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CHAPTER 7: Online Advertising & Marketing By Group H: Kim Pace Matt Kluger Tara Flynn Marc Buontempo Kavita Kusumgar BUAD477-11 Online Advertising Banner Ads - Criticized but dominant online advertising method - “A rectangular box, usually horizontal on the page that contains advertising material.”- Internet Marketing Interstitials • Aka “pop-ups” • Appear while other material is loading • Interfere with loading speed • Click through rates higher than static banner ads Banner Ads & Interstitials Static to Dynamic Rich Media • Dynamic images • 3-D images • Mouse-overs Interactive Marketing Units (IMUs) • • • • 2001 Larger Meaningful graphics flash 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 Are Changing Ad Serving Trend Report Double Click Q3 2004 Online Advertising becoming like other forms of media => More Predictable Larger Units the new standard • 1st: Banner (25.2 %) • 2nd: Leaderboard (9.3%) • 3rd: Skyscrapers (10%) • 4th: Large Rectangles (5.3%) • www.google.com/adsense/adformats Click rates more stable recently after years of decline Doubleclick.com Trend Report Rich Media rates steady after a decline in 2003 Rich media click rates typically 5X higher than non-rich Doubleclick.com Trend Report More than 5X conversions resulted from view-through (not click-through) Frequency Capping How often user exposed to particular advertisement can be manually controlled Limits number of exposures to unique users Rarely used Useful for: • Online reach for a given demographic group • Cap so that frequent users not overexposed & light users more likely to view ads Conclusion “Online Advertisers are still stretching their legs in terms of adopting various techniques to improve the performance of their online advertising.” -Double Click Q3 2004 Ad Serving Trend Report Search Engines Used by virtually all internet users All search engines are different 3 primary ways to use search engines • Keywords • Title Tags • Meta Tags Search Engines in Marketing Marketers should learn how different engines work Should adopt a forecasting plan • Identifies spending in relation to sales impact • Determine volume with cost per acquisition • Select most effective mix of keywords • http://www.google.com • http://www.yahoo.com Blogcritics.org: “What are the Most Effective eMarketing Tools?” “Which ones (eMarketing Tools) do work best?.... -- the ones you can easily track and see how what you spend leads directly to sales” - Scott Frangos To be successful advertisers must focus on reliable eMarketing methods, mainly: • Affiliate Programs • eNewsletters (a.k.a. and directly related to email marketing) • Pay-per-click search engine listings • And to some degree RSS (Really Simple Syndication) feeds such as those you subscribed to for class through www.bloglines.com Understanding Affiliate Programs Taking advantage of affiliate programs helps to bring new customers, and clearly qualifies as a customer acquisition technique Websites can advertise each other with this method Examples on the web: • Amazon's Affiliate Marketing Program Site • Buad 477 Class Blog Affiliate program directors and their participants can track per sale and/or per click and be able to determine what there cut of the transaction is. E-Mail Marketing Offers a fast, flexible, and highly controllable format. Can be developed quickly, tested, and revised on the fly. E-mail marketing has an extremely wide reach and is cheap on a per customer contact basis Spam • Unsolicited, irresponsible, and measures are being put in place to curb it • Turntide Anti-Spam Router Website E-mail Recipient Acquisition Techniques Opt-out Opt-in Double opt-in When searching for leads, marketers should always choose quality over quantity Privacy Policies Back to the Article… The author emphasizes that eNewsletters are the most effective way for reputable companies to advertise through email. • Topica provides businesses with eNewsletter services • http://www.topica.com/?p=CNJN&l=text1 When commenting on why eNewsletters are so effective: “Newsletters take time and deserve a quality editing process. The better written they are, the better are your results…A newsletter, well written, develops a sort of bond with your customers. ” “Smart” Autoresponders • New tools to help marketers achieve customer loyalty by easily customizing mass emails Wrapping things up… 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 more to use the opt-in technique, then so be it. The author also stresses that affiliate marketing is both cost effective, fast, and far reaching in this quote: • “A well managed affiliate program (sometimes called ‘viral’ marketing because it spreads so quickly), can pay off in a big way without any up front costs of advertising other than to install and announce it.” In summation, with eMarketing you have to • “pay for results -- not just ‘placement’, extend your reach ‘virally’, when possible, and use smart systems (like auto respondents) to get the economic advantage in your marketing.” Any Questions?