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GONZAGA MBUS 676 - Online Advertising

Course: Mbus 676-
Pages: 54
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Chapter 5 Online AdvertisingLearning ObjectivesWeb Advertising Strategy Helps P&G CompeteWeb Advertising Strategy Helps P&G Compete (cont.)Slide 5Slide 6Slide 7Slide 8Slide 9Web AdvertisingWeb Advertising (cont.)Slide 12Slide 13Slide 14Slide 15Banner AdsBanner Ads (cont.)Slide 18Slide 19Advertising Methods (cont.)Slide 21Slide 22Slide 23E-Mail Advertising (cont.)Slide 25Slide 26Slide 27Slide 28Slide 29Advertising Strategies and PromotionsAdvertising Strategies and Promotions (cont.)Slide 32Slide 33Slide 34Slide 35Advertising Strategies and Promotions (cont.)Economics of AdvertisingEconomics of Advertising (cont.)Slide 39Special Advertising TopicsSpecial Advertising Topics (cont.)Slide 42Slide 43Slide 44Software Agents in Customer-Related and Advertising ShoppingSoftware Agents in Customer-Related and Advertising Shopping (cont.)Slide 47Slide 48Slide 49Unsolicited Electronic AdsUnsolicited Electronic Ads (cont.)Slide 52Managerial IssuesSummaryPrentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic CommerceChapter 5Online AdvertisingJason C. H. Chen, Ph.D.Professor of MISSchool of Business AdministrationGonzaga UniversitySpokane, WA 99223 [email protected]://barney.gonzaga.edu/~chenPrentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic CommerceLearning Objectives1. Describe the objectives of Web advertising and its characteristics.2. Describe the major advertising methods used on the Web.3. Describe various online advertising strategies and types of promotions.4. Describe the issues involved in measuring the success of Web advertising as it relates to different pricing methods.5. Describe permission marketing, ad management, localization, and other advertising-related issues.6. Understand the role of intelligent agents in consumer issues and advertising applications.7. Understand the problem of unsolicited ads and possible solutions.Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic CommerceWeb Advertising Strategy Helps P&G Compete•The Problem–To survive, consumer goods companies must constantly research the markets, develop new products, advertise, advertise, and advertise –Proper advertising strategy, including Web advertising, is critical to the welfare of any company in the consumer goods industry–P&G’s business problem is how to best use its advertising budget to get the most marketing “bang for its bucks”Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic CommerceWeb Advertising Strategy Helps P&G Compete (cont.)•The Solution–P&G started to advertise on the Internet in the late 1990s –By 2000, it had 72 active sites, mostly one site for each product –P&G’s major objective is to build around each major product a community of users on the WebPrentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic CommerceWeb Advertising Strategy Helps P&G Compete (cont.)–Objectives in building and maintaining these sites: •developing brand awareness and recognition (brand equity)•collecting valuable data from consumers•cutting down on advertising costs•conducting one-to-one advertisement•experimenting with direct sales of commodity-type products•selling customized beauty products to individualsPrentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic CommerceWeb Advertising Strategy Helps P&G Compete (cont.)–Approach includes:•research•development•investment in hundreds of products simultaneously•developing marketing partnerships •investing in promising start-ups •joining Transora.com, a B2B marketplace consortiumPrentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic CommerceWeb Advertising Strategy Helps P&G Compete (cont.)–Uses interactive sites to conduct data mining on Web data •build brand equity and awareness•test the waters for direct sales to customers•collect valuable data from consumers –Information helps curtail marketing and advertising expenses by enabling the company to target consumers more precisely and economicallyPrentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic CommerceWeb Advertising Strategy Helps P&G Compete (cont.)•The Results–most improvements achieved by its Web advertising strategy are qualitative–P&G also did extremely well during the economic downturn of 2000–2003–Its stock price climbed about 50%, whereas the average stock price on the New York Stock Exchange dropped over 30%Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic CommerceWeb Advertising Strategy Helps P&G Compete (cont.)•What we can learn…–Issues related to online advertising•advertising can be conducted in several different ways•there are many options of where and how to use such methods•It is difficult to measure quantitative results of online advertising as well as the relationship of advertising to market research online•the possibilities of one-to-one advertisement and product customization•possibility of relating advertising to direct sales onlinePrentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic CommerceWeb Advertising•Overview–Advertising is an attempt to disseminate information in order to affect buyer-seller transactions–Interactive marketing: Online marketing, enabled by the Internet, in which advertisers can interact directly with customers and consumers can interact with advertisers/vendorsPrentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic CommerceWeb Advertising (cont.)•Internet advertising terminology–ad views: The number of times users call up a page that has a banner on it during a specific time period; known as impressions or page views–button–pagePrentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic CommerceWeb Advertising (cont.)–Click (click-through or ad click): A count made each time a visitor clicks on an advertising banner to access the advertiser‘s Web site–CPM (cost per thousand impressions): The fee an advertiser pays for each 1,000 times a page with a banner ad is shown–Hit: Request for data from a Web page or filePrentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic CommerceWeb Advertising (cont.)–Visit: A series of requests during one navigation of a Web site; a pause of request for a certain length of time ends a visit–Unique isit: A count of the number of visitors to a site, regardless of how many pages


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