chp4 advertisement in electronic commerce
TRANSCRIPT
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Advertisement in Electronic Commerce
Chapter 4
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Advertisement
Advertisement is an attempt to spread information in order to influence a buyer–seller transaction. In tradition sense, advertising is impersonal
One way mass communication Direct marketing: but very expensive
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Web Advertisements
Unlike traditional advertising on TV or newspapers which is impersonal, one-way mass communications,
Internet advertising is media-rich, dynamic, more accurate, target specific and interactive.
The most common advertising methods online are banners, pop-ups, and e-mails.
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Internet Advertising Terminology
Impression, (call up a page with banner ) banner, clicks, click ratio, cookie, CPM, Hit, Interactive Advertising, meta tags, reach, Page visit
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Why Internet Advertisement
Updated anytime, Accessed on demand 24 hours, 7 days a week Cost is same regardless of audience location Access due to primary interest Provide opportunity to create one to one relationship More attractive ,Multimedia advertisements Distribution cost is low Contents can be updated frequently Ease of logical navigation Global reach enormous growing area (as compare to TV, newspapers
table 4.2 ,figure 4.1)
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Advertising Methods
Banners Forced advertisement Banners are electronic billboards and is the
most commonly used form of advertising on the Internet
Keyword banners appear when a predetermined word is queried from a search engine.
Random banners appear randomly
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Advertising Methods
Banner Swapping Banner exchange
Exchange services arrange for banner display Paid advertisement Splash screen / pop ups /pop behind Spot leasing in search engines URLs, SEO E-Mail Advertising Chat rooms(2000 chats generate 8 billion hour of
internet usage and billion dollars) Forms
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Advertisement Strategies
Visually appealingTargeted to specific groupContent should be valuable to customersEmphasize brands and firm’s imageMust be part of an overall marketing
strategySeamlessly linked with ordering process.Placements of internet ads (click zone)
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Advertisement Strategies
Designing Internet Ads (five major areas) Page loading speed Business content Navigation efficiency Security and privacy Customer focus
Passive pull strategy Waiting to customers
Active push strategy Actively advertise to customers
Associated ads display Ads as commodity (sold as product)
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Implementation of strategies
Customizing adsInteractive adsComparison as medium of advertisingAttracting visitors to site
Short list top search engines, improve company ranking to in these
Online events, promotions and attractions like special sales bargains, incentives
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Advertisement Considerations
Target audience need to be surferTarget audience needs to be understoodTraffic of site should be estimatedEstimate the results Consider co-branding
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Push Technology Push direct delivery of information
Point-casting instead of broadcasting Streaming web pages from a web server to web
browser Mass customize to suit customer needs Self service delivery: allow surfers to download
pages Aggregated delivery: wide variety of contents Mediated delivery: surfer controls the information Direct delivery: PC interface pulls information
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Push Technology
User gets involved in three steps Creation of profile Selection of content Downloading the content
Push on intranet Toady’s competitive environment push technology is used to
deliver information to workers. Intelligent agents:
Applications that creates and knows the customers profile and it can tailor an ad to the customer . This type of agents called product brokering
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Economics and effectiveness of advertisementIts difficult to measuring the results of
advertisements Model based on CPM (click per thousand
impressions) Click through Interactivity Actual Purchase Fixed monthly fees User registrations
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Online catalogs
Static catalogs/Dynamic catalogs Readymade/Customized catalogs Interactive catalogs Customized catalogs assembled specially a
customer/company
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Advantages and Disadvantages of e-catalogs Advantages of e-catalogs
Easy to update Search and comparison capabilities Able to integrate Timely updates Global reach Multimedia support Cost saving Easy to customize (Table 4.3)
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Special Advertisement topics
How much to advertise Advertising objectives Capabilities of spending Short term needs Long-term commitment to the medium
Analyzing web traffic (Audit) Impartial and external review is crucial
Internet ethics or standards cookies
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Localization needs Language, graphics, dates formats
Major web ads players Advertising agencies Developers/ASPs ISPs Market researchers Traffic analyst