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COMM 3353:
Communication
Web
Technologies I
Chapter 7a:
Advertising
www.class.uh.edu/comm/classes/comm3353/ppt/_Pres7a.html
Advertising
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Advertising and the World Wide Web
Advertising Rates
Selling the Medium
Web Ratings and Measurement
Advertising and the World
Wide Web
 The Internet and WWW as a Catalyst:
 An element that effects change without actually
being changed itself.
 Changing advertising strategies for the way
goods and services are sold:
 Online Services
 Multimedia Information
 Interactive Technology
Advertising and the World
Wide Web, Continued…
 A Brief History, Revisited. . .
 The Internet was initially envisioned as an
educational resource.
 No intention of misuse or use for marketing,
advertising, and sales.
 No security issues were ever taken into
consideration.
 No evidence of advancement in technology or
the way Internet functionality would change.
Advertising and the World
Wide Web, Continued…
 The emergence of the World Wide Web
brought about change to the initial intent
of the Internet.
 Interactivity is the driving force behind this
change.
 New kind of advertising, new kind consumer.
 The advertising community is struggling to
keep up and is involved in a major race to
establish its place on the web.
Advertising and the World
Wide Web, Continued…
 The Web creates a Global marketplace:
 By virtue, presents a fresh approach to
advertising.
 It creates a competitive online market.
 Vast amounts of room for growth and
expansion.
 Unlimited resources for exploration.
 The more the Web grows, the more
prosperous it becomes.
Advertising and the World
Wide Web, Continued…
 Web Advertising vs. Web Marketing
 Web Marketing:
 An organization establishing a Web site to
promote itself and its products.
 Presentation of products
 Providing ordering information
 Allowing for customer feedback
Advertising and the World
Wide Web, Continued…
 Web Advertising
 An organization contracts or makes financial or
trade arrangements to post their logos and
product information on someone else’s Web
site.
Advertising and the World
Wide Web, Continued…
 Types of Web Advertising
 Banner Ad
 Earliest type of Web Ad and currently most
widely used.
 Banners are generally active links.
 Spamming Ad
 Sending mass text docs to an enormous
number of email recipients at the same time.
 Can cause server problems.
Advertising and the World
Wide Web, Continued…
 The Transition to Internet Advertising
 1980s vs. 1990s:
 The 80’s saw a majority of advertising resources on
print and broadcast media.
 The early 90’s brought about new budgeting ideas
and funding possibilities that began identifying the
online audience.
 The late 90’s have seen a major advancement
toward internet advertising and the funding that goes
with it.
Advertising and the World
Wide Web, Continued…
 Benefits of Online Advertising
 Advertiser’s Perspective
 Advertisers are turning to the Internet to sell
their goods and services for a variety of
reasons:
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1) World Wide Marketplace.
2) Ideal for selective advertising.
3) free from time / space constraints.
4) updating / changing can be done more efficiently.
5) less expensive.
6) web advertising is considered “prestigious.”
Advertising and the World
Wide Web, Continued…
 Consumer’s Perspective
 Consumers buy online for many reasons,
including:
 Convenience.
 Single, unified shopping interface.
 Browsing / buying is instantaneous.
 (delivery is a different matter)
Advertising Rates
 Advertisers are concerned about cost / benefit
ratio of online advertising.
 (Is It Worth It. . .?)
 CPM (Cost per Thousand)
 CPM is calculated by dividing the cost of an Ad by the
number of individuals (in thousands) that the Ad reaches.
 CPM were initially developed and used in print and broadcast
media.
 Currently the most effective means of cost / benefit analysis.
Advertising Rates, Continued…
 Size-Based Pricing
 Calculated by the size (in sq. pixels) of the
online Ad.
 Sq. Pixel area is calculated by multiplying the
Height in pixels (X) Width in pixels of the Ad.
 A fee is then generated based on the sq. pixels
used.
Advertising Rates, Continued…
 Click-Through Rates
 Based on the percentage of visitors who click
through a banner Ad.
 Calculated by dividing the number of visitors
who see the Ad by the number of visitors who
actually click on it.
Advertising Rates, Continued…
 Result-Based Fees
 Allowing an Ad to be placed for little or no
charge, but accumulating fees when the Ad is
actually used.
 Difficult today because of the potential for
misrepresentation of users.
Advertising Rates, Continued…
 Advertising Exchanges:
 Companies agree to grant space to advertisers in
exchange for a small space on the other’s site.
 Discounts:
 Discounts for Ads that are “Web ready.”
 What Advertisers Want to Pay:
 Push Services use Click = Through Fees
 Brand Awareness = CPM
 Most Advertisers want a Hybrid of pricing styles.
Selling the Medium
 There are three main components to
Selling the Web for Advertising:
 Sales Force
 Separate Web Ad Sales Forces to sell space
for Ads on its Web Site.
 Online Campaign Management
 Keeping track of online Ad placement and
management.
Selling the Medium, Continued…
 Advertising Sales and Buys
 Advertising online can occur in almost any way
imaginable. The most common, most
successful to date are:
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Banner Ads
Classified Ads
Coupons
Email Ads
Web Ratings and
Measurement
 Web Ratings
 Evolution of classical media included reliable
methods of rating medium.
 Because Web technology is rapidly changing,
and given that it is relatively new, reliable rating
methods are not yet in place.
 As with any new technology, many
organizations and individuals are attempting to
implement a reliable form of web rating.
Web Ratings and
Measurement, Continued…
 Web Auditors
 Many companies that measure Web site
traffic are third-parties.
 Monitor click-through rates
 Verify visibility of rotating banner Ads.
 Report on Ad placement within the page.
 Provide user technology information.
 Through survey, provide demographics.
Web Ratings and
Measurement, Continued…
 Some New Web Rating Technologies:
 Web-O-Meter
 Measures web use in a sample of the
population through proprietary software.
 Attaches a “meter” to participating web site
which show how many users hit a particular Ad
or Site.
 Also reports on software and hardware
configurations of the users, and reports update
and upgrade information.
Web Ratings and
Measurement, Continued…
 Web Auditing
 Many media buyers require site audit
information prior to any deal being made.
 Most still do not.
 Measurement Standards
 Without measurement standards, it’s nearly
impossible to make site comparisons.
 The entire industry is calling for some
standardization.
The Internet and the
World Wide Web
• End Chapter 7,
Part I.