Lecture-16

Advertisements in digital marketing

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PhD., Elbek Khodjaniyazov

Learning Objectives

1. Describe consumer market research in EC.
2. Describe the objectives of Web advertising and its characteristics.
3. Describe the major advertising methods used on the Web.
4. Describe mobile marketing concepts and techniques.
5. Describe various online advertising strategies and types of promotions.
6. Describe some implementation topics.

8-1

Web Advertising

• interactive marketing

Online marketing, facilitated by the Internet, by which marketers and advertisers can interact directly with customers, and consumers can interact with advertisers/vendors

8-2

8-3

Web Advertising

• SOME BASIC INTERNET ADVERTISING TERMINOLOGY
• ad views

The number of times users call up a page that has a banner on it during a specific period; known as impressions or page views

• button

A small banner that is linked to a website; may contain downloadable software

8-4

Web Advertising

• page

An HTML (Hypertext Markup Language) document that may contain text, images, and other online elements, such as Java applets and multimedia files; may be generated statically or dynamically

• click (ad click)

A count made each time a visitor clicks on an advertising banner to access the advertiser’s website

• CPM (cost per mille, i.e., thousand impressions)

The fee an advertiser pays for each 1,000 times a page with a banner ad is shown

8-5

Web Advertising

• conversion rate

The percentage of clickers who actually make a purchase

• click-through rate/ratio (CTR)

The percentage of visitors who are exposed to a banner ad and click on it

• hit

A request for data from a Web page or file

8-6

Web Advertising

• visit

A series of requests during one navigation of a website; a pause of a certain length of time ends a visit

• unique visit

A count of the number of visitors entering a site, regardless of how many pages are viewed per visit

• stickiness

Characteristic that influences the average length of time a visitor stays in a site

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8-7

Web Advertising

• Advertising Online and Its Advantages
• Cost
• Richness of format
• Personalization
• Timeliness
• Location-based
• Linking
• Digital branding
• Traditional Versus Online Advertisement

8-8

Online Advertising Methods

• MAJOR CATEGORIES OF ADS
• Classified Ads
• Display Ads
• Interactive Ads
• banner

On a Web page, a graphic advertising display linked to the advertiser’s Web page

• keyword banners

Banner ads that appear when a predetermined word is queried from a search engine

8-9

Online Advertising Methods

• random banners

Banner ads that appear at random, not as the result of the user’s action

• live banners

A banner ad that is created dynamically (or whose content is created dynamically) at the time of display, instead of being preprogrammed with fixed content

• Benefits and Limitations of Banner Ads

8-10

Online Advertising Methods

• pop-up ad

An ad that appears in a separate window before, after, or during Internet surfing or when reading e-mail

• pop-under ad

An ad that appears underneath the current browser window, so when the user closes the active window the ad is still on the screen

8-11

Online Advertising Methods

• e-mail marketing

A form of direct marketing which uses e-mail as a means of communicating commercial messages to an audience

• e-mail advertising

Adding advertisements to e-mail messages sent to customers

• The Major Advantages and Limitations of E-Mail Advertisement
• Implementing E-Mail Advertising

8-12

Online Advertising Methods

• search advertising

A method of placing online advertisements on Web pages that show results from search engine queries

• URL Listing
• Keyword Advertising
• search engine optimization (SEO)

The craft of increasing site rank on search engines; the optimizer uses the ranking algorithm of the search engine (which may be different for different search engines) and best search phrases, and tailors the ad accordingly

8-13

8-14

Online Advertising Methods

• GOOGLE: THE ONLINE ADVERTISING KING
• Google’s Major Advertisement Methods: AdWords and AdSense
• viral marketing (viral advertising)

Word-of-mouth marketing by which customers promote a product or service by telling others about it

8-15

Online Advertising Methods

• VIDEO ADS
• Consumer-Generated Videos
• interactive video

A technique used to blend user interaction and videos

• viral video

A video clip that gains widespread popularity through the process of Internet sharing, typically through e-mail or IM messages, blogs, and other media-sharing websites

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8-16

8-17

Online Advertising Methods

• advergaming

The practice of using computer games to advertise a product, an organization, or a viewpoint

• augmented reality (AR)

A live direct or indirect view of a physical, real-world environment whose elements are augmented by computer-generated sensory input, such as sound or graphics

• ADVERTISING IN CHAT ROOMS AND FORUMS

8-18

Mobile Marketing and Advertising

• mobile marketing

Conducting marketing on or with a mobile device

• mobile advertising (m-advertising)

Ads sent to and presented on mobile devices

• Mobile Interactive Advertising
• Types of Mobile Ads
• Viral Mobile Marketing
• Mobile Marketing and Advertising Campaigns
• Representative Examples of Mobile Advertising

8-19

8-20

Mobile Marketing and Advertising

• MOBILE MARKETING IMPLEMENTATION GUIDELINES
• Notice
• Choice and consent
• Customization and constraint
• Security
• Enforcement and accountability
• TOOLS TO SUPPORT MOBILE ADVERTISEMENT
• MOBILE AD TRENDS

8-21

Advertising �Strategies and Promotions

• spamming

Using e-mail to send unwanted ads (sometimes floods of ads)

• permission advertising

Advertising (marketing) strategy in which customers agree to accept advertising and marketing materials (known as opt-in)

8-22

Advertising �Strategies and Promotions

• OTHER ADVERTISING STRATEGIES
• affiliate marketing

A marketing arrangement by which an organization refers consumers to the selling company’s website

• affiliate network

A network that acts as an intermediary between publishers (affiliates) and merchant affiliate programs

• Ads as a Commodity (Paying People to Watch Ads)
• Selling Space by Pixels

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8-23

Advertising �Strategies and Promotions

• Personalized Ads
• Webcasting

A free Internet news service that broadcasts personalized news and information, including seminars, in categories selected by the user

• Ad Exchanges
• Advertisement as a Revenue Model
• pay per click (PPC)

A popular Internet advertising payment model where advertisers pay their host only when the ad is clicked on

• Choose-Your-Own-Ad Format

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8-24

Advertising �Strategies and Promotions

• ONLINE EVENTS, PROMOTIONS, AND ATTRACTIONS
• Live Web Events for Advertising
• localization

The process of converting media products developed in one environment (e.g., country) to a form culturally and linguistically acceptable in countries outside the original target market

• INTELLIGENT AGENTS APPLICATIONS
• DEVELOPING AN ONLINE ADVERTISING PLAN

8-25

8-26

8-27

Managerial Issues

1. Do we focus on value-creating customers?
2. Which Internet marketing/advertising channel do we use?
3. What metrics do we use to guide advertisers?
4. What is our commitment to Web advertising?
5. Should we integrate our Internet and non-Internet marketing campaigns?
6. Who will conduct the market research?
7. Should we use intelligent agents?
8. Should we use mobile coupons?
9. What ethical issues should we consider in online marketing?

8-28

Summary

1. Factors influencing online consumer behavior
2. The online consumer decision-making process
3. Increasing loyalty and trust
4. Market segmentation and building one-to-one relationships with customers
5. Online personalization
6. EC consumer market research
7. Objectives and characteristics of Web advertising
8. Major online advertising methods
9. Mobile Marketing
10. Various advertising strategies and types of promotions

8-29