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TopicI. Internet advertisingII. “Super Media”

• Interactivity• Selected content• Extended duration

Activity 1III. Selective advertising concepts

• Context• Geographic targeting• Frequency

Activity 2IV. Types of ads

• Banner• Sponsorship• Interstitial

Activity 3V. Ad pricing and ROI (return on invest

ment)• CPC and CPM

Activity 4Activity 5

UNIT XX MARKETING ON THE WEBLesson 12

Internet Advertising

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Internet advertising: Using the WWW as the medium (or locality) for the presentation and promotion of ideas, goods and services.

The use of technology allows advertisers to offer interactive advertising.

Traditional advertising vs. “Super Media”

Instead of creating a one-way presentation like television or radio commercials, technology enables the consumer to interact with the ad to gain additional information or insight into the advertiser's products or services.

And back again,

Technology can also allow the advertiser to collect demographic data about those who choose to interact with the ad. Future ad content can be tailored or selected to fit the customer’s specific needs*.

*Needs is a term used by marketers to mean what the customer is “looking to purchase”.

X

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Use Darwinmag.com’s “five thoughts about …online advertising” to answer the following questions:

• Does the size of ads matter?

• List something that a “good ad” does upfront.

• What is the most effective location for an ad?

• Does the example ad on Discovery.com contain the elements to make it an effective online advertisement? Why or why not?

This “SuperMedia” also allows for extended duration advertisements. While on a web site, a customer sees various ads by the same advertiser—even as he/she moves from page to page within the site.

Activity 1: please answer on a sheet of paper and hand in

Go to Discovery.com and view the “What’s on TV”, “Games” and “Search” pages. Do you notice extended duration advertising? Who is the advertiser? Where is this ad located?

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Knowing who makes up your target market can be of great use to advertisers? The internet can incorporate selective advertising concepts quite nicely.

Selectivity includes the medium’s ability to reach potential or selected customers. Such customers are thought to have a high level of interest in the kinds of services or products offered.

Selective advertising concepts include targeting your advertisements based on gender, age, marital status, occupation, income, geographic location and more.

If you went to Yahoo!Finance you would see ads for TD Waterhouse and DatekOnline—two online stock trading companies.

Do the same types of people who use Yahoo!Finance for stock quotes use TD Waterhouse, DatekOnline or other similar services?

IT IS VERY LIKELY!

The almighty eye spies…

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What type of selective targeting does the knot site do so well?

To figure it out go to the site, view cities and click NY-New York City.

Once you are there, look at the ads and you will be able to determine the type of targeting.

Activity 2: please answer on a sheet of paper and hand in

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Choices, choices, choices…

With so many types of ads available it is hard to decide which one(s) will best reach your customer’s organizational goals.

Luckily, the Internet advertising industry has a number of resources available that are quite useful in the decision making process.

Activity 3: please answer on a sheet of paper and hand in

Use AD RESOURCE ‘s glossary to find information on banner, sponsorship and interstitial types of ads and record it.

Can you determine which of the three are sometimes referred to as pop-up’s*?

*FYI– Even though they are considered effective, ScoresUp.com does not utilize this type of ad because it is sometimes seen as an annoyance and can turn off users.

Activity continues on next page…

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Now that’s ingenuity!

According to Web Ads Take New Shapes what is the goal of new types of ads?

Is technology expected to help advertisers reach their audiences?

What is the name of the ezine where you found this article?

Go to an affiliate site of Disney like ESPN.com and determine the advantages and disadvantages of the first ad you see—list at least two of each.

Activity 3 continued

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According to the class business plan, how can ScoresUp.com make money by selling ad space?

Charge banner advertisers a low fee per month and have them pay an additional amount every time a customer mentions they saw the ad on your site.

Charge banner advertisers a flat rate for ads that will appear for a set amount of time e.g. three months.

Think ahead about how to get them to renew

Charge for a seasonal ad geared towards seasons and holidays.

Offer a local florist a “Valentine’s Day Special!”

Can you think of other ways to charge for advertising on your site?

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Activity 4: please answer on a sheet of paper and hand in

1. Use the AD RESOURCE glossary to determine what is “CPC” and record the definition of on your worksheet.

2. Ads are usually sold on a “CPM” basis. Go to An Advertising Primer at AD RESOURCE and record the definition of CPM on your worksheet.

3. While at An Advertising Primer find what a common banner ad package consists of and record it on your worksheet.

4. Compare the rates of different types of advertisements. Determine how much it will cost for 1 million impressions on the search engine Yahoo! (remember that CPM is in thousands) Check your answer on the add calculator.

5. Record which genre (classification) costs the most to advertise. Can you see a movement in advertising spending? Record it.

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HOW PERFECT FOR YOU?!

You just solicited a small local corporation which happens to be in the midst of developing an online campaign.

What kinds of issues will this potential customer of yours address during the decision making process?

Possible ROI (return on investment)

ROI is "the bottom line" on how successful an ad or campaign was in terms of what the return (sales revenue) was for the money expended (invested).

It is measured after the fact.

The best way to determine possible ROI is to use past figures.

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Activity 5: please answer on a sheet of paper and hand in

Which (very large) organization recently bought the most internet ad impressions? Go to AD RESOURCE.com and check out the statistics.

Will your “hot prospect” ponder the same strategies, only on a smaller scale, while shopping for ad placements? Can you determine how the strategies, methods or techniques might be similar. Also consider how they would be different and record your thoughts.

Go to Developing an Online Campaign to further your understanding of what is entailed in the decision making process. What is “the most successful” way to increase traffic to a site?

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Industry standards

for selling ads on Web sites

can be found at the

Interactive Advertising Bureau

at www.iab.net

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UNIT XX MARKETING ON THE WEB

Lesson 12

Internet Advertising

Congratulations!

You have successfully completed the Internet Advertising

Tutorial.