1. 1 Ravi K. Vatrapu vatrapu@cbs.dk Course Portal: http://www.itu.dk/~rkva/2011-Spring-EB22http://www.itu.dk/~rkva/2011-Spring-EB22 Facebook Group:http://www.facebook.com/group.php?gid=133258548012http://www.facebook.com/group.php?gid=133258548012 Etherpad: http://ietherpad.com/7y3drhMCnqhttp://ietherpad.com/7y3drhMCnq Thursday, 03-Feb-2011 EB22: Online Marketing: Lecture 02 Auditorium 4, ITU, Copenhagen, Denmark O NLINE A DVERTISING : N EGATIVE P ROGNOSIS C LEMONS, E.(2009). Why Advertising Is Failing On The Internet, TechCrunchWhy Advertising Is Failing On The Internet

2. Did you 2 1.Read the article 2.Skimmed the article 3.Didn’t read

3. For those that read Clemons’ article 3 1.I agree with Clemons 2.I disagree with Clemons

4. Clemons’ Definition of Advertising Advertising is using sponsored commercial messages to build a brand and paying to locate these messages where they will be observed by potential customers performing other activities; these messages describe a product or service, its price or fundamental attributes, where it can be found, its explicit advantages, or the implicit benefits from its use. 4

5. Clemons’ Basic Premise The internet is not replacing advertising but shattering it 5

6. The Three Reasons  Consumers do not trust advertising  Consumers do not want to view advertising  Consumers do not need advertising 6

7. The Three Alternative Models  Selling real things  Selling virtual things  Selling content and information  Selling experience and participation in a virtual community  Selling accessories for virtual communities  Selling access  Misdirection  Evaluation, assessment, and validation  Social search  Contextual mobile ads 7

8. Discussion  Exercise on Personal Product Purchase Process Reflection  What is your own personal experience with online ads?  Recall  Recognition  Purchase  Word of Mouth  Online Reviews  Emotional Engagement 8

9. Next Week  Lectures 3-4  Readings are already assigned  Exercises  Bring your laptop or mobile internet device to class 9