1. 1 Ravi Vatrapu vatrapu@cbs.dk Effectiveness of Internet Advertising Formats Li, H., & Leckenby, J. (2007). Examining the Effectiveness of Internet Advertising Formats. Chapter 09 of Internet Advertising. Course Portal: http://www.itu.dk/~rkva/2011-Spring-EB22http://www.itu.dk/~rkva/2011-Spring-EB22 Facebook: 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-Mar-2011 EB22: Online Marketing: Lecture 14 Auditorium 4, ITU, Copenhagen, Denmark

2. Online Marketing  Vertical Integration of Channel Capacities  Communication  Transaction  Distribution  Horizontal Integration of Marketing Communications  Advertising  Public Relations  Sales Promotion  Direct Marketing 2

3. Conceptualizations  Interactivity  Consumer-Controlled  Advertiser-Controlled  Advertising Objectives  Serve as criteria and provide decision-making direction  Provide means by which results can be evaluated  Force to understand the underlying processes Setting Objectives + Measuring Results = Criteria of Effectiveness 3

4. Criteria of Effectiveness-1  AIDA Model (Elmo St. Lewis, 1898)  Attention  Interest  Desire  Action  Hierarchy of Effects (Lavidge and Steiner, 1961)  Cognition  Affection  Behavior 4

5. Criteria of Effectiveness-2  Three Different Orderings (Ray, 1973)  Learning Hierarchy (C-A-B)  Dissonance Hierarchy (B-A-C)  Low-Involvement Hierarchy (B-C-A)  Three Qualifiers (Robertson, 1971)  Not completely rational decision-making  Possibility to skip stages  Feedback loops Simultaneous Responses: Physiological, Affective, and Cognitive 5

6. Criteria of Effectiveness-3  Criteria and Interactivity  Process Control  Outcomes  Criteria and Control Ownership  Consumer-Controlled  Advertiser-Controlled See Figure 9.3 (p. 209) & Figure 9.4 (p. 210) 6

7. Formats of Internet Advertising Interactive Advertising Bureau (2004) 1.Keyword search 2.Banner ads (display ads) 3.Classifieds 4.Rich Media 5.Sponsorships 6.Referrals 7.Slotting Fees 8.Email 7

8. Effectiveness of Formats of Internet Advertising See Table 9.1 (p. 211)  Banner Ads and Sponsorships in decline with respect to revenues  Classifieds, Rich Media, & Keyword search on the rise  Direct Response as well as Image Building 8

9. Internet Advertising Research  Integration with conventional advertising to maximize impact  Exposure to Internet advertising  Internet Advertising Messages  Behavioral Response  Branding 9

10. Discussion 10 Exercise 13: In-class small group exercise Trade Reports http://www.iab.net/insights_research/383046/427862 Post on Etherpad: http://etherpad.com/DqW4MqxTK4