1. E-Business Promotion

2. What Is Promotion? Promotion is a communication process consisting of –advertising –publicity –sales promotion –and salesmanship

3. The AIDA model AIDA model is a framework for understanding how hypermedia can be used to reach promotional goals. The AIDA process indicates that: –First the attention of the target audience must be gained –Then interest created in the product or service –Desire generated –Action taken by the targeted audience. The AIDA process is based on attitude models in which: –The audience first thinks about an object (cognition) –Develops feelings (affect) –Engages in some type of behavior (conation).

4. Communication Goals

5. Steps to gain the audience's attention: –Include a site's URL or address in other media. should be included in: –advertising copy and layouts –business cards, letterhead and other business collateral –banner ads located in other Web sites –direct email and other directed media The use of URLs in print ads increased from around 10 percent of ads in 1995 to over 90 percent by 1998 Gaining Attention (2)

6. Hypermedia Hyperlinks Gaining attention through Web sites: –Banner ads Banner ads have not been highly effective in achieving click- through, or having an individual click on a linked banner to link to other sites. –Sponsorship (or co-branded ads) Integrate a company's brand to the editorial content of the Web site. For example, a firm may sponsor a news site or community bulletin board -find some sponsored content on the web and add the URL to the class wiki

7. –Interstitials Automatically load and display content as Web site content is brought up. This includes the use of pop-up windows and freely float to display ad content, but more recently run between pages in the same window –Affiliate marketing strategies Have content sites provide links to other, often commerce-based, sites. These are usually performance- based links, where the host site receives a percentage of sales or some other type of compensation for the click- through. Hypermedia Hyperlinks (2)

8. Cookies and Tracking Cookies are linked to databases –Allow for individualized design and pushing the Web site for the individual. Tracking software: –Reads the behavior of the visitor by keeping track of the Web pages the visitor sees, how long they are viewed, what is passed over, what is placed in a shopping basket, and what is removed. –This behavior suggests the type of information the user may be interested in.

9. Action E-business Action Goals: –Have individuals visit a Web site –Provide information for databases –Obtain information for future purchases –Make online purchases.

10. Table 7.3: Motivating Toward Action 1) Free Shipping: 20% 2) Online Coupon: 14% 3) Product Search Tool: 11% 4) Online product review: 11%

11. Loyalty Businesses have an incentive to maintain the loyalty of customers because of the high value of lifetime customers. Brick-and-mortar loyalty can be measured in repeat store visits and product repurchase. Customers stay loyal because they believe that the cost of searching for information on new stores and products

12. Campaigns Integrated marketing communication implies that multiple media are used to target audiences. Lee Jeans: –Target: Teenage boys –Buddy Lee campaign: Web site Targeted email Television Radio Codes on products Measured by: site stickiness, attitude change, sales

13. Anatomy of Buddy Lee’s Campaign CompanyAttentionInterestDesireActionLoyalty Lee JeansEmail viral marketing. Websites. Radio. Online video clips. Websites. TV ads. Interactive games on website. TV ads. Game codes on product. Links to offline stores. Website hosts message boards, interactive games, rich media and giveaways. Measurement:Stickiness of site. Number of viewers. Pass-along rate. Attitude change. Sales.

14. Advertising (1) The Web allows for: –Direct communication and interaction with customers. –Tracking a customer's media use. –The development of customized ads and placement. –Facilitates actions such as purchasing.

15. Advertising (2) The Internet is the fasting growing media. –took only 5 years to reach 50 million users compared to: radio’s 38 years television’s 13 years cable’s 10 years. –web surfers have shifted media habits away from television watching. Problems with the Web media include: –narrow target markets –privacy concerns –limited bandwidth –hard to prove effective measures of success and returns on investments.

16. Figure 7.7: Major Web Advertising Types Or an Interstitial will automatically pop up and float behind a web page. 250 x 250 pixels (Square Pop-up) Banner Ad, with Animated JIF, JAVA scripted, or with multimedia. 468 x 60 pixels (Full Banner) Button Ad 120 x 60 pixels (Button 2) Skyscraper Ad 160 x 600 pixels (Wide Skyscraper) Sponsored content Link to classified ads. Web Page Content Site Search Affiliate Links Interstitial will automatically pop up and float in front of a web page. 300 x 250 pixels (Medium Rectangle)

17. Agencies Advertising agencies act as intermediaries by providing the talent to help set promotional objectives, create the content, place the promotion in the media, and provide feedback on the results of the campaign to the client. Agencies: –DoubleClick (www.doubleclick.com)www.doubleclick.com –USWeb (www.usweb.com)www.usweb.com –Razorfish (www.razorfish.com)www.razorfish.com

18. Timing Traditional promotional campaigns use a mix of media to reach all of the AIDA goals. –Using a combination of broadcast and print over differing time periods. The Web allows advertisers to develop sites where the target audience can visit whenever they want and as often as they like. –It is important that Web sites be refreshed to encourage the users to return.

19. Measuring Effectiveness Internet advertising has the potential for allowing the advertiser to capture information such as who sees which ad and for how long. –Web servers are able to track every time an individual moves from one linked page to another. –Dead pages, or pages no one visits, can be updated or deleted. –This data can be collected from both the sending server and the user's PC. –Data from cookies may even provide an indication of the profile of the user.

20. Table 7.3: Measurement of Hypermedia Advertising (1) MEASUREMENT METHOD DEFINITIONCOMMENTS Ad Impression Measures the number of times an ad has been requested or pulled by an individual or pushed, as with email ads. Provides no information on users. Visit or Page View Tracks the number of individual pages sent to Web viewers without a period of inactivity (a measure to insure actions are attributed to a single browser for a single session). Give no indication of how many users receive or view pages and no profile data on users. Click-Through Gives measure of a reaction to an ad. Tracks the number of times an online ad is clicked on. Gives no information about the customers. Click through may dump a page before it loads. Click-through rates are very small.

21. Table 7.3: Measurement of Hypermedia Advertising (2) MEASUREMENT METHOD DEFINITIONCOMMENTS Page View Measures the number of times a page is sent to the user’s browser. Pages can be requested but the ads may not necessarily be seen by the targeted individual. Hits may be counted for every click of the mouse or page refresh. Records activity regardless without viewer’s information. Unique Visitors Allows tracking by the IP address of the viewer or through cookies. Multiple users may use the same IP address to access a site.

22. Ad Blocking Consumers can filter, or block ads from Web sites. –This shifts power from businesses to the consumers. Filters look at the HTML code and checks files and file types against a filter list to block ads, interstitials, or animated banners. –There is a stronger interest in this type of technology inside of companies where blocking of ads can improve speed and network performance.

23. Table 7.4: Web Site Ratings Indicators PAYMENT METHOD MEANINGCOMMENTS CPMCost-per-thousandTypical method used to compare across media. CPCCost-per-clickCost of clicking through from a hypermedia page. CPA Examples: Cost-per-actionCost is based on user taking some specific action such as purchase or some other action. CPLCost-per-leadBased on the number of leads that register from an ad. CPACost-per-acquisitionPays only when customer makes purchase or acquisition.

24. Subscription Delivered Media Use Page-Through Content to View Ads: Inside Front Cover Gatefold Article Content/ROP Media Use Page-Through Content to View Ads: Inside Front Cover Gatefold Article Content/ROP Revenue Sources: Purchase Advertising Revenue Sources: Purchase Advertising Individual pages to content, exposed to ads View Cover and Purchase Publication Effectiveness: Audited Sales/Delivery Publication Effectiveness: Audited Sales/Delivery Customer Database: Current Potential Customer Database: Current Potential Figure 7.6: Traditional Magazine Advertising Model

25. Revenue Sources: Advertising Click Throughs Percent Sales Affiliations Revenue Sources: Advertising Click Throughs Percent Sales Affiliations Visit to Website Site Use Read Articles Community Content Search Archive Link to Products Site Use Read Articles Community Content Search Archive Link to Products Individuals can bypass pages to move toward content through searches Site Statistics: Hit Counts Page View Click Throughs Reach Site Statistics: Hit Counts Page View Click Throughs Reach HTML Email Advertising Online Search Customer Database Figure 7.7: E-Business Promotional Model

26. search engines should also be used so the business and its Web address will appear when the Web user searches for topics related to that business. search engines are a cost-effective means of making people aware of a site, but they do not guarantee that a viewer will choose or remember the site. Search Engines (1)

27. Search Engines (2) Three types: –Search directories require that Web site be submitted for cataloging. –Search engines use Web spiders or web bots to collect information from sites. Web spiders are bots, or software robots, that “crawl” through the Internet looking at Web sites. –Metacrawlers use the databases of multiple major search engines. These are good for power searches, but combining multiple results can lead to repetitive hits.

28. Top of the Search Search engines rules to place URLs at the top of the search (beginning of a search list): –Number of links to that site from other sites, especially sites with similar key words –The number of times the site has been viewed –Matches of certain text –Placing key words and phrases in the title, main content and hidden keyword and description metatags –Other criteria known only to the management of the search engine.