide means by which results can be evaluated  Force to understand the underlying processes Setting Objectives + Measuring Results = Criteria of Effectiveness 3

Criteria of Effectiveness-1  AIDA Model (Elmo St. Lewis, 1898)  Attention  Interest  Desire  Action  Hierarchy of Effects (Lavidge and Steiner, 1961)  Cognition  Affection  Behavior 4

Criteria of Effectiveness-2  Three Different Orderings (Ray, 1973)  Learning Hierarchy (C-A-B)  Dissonance Hierarchy (B-A-C)  Low-Involvement Hierarchy (B-C-A)  Three Qualifiers (Robertson, 1971)  Not completely rational decision-making  Possibility to skip stages  Feedback loops Simultaneous Responses: Physiological, Affective, and Cognitive 5

Criteria of Effectiveness-3  Criteria and Interactivity  Process Control  Outcomes  Criteria and Control Ownership  Consumer-Controlled  Advertiser-Controlled See Figure 9.3 (p. 209) & Figure 9.4 (p. 210) 6

Formats of Internet Advertising Interactive Advertising Bureau (2004) 1.Keyword search 2.Banner ads (display ads) 3.Classifieds 4.Rich Media 5.Sponsorships 6.Referrals 7.Slotting Fees 8. 7

Effectiveness of Formats of Internet Advertising See Table 9.1 (p. 211)  Banner Ads and Sponsorships in decline with respect to revenues  Classifieds, Rich Media, & Keyword search on the rise  Direct Response as well as Image Building 8

Internet Advertising Research  Integration with conventional advertising to maximize impact  Exposure to Internet advertising  Internet Advertising Messages  Behavioral Response  Branding 9

Discussion 10 Exercise 13: In-class small group exercise Trade Reports Post on Etherpad: