1. E-Marketing Communication Tools Instructor: Hanniya Abid Assistant Professor COMSATS Institute of Information Technology Lecture 19 E-Marketing

2. Objectives After this lecture, you will be able to: Discuss how marketers use the Internet for advertising, Know marketing public relations, sales promotions, direct marketing, and personal selling.

8. Rich Media Ads Rich media ads are interactive, at least offering click-through. Rich media ads often use Flash animation to attract attention. Many formats can be rich media, including: Banner ads. Interstitial ads. Floating ads. Expanding ads. Polite ads.

9. Contextual Ads Ad servers serve ads into web sites as appropriate users view pages. Facebook also offers specific ad targeting based on user profiles. This process is also the basis for Google’s AdSense program. Contextual ads (keyword search) are the largest category of online advertising.

12. Google Adsense

13. E-Mail Advertising E-mail advertising is the least expensive type of online advertising. Advertisers can purchase space in another firm’s e- mail content, such as newsletters. Note that email messages sent from a firm directly to Internet users are direct marketing, not advertising.

14. Interactive Advertising A visitor who clicks on an interactive (banner) ad at an ad site is then referred through to the site of the company who paid for the banner ad which links through to a destination site as indicated Many organizations link interactive ads to a specific campaign microsite. This provides content tailored to the campaign that appears immediately on clickthrough without the distractions of a link to the standard site. The microsite can be independent of the media owner site, or it can be part of it, which can potentially improve response.

15. Interactive Advertising But ad clickthrough rates for non-video formats average a CTR of less than 0.2%. The microsite approach is somewhat ineffective. Instead, today, the name of the game is interaction and engagement. Many ads will encourage the media site visitor to interact through a prompt to ‘rollover ’ and another Flash creative will be loaded which may offer a clear brand message rendered in large font, a response form such as an insurance quote or a request to obtain a SIM or a game or poll

17. Interactive Advertising Although display advertising is often thought of simply as a traffic building technique, there are several alternative objectives which were first summarized by Cartellerieri et al. (1997) : ● Deliver content. Information on-site to help communicate a company ’ s offering. ● Enable transaction. An e-tailer intending to use banner ads to increase sales.

18. Interactive Advertising ● Shape attitudes. An advert that is consistent with a company brand or that features a new product can help build brand or product awareness. Research services such as www.dynamiclogic.com are used by savvy online advertisers to assess the effectiveness of creative in terms of traditional branding metrics such as message association, brand awareness and purchase intent. www.dynamiclogic.com ● Solicit response. An advert may be intended to identify new leads or as a start for two-way communication. ● Encourage retention. The advert may be placed to remind about the company and its service.

19. Interactive Advertising Some marketers have had a bad experience of online advertising, and certainly there are weaknesses to be aware of including: 1. Poor and diminishing clickthrough rates. Partly as a result of banner blindness, there has been a dramatic decline in average clickthrough rates (CTR) from 25% on the first banner in 1994 which simply said click here, to an average of 0.1%, although higher for rich media as video streamed ads.

20. Interactive Advertising 2. Relatively high costs. Relative to some other online marketing tools, such as search engine marketing and affiliate marketing which also have the advantages of being performance based, interactive advertising costs can be relatively high, with media costs around £10 per thousand ads served (£10 CPM), plus creative costs. 3. Branding effect difficult to quantify. Although it is possible to pre-test and post-test online advertising effectiveness, there are relatively few providers in this area. It is a relatively costly discipline.

21. Interactive Advertising Consider these advantages of today ’s display advertising, for example for a car manufacturer: 1. Ads highly targeted. Media buyers can select the right site or channel within a site to reach the audience (e.g. a specialist online car magazine or review site or the motoring channel within an online newspaper or TV channel site). Audiences can also be targeted via their profile through serving personalized ads, or ad in e-mail if visitors have registered on a site.

22. Interactive Advertising 2. Ad networks can reduce costs. Ad networks from suppliers such as Blue Lithium or 24–7 Media give advertisers the options of advertising across a network of sites to reach a particular demographic, e.g. ae 18–25, but at a lower cost since the actual site used for the ad placement isn ’t known (hence these are sometimes known as blind network buys). Lower CPMs are achievable and in some cases CPC or CPA payment options are available. Site owners such as publishers use ad networks since it gives them a method of gaining fees from unused ad inventory which has not sold at premium rates.

23. Interactive Advertising 3. Behavioural re-targeting options. It is well known from traditional media campaigns, that the impact of an ad in terms of its ability to shape brand awareness, ad recall and purchase intent is dependent on the ad frequency or the number of times it is seen on average.

24. Interactive Advertising For example, if someone visits the car section of a site, then the ad is served to them when they view other sections of the site. Retargeting can work across an ad-network too and can even be sequential, where the messages are varied for an individual the more times they are exposed to the ad. Search retargeting offers the option to display an ad after a visitor has searched on a particular term such a car marque. Trackingof individuals is achieved through use of cookies.

25. Interactive Advertising 4. New ad formats can increase response. In the early days of online advertising, most ads were simply banners of 468 x 60 dimension. Today if you view ads served by rich media companies such as Tangozebra ( www.tangozebra.com ) in their labs, you will see that there is a wealth of Flash-based ad formats including expandable banners and skyscrapers where if the user rolls- over the ad, then a new ad can be triggered which might include a streamed video clip, audio, a personalized message or a form prompting someone to order a brochure, book a dealer appointment or perform a search on a site.

27. Video http://www.youtube.com/watch?v=WZmBLm9UPHg

28. Summary Types & Formats of Ads Contextual Ads Rich media Ads Email Advertising Interactive Advertising

29. There is that one last thing… Find three display Ads that you think are particularly effective and three that are ineffective in your opinion. Identify the types of these Ads Are they contextual Ads?