1. Chapter 5 Advertisement in Electronic Commerce

2. 商業交易
不被認知 認知 熟悉
沒有交易過
零星交易
固定交易

3. Internet Advertising Terminology
Ad views
Banner
Click (ad click)
Click ratio
Cookie
Effective frequency
Hit
Impressions
Reach
Visit
Search sorting service (reposition service)

4. Why Internet Advertisement?
3/4 of PC users gave up some television time
Well educated, high-income Internet users are a desired target for advertisers
Ads can be updated any time with a minimal cost; making them timely and very accurate
Ads reach very large number of potential buyers all over the world
Online ads are much cheaper in comparison to television, newspaper, or radio ads

5. Web Advertisement
廣告深度
個人一對一直銷
Web 高
互動性 電視 報紙
廣告手冊 低 低 高

6. Figure 5-1 Adoption Curves for Various Media
Source: Morgan Stanley Technology Research.

7. Targeted Advertisement
小眾、一對一one-to-one
Customize ads to fit individuals
Can be expensive as well as rewarding
Gain cost effectiveness by targeting groups (based on segmentation)

8. Pros of Internet Advertisement
Accessed on demand 24 hours a day, 365 days a year
costs are the same regardless of audience location
Accessed primarily because of interest in the content
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

9. Advertisement Methods- Banners
Banners--banners are everywhere
Keyword banners Random banners
Benefits
Customized to the target audience or one-to-one ads
Utilize “force advertising” marketing strategy
Direct link to advertiser
Multi media capabilities
Limitations
High cost
Declining click ratio—viewers have become immune to banners
Size of banners is too small

10. Advertisement Methods (cont.)
Banner swapping
Direct link between one site to the other site
Ad space bartering
Banner exchanges
Firm submits a banner
Receives credit when shows others’ banners
Can purchase additional display credits
Specify what type of site where the banner is displayed
Use the credit to advertise on others’ sites

11. Advertisement Methods (cont.)
Standard (pop up boxes that look like newspaper or magazine ads) and classified ads
Micro-sites
5 advertising sizes larger than banners
Pop-up boxes at sites they are linked to
Classified ads
Special sites (classifieds2000.com)
Free or for fee depending upon size

12. Advertisement Methods (cont.)
Several million users may be reached directly
Purchase addresses
Send the company information (low cost)
A wide variety of audiences (customer database)
Target a group of people that you know something about
Problems:
Junk mail
Spamming

13. Advertisement Methods (cont.)
Mobile phones
Interactive one-to-one ads
Location, situation, weather-related ads
Splash Screen
Capture the user’s attention
Promotion or lead-in
Major advantage: create innovative multimedia
Spot leasing
Permanent space on popular portal or Web page
Ads may be small and expensive

14. Advertisement Methods (cont.)
URL (Universal Resource Locators)
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

15. Advertisement Methods (cont.)
Chat Rooms
Virtual meeting ground
Free addition to a business site
Allows advertisers to cycle through messages and target the chatter again and again
Advertising can become more thematic
More effective than banners
Used for one-to-one connections

16. Advertisement Strategies
Internet-based Ad Design
Visually appealing
Targeted to specific groups or to individual consumers
Emphasize brands and a firm’s image
Part of an overall marketing strategy
Seamlessly linked with the ordering process

17. Advertisement Strategies (cont.)
Internet-based ad design: important factors
Page-loading speed
Graphics and tables—simple, meaningful, and match standard monitors
Thumbnail (icon, graphs) are useful
Business content
Clear and concise text with compelling page title and header text
Minimal amount of information requested for registration

18. Advertisement Strategies (cont.)
Internet-based Ad Design: Important Factors (cont.)
Navigation efficiency and compatibility
Links—well-labeled, accurate, meaningful
Site—compatible with browsers, software, etc.
Security and privacy
Security and privacy must be assured
Must provide option for rejecting cookies
Marketing Customer Focus
Clear terms/conditions of the purchases—delivery information, return policy, etc.
Confirmation page after a purchase

19. Advertisement Strategies (cont.)
Pull (Passive) Strategy
Effective site provides helpful and attractive contents and display
Effective and economical way to advertise, unidentified potential customers worldwide
Advertising World—non-commercial site that guides the process of finding customer’s requests
Yahoo—portal search engine site regarded as effective aid for advertisement

20. Advertisement Strategies (cont.)
Push (Active) Strategy
Sending s to relevant people
Obtaining mailing list—process of identifying target customers
Mailing list generation—uses agent technology, cookies, and questionnaires (filled out by customer)

21. Advertisement Strategies (cont.)
Associated Ad Display Strategy
Associate the content of a Web page with a related ad like:
Search Yahoo on a topic, a banner pops up offering “search for books at”
Amazon.com
Barnesandnoble.com
Keyword banners
Just-in-time strategy

22. Push Technology Benefits
Requested information they delivered automatically to their desktop via Web technology and the Internet
Decreases the number of hours used to search the Web

23. Push Technology (cont.)
Pointcasting—mass customization of information
Pre-specification profile
Select appropriate content
Download selection
4 types of push technology
Self-service delivery
Aggregated delivery
Mediated delivery
Direct delivery

24. Intelligent Agents Product Brokering Knows the customer’s profile
Tailors ads to the customers, or asks them if they would like to receive product information
Alerts users to new releases
Recommends products based on:
Past selections
Constraints specified by the buyers

25. Effectiveness and Pricing of Advertisement
Exposure Models
Multiple of number of guaranteed ad views
Number of hits
Click-Through
Number of times customers click on banner
Only effective for large corporations
Interactivity
Based on how customer interacts with the ad view
How much time was spent viewing the ad
Actual Purchase
Referral fee based on customers moving to ad site to make a purchase

26. Online Catalogs Evolution of online catalogs
Merchants—advertise and promote
Customers—source of information and price comparisons
Consist of product database, directory and search capability and presentation function
Replication of text in paper catalogs
More dynamic, customized and integrated

27. Online Catalogs (cont.)
Classifications of catalogs
Dynamics of information presentation
Static catalogs—textual description and static pictures
Dynamic catalogs—motion pictures, graphics, sound
Degree of customization
Ready-made catalogs: same catalog to all customers
Customized Catalogs: customized contents and display depending upon the customers

28. Online Catalogs (cont.)
Electronic catalogs allow integration of
Order taking and fulfillment
Electronic payment
Intranet workflow
Inventory and accounting system
Suppliers’ extranet
Relationship to paper catalogs

29. Customized Catalogs Assembled specifically for:
A company
An individual shopper
Customization systems can:
Create branded, value-added capabilities
Allows user to compose order
May include individualized prices, products, and display formats
Automatically identify the characteristics of customers based on the transaction records

30. Reposition Service Affect the sort sequence of Google/Yahoo
Effective exposure
Search behavior
Navigation through a tree
Free text search

31. 協助中小企業提高曝光 前提：廣告經費有限 明確的廣告效果和中性報導的效果 聰明排序 搜尋服務網站的收費高 明顯的廣告效果較差 較低的廣告費用
較高的成效