1 E-Commerce Advertising Jerry Post Westgate Management Development Center Eberhardt School of Business University of the Pacific

2 Advertiser Perspective  Want viewers to see your ad  Want viewers to click through to main site  Need to match demographics, target audience  Monitor response rates and sources  Cost

3 Web Publisher Perspective  Income  Cost per thousand viewings  Need volume  Need demographics  Tasks  Ad rotation software  Tracking and monitoring  Ad sales  Billing

4 DoubleClick.com  Intermediary  Software  Sales and billing  Monitoring and tracking  Commission  Prefer larger publishers  Demographics (and privacy)

5 Banner Ad Standards  468 X 60 PixelsFull Banner  392 x 72 PixelsBanner w/ Vertical Nav. Bar  234 x 60 PixelsHalf Banner  120 x 240 PixelsVertical Banner  120 x 90 PixelsButton 1  120 x 60 PixelsButton 2  125 x 125 PixelsSquare Button  88 x 31 PixelsMicro Button  Maximum size: 10 KB

6 U.S. Advertising IAB Internet Advertising Revenue Report, 1999 Q1

7 Basic Ad Statistics  IAB, Coopers, estimate Web advertising revenue for 1999 at $4 billion.  But 75% of that money went to the top ten publishers.  Need 25,000 page views per month minimum before you can think about selling ads (unless you have a highly specialized niche).  Big companies buy through ad agencies, who get a 15% discount from your prices.  Microsoft claims that 40 percent of U.S. customers visit MSN each month

8 Some Ad Campaigns   Example: Cosmetics  Cost: 500,000 "impressions“ for 1 week  Cost: $26,000($52 CPM)  User response: 10,3122%  Example: Education  3,939,982 viewings for 1 month  Cost: $126,000 ($32 CPM)  Response: 14,8580.4%

9 Some Ad Rates  8steps.htm#PrepareSite  Low$1-$20 per CPM  Medium $15-$35 per CPM  Targeted, moderate income/boomers  High $35-$60 per CPM  High target, high income products, business-to-business  Max $60-$100 per CPM  Specialized, unique, detailed demographics

10 Pricing by Performance Hybrid pricing continues to account for over half of industry revenues – hybrid pricing (combination of impression-based pricing plus performance-based compensation) accounted for 52 percent of total revenues during the second quarter of 1999, up slightly from 51 percent reported in the first quarter of Revenues priced on a straight CPM or impression basis accounted for 41 percent of 1999 second quarter revenues, while straight performance-based revenues contributed 7 percent of 1999 second quarter revenues. IAB Internet Advertising Revenue Report, 1999 Q2

11 Early Consumer Data A Micro-Assessment Of Internet Shopping Behavior Patterns, A Summary Of Research Findings For Mercado Software, Zona Research (

12 Site Usage An Intel study shows that any Web-based electronic commerce site services customer requests, which can broadly be classified as one of the following five transactions: Browse80% Search9% User Registration2% Add item5% Buy4% Source: Microsoft: COMMSOLS.DOC

13 Make Your Sites Easier to Use! A Micro-Assessment Of Internet Shopping Behavior Patterns, A Summary Of Research Findings For Mercado Software, Zona Research ( Survey of technology savvy customers!

14 Copyrights  All content is automatically copyrighted  You must have permission to use anything  Photos  Clip art  Sound  Text, etc.  Raw data is an exception (e.g., phone numbers)  Avoid using any trademarked names  Links to other sites are generally OK, except  Trademark violations  Misleading or fraudulent  Attempts to circumvent advertising? e.g.,Ticketmaster and Microsoft Sidewalk