chapter 5 advertisement in electronic commerce

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Chapter 5

Advertisement in Electronic Commerce

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商業交易

不被認知 認知 熟悉

沒有交易過

零星交易

固定交易

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Internet Advertising Terminology

Ad views

Banner

Click (ad click)

Click ratio

Cookie

Effective frequency

Hit

Impressions

Reach

Visit

Search sorting service (reposition service)

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Why Internet Advertisement?

3/4 of PC users gave up some television time

Well educated, high-income Internet users are a desired target for advertisers

Ads can be updated any time with a minimal cost; making them timely and very accurate

Ads reach very large number of potential buyers all over the world

Online ads are much cheaper in comparison to television, newspaper, or radio ads

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Web Advertisement

個人一對一直銷 Web

電視 報紙 廣告手冊

廣告深度

互動

性

低

低

高

高

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Figure 5-1Adoption Curves for Various Media

Source: Morgan Stanley Technology Research.

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Targeted Advertisement

小眾、一對一 one-to-one

Customize ads to fit individuals

Can be expensive as well as rewarding

Gain cost effectiveness by targeting groups (based on segmentation)

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Pros of Internet Advertisement

Accessed on demand 24 hours a day, 365 days a year

costs are the same regardless of audience location

Accessed primarily because of interest in the content

market segmentation opportunity is large

Opportunity to create one-to-one direct marketing relationship with the consumerMultimedia will increasingly make Web sites more attractive and compelling

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Advertisement Methods- Banners

BenefitsCustomized to the target audience or one-to-one ads

Utilize “force advertising” marketing strategy

Direct link to advertiser

Multi media capabilities

LimitationsHigh cost

Declining click ratio—viewers have become immune to banners

Size of banners is too small

Banners--banners are everywhereKeyword banners Random banners

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Advertisement Methods (cont.)

Banner swappingDirect link between one site to the other siteAd space bartering

Banner exchangesFirm submits a bannerReceives credit when shows others’ bannersCan purchase additional display creditsSpecify what type of site where the banner is displayed

Use the credit to advertise on others’ sites

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Standard (pop up boxes that look like newspaper or magazine ads) and classified ads

Micro-sites5 advertising sizes larger than banners

Pop-up boxes at sites they are linked to

Classified adsSpecial sites (classifieds2000.com)

Free or for fee depending upon size

Advertisement Methods (cont.)

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E-mailSeveral million users may be reached directlyPurchase e-mail addressesSend the company information (low cost)A wide variety of audiences (customer database)Target a group of people that you know something aboutProblems:

Junk mail Spamming

Advertisement Methods (cont.)

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Advertisement Methods (cont.)

Mobile phonesInteractive one-to-one ads

Location, situation, weather-related ads

Splash ScreenCapture the user’s attention

Promotion or lead-in

Major advantage: create innovative multimedia

Spot leasingPermanent space on popular portal or Web page

Ads may be small and expensive

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Advertisement Methods (cont.)

URL (Universal Resource Locators)Advantages:

Minimal cost is associated with itSubmit your URL to a search engine and be listedKeyword search is used

Disadvantages:Search engines index their listings differentlyMeta tags can be complicated

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Chat RoomsVirtual meeting ground

Free addition to a business site

Allows advertisers to cycle through messages and target the chatter again and again

Advertising can become more thematic

More effective than banners

Used for one-to-one connections

Advertisement Methods (cont.)

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Advertisement Strategies

Internet-based Ad DesignVisually appealing

Targeted to specific groups or to individual consumers

Emphasize brands and a firm’s image

Part of an overall marketing strategy

Seamlessly linked with the ordering process

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Advertisement Strategies (cont.)

Internet-based ad design: important factorsPage-loading speed

Graphics and tables—simple, meaningful, and match standard monitors

Thumbnail (icon, graphs) are useful

Business contentClear and concise text with compelling page title and header text

Minimal amount of information requested for registration

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Advertisement Strategies (cont.)

Internet-based Ad Design: Important Factors (cont.)

Navigation efficiency and compatibilityLinks—well-labeled, accurate, meaningful Site—compatible with browsers, software, etc.

Security and privacySecurity and privacy must be assuredMust provide option for rejecting cookies

Marketing Customer FocusClear terms/conditions of the purchases—delivery information, return policy, etc. Confirmation page after a purchase

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Advertisement Strategies (cont.)

Pull (Passive) StrategyEffective site provides helpful and attractive contents and displayEffective and economical way to advertise, unidentified potential customers worldwideAdvertising World—non-commercial site that guides the process of finding customer’s requestsYahoo—portal search engine site regarded as effective aid for advertisement

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Advertisement Strategies (cont.)

Push (Active) StrategySending e-mails to relevant people

Obtaining mailing list—process of identifying target customers

Mailing list generation—uses agent technology, cookies, and questionnaires (filled out by customer)

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Advertisement Strategies (cont.)

Associated Ad Display StrategyAssociate the content of a Web page with a related ad like:

Search Yahoo on a topic, a banner pops up offering “search for books at”

Amazon.com Barnesandnoble.com

Keyword banners

Just-in-time strategy

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Push Technology

BenefitsRequested information they delivered automatically to their desktop via Web technology and the InternetDecreases the number of hours used to search the Web

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Push Technology (cont.)

Pointcasting—mass customization of information

Pre-specification profile

Select appropriate content

Download selection

4 types of push technology

Self-service delivery

Aggregated delivery

Mediated delivery

Direct delivery

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Intelligent Agents

Product BrokeringKnows the customer’s profile

Tailors ads to the customers, or asks them if they would like to receive product information

Alerts users to new releases

Recommends products based on: Past selections

Constraints specified by the buyers

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Effectiveness and Pricing of Advertisement

Exposure ModelsMultiple of number of guaranteed ad views

Number of hits

Click-ThroughNumber of times customers click on banner

Only effective for large corporations

InteractivityBased on how customer interacts with the ad view

How much time was spent viewing the ad

Actual PurchaseReferral fee based on customers moving to ad site to make a purchase

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Online Catalogs

Evolution of online catalogsMerchants—advertise and promote

Customers—source of information and price comparisons

Consist of product database, directory and search capability and presentation function

Replication of text in paper catalogs

More dynamic, customized and integrated

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Online Catalogs (cont.)

Classifications of catalogsDynamics of information presentation

Static catalogs—textual description and static pictures

Dynamic catalogs—motion pictures, graphics, sound

Degree of customizationReady-made catalogs: same catalog to all customers

Customized Catalogs: customized contents and display depending upon the customers

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Electronic catalogs allow integration ofOrder taking and fulfillmentElectronic paymentIntranet workflowInventory and accounting systemSuppliers’ extranetRelationship to paper catalogs

Online Catalogs (cont.)

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Customized Catalogs

Assembled specifically for:A company

An individual shopper

Customization systems can:Create branded, value-added capabilities

Allows user to compose order

May include individualized prices, products, and display formats

Automatically identify the characteristics of customers based on the transaction records

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Reposition Service

Affect the sort sequence of Google/Yahoo

Effective exposure

Search behaviorNavigation through a tree

Free text search

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協助中小企業提高曝光

前提：廣告經費有限搜尋服務網站的收費高

明確的廣告效果和中性報導的效果明顯的廣告效果較差

聰明排序較低的廣告費用較高的成效