"Consumers and New Technologies: A Marketing Perspective" Course 4 Advertising and the web Jacques Nantel Ph.D May 2003.

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Presentation transcript:

"Consumers and New Technologies: A Marketing Perspective" Course 4 Advertising and the web Jacques Nantel Ph.D May 2003

The role of various media signs Television Print radio Direct Marketing Attention Action Interest Source: Steve Golberg Microsoft

The role of various media signs Television Print radio Direct Marketing Attention Action Interest Source: Steve Golberg Microsoft Internet

Basic measurement techniques Hits Hits/audit Audit with profile Clickstream (visits) Time spent on a site Purchases

Advanced measurement techniques No of visits versus Unique visitors Cookies Electronic Passport –All of the above techniques give more and more info about the profile of visitors

2- How do you make money with advertising on the net?

It is harder than ever to finance a site only with ads

Many players but few profitable ones

In % of all advertising was done on less than 5 sites –(AOL 2 billions $ on a total of 8 billions)

Various revenu models Barter trade 8% Banner ad (CPM) 48% Sponsor (affiliate) 29% Commission

US Advertising revenus (in 000$)

Average Full Banner Rate Card* in the US, by Web Site Genre, Q Q (in dollars per thousand impressions) B2B$52,50 Automotive$37,86 Computing and technology$28,19 Home garden$25,00 Local and regional$25,00 Yellow and white pages$25,00 Sports and recreation$22,00 Business anad finance$20,00 General news$17,96 Fashion, romance and celebrity$16,71 Reference and education$15,52 Health and fitness$15,00 Community$13,00 Employment$11,00 Travel$11,00 Portal$10,70 ISP and telecommunications$9,57 Kids and family$9,50 Shopping and auction$5,33 Incentive$4,00 Movies and television$3,50 Personal expression$2,00 Search engine$1,75 Games$0,75

Click-through Rates : CTR Source : NetRatings

Online advertising is not efficient It plays against consumers’ decision making strategies It is rarely a business model in itself

Solutions are linked to Relationship marketing and CRM Up-selling and cross-selling marketing (Permission and viral) Ad placement: Content and search engines

Also : ad Servers –Doubleclick –MSN passeport électronique –AOL Liberty