Advertising on the Net

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Advertising on the Net

• Miklos A. Vasarhelyi

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Questions

• how big is the Net?
• how many people access the Internet?
• how do you earn money on the Internet?-through
  stock offerings?
• How do you make money advertising on the WWW?

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Facts

• in 1995, firms spent 10 M in Internet
  advertising
• in 1998, firms spent 1 B
• this value is expected to grow to 4b by the
  year 2000
• Internet advertising is a small portion of the
  industry

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Methods of advertising

• buying space in directories and search engines
• homepages
• links in common places
• segment definition and consumer base is the key
  to Web Marketing

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Comparison of advertising methods
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Places for Advertising

• Search Engines
• Online Services and Browsers
• Online News Publications
• Company Homepages

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Search engines

• context-based advertising
• Yahoo! (www.yahoo.com)
• Excite (www.excite.com)
• Lycos (www.lycos.com)
• Web Crawler (webcrawler.com)

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Search engines

• derive most income from advertising and links
• banners
• dumb or intelligent
• technologies evolving
• Nielsons I/PRO states that Yahoo! Received over
  1 M visits a day in Feb 1996

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Sectors that advertise on the Net

• telecoms
• Internet services
• Technology
• E-Commerce
• publishing

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Online Services and Browsers

• Netscape and AOL have 60 of the market
• others Microsoft (Internet Explorer),
  CompuServe, Prodigy, e Netcom.

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Commercial Homepages

• Adobe Systems, Inc. (www.adobe.com)
• Delta Airlines ( www.delta-air.com)
• IBM (www.ibm.com)
• Lexus Automobiles (www.lexususa.com)
• MasterCard (www.mastercard.com)
• Prudential (www.prudential.com)
• Sun Microsystems (www.sun.com)

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Economic Model

• number of imprints
• range from 30,000 to 50,000 for 100K imprints
• guaranteed number of downloads
• sponsorship and location are very important
• percentage of sales

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Bibliography

• Bass, Patrick Henry, "Riding the Information
  Superhighway," Black Enterprise, vol.26, n8,
  (March 1996), p 82-87.
• Gelormine, Vince, "Selling in Cyberspace,"
  Success, vol. 42, n4, p 61-69.
• Webcom, Welcome to InterNet Infos Stat Page,
  (www.webcom.com/walsh/stats.html)
• Hafner, Katie and Tanaka, Jennifer, "This Webs
  for You," Newsweek, (April 1, 1996), p 74-6.

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Bibliography (II)

• Taylor, Cathy, "Netscape Scopes Sponsors",
  Mediaweek, (March 20, 1995), p 6.
• Taylor, Cathy, "ESPN Site Still Holds Record for
  Pricing", Adweek, (August 7, 1995), p 10.
• Gattuso, Greg , "Web site "hits viewed vague as
  measurement" Direct Marketing, (August 1995) p
  8-9.
• Paul, Lauren Gibbons "Untangling the Web ROI" PC
  Week, (Jan 22, 1996) v13 n3 p E1-E3.

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Bibliography (III)

• Churbuck, David C., "Where is the money? ",
  Forbes ,(Jan 30, 1995) v115 n3 p 100-105.
• Mossberg, Walter "Cable Television May Make
  Internet As Accessible As TV" The Wall Street
  Journal , (April 18, 1996) p B1.
• Narisetti, Raju, "PG Steps Up Ad Cyper-Surfing
  Tide Could Have a Major Effect" The Wall Street
  Journal (April 18, 1996) p B14.
• Ruggless, Ron, "Restaurant chains byte into
  future with on-line marketing" Nations
  Restaurant News (Sept 11, 1995) v29 n36 p3.