Benefits of Electronic Promotion

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Benefits of Electronic Promotion

• Fastest growing medium in history, with many
  traditional media losing audiences
• Excellent demographic profile for marketers
• Young, well-educated, high income, gender-diverse
• Can communicate longer, more content-rich
  information
• Quicker and less costly to change ad information
• Interactive, engaging, and persuasive
• Segment-of-one customization of ad views
• Can collect info about who views ads to gauge
  impact
• Selecting correct metric is critical

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Advertising Metrics

• Impressions or Exposures
• Simply the of times the page containing the ad
  is viewed.
• Measured by counting the number of times the ad
  rotates through or pops-up on a web site
• Site Stickiness
• The average length of stay of visitors to a web
  site.
• Visitors might access one site frequently but for
  short durations, while accessing another site
  infrequently but for longer periods. The key is
  overall of minutes.
• It is important in selling ad space, as well as
  in evaluating the results that you get from
  impressions
• Server log files are great for measuring this.
• E-Bay, Iwon, and Yahoo! are among the most sticky
  web sites

3
Advertising Metrics

• Cost-per-thousand (CPM)
• A common advertising pricing term, it is the cost
  of gaining 1,000 impressions
• Ex. 30,000 impressions of a banner ad on a web
  site at a CPM of 20 would cost 600
• Click-through-rate (CTR)
• The number of users or visitors delivered to a
  site by a particular advertisement or the
  percentage of people who click on a web banner
  and visit a site
• Considered to be a more accurate measure of the
  results of an advertising campaign because it
  measures responses to the ad rather than
  exposures
• Ex. An ad that generates only 1000 exposures, but
  gets 40 responses is far more efficient than one
  that generates 10,000 exposures but only 100
  responses

4
Advertising Metrics

• Cost-per-visitor (CPV)
• The cost of a given ad divided by the of
  responses obtained from it.
• Essentially combines CPM and CTR to evaluate
  effectiveness of ad placements
• On a website with a CPM of 20 and a CTR of 2,
  it costs you 1 per visitor a website with a 40
  CPM and a CTR of 10 costs you .40 per visitor.
  The higher CPM ad actually has greater value to
  you.
• Cost-per-order (CPO)
• Cost of a given ad divided by the of orders

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Types of Electronic Promotion
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Banner Advertisements

• Typically rectangular boxes containing graphics
  and text, with hyperlink to the advertised site
• Available in a variety of sizes
• Can be placed in a wide variety of online
  locations, from search engines to browsers to
  malls
• Usually priced based on cost-per-thousand (CPM)
  or click-through-rate (CTR)
• CPM is high relative to traditional media, but
  amount of attention paid and stickiness spent in
  front of ad is better
• Visit www.bannertips.com

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Sponsorships

• A company sponsors a service oriented web site or
  event by paying costs associated with maintaining
  the site in exchange for having their name, logo,
  etc. on the site.
• Customers can click through to get to the
  sponsoring site
• Similar to banners, but different in two primary
  aspects
• Ad typically stays on the site for longer period
  of time often negotiated or specified in sponsor
  agreement with a flat rate for a guaranteed CPM
  or CTR
• Credible associations between advertiser and
  sponsored site web site endorses advertisers
  product
• Ex. Food.com, parenthoodweb.com,
  teamintraining.net
• Great for building brand recognition and
  acceptance

8
Portals/Search Engines

• Portals are ports of entry onto the web.
  Netscape, Yahoo!, AOL, et. are examples
• Most portal sites sell ad space to support their
  existence
• Ads on generic portals will provide broad base
  of consumers and are not very targeted
• Customized portals are those that the consumer
  has tailored (My Yahoo!, My Netscape). Ads
  delivered to these portals can be directed at
  specific target groups, so they are often more
  meaningful.

9
Email

• Easily the least expensive form of electronic
  advertising
• Direct email, is email sent to your own mailing
  list.
• Mailing list can be existing customers or
  potential customer list purchased from provider
• Embedded email ad, is a few lines of text
  embedded in another firms content firms
  purchase email space in email sent by other firms
  to their listserv.
• Should include hyperlink in the email ad for easy
  access
• Ex. Mountainzone embed email
• Future could also include graphics in the email
  ad.

10
Coupon Clicking

• Can be a form of banner ad, but may also be
  distributed via email, company web site, content
  sponsor, or offline.
• Great for targeting ads to specific consumers and
  for motivating action
• See coolsavings.com, petstore.com

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Usage Depends on Campaign Goals

• Building Brand Awareness
• Not looking for immediate sales, but simply
  building identity for your brand
• Attempts to enter evoked set of potential
  customers
• Mainly concerned about CPM
• Best to advertising media
• search engines, city guides, Top 100 Web sites,
  content sponsorship sites/ad networks

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Usage Depends on Campaign Goals

• Traffic Building
• Seeks to get as many viewers as possible to click
  on your ad and visit your site
• Use ads as teasers to bring traffic to web site
• Mainly concerned with CTR
• Best advertising media
• Banner ads, affiliate programs, content
  sponsorship

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Usage Depends on Campaign Goals

• Direct Sales
• Goal is to generate action by getting potential
  customers to come to the web site and purchase
• Two challenges generating traffic and motivating
  them to buy
• Cost concern is CPO
• Best media to use
• Email to existing and potential customers
• Online Coupons

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Cost Comparisons for Media Alternatives