1. Chapter 2:
Internet Advertising

2. Payam Hanafizadeh and Mehdi Behboudi

3. THE INTERNET
The Internet is innately a flexible medium; Furthermore, it appears to be a powerful tool for the transfer of information.

4. THE INTERNET
Compared with radio (30 years) and TV (15 years), This statistic reveals the incredibly fast development of Internet diffusion (Sterne, 1997).

5. ADVERTISING ORIGINS
From a historical point of view, advertising can be seen as far back as the public criers in town markets (Dyer,1982) in ancient cities such as Sumer, Babylon, and Jerusalem.

6. ADVERTISING ORIGINS
The crier’s behavior and the advert6isements of today’s world are different in many aspects but share the same principle. Advertising is not only a new phenomenon, it has also been a crucial element in human society from the day of creation up to now (Nilsson, 2006).

7. Advertising Advertising is based on two premises:
The first is marketing, which attempts to communicate and establish a relationship with customers by transferring value (Darroch, 2004); The second is communication, which serves as a process to create a unified idea between a sender and a receiver (Schramm,1995).

8. Advertising Richards and Curran (2002) states:
“Advertising is a paid non-personal communication from an identified sponsor, using mass media to persuade or influence an audience ”(p.63).

9. Advertising
From an economic point of view, Advertising serves two major function:
Persuasion
Information

10. Advertising
In early Advertising and especially with the first banners, advertisers used simple and short massages such as click here, click Now.

11. ADVERTISING AND ITS ENVIRONMENT
Belk (1975, p. 159) introduced five categories of situational characteristics:
Physical Surroundings
Social Surroundings
Temporal Perspective
Task Definition
Antecedent States

12. Core Concepts and Function of Advertising
How online advertising woks
Ad input:
Ad format
Online media
Social media
Multimedia
Mail media
Filters:
Motives for entering the web
Product appeal alignment with consumer needs
Arousal
involvement
User pleasure:
Cognitive tools attention
Memory
Attitude
User reaction:
Click/ignore
Visit website
Purchase

13. Internet Advertising and Its Position in Marketing
Marketing communication can be described as representing “the voice of a brand and the means by which companies can establish a dialogue with consumers concerning their product offerings”(Keller, 2001, p. 823).

14. Internet Advertising and Its Position in Marketing
The companies’ communication actions can more over be part of an information exchange between firm and buyer with the intention to preserve and develop customer relationships (Reid, Luxton, & Mavondo, 2005).

15. INTERNET AND PROMOTION MIX
The promotion mix is traditionally perceived as consisting of five elements:
advertising
sales promotion
public relations
direct marketing
personal selling

16. Why we use Internet Advertising
Some Advantages of online Advertising include:
1. Migrating Audience to the Internet
2. Appropriate user
3. Measurability
4. Personalization
5. High exposure potential
6. Low cost
7. Updating
8. Unlimited access

17. COMMUNICATION One- to- Many Communication Interpersonal Communication
Computer Media- Based Communication

18. COMMUNICATION Sender (advertiser) Receiver 1
One -to-many communicational pattern
Sender (advertiser)
Prepared general content as well as the channels that receiver can give the feedback
Media
Receiver 1
Receiver 2
Receiver 3
Receiver 4
Receiver n

19. COMMUNICATION Receiver (consumer) Sender (advertiser)
Interpersonal relationships
Sender (advertiser)
Revising content and resending message based on consumer feedbacks
Processing
Media
Receiver (consumer)
Reacting based on
new content

20. COMMUNICATION Social network channel; shared content.
interactive pattern
Social network channel; shared content.
Search engine channel; research based content.
. channel; personalized content
User
Suppliers
Agencies
Marketer

21. SELECTING THE RIGHT WEBSITE FOR PLACING AN ADVERTISEMENT
Nagi (2003) conducted a study concerning the selection of an appropriate website for positioning advertisements. In this study, Nagi, using the Analytical Hierarchy Process (AHP), offered The most appropriate website for publishing an advertisement in Hong Kong.

22. SELECTING THE RIGHT WEBSITE FOR PLACING AN ADVERTISEMENT
Nagi identified five criteria for evaluation:
Impression rate
Renting cost
Audience fit
Content quality
Look and feel (Nagi, 2003).

23. Electronic Satisfaction
The success and failure of online sites depend on how well customers are satisfied (Chen, Rogers, & He, 2008), particularly in the online environments that present different experiences that offline ones (Wolfinbarger & Gilly, 2003)

24. Electronic Satisfaction
Oliver (1997) defines satisfaction as “The overall subsequent psychological state following the appraisal of the consumer experience against the prior expectations”
Anderson and Srinvasan (2003) suggest a definition of e-satisfaction as “the contentment of the customer with respect to his or her prior purchasing experience with a given electronic commerce firm”.

25. Electronic Satisfaction
High customer satisfaction causes a customer to return to the website (Chen, Rogers, & He, 2008).

26. Quality of Electronic Services
E- SERVQUAL involves three concepts:
webQual
softQual
InfoQual

27. Quality of Electronic Services
These services can be categorized into two categories:
specialized
general services

28. Type of Business Model
However, in order to investigate and select an appropriate website for placing an ad, the Rappa model offered in 2005 is considered here. Generally, there are nine types of electronic business models according to this study which include Brokerage, Advertising, Infomediary, Merchant, Manufacturer, Affiliate, community, Subscription, and Utility.

29. Right Website Selecting Model (RWSM)
Right website model (RWM)
E-ServQual
WebQual
SoftQual
InfoQual
User-Oriented Design
Navigation
Easy search
Customizing
Visual Presentation
Interactivity
Man-man
Man- machine
E-Business Model
Brokerage
Manufacturer
Advertising
Infomediary
Merchant
Utility
Affiliate
Subscription
Right website

30. The End Of Chapter 2 http://www.economist.com/node/7138905