2. Brought to you in association with Marketing Your Web Site Successfully – By Small Business Resource

3. Brought to you in association with Source: Jupiter/NFO; N=2,312 Marketing Your Web Site Successfully Online Advertising Overview Online Advertising Projections Changing Formats and Pricing Emergence of E-mail Guerilla Marketing

4. Brought to you in association with Online Advertising Overview

5. Brought to you in association with Source: Jupiter/NFO; N=2,312 Internet - Fast Becoming Mass Medium 0% 20% 40% 60% 80% 100% RadioTVMagazineCable Press Online 74% Expected by 2005 99%98% 81% 62% 59% 51% 23%

6. Brought to you in association with Source: Jupiter/NFO; N=2,312 Media Consumption is Strong Average Hours Per Week 15.6 12.6 4.0 3.4 8.0 10.5

7. Brought to you in association with Source: Jupiter/NFO; N=2,312 Internet Usage is High “How often do you use the Internet?”

8. Brought to you in association with Source: Jupiter/NFO; N=2,312 Cannibalization of Traditional Media Continues Percentage of respondents who report that time with media decreasing due to Internet

9. Brought to you in association with Source: Jupiter/NFO; N=2,312 Consumers are Buying Online

10. Brought to you in association with Source: Jupiter/NFO; N=2,312 Commerce Opportunities “Which of the following products or services have you purchased online?”

11. Brought to you in association with Source: Jupiter/NFO; N=2,312 The Internet as an Advertising Medium Now a Mass Medium Fundamentally Changing Consumers’ Media Consumption Habits Opportunity to Get in Front of Consumers When They are in a “Buy” Mindset

12. Brought to you in association with Online Advertising Projections

13. Brought to you in association with Source: Jupiter/NFO; N=2,312 Online Ad Growth Questioned by Press and Wall Street “The growth of online advertising has been impressive to date, however that growth has been fueled by dot- coms…The tides have changed and we expect the online ad landscape to do so as well.” Equity Research Analyst

14. Brought to you in association with Source: Jupiter/NFO; N=2,312 Despite Skepticism, Advertisers Will Increase Online Spending For Which of the Following Media Do You Plan on Increasing Your Budget for the Next 12 Months? (Please Check All That Apply)

15. Brought to you in association with Source: Jupiter/NFO; N=2,312 Online Advertising Projected to Reach $16.5 Billion by 2005 ($ in billions)

16. Brought to you in association with Source: Jupiter/NFO; N=2,312 The Downside: Increase in Clutter Dilutes Connection to Consumers Marketing Impressions per User per Usage Day

17. Brought to you in association with Source: Jupiter/NFO; N=2,312 Online Advertising Most Effective Advertising Vehicle for Driving Traffic Word-of-Mouth Site Mentioned in Magazine/Newspaper Article Online Ad for the Site Magazine/Newspaper Ad Site Mentioned in a TV News Segment TV Ad for the Site What compels you to visit a Web site? (choose two) Radio Ad for the Site 7% 12% 18% 20% 24% 42% 57% Source: Jupiter/NFO; n=1,671

18. Brought to you in association with Changing Ad Formats and Pricing

19. Brought to you in association with Source: Jupiter/NFO; N=2,312 Expect Diversification Away from Banner Ads Banner ads increasingly called into question More options for advertisers – streaming audio, video, pop-ups, e-mail. Banner will continue to be the backbone of ad buys but advertisers are looking to experiment. Work with publishers to craft unique solutions

20. Brought to you in association with Source: Jupiter/NFO; N=2,312 Spectrum of Risk Underscores Conflict Between Advertisers and Publishers Advertiser Risk Publisher Risk CPM Cost per Click Cost per Lead Cost per Member Revenue Share HIGH LOW CPM Cost per Click Cost per Lead Cost per Member Cost per Customer Source: Jupiter Analysis, Pub. 2/00 Cost per Customer Revenue Share

21. Brought to you in association with Source: Jupiter/NFO; N=2,312 Opportunity for Integrated Marketing Advertisers beginning to recognize value of integrated advertising Media consolidation creates further opportunities for cross channel packaging – Times/AOL, Viacom/CBS Agency structure presents a hurdle

22. Brought to you in association with E-mail Creates Continuous Customer Relationships

23. Brought to you in association with Source: Jupiter/NFO; N=2,312 E-mail Marketing Emerging as a Powerful Force E-mails from Commerce/Content Ventures Focused Driving Repeat Visits Acquiring New Customers Cross-Selling; Up-Selling Efficiencies of E-mail: It’s Cheap – no postage, or per piece production costs It’s Fast – quick time to market and response time It Works – higher response rates than direct mail Driving LoyaltyDriving Loyalty Promoting ProductsPromoting Products Reinforcing the BrandReinforcing the Brand

24. Brought to you in association with Source: Jupiter/NFO; N=2,312 Marketers Are Not Blind to the Power of E-Mail Percent of Marketing Budget Spent on E-Mail Marketing 0 1-2 3-5 6-10 10+

25. Brought to you in association with Source: Jupiter/NFO; N=2,312 Focus on Deepening Customer Relationships and Acquiring New Customers What is the Goal of Your E-mail Marketing Efforts

26. Brought to you in association with Source: Jupiter/NFO; N=2,312 E-mail Is Growing in Leaps in Volume 3 billion 268 billion Retention-based Acquisition-based E-mail Sponsored

27. Brought to you in association with Source: Jupiter/NFO; N=2,312 E-mail Spending Grows Concurrently $7.3 billion $164 million ($ in billions) Spending on E-mail Retention-based Acquisition-basedSponsored

28. Brought to you in association with Source: Jupiter/NFO; N=2,312 The Fight For Consumers’ Attention in Their Inbox is on 1,7462,0592,4202,7583,0943,5113,990 401312764827611131,612 Email/user/year Non-work personal Commercial 40 Fold Increase 1999200020012002200320042005

29. Brought to you in association with Source: Jupiter/NFO; N=2,312 Initial Sign Up Data Provide Valuable Targeting Information How Often: Daily, Weekly When: Morning, Evening What: Subject/Offer Interests Who: Gender, Age Profile Database

30. Brought to you in association with Source: Jupiter/NFO; N=2,312 Begin the Data Loop by Using All Available Targeting Information Explicit User Provided Data Interests Demographics Observable User Data Purchase Info Surfing Info Difficulty in Obtaining Info

31. Brought to you in association with Source: Jupiter/NFO; N=2,312 Open Rate* Unsubscribes Click Through Rate Clicked Links Conversion Rate Pass Along Rate* Close the Loop by Tracking Results and Growing Targeting Data E-Mail Outputs * Available only for html messages Level of InterestLevel of Interest FatigueFatigue Effectiveness of TargetingEffectiveness of Targeting Subject/Promo InterestsSubject/Promo Interests

32. Brought to you in association with Guerrilla Marketing Becomes Another Cost-effective Alternative

33. Brought to you in association with Source: Jupiter/NFO; N=2,312 Guerrilla Marketing - What Are We Talking About? Man-on-the-Street Promotions Off-line Sampling Alternative Outdoor Viral Marketing Online Buzz - Seeding Chat Sites, Fan Sites, and News Groups Utilizing alternative marketing tactics to 1) Drive traffic online 2) Build awareness of online destination

34. Brought to you in association with Source: Jupiter/NFO; N=2,312 Clutter Guerrilla Marketing Has the Power to Generate Word-of-Mouth Resonates with Consumers Breaks Through Clutter Unique Intrusive Unexpected Clutter

35. Brought to you in association with Source: Jupiter/NFO; N=2,312 Pass-Along Increases Importance of Word-of-Mouth Tactics When a friend tells you about a site how many other people are you likely to pass the information on to? No one: 8% 1 Person: 12% 2-3 People: 49% 4-6 People: 20% 7-9 People: 4% 10+ People: 7% 69% of Consumers Tell Between 2 and 6 People

36. Brought to you in association with Source: Jupiter/NFO; N=2,312 As Guerrilla Marketing Tactics Become More Prevalent, Breakthrough Decreases Viral Marketing Alternative Outdoor Off-line Sampling Man-on-the-Street Seeding Chat Sites Other What types of guerrilla marketing tactics are you utilizing? 6% 23% 31% 40% 46% 80% Seeding News Sites Seeding Fan Sites 23% 14%

37. Brought to you in association with Source: Jupiter/NFO; N=2,312 Optimize Targeting Along Multiple Dimensions Activities InterestsOpinionsDemographics WorkWork HobbiesHobbies Social EventsSocial Events VacationVacation EntertainmentEntertainment ClubsClubs CommunityCommunity ShoppingShopping SportsSports MediaMedia FashionFashion CultureCulture PoliticsPolitics HomeHome JobsJobs CommunityCommunity RecreationRecreation FamilyFamily FoodFood AchievementsAchievements ThemselvesThemselves Social IssuesSocial Issues BusinessBusiness EconomicsEconomics EducationEducation ProductsProducts FutureFuture AgeAge GeographyGeography EducationEducation IncomeIncome OccupationOccupation Family SizeFamily Size DwellingDwelling City sizeCity size

38. Brought to you in association with Source: Jupiter/NFO; N=2,312 Guerrilla Marketing Allocation Based on Targeting and Product/Service Category Non-Targeted Highly Targeted Non-Youth Targeted Youth Targeted Non- Entertainment- Focused Entertainment- Focused No Time Sensitivity Time Sensitivity Low Allocation Level Mid Allocation Level High Allocation Level

39. Brought to you in association with Source: Jupiter/NFO; N=2,312 Summary Online is integral part of the media mix Shift in formats and pricing continues E-mail emerges as a powerful marketing tool to create continuous dialogue with consumers Guerilla marketing allows advertisers to break through commercial clutter

40. Brought to you in association with Source: Jupiter/NFO; N=2,312 Reasons to join To get FREE marketing content To get free downloads To get discounts on our services To get access to our resource centre Many other Powerpoints in this series in the members area