CHAPTER 7:CHAPTER 7:Online Advertising & Online Advertising &

MarketingMarketing

By Group H:By Group H:

Kim PaceKim PaceMatt KlugerMatt KlugerTara FlynnTara Flynn

Marc BuontempoMarc BuontempoKavita KusumgarKavita Kusumgar

BUAD477-11BUAD477-11

Online AdvertisingOnline Advertising

Banner AdsBanner Ads- Criticized but Criticized but

dominant online dominant online advertising methodadvertising method

- ““A rectangular box, A rectangular box, usually horizontal usually horizontal on the page that on the page that contains advertising contains advertising material.”- material.”- Internet MarketingInternet Marketing

InterstitialsInterstitials• Aka “pop-ups”Aka “pop-ups”• Appear while other Appear while other

material is loadingmaterial is loading• Interfere with Interfere with

loading speedloading speed• Click through rates Click through rates

higher than static higher than static banner adsbanner ads

Banner Ads & InterstitialsBanner Ads & Interstitials

Static to DynamicStatic to Dynamic

Rich MediaRich Media• Dynamic imagesDynamic images• 3-D images3-D images• Mouse-oversMouse-overs

Interactive Marketing Interactive Marketing Units (IMUs)Units (IMUs)• 20012001• LargerLarger• Meaningful graphicsMeaningful graphics• flash demonstrationflash demonstration

•What this means?– Other advertising formats are arising to take the place of the static banner

•Kool Design Maker•Kool Design Maker Website

How Banner Ads & Interstitials How Banner Ads & Interstitials Are ChangingAre Changing

Ad Serving Trend Report Double Click Q3 2004Ad Serving Trend Report Double Click Q3 2004

Online Advertising becoming like other forms of Online Advertising becoming like other forms of media => More Predictablemedia => More Predictable

Larger Units the new standardLarger Units the new standard• 1st: Banner (25.2 %)1st: Banner (25.2 %)• 2nd: Leaderboard (9.3%)2nd: Leaderboard (9.3%)• 3rd: Skyscrapers (10%)3rd: Skyscrapers (10%)• 4th: Large Rectangles (5.3%)4th: Large Rectangles (5.3%)• www.google.com/adsense/adformatswww.google.com/adsense/adformats

Click rates more stable recently after years of Click rates more stable recently after years of declinedecline

Doubleclick.com Trend ReportDoubleclick.com Trend Report

Rich Media rates steady after a decline in 2003Rich Media rates steady after a decline in 2003 Rich media click rates typically 5X higher than non-richRich media click rates typically 5X higher than non-rich

Doubleclick.com Trend ReportDoubleclick.com Trend Report

More than 5X conversions resulted from More than 5X conversions resulted from view-through (not click-through)view-through (not click-through)

Frequency CappingFrequency Capping

How often user exposed to particular How often user exposed to particular advertisement can be manually controlledadvertisement can be manually controlled

Limits number of exposures to unique Limits number of exposures to unique usersusers

Rarely used Rarely used Useful for: Useful for:

• Online reach for a given demographic groupOnline reach for a given demographic group• Cap so that frequent users not overexposed & Cap so that frequent users not overexposed &

light users more likely to view adslight users more likely to view ads

ConclusionConclusion

““Online Advertisers are still Online Advertisers are still stretching their legs in terms of stretching their legs in terms of adopting various techniques to adopting various techniques to improve the performance of their improve the performance of their online advertising.” -online advertising.” -Double Click Q3 2004 Ad Serving Double Click Q3 2004 Ad Serving

Trend ReportTrend Report

Search EnginesSearch Engines

Used by virtually all internet usersUsed by virtually all internet users All search engines are differentAll search engines are different 3 primary ways to use search 3 primary ways to use search

enginesengines• KeywordsKeywords• Title TagsTitle Tags• Meta TagsMeta Tags

Search Engines in MarketingSearch Engines in Marketing

Marketers should learn how different Marketers should learn how different engines workengines work

Should adopt a forecasting planShould adopt a forecasting plan• Identifies spending in relation to sales Identifies spending in relation to sales

impactimpact• Determine volume with cost per Determine volume with cost per

acquisitionacquisition• Select most effective mix of keywordsSelect most effective mix of keywords• http://www.google.comhttp://www.google.com• http://www.yahoo.comhttp://www.yahoo.com

Blogcritics.org: Blogcritics.org: “What are “What are the Most Effectivethe Most Effective eMarketing eMarketing

Tools?”Tools?” ““Which ones (eMarketing Tools) do work best?.... -- the Which ones (eMarketing Tools) do work best?.... -- the

ones you can easily track and see how what you spend ones you can easily track and see how what you spend leads directly to sales” - leads directly to sales” - Scott FrangosScott Frangos

To be successful advertisers must focus on reliable To be successful advertisers must focus on reliable eMarketing methods, mainly:eMarketing methods, mainly:• Affiliate ProgramsAffiliate Programs• eNewsletters eNewsletters (a.k.a. and directly related to (a.k.a. and directly related to email email

marketingmarketing))• Pay-per-click search engine listingsPay-per-click search engine listings• And to some degree RSS (Really Simple Syndication) And to some degree RSS (Really Simple Syndication)

feeds such as those you subscribed to for class feeds such as those you subscribed to for class through through www.bloglines.comwww.bloglines.com

Understanding Affiliate Understanding Affiliate ProgramsPrograms

Taking advantage of affiliate Taking advantage of affiliate programs helps to bring new programs helps to bring new customers, and clearly qualifies as customers, and clearly qualifies as a customer acquisition techniquea customer acquisition technique

Websites can advertise each other Websites can advertise each other with this methodwith this method

Examples on the web:Examples on the web:• Amazon's Affiliate Marketing Program Amazon's Affiliate Marketing Program

SiteSite• Buad 477 Class Blog Buad 477 Class Blog

Affiliate program directors and their Affiliate program directors and their participants can track participants can track per sale per sale and/orand/or per clickper click and be able to determine what and be able to determine what there cut of the transaction is. there cut of the transaction is.

E-Mail MarketingE-Mail Marketing Offers a fast, flexible, and highly controllable Offers a fast, flexible, and highly controllable

format.format.

Can be developed quickly, tested, and revised on Can be developed quickly, tested, and revised on the fly.the fly.

E-mail marketing has an extremely wide E-mail marketing has an extremely wide reachreach and is cheap on a per customer contact basis and is cheap on a per customer contact basis

Spam Spam • Unsolicited, irresponsible, and measures are being put in Unsolicited, irresponsible, and measures are being put in

place to curb itplace to curb it• Turntide Anti-Spam Router WebsiteTurntide Anti-Spam Router Website

E-mail Recipient Acquisition E-mail Recipient Acquisition TechniquesTechniques

Opt-outOpt-out

Opt-inOpt-in

Double opt-inDouble opt-in

When searching for leads, marketers When searching for leads, marketers should always choose should always choose quality over quality over quantityquantity

Privacy PoliciesPrivacy Policies

Back to the Article…Back to the Article… The author emphasizes that The author emphasizes that eNewsletterseNewsletters

are the most effective way for reputable are the most effective way for reputable companies to advertise through email.companies to advertise through email.• Topica provides businesses with eNewsletter servicesTopica provides businesses with eNewsletter services• http://www.topica.com/?p=CNJN&l=text1http://www.topica.com/?p=CNJN&l=text1

When commenting on why eNewsletters are When commenting on why eNewsletters are so effective: so effective:

““Newsletters take time and deserve a quality editing Newsletters take time and deserve a quality editing process. The better written they are, the better are process. The better written they are, the better are your results…A newsletter, well written, develops a your results…A newsletter, well written, develops a

sort of bond with your customers. ”sort of bond with your customers. ”

““Smart” AutorespondersSmart” Autoresponders• New tools to help marketers achieve customer loyalty by New tools to help marketers achieve customer loyalty by

easily customizing mass emailseasily customizing mass emails

Wrapping things up…Wrapping things up… The article’s bottom line on the topic of email marketing is you The article’s bottom line on the topic of email marketing is you

have to budget your time and expense – and if that means paying have to budget your time and expense – and if that means paying more to use the opt-in technique, then so be it.more to use the opt-in technique, then so be it.

The author also stresses that affiliate marketing is both cost The author also stresses that affiliate marketing is both cost effective, fast, and far reaching in this quote:effective, fast, and far reaching in this quote:• ““A well managed affiliate program (sometimes A well managed affiliate program (sometimes

called ‘viral’ marketing because it spreads so called ‘viral’ marketing because it spreads so quickly), can pay off in a big way without any up quickly), can pay off in a big way without any up front costs of advertising other than to install and front costs of advertising other than to install and announce it.”announce it.”

In summation, with eMarketing you have toIn summation, with eMarketing you have to• ““pay for results -- not just ‘placement’, extend your pay for results -- not just ‘placement’, extend your

reach ‘virally’, when possible, and use smart reach ‘virally’, when possible, and use smart systems systems (like auto respondents)(like auto respondents) to get the economic to get the economic advantage in your marketing.”advantage in your marketing.”

Any Questions?