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Lecture 19
E-Marketing
E-Marketing Communication Tools
Instructor: Hanniya Abid
Assistant Professor
COMSATS Institute of Information Technology
Objectives
 After this lecture, you will be able to:
 Discuss how marketers use the Internet for
advertising,
 Know marketing public relations, sales promotions,
direct marketing, and personal selling.
Rich Media Ads
 Rich media ads are interactive, at least offering
click-through.
 Rich media ads often use Flash animation to attract
attention.
 Many formats can be rich media, including:
 Banner ads.
 Interstitial ads.
 Floating ads.
 Expanding ads.
 Polite ads.
Contextual Ads
 Ad servers serve ads into web sites as appropriate
users view pages.
 Facebook also offers specific ad targeting based on
user profiles.
 This process is also the basis for Google’s AdSense
program.
 Contextual ads (keyword search) are the largest
category of online advertising.
Google Adsense
E-Mail Advertising
 E-mail advertising is the least expensive type of
online advertising.
 Advertisers can purchase space in another firm’s email content, such as newsletters.
 Note that email messages sent from a firm directly
to Internet users are direct marketing, not
advertising.
Interactive Advertising
 A visitor who clicks on an interactive (banner) ad at an ad
site is then referred through to the site of the company who
paid for the banner ad which links through to a destination site
as indicated
 Many organizations link interactive ads to a specific campaign
microsite. This provides content tailored to the
campaign that appears immediately on clickthrough
without the distractions of a link to the standard site.
 The microsite can be independent of the media owner site, or it
can be part of it, which can potentially improve response.
Interactive Advertising
 But ad clickthrough rates for non-video formats average a
CTR of less than 0.2%. The microsite approach is somewhat
ineffective.
 Instead, today, the name of the game is interaction and
engagement. Many ads will encourage the media site visitor
to interact through a prompt to ‘rollover ’ and another Flash
creative will be loaded which may offer a clear brand
message rendered in large font, a response form such as an
insurance quote or a request to obtain a SIM or a game or
poll
Interactive Advertising
Although display advertising is often thought of simply as a
traffic building technique, there are several alternative
objectives which were first summarized by Cartellerieri et al
. (1997) :
● Deliver content . Information on-site to help communicate a
company ’ s offering.
● Enable transaction . An e-tailer intending to use banner ads
to increase sales.
Interactive Advertising
● Shape attitudes. An advert that is consistent with a company
brand or that features a new product can help build brand or
product awareness. Research services such as
www.dynamiclogic.com are used by savvy online advertisers
to assess the effectiveness of creative in terms of traditional
branding metrics such as message association, brand
awareness and purchase intent.
● Solicit response. An advert may be intended to identify new
leads or as a start for two-way communication.
● Encourage retention. The advert may be placed to remind
about the company and its service.
Interactive Advertising
Some marketers have had a bad experience of online
advertising, and certainly there are weaknesses to be aware of
including:
1. Poor and diminishing clickthrough rates. Partly as a
result of banner blindness, there has been a dramatic
decline in average clickthrough rates (CTR) from 25% on the
first banner in 1994 which simply said click here, to an
average of 0.1%, although higher for rich media as video
streamed ads.
Interactive Advertising
2. Relatively high costs. Relative to some other online
marketing tools, such as search engine marketing and
affiliate marketing which also have the advantages of being
performance based, interactive advertising costs can be
relatively high, with media costs around £10 per thousand
ads served (£10 CPM), plus creative costs.
3. Branding effect difficult to quantify. Although it is
possible to pre-test and post-test online advertising
effectiveness, there are relatively few providers in this area. It
is a relatively costly discipline.
Interactive Advertising
Consider these advantages of today ’s display advertising, for
example for a car manufacturer:
1. Ads highly targeted. Media buyers can select the
right site or channel within a site to reach the
audience (e.g. a specialist online car magazine or review site
or the motoring channel within an online newspaper or TV
channel site). Audiences can also be targeted via their profile
through serving personalized ads, or ad in e-mail if visitors
have registered on a site.
Interactive Advertising
2. Ad networks can reduce costs. Ad networks from
suppliers such as Blue Lithium or 24–7 Media give
advertisers the options of advertising across a network of
sites to reach a particular demographic, e.g. ae 18–25, but at
a lower cost since the actual site used for the ad placement
isn ’t known (hence these are sometimes known as blind
network buys). Lower CPMs are achievable and in some
cases CPC or CPA payment options are available. Site owners
such as publishers use ad networks since it gives them a
method of gaining fees from unused ad inventory which has
not sold at premium rates.
Interactive Advertising
3. Behavioural re-targeting options. It is well known
from traditional media campaigns, that the impact of an
ad in terms of its ability to shape brand awareness, ad recall
and purchase intent is dependent on the ad frequency or the
number of times it is seen on average.
Interactive Advertising
 For example, if someone visits the car section of a site, then
the ad is served to them when they view other sections of the
site.
 Retargeting can work across an ad-network too and can
even be sequential, where the messages are varied for an
individual the more times they are exposed to the ad.
 Search retargeting offers the option to display an ad after a
visitor has searched on a particular term such a car marque.
Trackingof individuals is achieved through use of cookies .
Interactive Advertising
4. New ad formats can increase response. In the early days
of online advertising, most ads were simply banners of
468 x 60 dimension.
Today if you view ads served by rich media companies such as
Tangozebra ( www.tangozebra.com ) in their labs, you will
see that there is a wealth of Flash-based ad formats including
expandable banners and skyscrapers where if the user rollsover the ad, then a new ad can be triggered which might
include a streamed video clip, audio, a personalized message
or a form prompting someone to order a brochure, book a
dealer appointment or perform a search on a site.
Video
http://www.youtube.com/watch?v=WZmBLm9UPHg
Summary
 Types & Formats of Ads
 Contextual Ads
 Rich media Ads
 Email Advertising
 Interactive Advertising
There is that one last thing…
 Find three display Ads that you think are particularly
effective and three that are ineffective in your opinion.
 Identify the types of these Ads
 Are they contextual Ads?