Lecture 15 - Advertisement in electronic commerce. After studying this chapter you will be able to understand: Web advertisement, its types and characteristics; major advertisement methods used on the web, ranging from banners to chat rooms; describe various web advertisement strategies; describe various types of promotions on the web; discuss the benefits of push technology and intelligent agents.
Advertisement in Electronic Commerce Lecture 15 Summary of Previous Lecture Electronic Commerce definition E-Commerce Infrastructure Related Definitions Dimensions of Electronic Commerce Product Process Delivery Agent Commerce Differences E-Commerce Field Summary of Previous Lecture People Public Policy Technical standards and Protocols Organization Electronic Market Types of E-Commerce Business to Consumer Business to Business Consumer to Consumer Summary of Previous Lecture Person to Person Consumer to Business Business to Employee G2G (Government-to-Government), G2E (Government-to-Employee), G2B (Government-to-Business), B2G (Business-to-Government), G2C (Government-to-Citizen) Summary of Previous Lecture Types of Inter organizational systems Benefits of E-Commerce Electronic data interchange (EDI) Extranets Electronic funds transfer (EFT) Integrated messaging systems Shared databases Electronically-supported supply chain management Benefits to organization Benefit to customers Benefits to society Limitations of E-Commerce Today’s Lecture Objectives Web advertisement, its types and characteristics Major advertisement methods used on the Web, ranging from banners to chat rooms Describe various Web advertisement strategies Describe various types of promotions on the Web Discuss the benefits of push technology and intelligent agents Today’s Lecture Objectives Understand the major economic issues related to Web advertisement Describe the issues involved in measuring the success of Web advertisement as it relates to different ad pricing methods Describe Web advertisement implementation issues ranging from ad agencies to the use of intelligent agents Where to start? Web Advertisement: A Way to Make Money out of your Computer What is Advertisement? Advertising is an attempt to disseminate information in order to affect a buyer-seller transaction Internet Advertisement Internet Advertisement is gaining popularity because, Three-quarters of PC users gave up some television time Internet users are well educated with highincome, which makes them a desired target for advertisers Ads can be updated any time with a minimal cost; therefore they are timely and very accurate Advertisement Strategies Internet-base Ad Design: Important Factors Navigation Well-labeled, accurate, meaningful links are a must Site must be compatible with browsers, software, etc Security Efficiency and Privacy Security and privacy must be assured Option for rejecting cookies is a must Marketing/Customer Focus Clear terms and conditions of the purchases, including delivery information, return policy, etc must be provided Confirmation page after a purchase, is needed Advertisement Strategies Passive Pull Strategy Customer will visit a site if it provides helpful and attractive contents and display Effective and economical way to advertise, unidentified potential customers worldwide Advertising World is a non-commercial site that can guide the process of finding the customer’s wish Yahoo is a portal search engine site which can be regarded an effective aid for advertisement Advertisement Strategies Active Push Strategy Sending e-mails to the relevant people Obtaining the mailing list is the process of identifying target customers Mailing list generation is done in companies by using agent technology and cookies as well as by filling out questionnaires (by customers) Advertisement Strategies Ad as a Commodity CyberGold exchange of direct payment made by the advertisers for viewing ads consumers fill out questionnaires CyberGold distributes targeted banners the reader clicks the banner to read it and, passing some tests on its content, is paid for the effort Implementing the Strategies Customized Ad Strategy Filtering the irrelevant information by providing customized ads One-to-One advertisement Implementing the Strategies Comparison Aid as Medium of Customer Advertisement MetaMalls Customer Assistant MetaMalls Coordinator Direct Visit Mall Operator A Mall Operator B Mall Operator C Product Database Product Database Product Database Summary and Index Database Online Events, Promotions and Attractions How to attract Web surfers to read Internet ads There are dozens of innovative ideas; here are some examples : Yoyodyne Inc conducts give-away games, discounts, contests & sweepstakes Its entrants agree to read product information of advertisers ranging from Major League Baseball to Sprint communication Netzero and others offer free Internet access in exchange for viewing ads www.egghead.com uses real people to help you www.lucent.com uses live people to talk to you over the phone and then “push” material and ads to your computer Lucent.com Web attraction Push Technology Benefit : instead of spending hours searching the Web, people can have the information they are interested in delivered automatically to their desktop via Web technology and the Internet Push Technology Pointcasting Analogous to mass customization Transmits the most relevant information directly to the user Push on the Intranet Companies use push technology to set up their own channels to pointcast important internal information to either their own employees (on intranets) and/or their supply chain partners (on extranets) The Future of Push Technology Drawback : the bandwidth requirements are large Experts’ prediction : the technology will never fly Intelligent Agents Intelligent Agents are automatic programs, which run separately and are capable of performing different advertisement related functions For example, Product Brokering Agents Knows the customer’s profile Tailors an ad to the customers, or asks them if they would like to receive product information Alerts the users to new releases, recommends products based on past selections, or constraints specified by the buyers Today’s Misconception Summary Today we have been learnt How to advertise on the Web? Web Advertisement Web Advertisement Terminologies Ad views Banner Clicks (or ad clicks) Click Ratio Cookie CPM Summary Effective Frequency Hit Impressions Reach Visit Pros of Internet Advertisement Double Click Approach Advertisement Methods Banners and Banner Exchanges Banner Swapping Summary Advertisement Strategy Internet Based Ad Design Passive Pull Strategy Active Push Strategy Ad as a Commodity Push Technology Implementing Strategy Intelligent Agents ... Previous Lecture Person to Person Consumer to Business Business to Employee G2G (Government-to-Government), G2E (Government-to-Employee), G2B (Government-to-Business), B2G (Business-to-Government),... (Business-to-Government), G2C (Government-to-Citizen) Summary of Previous Lecture Types of Inter organizational systems Benefits of E-Commerce Electronic data interchange... Shared databases Electronically-supported supply chain management Benefits to organization Benefit to customers Benefits to society Limitations of E-Commerce Today’s Lecture Objectives