1. Electronic Commerce Advertising and Promotion in E- Commerce

2. 2 Agenda: What and why web advertising. Methods of Web advertising. Advertising strategies. Models of pricing Web advertising. Measuring the efficiency and effectiveness of Web advertising.

3. 3 Web Advertising -- What Advertising is an attempt to disseminate information in order to affect a buyer-seller transaction

4. 4 Web Advertising -- Why Why internet advertisement? Three-quarters of PC users gave up some television time Internet users are well educated with high- income, which makes them a desired target for advertisers Ads can be updated any time with a minimal cost; Therefore they are timely and very accurate

5. 5 Internet is the fastest growing medium in history Web Advertising (Cont.) Adoption Curves for Various Media - The Web Is Ramping Fast

6. 6 Ads can reach very large number of potential buyers all over the world. Online ads are much cheaper in comparison to television, newspaper, or radio ads. Such ads are expensive since they are determined by space occupied, how many days (times) they are shown, and on how many national and local television stations and newspapers they are posted. Web ads can be media rich, including voice and video. Web ads can be interactive and targeted. The use of the internet is growing very rapidly. Web Advertising – Why (Cont.)

7. 7 Pros of Internet Advertisement Web Advertising –Conclusion  Internet advertisements are accessed on demand 24 hours a day, 365 days a year, and costs are the same regardless of audience location  Accessed primarily because of interest in the content, so market segmentation opportunity is large  Opportunity to create one-to-one direct marketing relationship with the consumer  Multimedia will increasingly make Web sites more attractive and compelling

8. 8 Distribution costs are low (just technology cost), so millions of consumers are reached at the same cost as that of reaching one Advertising and content can be updated, supplemented, or changed at any time, and are therefore always up-to-date Ease of logical navigation — you click when and where you want, and spend as much time as you desire them Web Advertising –Conclusion (cont.)

9. 9 Advertising Methods

10. 10 URL (Universal Resource Locators) URL Listing Keyword Advertising Search engine optimization The craft of increasing site rank on search engines; the optimizer uses the ranking algorithm of the search engine (which may be different for different search engines) and best search phrases, and tailors the ad accordingly Advantages: minimal cost is associated with it submit your URL to a search engine and be listed keyword search is used Disadvantages: search engines index their listings differently meta tags can be complicated Advertising Methods

11. 11 Advertising Methods (cont.) BANNERS banner On a Web page, a graphic advertising display linked to the advertiser’s Web page random banners Banner ads that appear at random, not as the result of the user’s action keyword banners Banner ads that appear when a predetermined word is queried from a search engine

12. 12 Benefits and Limitations of Banner Ads major benefit is users are transferred directly to an advertiser’s site, often the shopping page major disadvantage of banners is their cost banner swapping An agreement between two companies to each display the other’s banner ad on its Web site banner exchanges Markets in which companies can trade or exchange placement of banner ads on each other’s Web sites Advertising Methods (cont.)

13. 13 Banner Exchanges Swapping is a problem : a match is frequently not possible Banner exchange organizations a firm submits a banner receives credit when shows others’ banners can purchase additional display credits specify what type of site the banner can be displayed on use the credit to advertise on others’ sites credit ratio of approximately 2:1 Example : Link Exchange acts as a banner-ad clearing house for more than 200,000 small Web sites. It offers help in banner design, provides membership in newsgroups, delivers HTML tutorials, and even runs contests. It also monitors the content of the ads of all its members. Advertising Methods (cont.)

14. 14 POP-UP AND SIMILAR ADS pop-up ad An ad that appears in a separate window before, after, or during Internet surfing or when reading e- mail pop-under ad An ad that appears underneath the current browser window, so when the user closes the active window the ad is still on the screen Advertising Methods (cont.)

15. 15 E-mail Several million users can be reached directly Purchase e-mail addresses Send the company information; low cost A wide variety of audiences; customer database Problem: Junk mail or spamming Target a group of people that you know something about Advertising Methods (cont.)

16. 16 Chat Rooms Virtual meeting ground Can be added to a business site for free Allows advertisers to cycle through messages and target the chatter again and again Advertising can become more thematic More effective than banners Used in one-to-one connection Advertising Methods (cont.)

17. 17 Ad as a Commodity Advertising Methods (cont.) CyberGold exchange of direct payment made by the advertisers for viewing ads consumers fill out questionnaires CyberGold distributes targeted banners the reader clicks the banner to read it and, passing some tests on its content, is paid for the effort

18. 18 social network advertising Online advertising that focuses on social networking sites Types of Social Network Advertising Direct advertising that is based on your network of friends Direct advertising placed on your social network site Indirect advertising by creating “groups” or “pages” Sponsored Reviews by Bloggers Advertising Methods (cont.)

19. 19 viral marketing Word-of-mouth marketing by which customers promote a product or service by telling others about it Viral Marketing in Social Networks Advertising Methods (cont.)

20. 20 Advertisement Strategies

21. 21 Passive Pull Strategy  Customer will visit a site if it provides helpful and attractive contents and display  Effective and economical way to advertise to unidentified potential customers worldwide  Advertising World is a non-commercial site that can guide the process of finding the customer’s wish  Yahoo is a portal search engine site which can be regarded as an effective aid for advertisement Advertisement Strategies

22. 22 Active Push Strategy Advertisement Strategies (cont.)  Sending e-mails to the relevant people  Obtaining the mailing list is the process of identifying target customers  Mailing list generation is done in companies by using agent technology and cookies as well as by filling out questionnaires (by customers)

23. 23

24. 24 AD Design

25. 25 AD Design Advertisements should be visually appealing Advertisements must be targeted to specific groups or to individual consumers Advertisements must emphasize firm’s image and brands Advertisements must be part of an overall marketing strategy Advertisements should be seamlessly linked with the ordering process

26. 26 Internet-based Ad Design: Important Factors AD Design (cont.)  Page-Loading Speed Graphics and tables should be simple and meaningful. They need to match standard monitors. Thumbnail (icons graphs) are useful.  Business Content Clear and concise text is needed. A compelling page title and header text is useful. The amount of requested information for registration should be minimal.

27. 27 Navigation Efficiency Well-labeled, accurate, meaningful links are a must. Site must be compatible with browsers, software, etc. Security and Privacy Security and privacy must be assured. Option for rejecting cookies is a must. Marketing/Customer Focus Clear terms and conditions of the purchases, including delivery information, return policy, etc. must be provided. Confirmation page after a purchase, is needed. AD Design (cont.) Internet-base Ad Design: Important Factors

28. 28 CPM (cost per thousand impressions) The fee an advertiser pays for each 1,000 times a page with a banner ad is shown click (click-through or ad click) A count made each time a visitor clicks on an advertising banner to access the advertiser’s Web site click-through ratio The ratio between the number of clicks on a banner ad and the number of times it is seen by viewers; measures the success of a banner in attracting visitors to click on the ad Web Advertising Terminology

29. 29 hit A request for data from a Web page or file visit A series of requests during one navigation of a Web site; a pause of a certain length of time ends a visit unique visit A count of the number of visitors entering a site, regardless of how many pages are viewed per visit stickiness Characteristic that influences the average length of time a visitor stays in a site Web Advertising Terminology

30. 30 conversion rate The percentage of clickers who actually make a purchase Web Advertising Terminology

31. 31 Advertising Pricing

32. 32 Advertising Pricing Exposure Models (CPM) The fee an advertiser pays for each 1,000 times a page with a banner ad is shown Click Through (PPC) Interactivity / Cost Per Action (CPA) Out-Come-Based or Actual Purchase Payments are based on:

33. How Does an Organization Measure the Efficiency of an Ad?

34. 34 Converting Prospects to Customers A Six stage process Measure the success of each stage Surfer Awareness Attraction Contact Conversion Retention

35. 35 Converting Prospects to Customers

36. 36 Converting Prospects to Customers -- Efficiency Measures Awareness Attraction Contact Conversion Retention