1. The Net as an Advertising Resource It’s fast –Print ads: 4-6 weeks to create, 2-6 weeks to publication –Web ads: matter of days –Changes can be made quickly Inexpensive –Direct mail: $.50-$.75/piece vs. email: $.10/piece (no limit on length) Allows pictures and testimonials Multifaceted

2. Nature of Communication: Two Methods Personal contact model (one-to-one) –Also called prospecting –Firm's employees individually search for, qualify, and contact potential customers Mass media model (many-to-one) –Firm delivers message and broadcasts it through billboards, newspaper, television, etc. –Addressable media is sometimes distinguished from mass media –Addressable media is directed to known addresses and includes direct mail, telephone calls, and e-mail

3. Multifaceted Advertising Approaches Usenet new groups Free email services About.comAbout.com Games: BayBank, www.riddler.comwww.riddler.com Interactive screen savers (freeloader) Framing: http://totalnews.com (formerly)http://totalnews.com Advertorial Ad Robot (push technology)Ad Robot “persistence:” ICQICQ

4. Advertising Considerations Mix traditional with net advertising –Place e-mail address and URL on advertising, catalogs, letterhead, business cards (resumes) –Pick a memorable URL –Play media off one another-Victoria’s Secret Use promotions: –First on-line purchase –Coupons

5. Advertising Do’s Direct mail participants of related discussion groups Post press releases to mailing lists –Keep messages short, i.e., no longer than 45 lines of text –Provide e-mail address for more details –Avoid hype Use signature file of e-mail Make sure your URL is correct Try to be appealing: fun/unique.

6. Some More Advertising Do’s View the competition –Get ideas for your site –Check out other’s HTML Spend time as a user Stay abreast of trends Include complementary links (“Welcome to my site, please leave!”) Check your links periodically Relationship Marketing

7. Web Terms Used in Advertising Impression – each time a banner ad loads –If a visitor clicks the ad to open it, it is called a click or click-through –Advertisers use market segmentation Divides the pool of potential customers into common demographic characteristics, such as age, gender, income level, etc. called segments Targets specific messages to these groups Micromarketing – targeting very small market segments

8. Web Banner Statistics WSJ 99 & TTB 07TTB 07 Web surfers clicked on 3% of banners in 97, 2% in 98,.5% in 99, and.58% for popups in March 2007 Video ads do best Even with Popup blocking, popups do well

10. Web Terms Used in Advertising CPM is a dollar amount for each thousand people in the estimated audience A visit occurs when a visitor requests a page from a web. –Further page loads counted as part of the visit for a time period chosen by the site administrator –Trial visit –First time a visitor loads a web site; A subsequent visit is a repeat visit –Page view Each time a visitor loads a page- if the page has an ad, this is called an ad view

11. What about Web Banners? Unique to Net Usually limited text with hot link Different sizes sell for different prices Site may rotate banner (e.g., Yahoo and C-Net) Lots of competition Hard to assess impact

12. Emotional vs. Rational Branding Emotional appeals work well in mass media because ad targets are passive –Do not work well on Web, however, because Web is active medium Rational branding –Gives people valuable service in exchange for viewing ads –Examples include free e-mail and secure shopping services

13. Advertising Don’ts Don’t lump all Net users together –Identify target groups Don’t post a press release and walk away –Actively participate in discussion group –Observe for at least one week before posting Don’t dole out information stingily –Ye old 80/20 rule Don’t ignore Net culture Be careful about borrowing …Don’t plagiarize!