Comparitive Study between digital and trditional marketing

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Comparative Study Between Various Tools Of Digital Marketing

I. Introduction & research methodology

1.1 GENERAL INTRODUCTION OF PROJECT

Different tools of traditional marketing have been used by marketers for a long

time. The marketers have been using the traditional channels such as face to face

communication, TV, radio and magazines etc. to communicate to the customers.

Nowadays there is a new communication channel, Internet, added to these

traditional channels, which have brought lots of opportunities for marketers. Internet has

affected marketing process by providing opportunities that were not available by using

traditional marketing tools.

ll of the communication channels have an important function of their own but

Internet is a channel that has developed and is continuously developing which has got a

lot of attention from everyone.

!nowing the differences advantages and disadvantages between traditional and

Internet marketing, a marketer can be more capable to make the right decision whenchoosing the marketing strategy.

"ome interesting #uestions related to Internet marketing and traditional marketing

are$

%hat is the most beneficial marketing approach comparing traditional and Internet

marketing& %hich marketing tools are the most used ones in practice and which are

preferred by 'real life companies(& Is Internet marketing a contemporary version of

traditional marketing and are the two kinds of marketing independent of or

complementary to each other&

1




These issues are considered interesting by the authors of this thesis since choosing

a specific marketing method can be a difficult decision for a new company entering themarket.

There also might be some indistinctness about different marketing tools and their

benefits or drawbacks for others interested in the sub)ect, such as students studying

marketing.

1.2 OBJECTIVES OF STUDY

*. To understand the various aspects of online marketing.+. To study the effectiveness of social media marketing as compared to other

tools of digital marketing.. To know the reason behind the sudden boost in the field of -nline

arketing / Traditional v0s Digital arketing.

1.3 SCOPE OF STUDY

The aim of this study is to compare traditional marketing and Internet arketing

and show the differences of characteristics between them. nd to find out what marketing

tools are effective for a new business or entrepreneurs.

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1.4 RESEARCH METHODOLOGY

1.4.1 Forma!o" O# Pro$%&m

arketing is an important strategy for businesses and it contains numerous

effective tools. Traditional marketing has been in use for many years and

nowadays Internet has brought new ways of doing business for companies and that

has affected marketing.

%hat are the main differences between Internet marketing and traditionalmarketing& %hich one of the two approaches contains the most used and effective

marketing tools according.

1.4.2 Co%%&'!o" O# Daa

1esearch data collected was mainly secondary data. "econdary data was

collected from newspaper articles, books, )ournals, periodicals and websites.

The information gathered in this study was obtained through #ualitative

research from te2tbooks, websites, articles and interviews.

1.4.3 R&(&ar') L!m!a!o"

The study faces the limitation in respect to time as the research is carried

for four months

The #uestions are generalized which might not be true or relating to the

respondent.

3



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II. !om,any ,ro-le

GOLDROC+ INTERNATIONALS PVT. LTD.

A$o,-

They provide a wide range of services in terms of guiding and educating our customers in

different fields such as 3inance, arketing, 1eal 4state, 4ducation and Training, 4vent

anagement, 5usiness 4valuation as well as Insurance 4valuation.

'6ou have a doubt& sk us.(

Their e2cellent research team goes through each and every aspect of a given situation in

order to e2plore the various possibilities and hence arrive to a relevant conclusion. The

reports provided by them are much more reliable, precise and transparent.

They believe that every customer is different and has different preferences. They make

sure to consider these preferences and provide services best suitable to these individuals

thus providing a personalized e2perience.

They have e2perts from various fields that make it possible for us to provide such a wide

range of services.

They started our business with providing financial services and have now diversified to

various other fields. They constantly strive to provide the best services to our clients in

diverse fields.

-ur primary initiative is to educate the common man about the know / how of financial

markets, e#uity, stocks etc. so that their hard earned money is not lost due to mere

ignorance of knowledge of the financial market. 7ence, they have formulated a

/




vocational educational module that, they believe, shall help the common man gain

thorough knowledge about how the market works.

H!(or-

It all started in the year +889, the same year in which the stock market crashed and

recession took place. bunch of students from "t. ndrew:s ;ollege, umbai were

en)oying their meal in the college canteen and casually discussing about the stock

market< what went wrong& 7ow it could have been avoided& 7ow people lost their

money due to poor decision making& 4tc.

Then randomly we came up with the idea of starting our own venture in order to educate

the customers about how to select the right investment plan.

Initially, we all were #uite intrigued by the idea and showed a lot of interest and each oneof us supported with more ideas. ll students met a number of times but couldn=t

formulate a proper business plan and could not proceed due to capital investment. any

people wanted to )oin the team but couldn=t stay till the end.

7owever, the idea still survived in the minds of few of us and after much wandering and

going back and forth a number of times, finally after > years, the plan was ready with

some investments to the business. 5ut, they still couldn:t afford a physical office. "o we

started off the business online with our initial website named goldrockfinancials.com

-n *st ?une, +8*> the office was inaugurated and our )ourney began from there....

V!(!o"-

@To be the most reliable company in the eyes of customers in providing accurate and

transparent information and to educate them in financial decision making,@

Pro/,'(-

3inance

• 4#uity

• utual 3und

0




• "IA

• Debt

• ;ommodities

• 3ore2

arketing

• Digital marketing

• -utdoor arketing

• 4ducation

• Training

• "eminars

•Trading Buide

• Terminologies

2.1 T)& I"&r0!&-

The founder C director of Boldrock Internationals was asked to e2press his view on

online marketing.

7ow effective is it in terms of a new business with less capital& Does it provide the

desired results&

7ere are his views on the same<

“Online Marketing or Internet marketing is a very important

tool to o marketing! T"e #ost involve in online marketing is

#ost e$e#tive an rea#"es many people in i$erent so#ial

net%orking sites an sear#" engines! Toay o&r #ompany "asinveste only in igital marketing an %e'site more t"an its

interior esigning! It(s not a'o&t "o% m&#" %e spen on

avertisement) it(s all a'o&t "o% %e manage o&r

avertisements 'ase on t"e vie%er(s presen#e online every

ay! T"e re#ognition an 'ran a%areness is easily #reate




t"ro&g" online marketing %"i#" #an 'e #reate in very s"ort

time #ompare to o&toor avertisement! T"e rea#" o* o&r

#ompany to millions o* people in +&st one #li#k is t"e 'est part

o* online marketing! T"e transparen#y o* online marketing

"elps in &nerstaning t"e total pro&#tivity or o&tp&t

generate t"ro&g" t"e #ampaign!

I* yo& ask me a'o&t online marketing I %ill iversi*y it into On ,

-age Marketing an O$ , -age Marketing! .ot" are e&ally

important0 '&t on page marketing is s&staina'le as it #an(t 'e

#"ange! Ho%ever0 O$ , -age marketing like so#ial meia an

sear#" engine marketing 'e#omes little e1pensive an t"e

pro&#tivity is getting re&#e over a perio o* time! So#ial

meia "elps yo& to p&t somet"ing on yo&r vie%er(s mins t"at

yo&r #ompany still e1ists %it" "elp o* &pates an posts! T"e

'&siness generate o&t o* so#ial meia slo%ly sliing o%n

an #ompanies s"i*ting *rom %e'site 'ase '&siness to

appli#ation 'ase '&siness!

So i* somet"ing else #omes in t"e *&t&re %"i#" is more

pro&#tive0 no entreprene&r %ill re*&se to s%it#"! 2e are more

3e1i'le in trying ne% avertisement an marketing tool to

e1pan o&r '&siness!4

- Mr! Ni1on 5eorge0 6o&ner 7 Diretor 5olro#k International -vt! Lt!




III. INTRD!TIN T Digital mareting

3.1 D&#!"!!o"

Digital marketing is an umbrella term for the targeted, measurable, and

interactive marketing of products or services using digital technologies to reach and

convert leads into customers.

The key ob)ective is to promote brands, build preference and increase salesthrough various digital marketing techni#ues. It is embodied by an e2tensive selection of

service, product and brand marketing tactics, which mainly use the Internet as a core

promotional medium, in addition to mobile and traditional TV and radio.

Digital marketing concepts and practice are evolving tremendously among several

industries, especially by the leading companies among each industry utilizing the mass

reach of digital tools and social media platforms, benefiting from the possibility to create

individually tailored approach that can achieved at a very productive cost

Digital marketing activities are search engine optimization "4-E, search enginemarketing "4E , content marketing, influencer marketing, content automation,

campaign marketing, and e<commerce marketing, social media marketing, e<mail direct

marketing, display advertising, e/books, optical disks and games, and any other form of

digital media.

It also e2tends to non<Internet channels that provide digital media, such as mobile

phones "" and "E, callback and on<hold mobile ring tones.

ccording to the Digital arketing Institute, Digital arketing is the use of digital channels to promote or market products and services to consumers and businesses.

1

https://en.wikipedia.org/wiki/Search_engine_marketing


https://en.wikipedia.org/wiki/Social_media_marketing

https://en.wikipedia.org/wiki/SMS

https://en.wikipedia.org/wiki/Multimedia_Messaging_Service

https://en.wikipedia.org/wiki/Digital_Marketing_Institute


https://en.wikipedia.org/wiki/SMS


https://en.wikipedia.org/wiki/Digital_Marketing_Institute






3.2 H!(or

The term =digital marketing= was first used in the *998s. In the +888s and the

+8*8s, digital marketing became more sophisticated as an effective way to create a

relationship with the consumer that has depth and relevance.

%hile the term =digital marketing= may not have been used until the *998s, digital

marketing itself has roots to the mid<*9F8s when the "oftd Broup,

now ;hannelNet developed advertising campaigns for several ma)or automobile

companies, wherein people would send in reader reply cards found in magazines and

receive in return floppy disks that contained multimedia content promoting various carsand offering free test drives.

The rapid evolution of digital media has created new opportunities and avenues for

advertising and marketing. 3ueled by the proliferation of devices to access digital media,

this has led to the e2ponential growth of digital advertising.

In +8*+ and +8* statistics showed digital marketing remained a growing field.

Digital media growth is estimated at >.G trillion online ads served annually with

digital media spend at >FH growth in +8*8. n increasing portion of advertising stemsfrom businesses employing -nline 5ehavioral dvertising -5E to tailor advertising for

Internet users.

Though an innovative resource, -5 raises concern with regards to consumer

privacy and data protection. "uch implications are important considerations for

responsible communications. Digital marketing is often referred to as =online marketing=,

=internet marketing= or =web marketing=.

The term =digital marketing= has grown in popularity over time, particularly in

certain countries. In the " =online marketing= is still prevalent, in Italy is referred as

=web marketing= but in the ! and worldwide, =digital marketing= has become the most

common term, especially after the year +8*.

11

https://en.wikipedia.org/wiki/ChannelNet

https://en.wikipedia.org/wiki/ChannelNet




3.3 La&( D&0&%om&"( a"/ Sra&!&(

s digital marketing is dependent on technology which is ever<evolving and fast<

changing, the same features should be e2pected from digital marketing developments and

strategies. This portion is an attempt to #ualify or segregate the notable highlights

e2isting and being used as of press time.

Segmentation$ ore focus has been placed on segmentation within digital

marketing, in order to target specific markets in both business to business and business to

consumer sectors.

I. Influencer Marketing $ Important nodes are identified within related

communities, known as influencers. This is becoming an importantconcept in digital targeting. It is possible to reach influencers via paid

advertising, such as 3acebook dvertising or Boogle dwords

campaigns, or through sophisticated s;1 social customer relationship

managementE software, such as "A ;>;, icrosoft Dynamics, "age

;1 and "alesforce ;1. any universities now focus, at asters

Jevel, on engagement strategies for influencers.

To summarize, Aull digital marketing is characterized by consumers actively

seeking marketing content while Aush digital marketing occurs when marketers send

messages without that content being actively sought by the recipients.

II. Online Behavioural Advertising $ -nline 5ehavioural dvertising refers

to the practice of collecting information about a user:s online activity

over time, 'on a particular device and across different, unrelated

websites, in order to deliver advertisements tailored to that user:s

interests and preferences.

III. Collaborative Environment $ collaborative environment can be set up

between the organization, the technology service provider, and the digitalagencies to optimize effort, resource sharing, reusability and

communications.

n important consideration today while deciding on strategy is that the digital

tools have democratized the promotional landscape.

12

https://en.wikipedia.org/wiki/Technology

https://en.wikipedia.org/wiki/Technology




13




3.4 D!!a% Mar&!" C)a""&%(

Digital arketing is facilitated by multiple channels, s an advertiser one=s core

ob)ective is to find channels which result in ma2imum two way communication and a

better overall 1-I for the brand. There are multiple online marketing channels available

namelyK

*. ffiliate marketing

+. Display dvertising

. 4mail marketing

>. "earch arketing

G. "ocial edia

L. "ocial Networking

Multi-channel communications

Aush and pull message technologies can be used in con)unction.

3.* S&%#5r&,%a!o"

The I;; ;ode has integrated rules that apply to marketing communications using

digital interactive media throughout the guidelines. There is also an entirely updated

section dealing with issues specific to digital interactive media techni#ues and platforms.

;ode self<regulation on use of digital interactive media includes$

• ;lear and transparent mechanisms to enable consumers to choose not to have their

data collected for advertising or marketing purposesK

• ;lear indication that a social network site is commercial and is under the control

or influence of a marketerK

1

http://www.codescentre.com/icc-code.aspx

http://www.codescentre.com/icc-code.aspx




• Jimits are set so that marketers communicate directly only when there are

reasonable grounds to believe that the consumer has an interest in what is being

offeredK

• 1espect for the rules and standards of acceptable commercial behaviour in social

networks and the posting of marketing messages only when the forum or site has

clearly indicated its willingness to receive themK

• "pecial attention and protection for children.

1.




I#. All A/out online ) internet mareting

-nline advertising, also called online marketing or Internet advertising is a form

of marketing and advertising which uses the Internet to deliver promotional marketing

messages to consumers. It includes email marketing, search engine marketing "4E,

social media marketing, many types of display advertising including web

banner advertisingE, and mobile advertising.

Jike other advertising media, online advertising fre#uently involves both a

publisher, who integrates advertisements into its online content, and an advertiser, who

provides the advertisements to be displayed on the publisher=s content.

-ther potential participants include advertising agencies who help generate and

place the ad copy, an ad server which technologically delivers the ad and tracks statistics,

and advertising affiliates who do independent promotional work for the advertiser.

In +8**, Internet advertising revenues in the nited "tates surpassed those of cable

television and nearly e2ceeded those of broadcast television. In +8*, Internet advertising

revenues in the nited "tates totaled M>+.F billion, a *H increase over the ML.G billion

in revenues in +8*+.

.". internet ad revenue hit a historic high of M+8.* billion for the first half of

+8*, up *FH over the same period in +8*+. -nline advertising is widely used across

virtually all industry sectors.

any common online advertising practices are controversial and increasingly

sub)ect to regulation. -nline ad revenues may not ade#uately replace other publishers=

revenue streams. Declining ad revenue has led some publishers to hide their content

behind pay walls.

1/



https://en.wikipedia.org/wiki/Display_advertising

https://en.wikipedia.org/wiki/Web_banner


https://en.wikipedia.org/wiki/Mobile_advertising

https://en.wikipedia.org/wiki/Advertising_agencies

https://en.wikipedia.org/wiki/Ad_server

https://en.wikipedia.org/wiki/Advertising_affiliate


https://en.wikipedia.org/wiki/Cable_television



https://en.wikipedia.org/wiki/Broadcast_television






https://en.wikipedia.org/wiki/Advertising_agencies

https://en.wikipedia.org/wiki/Ad_server




https://en.wikipedia.org/wiki/Broadcast_television




4.1 H!(or

In early days of the Internet, online advertising was mostly prohibited. 3or

e2ample, two of the predecessor networks to the Internet, 1AN4T and N"3Net, had

@acceptable use policies@ that banned network @use for commercial activities by for<profit

institutions@. The N"3Net began phasing out its commercial use ban in *99*.

Ema!%

The first widely publicized e2ample of online advertising was conducted via

electronic mail. -n ay *9F, a marketer from D4; Digital 4#uipment

;orporationE, Bary Thuerk , sent an email to most of the 1AN4T=s merican west

coast users, advertising an open house for a new model of a D4; computer.

Despite the prevailing acceptable use policies, electronic mail marketing rapidly

e2panded and eventually became known as 'spam.(

The first known large<scale non<commercial spam message was sent on *F

?anuary *99> by an ndrews niversity system administrator, by cross<posting a

religious message to all "4N4T newsgroups.

3our months later, Jaurence ;anter and artha "iegel, partners in a law firm,

broadly promoted their legal services in a "4N4T posting titled @Breen ;ard Jottery /

3inal -ne&( ;anter and "iegel=s Breen ;ard "4N4T spam raised the profile of online

advertising, stimulating widespread interest in advertising via both senet and traditional

email. ore recently, spam has evolved into a more industrial operation,wherespammers use armies of virus<infected computers botnetsE to send spam remotely.

10

https://en.wikipedia.org/wiki/ARPANET


https://en.wikipedia.org/wiki/NSFNet


https://en.wikipedia.org/wiki/Digital_Equipment_Corporation

https://en.wikipedia.org/wiki/Gary_Thuerk#History_of_Internet_spam

https://en.wikipedia.org/wiki/Spam_(electronic)

https://en.wikipedia.org/wiki/Andrews_University



https://en.wikipedia.org/wiki/Cross-post


https://en.wikipedia.org/wiki/USENET


https://en.wikipedia.org/wiki/Laurence_Canter_and_Martha_Siegel

https://en.wikipedia.org/wiki/List_of_spammers

https://en.wikipedia.org/wiki/Botnet



https://en.wikipedia.org/wiki/Digital_Equipment_Corporation

https://en.wikipedia.org/wiki/Gary_Thuerk#History_of_Internet_spam

https://en.wikipedia.org/wiki/Spam_(electronic)




https://en.wikipedia.org/wiki/Laurence_Canter_and_Martha_Siegel


https://en.wikipedia.org/wiki/Botnet




D!(%a a/(

-nline banner advertising began in the early *998s as page owners soughtadditional revenue streams to support their content. ;ommercial online

service Arodigy displayed banners at the bottom of the screen to promote "ears products.

The first clickable web ad was sold by Blobal Network Navigator in *99 to a

"ilicon Valley law firm. In *99>, web banner advertising became mainstream

when 7ot%ired, the online component of %ired agazine, sold banner ads to TCT and

other companies.

The first TCT ad on 7ot%ired had a >>H click<through rate, and instead of

directing clickers to TCT=s website, the ad linked to an online tour of seven of the

world=s most acclaimed art museums.

S&ar') a/(

BoTo.com renamed -verture in +88*, and ac#uired by 6ahooO in +88E created

the first search advertising keyword auction in *99F .

Google launched its Ad!ords search advertising "rogram in #$$$and

introduced %ualit&-based ranking allocation in #$$#' (hich sorts search

advertisements b& a combination of bid "rice and searchers) likeliness to click on the

ads.

R&'&" r&"/(

ore recently, companies have sought to merge their advertising messages into

editorial content or valuable services.

42amples include 1ed 5ull=s 1ed 5ull edia 7ouse streaming 3eli2

5aumgartner =s )ump from space online, ;oca<;ola=s online magazines, and Nike=s free

applications for performance tracking.

1

https://en.wikipedia.org/wiki/Prodigy_(online_service)

https://en.wikipedia.org/wiki/Sears

https://en.wikipedia.org/wiki/Global_Network_Navigator

https://en.wikipedia.org/wiki/HotWired

https://en.wikipedia.org/wiki/Wired_(magazine)

https://en.wikipedia.org/wiki/AT%26T

https://en.wikipedia.org/wiki/Overture_Services

https://en.wikipedia.org/wiki/Yahoo!


https://en.wikipedia.org/wiki/Google

https://en.wikipedia.org/wiki/Red_Bull

https://en.wikipedia.org/wiki/Felix_Baumgartner


https://en.wikipedia.org/wiki/Coca-Cola

https://en.wikipedia.org/wiki/Nike,_Inc.


https://en.wikipedia.org/wiki/Prodigy_(online_service)

https://en.wikipedia.org/wiki/Sears

https://en.wikipedia.org/wiki/Global_Network_Navigator

https://en.wikipedia.org/wiki/HotWired

https://en.wikipedia.org/wiki/Wired_(magazine)

https://en.wikipedia.org/wiki/AT%26T

https://en.wikipedia.org/wiki/Overture_Services


https://en.wikipedia.org/wiki/Google

https://en.wikipedia.org/wiki/Red_Bull



https://en.wikipedia.org/wiki/Coca-Cola





dvertisers are also embracing social media and mobile advertisingK mobile ad

spending has grown 98H each year from +8*8 to +8*.

1




4.2 T&( O# O"%!"& Mar&!"

*is"la& advertising+

Display advertising conveys its advertising message visually using te2t, logos,

animations, videos, photographs, or other graphics. Display advertisers

fre#uently target users with particular traits to increase the ads= effect.

-nline advertisers typically through their ad serversE often use cookies, which are

uni#ue identifiers of specific computers, to decide which ads to serve to a particular

consumer. ;ookies can track whether a user left a page without buying anything, so the

advertiser can later retarget the user with ads from the site the user visited.

s advertisers collect data across multiple e2ternal websites about a user=s online

activity, they can create a detailed picture of the user=s interests to deliver even more

targeted advertising. This aggregation of data is called behavioral targeting.

dvertisers can also target their audience by using conte2tual and semanticadvertising to deliver display ads related to the content of the web page where the ads

appear. 1etargeting, behavioral targeting, and conte2tual advertising all are designed to

increase an advertiser=s return on investment, or 1-I, over untargeted ads.

dvertisers may also deliver ads based on a user=s suspected geography

through geotargeting. user=s IA address communicates some geographic information at

minimum, the user=s country or general regionE.

The geographic information from an IA can be supplemented and refined withother pro2ies or information to narrow the range of possible locations. 3or e2ample, with

mobile devices, advertisers can sometimes use a phone=s BA" receiver or the location of

nearby mobile towers. ;ookies and other persistent data on a user=s machine may provide

help narrowing a user=s location further.

2


https://en.wikipedia.org/wiki/Targeted_advertising

https://en.wikipedia.org/wiki/HTTP_cookie


https://en.wikipedia.org/wiki/Personalized_retargeting

https://en.wikipedia.org/wiki/Behavioral_targeting

https://en.wikipedia.org/wiki/Contextual_advertising

https://en.wikipedia.org/wiki/Semantic_technology


https://en.wikipedia.org/wiki/Return_on_investment

https://en.wikipedia.org/wiki/Geotargeting

https://en.wikipedia.org/wiki/IP_address

https://en.wikipedia.org/wiki/GPS


https://en.wikipedia.org/wiki/Targeted_advertising


https://en.wikipedia.org/wiki/Personalized_retargeting


https://en.wikipedia.org/wiki/Contextual_advertising



https://en.wikipedia.org/wiki/Return_on_investment

https://en.wikipedia.org/wiki/Geotargeting

https://en.wikipedia.org/wiki/IP_address

https://en.wikipedia.org/wiki/GPS




!eb banner advertising

%eb banners or banner ads typically are graphical ads displayed within a web

page. any banner ads are delivered by a central ad server .

5anner ads can use rich media to incorporate video, audio, animations, buttons,

forms, or other interactive elements using ?ava applets, 7TJG, dobe 3lash, and other

programs.

,rame ad traditional banner

3rame ads were the first form of web banners. The collo#uial usage of @banner

ads@ often refers to traditional frame ads. %ebsite publishers incorporate frame ads by

setting aside a particular space on the web page. The Interactive dvertising 5ureau=s d

nit Buidelines proposes standardized pi2el dimensions for ad units.

/o"-u"s0"o"-unders

pop<up ad is displayed in a new web browser window that opens above a

website visitor=s initial browser window. pop<under ad opens a new browser windowunder a website visitor=s initial browser window.

,loating ad

floating ad, or overlay ad, is a type of rich media advertisement that appears

superimposed over the re#uested website=s content. 3loating ads may disappear or

become less obtrusive after a preset time period.

E1"anding ad

n e2panding ad is a rich media frame ad that changes dimensions upon a

predefined condition, such as a preset amount of time a visitor spends on a webpage, the

user=s click on the ad, or the user=s mouse movement over the ad. 42panding ads allow

advertisers to fit more information into a restricted ad space.

21


https://en.wikipedia.org/wiki/Banner_ad


https://en.wikipedia.org/wiki/Central_ad_server

https://en.wikipedia.org/wiki/Rich_media

https://en.wikipedia.org/wiki/Java_applet

https://en.wikipedia.org/wiki/HTML5

https://en.wikipedia.org/wiki/Adobe_Flash

https://en.wikipedia.org/wiki/Interactive_Advertising_Bureau


https://en.wikipedia.org/wiki/Pop-up_ad

https://en.wikipedia.org/wiki/Pop-under_ad






https://en.wikipedia.org/wiki/Central_ad_server


https://en.wikipedia.org/wiki/Java_applet

https://en.wikipedia.org/wiki/HTML5

https://en.wikipedia.org/wiki/Adobe_Flash


https://en.wikipedia.org/wiki/Pop-up_ad






22




2rick banners

trick banner is a banner ad where the ad copy imitates some screen element

users commonly encounter, such as an operating system message or popular application

message, to induce ad clicks.

Trick banners typically do not mention the advertiser in the initial ad, and thus

they are a form of bait<and<switch. Trick banners commonly attract a higher<than<

average click<through rate, but tricked users may resent the advertiser for deceiving them.

3e(s ,eed Ads

@News 3eed ds@, also called @"ponsored "tories@, @5oosted Aosts@, typically

e2ist on "ocial edia Alatforms that offer a steady stream of information updates @news

feed@E in regulated formats i.e. in similar sized small bo2es with a uniform styleE. Those

advertisements are intertwined with non<promoted news that the users are reading

through. Those advertisements can be of any content, such as promoting a website, a fan

page, an app, or a product.

"ome e2amples are$ 3acebook=s @"ponsored "tories@, JinkedIn=s @"ponsoredpdates@, and Twitter=s @Aromoted Tweets@.

This display ads format falls into its own category because unlike banner ads

which are #uite distinguishable, News 3eed ds= format blends well into non<paid news

updates. This format of online advertisement yields much higher click<through rates than

traditional display ads.

Interstitial

n interstitial ad displays before a user can access re#uested content, sometimes

while the user is waiting for the content to load. Interstitial ads are a form of interruption

marketing.

23

https://en.wikipedia.org/wiki/Bait-and-switch

https://en.wikipedia.org/wiki/Click-through_rate

https://en.wikipedia.org/wiki/Interruption_marketing


https://en.wikipedia.org/wiki/Bait-and-switch

https://en.wikipedia.org/wiki/Click-through_rate






2e1t ads

te2t ad displays te2t<based hyperlinks. Te2t<based ads may display separately

from a web page=s primary content, or they can be embedded by hyperlinking individual

words or phrases to advertiser=s websites.

Te2t ads may also be delivered through email marketing or te2t message

marketing. Te2t<based ads often render faster than graphical ads and can be harder for ad<

blocking software to block.

Search engine marketing SEM

"earch engine marketing, or "4, is designed to increase a website=s visibility

in search engine results pages "41AsE. "earch engines provide sponsored results and

organic non<sponsoredE results based on a web searcher=s #uery.

"earch engines often employ visual cues to differentiate sponsored results from

organic results. "earch engine marketing includes all of an advertiser=s actions to make a

website=s listing more prominent for topical keywords.

Search engine o"timi4ation SEO

"earch engine optimization, or "4-, attempts to improve a website=s organic

search rankings in "41As by increasing the website content=s relevance to search terms.

"earch engines regularly update their algorithms to penalize poor #uality sites that try to

game their rankings, making optimization a moving target for advertisers. any vendors

offer "4- services.

S"onsored search

"ponsored search also called sponsored links, search ads, or paid searchE allows

advertisers to be included in the sponsored results of a search for selected keywords.

"earch ads are often sold via real<time auctions, where advertisers bid on keywords.

2

https://en.wikipedia.org/wiki/Hyperlink

https://en.wikipedia.org/wiki/Online_advertising#Email_advertising




https://en.wikipedia.org/wiki/Search_engine_results_pages

https://en.wikipedia.org/wiki/Search_engine_optimization

https://en.wikipedia.org/wiki/Search_engine_marketing#Paid_inclusion

https://en.wikipedia.org/wiki/Hyperlink

https://en.wikipedia.org/wiki/Online_advertising#Email_advertising




https://en.wikipedia.org/wiki/Search_engine_results_pages


https://en.wikipedia.org/wiki/Search_engine_marketing#Paid_inclusion




In addition to setting a ma2imum price per keyword, bids may include time,

language, geographical, and other constraints. "earch engines originally sold listings in

order of highest bids. odern search engines rank sponsored listings based on a

combination of bid price, e2pected click<through rate, keyword relevancy and site#uality.

Social media marketing

"ocial media marketing is commercial promotion conducted through social

media websites. any companies promote their products by posting fre#uent updates and

providing special offers through their social media profiles.

Mobile advertising

obile advertising is ad copy delivered through wireless mobile devices such

as smartphones, feature phones, or tablet computers.

obile advertising may take the form of static or rich media display ads, ""

"hort essage "erviceE or " ultimedia essaging "erviceE ads, mobile search

ads, advertising within mobile websites, or ads within mobile applications or games such

as interstitial ads, 'advergaming,( or application sponsorshipE.

Industry groups such as the obile arketing ssociation have attempted tostandardize mobile ad unit specifications, similar to the I5=s efforts for general online

advertising.

obile advertising is growing rapidly for several reasons. There are more mobile

devices in the field, connectivity speeds have improved which, among other things,

allows for richer media ads to be served #uicklyE, screen resolutions have advanced,

mobile publishers are becoming more sophisticated about incorporating ads, and

consumers are using mobile devices more e2tensively.

The Interactive dvertising 5ureau predicts continued growth in mobile

advertising with the adoption of location<based targeting and other technological features

not available or relevant on personal computers.

In ?uly +8*> 3acebook reported advertising revenue for the ?une +8*> #uarter of

M+.LF billion, an increase of L percent over the second #uarter of +8*. -f that, mobile

2.


https://en.wikipedia.org/wiki/Social_media



https://en.wikipedia.org/wiki/Smartphone

https://en.wikipedia.org/wiki/Feature_phone


https://en.wikipedia.org/wiki/Advergaming


https://en.wikipedia.org/wiki/Facebook





https://en.wikipedia.org/wiki/Smartphone

https://en.wikipedia.org/wiki/Feature_phone







advertising revenue accounted for around L+ percent, an increase of >* percent on the

previous year.

2/




Email advertising

4mail advertising is ad copy comprising an entire email or a portion of an email

message. 4mail marketing may be unsolicited, in which case the sender may give the

recipient an option to opt out of future emails, or it may be sent with the recipient=s prior

consent opt<inE.

Chat advertising

s opposed to static messaging, chat advertising refers to real time messages

dropped to users on certain sites.

This is done by the usage of live chat software or tracking applications installed

within certain websites with the operating personnel behind the site often dropping

adverts on the traffic surfing around the sites. In reality this is a subset of the email

advertising but different because of its time window.

Online classified advertising

-nline classified advertising is advertising posted online in a categorical listing of specific products or services. 42amples include online )ob boards, online real estate

listings, automotive listings, online yellow pages, and online auction<based

listings. ;raigslist and e5ay are two prominent providers of online classified listings.

Ad(are

dware is software that, once installed, automatically displays advertisements on a

user=s computer. The ads may appear in the software itself, integrated into web pages

visited by the user, or in pop<ups0pop<unders. dware installed without the user=s permission is a type of malware.

Affiliate marketing

20

https://en.wikipedia.org/wiki/Yellow_pages


https://en.wikipedia.org/wiki/Craigslist

https://en.wikipedia.org/wiki/EBay

https://en.wikipedia.org/wiki/Adware

https://en.wikipedia.org/wiki/Malware


https://en.wikipedia.org/wiki/Craigslist

https://en.wikipedia.org/wiki/EBay

https://en.wikipedia.org/wiki/Adware

https://en.wikipedia.org/wiki/Malware




ffiliate marketing sometimes called lead generationE occurs when advertisers

organize third parties to generate potential customers for them. Third<party affiliates

receive payment based on sales generated through their promotion.

2




ffiliate marketers generate traffic to offers from affiliate networks, and when the

desired action is taken by the visitor, the affiliate earns a commission. These desiredactions can be an email submission, a phone call, filling out an online form, or an online

order being completed.

Content Marketing

;ontent marketing is any marketing that involves the creation and sharing of

media and publishing content in order to ac#uire and retain customers. This information

can be presented in a variety of formats, including blogs, news, video, white papers, e<

books, infographics, case studies, how<to guides and more.

;onsidering that most marketing involves some form of published media, it is

almost though not entirelyE redundant to call =content marketing= anything other than

simply =marketing=. There are, of course, other forms of marketing in<person marketing,

telephone<based marketing, word of mouth marketing, etc.E where the label is more

useful for identifying the type of marketing. 7owever, even these are usually merely

presenting content that they are marketing as information in a way that is different from

traditional print, radio, TV, film, email, or web media.

Online marketing "latform

-nline marketing platform -AE is an integrated web<based platform that

combines the benefits of a business directory, local search engine, search engine

optimisation "4-E tool, customer relationship management ;1E package and content

management system ;"E. 4bay and mazon are used as online marketing

and logistics management platforms.

-n 3acebook , Twitter , 6ouTube, Ainterest, JinkedIn, and other "ocialedia, retail online marketing is also used. -nline business marketing platforms such

as arketo, primo, arket5right and Aardot have been bought by ma)or IT

companies 4lo#ua<-racle, Neolane<dobe and nica<I5E.

2

https://en.wikipedia.org/wiki/Affiliate_network

https://en.wikipedia.org/wiki/Content_marketing

https://en.wikipedia.org/wiki/World_Wide_Web

https://en.wikipedia.org/wiki/Yellow_Pages


https://en.wikipedia.org/wiki/Local_search



https://en.wikipedia.org/wiki/Customer_relationship_management

https://en.wikipedia.org/wiki/Content_management_system


https://en.wikipedia.org/wiki/Ebay

https://en.wikipedia.org/wiki/Amazon.com

https://en.wikipedia.org/wiki/Logistics_management


https://en.wikipedia.org/wiki/Twitter

https://en.wikipedia.org/wiki/YouTube

https://en.wikipedia.org/wiki/Pinterest

https://en.wikipedia.org/wiki/LinkedIn

https://en.wikipedia.org/wiki/Social_Media




https://en.wikipedia.org/wiki/Retail

https://en.wikipedia.org/wiki/Business_marketing

https://en.wikipedia.org/wiki/Marketo

https://en.wikipedia.org/wiki/Aprimo

https://en.wikipedia.org/wiki/Pardot

https://en.wikipedia.org/wiki/List_of_IT_consulting_firms


https://en.wikipedia.org/wiki/Eloqua

https://en.wikipedia.org/wiki/Oracle_Corporation

https://en.wikipedia.org/wiki/Neolane

https://en.wikipedia.org/wiki/Adobe_Systems

https://en.wikipedia.org/wiki/Unica_Corporation

https://en.wikipedia.org/wiki/IBM

https://en.wikipedia.org/wiki/Affiliate_network

https://en.wikipedia.org/wiki/Content_marketing

https://en.wikipedia.org/wiki/World_Wide_Web


https://en.wikipedia.org/wiki/Local_search



https://en.wikipedia.org/wiki/Customer_relationship_management



https://en.wikipedia.org/wiki/Ebay

https://en.wikipedia.org/wiki/Amazon.com

https://en.wikipedia.org/wiki/Logistics_management


https://en.wikipedia.org/wiki/Twitter

https://en.wikipedia.org/wiki/YouTube

https://en.wikipedia.org/wiki/Pinterest

https://en.wikipedia.org/wiki/LinkedIn



https://en.wikipedia.org/wiki/Retail

https://en.wikipedia.org/wiki/Business_marketing

https://en.wikipedia.org/wiki/Marketo

https://en.wikipedia.org/wiki/Aprimo

https://en.wikipedia.org/wiki/Pardot



https://en.wikipedia.org/wiki/Eloqua

https://en.wikipedia.org/wiki/Oracle_Corporation

https://en.wikipedia.org/wiki/Neolane

https://en.wikipedia.org/wiki/Adobe_Systems

https://en.wikipedia.org/wiki/Unica_Corporation

https://en.wikipedia.org/wiki/IBM




4.3 Com&"(a!o" M&)o/(

dvertisers and publishers use a wide range of payment calculation methods. In

+8*+, advertisers calculated +H of online advertising transactions on a cost<per<

impression basis, LLH on customer performance e.g. cost per click or cost per

ac#uisitionE, and +H on hybrids of impression and performance methods.

C/M cost "er mile ]

;ost per mile, often abbreviated to ;A, means that advertisers pay for every

thousand displays of their message to potential customers mille is the Jatin word for

thousandE. In the online conte2t, ad displays are usually called @impressions.@ Definitions

of an @impression@ vary among publishers, and some impressions may not be charged

because they don=t represent a new e2posure to an actual customer. dvertisers can use

technologies such as web bugs to verify if an impression are actually delivered.

Aublishers use a variety of techni#ues to increase page views, such as dividing

content across multiple pages, repurposing someone else=s content, using sensational

titles, or publishing tabloid or se2ual content.

;A advertising is susceptible to @impression fraud,( and advertisers who want

visitors to their sites may not find per<impression payments a good pro2y for the results

they desire.

C/C cost "er click

;A; ;ost Aer ;lickE or AA; Aay per click E means advertisers pay each time a

user clicks on the ad. ;A; advertising works well when advertisers want visitors to their sites, but it=s a less accurate measurement for advertisers looking to build brand

awareness. ;A;=s market share has grown each year since its introduction, eclipsing

;A to dominate two<thirds of all online advertising compensation methods.

3

https://en.wikipedia.org/wiki/Cost_per_mille

https://en.wikipedia.org/wiki/Web_bugs

https://en.wikipedia.org/wiki/Pay_per_click


https://en.wikipedia.org/wiki/Cost_per_mille

https://en.wikipedia.org/wiki/Web_bugs






Jike impressions, not all recorded clicks are valuable to advertisers. Bold"pot

edia reported that up to G8H of clicks on static mobile banner ads are accidental and

resulted in redirected visitors leaving the new site immediately.

C/E cost "er engagement

;ost per engagement aims to track not )ust that an ad unit loaded on the page i.e.,

an impression was servedE, but also that the viewer actually saw and0or interacted with

the ad.

C/5 cost "er vie(

;ost per view video advertising. 5oth Boogle and Tubeogul endorsed this

standardized ;AV metric to the I5=s Interactive dvertising 5ureauE Digital Video

;ommittee, and it=s garnering a notable amount of industry support.

Other /erformance-Based Com"ensation

;A ;ost Aer ction or ;ost Aer c#uisitionE or AAA Aay Aer AerformanceE

advertising means the advertiser pays for the number of users who perform a desired

activity, such as completing a purchase or filling out a registration form. Aerformance< based compensation can also incorporate revenue sharing, where publishers earn a

percentage of the advertiser=s profits made as a result of the ad. Aerformance<based

compensation shifts the risk of failed advertising onto publishers.

,i1ed cost

3i2ed cost compensation means advertisers pay a fi2ed cost for delivery of ads online,

usually over a specified time period, irrespective of the ad=s visibility or users= response to

it. -ne e2amples is ;AD cost per dayE where advertisers pay a fi2ed cost for publishingan ad for a day irrespective of impressions served or clicks.

31

https://en.wikipedia.org/w/index.php?title=Cost_per_engagement&action=edit&redlink=1

https://en.wikipedia.org/wiki/Impression_(online_media)



https://en.wikipedia.org/wiki/Cost_Per_Action

https://en.wikipedia.org/wiki/Revenue_sharing

https://en.wikipedia.org/w/index.php?title=Cost_per_engagement&action=edit&redlink=1



https://en.wikipedia.org/wiki/Cost_Per_Action

https://en.wikipedia.org/wiki/Revenue_sharing




4.4 B&"&#!( o# o"%!"& a/0&r!(!"

Cost

The low costs of electronic communication reduce the cost of displaying online

advertisements compared to offline ads. -nline advertising, and in particular social

media, provides a low<cost means for advertisers to engage with large established

communities. dvertising online offers better returns than in other media.

Measurabilit&

-nline advertisers can collect data on their ads= effectiveness, such as the size of

the potential audience or actual audience response, how a visitor reached their

advertisement, whether the advertisement resulted in a sale, and whether an ad actually

loaded within a visitor=s view. This helps online advertisers improve their ad campaigns

over time.

,ormatting

dvertisers have a wide variety of ways of presenting their promotional messages,including the ability to convey images, video, audio, and links. nlike many offline ads,

online ads also can be interactive. 3or e2ample, some ads let users input #ueries or let

users follow the advertiser on social media. -nline ads can even incorporate games.

2argeting

Aublishers can offer advertisers the ability to reach customizable and narrow

market segments for targeted advertising. -nline advertising may use geo<targeting to

display relevant advertisements to the user=s geography. dvertisers can customize eachindividual ad to a particular user based on the user=s previous preferences. dvertisers can

also track whether a visitor has already seen a particular ad in order to reduce unwanted

repetitious e2posures and provide ade#uate time gaps between e2posures.

Coverage

32




-nline advertising can reach nearly every global market, and online advertising

influences offline sales.

S"eed

-nce ad design is complete, online ads can be deployed immediately. The delivery

of online ads does not need to be linked to the publisher=s publication schedule.

3urthermore, online advertisers can modify or replace ad copy more rapidly than their

offline counterparts.

4.* Co"'&r"(

Banner blindness

4ye<tracking studies have shown that Internet users often ignore web page zones

likely to contain display ads sometimes called @ banner blindness@E, and this problem is

worse online than in offline media. -n the other hand, studies suggest that even those ads

@ignored@ by the users may influence the user subconsciously.

,raud on the advertiser

There are numerous ways that advertisers can be overcharged for their advertising.

3or e2ample, click fraud occurs when a publisher or third parties click manually or

through automated meansE on a ;A; ad with no legitimate buying intent. 3or e2ample,

click fraud can occur when a competitor clicks on ads to deplete its rival=s advertising

budget, or when publishers attempt to manufacture revenue.

;lick fraud is especially associated with pornography sites. In +8**, certainscamming porn websites launched dozens of hidden pages on each visitor=s computer,

forcing the visitor=s computer to click on hundreds of paid links without the visitor=s

knowledge.

s with offline publications, online impression fraud can occur when publishers

overstate the number of ad impressions they have delivered to their advertisers. To

33

https://en.wikipedia.org/wiki/Banner_blindness

https://en.wikipedia.org/wiki/Click_fraud

https://en.wikipedia.org/wiki/Banner_blindness

https://en.wikipedia.org/wiki/Click_fraud




combat impression fraud, several publishing and advertising industry associations are

developing ways to count online impressions credibly.

3




2echnological variations

Heterogeneous clients

5ecause users have different operating systems, web browsers and computer

hardware including mobile devices and different screen sizesE, online ads may appear to

users differently from how the advertiser intended, or the ads may not display properly at

all. +8*+ com"core study revealed that, on average, *H of ads were not @in<view@

when rendered, meaning they never had an opportunity to be seen. 1ich media ads create

even greater compatibility problems, as some developers may use competing and

e2clusiveE software to render the ads see e.g. ;omparison of 7TJ G and 3lashE.

3urthermore, advertisers may encounter legal problems if legally re#uired

information doesn=t actually display to users, even if that failure is due to technological

heterogeneity. In the nited "tates, the 3T; has released a set of guidelines indicating

that it=s the advertisers= responsibility to ensure the ads display any re#uired disclosures or

disclaimers, irrespective of the users= technology.

Ad-blocking

d<blocking, or ad filtering, means the ads do not appear to the user because the

user uses technology to screen out ads. any browsers block unsolicited pop<up ads by

default. -ther software programs or browser add<ons may also block the loading of ads,

or block elements on a page with behaviors characteristic of ads e.g. 7TJ autoplay of

both audio and videoE. ppro2imately 9H of all online page views come from browsers

with ad<blocking software installed, and some publishers have >8HP of their visitors

using ad<blockers.

Anti-targeting technologies

"ome web browsers offer privacy modes where users can hide information about

themselves from publishers and advertisers. mong other conse#uences, advertisers can=t

use cookies to serve targeted ads to private browsers. ost ma)or browsers have

incorporated Do Not Track options into their browser headers, but the regulations

currently are only enforced by the honor system.

3.

https://en.wikipedia.org/wiki/ComScore

https://en.wikipedia.org/wiki/Comparison_of_HTML_5_and_Flash

https://en.wikipedia.org/wiki/Ad_filtering

https://en.wikipedia.org/wiki/Privacy_mode

https://en.wikipedia.org/wiki/Do_Not_Track

https://en.wikipedia.org/wiki/Honor_system

https://en.wikipedia.org/wiki/ComScore

https://en.wikipedia.org/wiki/Comparison_of_HTML_5_and_Flash

https://en.wikipedia.org/wiki/Ad_filtering

https://en.wikipedia.org/wiki/Privacy_mode

https://en.wikipedia.org/wiki/Do_Not_Track

https://en.wikipedia.org/wiki/Honor_system




3/




/rivac& concerns

The collection of user information by publishers and advertisers has raised

consumer concerns about their privacy. "i2ty percent of Internet users would use Do Not

Track technology to block all collection of information if given an opportunity. -ver half

of all Boogle and 3acebook users are concerned about their privacy when using Boogle

and 3acebook, according to Ballup.

any consumers have reservations about by online behavioral targeting. 5y

tracking users= online activities, advertisers are able to understand consumers #uite well.

dvertisers often use technology, such as web bugs and respawning cookies, toma2imizing their abilities to track consumers. ccording to a +8** survey conducted by

7arris Interactive, over half of Internet users had a negative impression of online

behavioral advertising, and forty percent feared that their personally<identifiable

information had been shared with advertisers without their consent. ;onsumers can be

especially troubled by advertisers targeting them based on sensitive information, such as

financial or health status.

2rust(orthiness of advertisers

"cammers can take advantage of consumers= difficulties verifying an online

persona=s identity, leading to artifices like phishing where scam emails look identical to

those from a well<known brand ownerE and confidence schemes like the Nigerian @>*9@

scam. The Internet ;rime ;omplaint ;enter received +F9,F> complaints in +8*+,

totaling over half a billion dollars in losses, most of which originated with scam ads.

;onsumers also face malware risks, i.e. malvertising, when interacting with online

advertising. ;isco=s +8* nnual "ecurity 1eport revealed that clicking on ads was *F+

times more likely to install a virus on a user=s computer than surfing the Internet for porn. 3or e2ample, in ugust +8*> 6ahoo=s advertising network reportedly saw cases of

infection of a variant of ;ryptolocker ransomware.

S"am

30


https://en.wikipedia.org/wiki/Phishing


https://en.wikipedia.org/wiki/Nigerian_scam


https://en.wikipedia.org/wiki/Malvertising

https://en.wikipedia.org/wiki/Cisco

https://en.wikipedia.org/wiki/Cryptolocker

https://en.wikipedia.org/wiki/Ransomware





https://en.wikipedia.org/wiki/Malvertising

https://en.wikipedia.org/wiki/Cisco

https://en.wikipedia.org/wiki/Cryptolocker

https://en.wikipedia.org/wiki/Ransomware




The Internet=s low cost of disseminating advertising contributes to spam, especially by

large<scale spammers. Numerous efforts have been undertaken to combat spam, ranging

from blacklists to regulatorily<re#uired labeling to content filters, but most of those

efforts have adverse collateral effects, such as mistaken filtering.

/rivac& and data collection

Arivacy regulation can re#uire users= consent before an advertiser can track the

user or communicate with the user. 7owever, affirmative consent @opt in@E can be

difficult and e2pensive to obtain. Industry participants often prefer other regulatory

schemes.

Different )urisdictions have taken different approaches to privacy issues with

advertising. The nited "tates has specific restrictions on online tracking of children in

the ;hildren=s -nline Arivacy Arotection ct;-AAE, and the 3T; has recently

e2panded its interpretation of ;-AA to include re#uiring ad networks to obtain parental

consent before knowingly tracking kids.

In contrast, the 4uropean nion=s @Arivacy and 4lectronic ;ommunications

Directive@ restricts websites= ability to use consumer data much more comprehensively.

The 4 limitations restrict targeting by online advertisersK researchers have estimatedonline advertising effectiveness decreases on average by around LGH in 4urope relative

to the rest of the world.

3


https://en.wikipedia.org/wiki/Children's_Online_Privacy_Protection_Act


https://en.wikipedia.org/wiki/Children's_Online_Privacy_Protection_Act




#. 0 ,1s o2 mareting on the internet

ad3ertising

The four A=s < Aroduct, Arice, Alace and Aromotion have long been associated with

dvertising, but things have changed on the Internet. "o along with a change in the

nature of the four A:s there are three new A:s which are relevant to the internet advertiser.

1. T)& Pro/,' on the Internet usually changes form online, and the user

e2periences it electronically, in the form of te2t, images and multimedia. Ahysical goodsare usually presented in the form of a detailed online catalogue that the customer can

browse through.

Technology allows the user to virtually touch and feel the product on the Internet <

rotate it, zoom in or zoom out and even visualize the product in different configurations

and combination. The e2ample of the above can be seen at dell.com where the company

offers the user to virtually feel every aspect of their product before they go into a buy

decision.

;ontent and software are two avatars of digitized products that can be even

distributed over the Internet. -n the Internet, 4<dvertising will be based more on the

product #ualities rather than on the price. 4very company will be able to bring down the

cost of its products and hence competition will not be on price. It will rather be on the

uni#ueness of the product.

To be able to attract the customers and retain them4 t5e 6ompany will 5ave to

provide nouvelle and distinct products that forces the net users to purchase and come

back for more.

2. T)& Pr!'& has been drastically changed over the Internet. It lets the buyer

decides the price. lso it gives the buyers information about multiple sellers selling the

same product. It leads to best possible deal for the buyers in terms of price.

3




website named Ariceline.com is e2tremely popular as its compares the price of

many airlines and offers the least price to the buyer. The very famous bazee.com now

known as ebay.in follows the same principles. Aricing is dynamic over the Internet.

3. T)& P%a'& revolves around setting up of a dvertising channel to reach the

customer. Internet serves as a direct dvertising channel that allows the producer to reach

the customer directly.

The elimination of the intermediate channel allows the producer to pass the

reduced distribution cost to the customer in the form of discounts. Dell ;omputers have

used this strategy very effectively and hence they have been able to reduce their prices of

their laptops drastically and reaped huge profits.

4. Promo!o" is e2tremely necessary to entice the customer to its website, as there

are currently more than one billion web pages. Aromoting a website includes both online

and offline strategies. -nline strategies include search engine optimization, banner ads,

multiple points of entry, viral dvertising, strategic partnership and affiliate dvertising.

Aresently, the cyberspace is already cluttered with thousands of sites probablyselling similar products. 3or the customers to know of the ;ompany:s e2istence and to

garner information on the kind of products or services that the company is offering,

promotion has to be carried out.

There can be traded links or banner advertisements for the same. lso the

traditional mediums like print, outdoor advertising and television can be used to spread

awareness. 4mail campaigns and spamming the ;hat rooms on almost every server has

been e2ploited to the ma2imum for the cause of promoting their website.

*. Pr&(&"a!o"5 The presentation of the online business needs to have an easy to

use navigation. The look and the feel of the web site should be based on corporate logos

and standards. bout F8H of the people read only +8H of the web page. Therefore, the

web page should not be cluttered with a lot of information.




lso, simple but powerful navigational aids on all web pages like search engines

make it easy for customer to find their way around. The principle of !.I."." !eep it

simple stupid E is the most important factor that has to be considered while presenting the

online business

6. Pro'&((&(< ;ustomer supports needs to be integrated into the online web site.

sales service that will be able to answer the #uestions of their customers fast and in a

reliable manner is necessary.

To further enhance after sales service, customers must be able to find out about

their order status after the sale has been made. 3or e.g. 3ed42 www.fede2.comE, the

overnight ;ourier ;ompany allows its customers to keep track of the parcel and they arewell informed about the present whereabouts of their package.

"imilar variants have been used by the Bovt of India for its "peed post and

1egistered d services where you can keep a track of your post by entering the code that

has been issued to you.

7. P&r(o"a%!8a!o"< sing the latest software from 5road<Vision and others, it is possible to customize the entire web site for every single user, without any additional

costs.

The mass customization allows the company to create web pages products and

services that suit the re#uirement of the user. customized web page does not only

include the preferred layout of the customer but also a pre selection of goods the

customer may be interested in. 3or e.g. 6ahooO www.yahoo.co.inE entered the Indian

cyberspace and started its personalized services.

registered user of 6ahoo can now personalize the front page with all the

information he needs. 7e can read the news of the world, add a ta2 calculator, see the

weather forecasts of his city and listen to his favorite songs and all this simultaneously.

1




#I. Ad3ertising on the Internet4 emerging

issues

Internet might be a catchy advertising medium. 5ut, there are #uite a few issues

that need to be sorted out. dvertising on the Net is slowly catching on. In developed

economies, advertising on the Net accounts for anything between seven and .G per cent

of the total advertising cake. 3ine, how large is online advertising in India& Various

estimates put the size of online advertising in India between 1s +> crore and 1s +9 crore,

which is much less than one per cent of the total advertising cake.

%hy is online advertising so small in India& %hy aren=t the advertisers putting

their money on Net advertising& 3or instance, 7industan Jever:s advertising budget is

upwards of 1s 88 crore and out of thisK the company spends not more than 1s +G lakh

on online advertising. Is this because Net penetration in India is not deeper& 6es, to an

e2tent.

2he cost factor

bsence of a monitoring mechanism apart, online advertising has to live with

another hurdle. any advertisers are not aware of the benefits online advertising can

offer over the traditional media. %hat needs to be done& The advertising industry should

take efforts to educate potential Net advertisers about the advantages of advertising on the

Net. "ome steps have already been taken in this direction.

3or instance, advertising networks such as edia+Net, 1ight serve and edia turf

are doing their bid to fuel online advertising in India. 1ight serve of 7ughes "oftware is

said to be spending nearly 1s two crore on seminars, advertisements and road shows for

creating awareness about the online advertising concept.

There is another reason why advertising on the Net has not really picked up. nd

that is the perception that advertising on the Net is e2pensive. Is this perception right&

;ompare the cost of a banner advertisement on the Net with a television commercial.

2




Though the cost of an advertising campaign on the Net could be anywhere between 1s

*G,888 and 1s *.G lakh, advertising in the press or television will cost upwards of 1s G8

lakh. Does this not make advertising on the Net cheap& No.

3or, whether advertising on the Net is cost<effective or not depends on the value

per advertising 1upee. That means, it is essential to e2press advertising costs on the Net

in terms of cost per thousand ;ATE. @ thirty< second television commercial will cost

between 1s +G8 and 1s 88 per thousand, while a ten<second banner on a reputed site

such as 1ediff.com will cost as much as 1s G88 to 1s *,888 per thousand.@

The implication value per 1upee spent on advertising is higher in the case of

television. That is efficiency is higher in the case of television advertising, while in

absolute terms advertising costs are lower as far as the Net is concerned. 3ine, but howare rates fi2ed for advertising on the Net& It is a difficult poser considering the fact that

rates for advertising on the Net have no rationale behind them. 3or instance, 1ediff.com

)ust adopted the international rate charged by 6ahoo.com.

-ther websites in India )ust took the 1ediff.com=s rate as a benchmark and

ad)usted th ir rates accordingly. 5ut, the issue here is this$ since the number of Net users

in India is limited now, these Indian rates are not )ustified. %hat are the emerging trends

as far as cost of online advertising is concerned& ;urrently, rates for a simple banner

advertisement on the Net need to come down. lready, edia turf is working in thisdirection.

It wants to bring down the cost of Net advertising at least by G8 per cent. edia

turf believes that when the rates come down, volumes should go up. nd that has been

the international e2perience. In the ", when the rate for a full banner advertisement

fell from " M.++ to " M8.G+ per thousand impressions, online advertising outlays

too rose during the same period.

2he (astage factor

There are other reasons why advertising on the Net is not currently seen by

advertisers as cost<effective. -ne of them is the #uality of desired responses. In many

3




cases, sums spent on advertising on the Net have not been deployed properly. There are

instances where advertisements have )ust been lifted and put on the banner. Though there

are many early adapters in India, there is a big gap between these adapters and the

mainstream users. nd most advertisers have too small budgets for advertising on the Net

to be bothered about wastages.

There could be wastages in online advertising, but one should not forget that

interactivity is the hallmark of online advertising and here it is possible to target the

audience by demography, psychography and technography. "o, advertising agencies need

to take into account these factors while developing strategies.

5ut, wastages can be eliminated and online advertising can be made more

effective through various strategies. "ome of them are$ strategic tieups, sponsorships and

banner e2changes. 3or instance, the 3;B ma)or ;olgate<Aalmolive has entered into astrategic tie<up with the ;alcutta<based 3irstNet "olutions= portal 6antram.com for

promoting its 3resh 4nergy Bel toothpaste on the portal.

nd ;oca<;ola has appointed 7ungama.com, an Indian portal for promotions and

contests, as its e<dvertising partner. ;oca<;ola has gone ahead and launched a new %eb

promotion dubbed aaza Auzzle to promote its popular brand aaza and has also kicked

off a series of e<promotions for the 7indi film @7um To ohabbat !arega@. eanwhile,

tie<ups for banner e2changes are also taking place. 3or instance, 5idorbuy.com has tied

up with Indiacar.com and Intel has sponsored a festival section on "atyam -nline.

2argeting im"eratives

ccurate targeting is another strategy to eliminate wastages in online advertising.

;urrently, such targeting based on parameters such as geographic location and search

keywords is possible. 6es, "atyam -nline is offering customised solutions here and portals such as Indiainfo.com and 1ediff.com offer keyword targeting.

It is possible now to measure campaign performances on a real<time basis and

make necessary changes. d networks such as 1ightserve are offering such services

based on their continuous online reports. oreover, targeted advertisements based on the

profile of users are also possible. To make this possible, it is essential to have lists such as




registered e<mail users and such lists can offer profiles of users. 5ut the #uestion is how

many sites in India have a large base of registered users& Aerhaps 1ediff.com has a base

of eight lakh registered users and ?obsahead.com has a base of about *.G8 lakh users.

nother way wastages can be eliminated is by having advertisements based on the

content of the site. ;onsider the e2ample of an advertisement from Toyota otor "ales

on the weather site Intellicast.com. This website for outdoor recreation enthusiasts has

been running a campaign for Toyota otor "ales and this campaign depends on the

weather.

If the weather is sunny, the solar is shown with the top down, and if it is cloudy or

raining, the top is shown up. 7ow many such ads are visible on Indian websites&

Arofiling tools too should help in cutting down wastages in online advertising. ediaturf

has gone a step further by beta<testing an advertisement in a bid to gauge an user=s behaviour, the number of times he views an advertisement and his preferences in terms of

content when he is surfing on a site.

-ther waste<eliminating strategies for online advertising are$ conte2tual selling

using demographic and psychographic data to match ads with content that fits and

dynamic customization or click stream analysis that helps to modify advertisements in

real<time.

Online Constraints

s efforts to eliminate wastages in online advertising take offK efforts are also

needed to eliminate the attendant constraints. In online advertising, one can stream audio

and video technologies together with faster bandwidths and delivery channels in a bid to

present the same idea with the use of sound, music and visual imagery and make

interactions with the banner possible.

5ut, this is not possible in India, thanks to the e2isting bandwidth problems.

7owever, soon bandwidth will cease to be an issue. Despite the bandwidth constraint, the

;oco<;ola television commercial is being aired in Qeene2t.com. This initiative has been

taken by ediaturf and a 5angalore<based software programmer, who have found a way

to use the Net to air commercials with the dial<up mode and thus overcoming the

bandwidth constraint.

.




nyway, with massive investments coming in bandwidth, there could be a glut

soon. "ure, India has an advantage in online advertising, thanks to the fact that online

advertising depends so much on technology and software programming. "o, the days of

innovative banners and convergence of real<time advertising are not far. 5ut, effective

online advertising calls for skills in consumer and relationship management. The

prospects are of course bright for online advertising. 4<commerce will only help the

spread of online advertising. 4stimates are that in a couple of years online advertising

could touch 1s 88 crore, two per cent of the total adspend in the country. nd Nasscom=s

estimates are that online advertising could touch 1s G8 crore by +88+.

/roduct and service customi4ation

;ompanies that have powerful brand awareness on the web all have sites that help

consumers do something / whether it:s configuring a computer system www.dell.comE

on<line or offering personalized services like suburban railway pass ticket in umbai

www.rediff.comE.

;onsumer demand and e2pectations are forecast to drive made<to<order or

customized products with rapidly shrinking lead times. Aroducts are configured, as

customers want them to be and provide a high level of reliability, e2cellent #uality, and

longer life spans. 3or e.g. RDell: computer www.dell.comE has become a leadingcompany in selling computers because of the customization facility it provided on its site.

The consumers could build the own computer by ordering the own configuration.

3or e.g. -n Nike:s site www.nike.comE, the customer can become a registered user and

customize the shoe of his choice. The customization highlights the value<for<money

aspect and induces the consumer to buy a product that meets his own re#uirement.

6nderstanding the Internet Customers

Now to be able to use the seven A:s effectively in order to achieve the predefined

goals of any organization it is imperative to understand the customers. ;ustomization will

only be truly effective if we understand our customers and their true needs.

/




5efore adapting dvertising practices to the Internet, the advertiser needs to

understand the characteristics of the online customers. The Net users can be classified

into five categories depending upon their intention of using the Internet.

The five categories of users are$

Directed Information "eekers$ They re#uire specific, timely and relevant information

about the products and services being offered.

ndirected Information "eekers$ These users re#uire something interesting and useful.

"omething that can give them an edge, advantage, insight or even a pleasant surprise.

5argain 7unters$ They are of two kind. -ne who look for free items on the internet

and other who are seeking better deals, higher discounts etc.

4ntertainment "eekers$ they see the %eb as an entertainment medium of vast breath

and potential and want to e2plore the medium before the mass gets there.

Directed 5uyers$ They want to buy something < now. They are sure what they re#uire

and )ust log on to the %eb to purchase the item.

2he Evolving 5alue /ro"ositions

The value propositions of goods and services offered in the physical world differ

pointedly from those in the digital world. The ultimate aim of the universal advertiser is

to provide a complete end<to<end consumer e2perience<<<right from the promise to satisfy

his need to its delivery.

5ut the physical world offers only 'Aoint "olutions( which is basically a solution

of his needs in terms of functional benefits. credit card, for instance, allows consumers

to satisfy the immediate necessity of setting a transaction. 5ut today:s consumers are also

looking for process and relationship benefit<<<book referrals at no e2tra cost or e<mailreminders.

The physical world is not able to deliver these benefits because of gaps in time,

space and memory. The web, on the other hand provides all of these and more 'reverse

dvertising, for e2ample, where consumers seek out vendors rather than the other way

0




around(E by giving the company the ownership and control over all interactions with the

consumer.




2he Evolving 7isk /rofiles

The on<line customer is not a fickle customer, but he is a risky proposition

nevertheless. This is because all his online e2perience will influence consumer

perceptions about the brand.

If a consumer buys a product from a retailer and is involved in an unhappy

purchase e2perience at the store, he will punish the store. 5ut if the same e2perience were

to occur to him at the company:s web site, the conse#uences would be disastrous for the

company if he were to share his e2perience though different user communities using a

combination of chat rooms and electronic mails.

2he Evolving Su""l& Chain

The transformation being brought about the %eb revolution is not limited to )ust

the consumer. The last few years have seen a flurry of suggested business models for

doing business in the Internet era. %ill the Internet era signal the death of the retailer& -r

will a new intermediary come into e2istence&

Technological innovations have made possible two interesting developments<<<the

;hoice board system + and the Vertical Aortal. 5ecause ;hoice boards are essentially

design tools and conduits of information, companies that produce the products need not

control them. Dell uses a ;hoice board system to sell its computers but there are others

like Aoint.com that uses a ;hoice board to help customers research and buy wireless

phones and accessories.

The market information that a ;hoice board collects about customer preferences is

absolutely enormous and if the manufacturing company does not control it, the siteoffering the ;hoice board can emerge as a powerful intermediary. Vertical portals armed

with sophisticated search engines, which specialize in a particular industry or product

category, and provide customized information and promote online community

development are the ne2t emergent intermediaries.




The sophistication and range of information collected on customer preferences

will drive emergent business models. The %eb will thus facilitate the transformation of

the companies form transaction supporters to customer relationship managers.

6.1 Cr!!'a% S,''&(( #a'or( !" E5A/0&r!(!"

7aving observed the evolving paradigms of business in the Internet era, there are

five critical success factors that the 4<dvertiser has to keep in mind.

ttracting the 1ight ;ustomer is the first crucial step. 1ising digital penetration

would mean that the number of customer visiting particular sites would inevitably

go up. %hile the number of eyeballs or page views has so far been convenientlyused as a satisfactory measure by most web sites, it would be foolish to cater to the

whole spectrum of digital visitors. ;ontent has to be very target specific. The

digital company has to select its target segment by finding out which section of

customers are the most profitable in terms of revenue transactions and who are the

customers who generate the ma2imum number of referrals. 7ere again it is

important to note that the ma)ority of online customers are not seeking the lowest

price. 1ather they are seeking convenience above everything else. The power of

customer referrals has never been so enormous, since word of the mouse spreads

faster than word of the mouth. 4<5ay attracts more than half of its customersthrough referrals. Not only do referred customers cost less to ac#uire than those

brought in by advertising or other dvertising tools, they also cost less to support

since they use their friends who referred them for advice rather than using the

companies: own technical desk.

Delivering ;ontent Value to engage the user:s interest is the critical importance in

retaining customer participation. This is because content serves as a powerful

differentiator. ;ontent would include Aroduct enhancements "oftware patches for

glitchesE, personalized interactions through customized navigation paths as seen

on the web sites of B and ToyotaE and Aroblem 1esolution updates of deliveryschedules and e<mail responsesE. Integral to the concept of delivering proper

content value is innovation. The retail financial services industry, for e2ample, is

changing rapidly with multiple players )ockeying for position. Aroduct innovation

serves as a key tool to attract new customers. Ariceline.com, for e2ample, has

revolutionized the travel and related services business by letting in a form of

.




'buyer driven commerce(<<<< ;ustomers specify their desired prices and

competing companies then bid for customer re#uirements. Delivering proper

content to make e2isting customers in the traditional 'brick( business switch to

%eb<enabled transactions makes a lot of sense because in every conceivable case,

the cost of %eb<5ased transactions is an order of magnitude less than the

traditional ways and is decreasing at a faster rate. The cost of an Internet based

banking transaction is less than one<tenth the cost of a human teller transaction. It

is keeping this aspect in mind that Indian 5anks have started toying with the idea

of setting up Internet kiosks to let their low<value customers settle their banking

transactions at the kiosk nearest to their place.

4nsuring 4<Joyalty is vital to the success of any online venture. This is because

ac#uiring customers on the Internet is enormously e2pensive and unless those

customers stick round and make lots of repeat purchases over the years, profitswill remain elusive. ;ontrary to the general view that %eb customers are

notoriously fickle, they in fact follow the old rules of customer loyalty. %eb

customers stick to sites that they trust and with time consolidate their purchases

with one primary supplier to the e2tent that purchasing from the supplier:s site

becomes part of their daily routine. The issue of trust is integral to the issues of

privacy and security. ;ompanies like mazon.com, which command amazing

levels of consumer trust, have used a variety of encryption tools ad simple ethical

decisions like not accepting money for publishers for independent book reviews to

maintain the trust of its customers. 4<Jearning to facilitate personalized interactions with customers has been the

biggest contribution of the %eb to the dvertising strategists. ;ustomers in

traditional bricks<and<mortar stores leave no record of their behavior unless they

buy somethingSand even then the date might be sketchy. In the digital

marketplace, however technology has made the entire shopping e2perience a

transparent process. 3or e2ample, if the customer e2its the web<site when the price

screen appears, he is a price sensitive consumer. "uch minute tracking of customer

behavior has ma)or implications for the world of advertising. The Internet may

soon be used as a test bed for testing prototypes of dvertising and advertisingcampaigns. 5y monitoring pages selected, click throughs, responses generated,

and other indicators, the company would be able to discover which parts of a

prospective campaign would work, thus reducing the risk of a potential flop. This

would make it possible for the company to modify its product offerings much

earlier than usual in the product life cycle.

.1




Aroviding Digital value to the evolving consumer through his life cycle has

become possible because of customized interactions and emerging business

models. These models have often disturbed the traditional status #uo and created

new rules of business. The sectors where new business models will emerge or haveemerged are the music industry, the financial services industry, the travel industry,

the relating segment and the publishing segment. Digital value is delivered to the

consumer by promising him convenience, allowing the customer to feel his

ownership of the %eb e2perience, and giving the customer a sense of belonging

that traverses the physical boundaries.

.2




#II. !hanging ,atterns o2 Ad3ertising

7.1 Tra/!!o"a% A/0&r!(!" V9( I"&r"& A/0&r!(!"

dvertising over the years more so recently has started being used interchangeably with

advertising. Now since the e2plosion of the internetK advertising paradigms have been

constantly changing. The first %eb advertisement was placed on the 7ot %ired web site

in -ctober *99>. TCT, ;I, "print, Volvo, ;lub ed, QI were the first to try it out

and the Internet advertising has come a long way since then. 7ere, I would attempt to

compare Internet dvertising with Traditional dvertising$

Jet:s have a look$

• Traditional dvertising$

• Traditional advertising is static.

• "pace is not a restricting factor

• The proportion of advertising to editorial is high sometimes G8$G8.

• Does not evoke immediate action.

• 1esponse to the action is not immediate.• dvertisements are passively received.

• dvertising does not always target a much focused audience.

• dvertisements are ubi#uitous.

%hereas Internet dvertising $

• It is dynamic with multimedia< supporting te2t and graphics video sound all

together.

• "pace is a problem, as regards size of the banners etc.

• web page would be 9*H editorial and 9H advertising.• Invokes immediate action as you at<least need to click on the ad.

• *irst response is immediate as w5en t5e user 6li6ks4 t5e person is

dire6ted to ot5er we7 page wit5 more details8

• T5e user 5as 5ig5 attention level and 6on6entration w5ile using t5e

net4 and 5en6e t5ey noti6e t5e ad8 9please refer t5e 65apter:

• This can be much focused.

.3




dvertisements catch users when they are on the lookout for something. 3or

e2ample the search is for travel on a search engine there are ads of travel agents on the

net. Thus we see that advertising is changing and so are the rules for advertising on the

internet. "o while designing or formulating any advertising strategy for a brand on the

internet a manager has to take in to account factors like$ <

1. The Internet has made a huge impact on advertising. ;ompanies should be careful as

regards )oining the IT bandwagon. They should not advertise on the net )ust to pro)ect

themselves as a techno savvy company or maybe because their competitor is doing the

same thing. It should be a well<planned campaign full of specific information and

attention catching.

2. The =net= charges are on the higher side though there has been a steep decrease in the

rates in the last few monthsE. 7ence people would be wary of the fact that ads consume a

lot of online web time and hence they avoid clicking on average ads. Therefore,

advertises should be designed in such a fashion that they attract attention and induce

people to click on the net.

3. -ne more thing would be to generate =search= specific advertising. This would mean

that if I give a search for books on the search engine, the ads displayed would be related

to the books.

4. Benerally, people perceive the ads to be time consuming and full of unwanted

information. ;are should be taken to design the ads in such a way that the information

they provide or the hyperlinks they provide to a site gives ade#uate and specific

information.

*. The ads and the subse#uent information on the web site should be constantly updated

and highlighted in the ads and thus induce repeated clicks on the ad.

L. Jast but not the leastK the ads should be designed so as to attract attention of ma2imum

number of people and inducing them to click, failing to do so the advertiser ends up

defeating his own purpose.

.




7.2 T)& C)a""&% Sra&!&( #or /&%!0&r!" D!!a% Va%,& o

',(om&r(

The Internet era has shown that companies have risked damaging relationships in their

physical chain to compete in the electronic channel. The ubi#uity of the Internet the fact

that cross<linkages are possible to any degree, has meant that companies have usurped the

role of other value providers in the value chain to gain competitive advantage.

%hen companies pirate the value chain of the industry they are essentially eliminating

layers of costs that are build into the current distribution system. 7owever, pirating the

value chain does not mean that the number of intermediaries in the whole process would

necessarily decrease.

The emerging economic structure of 4lectronic ;ommerce would mean that profits

would lie in the intermediate transactions rather than in the final sale of the good.

;ompanies would aim at cutting down their traditional margins give up the cost plus

pricing structureE and aim at high inventory turnover. In retailing profitability is

primarily.

..




2he challenge (ill lie in managing these multi"le channels of e1"erience

It is likely that most companies will find that they will have to integrate several

distribution channels to provide the customer with a seamless purchase process. The key

challenge is thus to ensure that the personalized nature of the e2perience is not much

different across channels.

;an an Internet bookseller allow its customers to e2perience the same ambience

on the net as it does in the bookstore or vice<versa& If it cannot then companies will face

friction among the alternative distribution channels and the already established physical

channel might complain about its profitability being affected by digital purchases.

This may be typified by friction between vehicle dealers and the company over

orders trough an auto company:s %eb site. ;omplementary to the problem of managing

multiple channels of distribution is the development of infrastructure needed to support

such a distribution network. The billing system and pricing strategies have to be properly

frames and e2ecuted

Building Brands Online

-nline has always taken a back seat to offline in brand building. 6et online offers

the best options for building a meaningful brand, options that didn=t e2ist only a few years

ago. ;ompanies without a solid digital brand strategy are literally being left behind as

leaders build new digital brands. 1eflecting on the current state of online advertising, the

ma)ority of online advertisers are doing a terrible )ob of building their digital brands.

dvertisers are fighting tooth and nail to produce the world=s worst advertising,

actually destroying their e2isting offline brands in the digital realm. 3or the most part, if one looks at ads that run during top TV programs or that appear in top magazines, one

will find #uality in the advertising even if the ads are a bit dry and boringE.

5ut if one looks at a top web site and views a few dozen ads, it will be very

difficult to find #uality advertising. In effect, the bulk of the ads online do more harm

than good to the brands they are trying to build. In one industry after another, aggressive

./




Internet upstarts are putting established brands at risk, creating very strong brand

recognition and en)oying e2plosive visitor growth.

The reason may have less to do with the established brands themselves than with

their managers. dvertisers know what a brand is in the physical world$ the sum, in the

consumer:s mind, of the personality, presence, and performance of a given product or

service. These @ As@ are also essential on the %orld %ide %eb. In addition, digital brand

builders must manage the consumer:s on<line e2perience of the product, from first

encounter through purchase to delivery and beyond.

Digital brand builders should care about the consumer:s on<line e2periences for

the simple reason that all of themSgood, bad, or indifferentSinfluence consumer

perceptions of a product:s brand. To put it differently, on the %eb, the e2perience is the

brand. ;onsider an e2ample. If a consumer buys lipstick from a retailer in the physicalworld and has an unpleasant in<store e2perience, she is more likely to blame the retailer

than the manufacturer.

5ut if the consumer purchases that same product from Arocter C Bamble:s

1eflect.com %eb site, her wrath is more likely to be directed at ACB. Thus the on<line

advertiser:s ob)ective shifts from creating brandsSat least as defined in the off<line world

Sto creating Internet businesses that can deliver complete, and completely satisfying,

e2periences.

6et many advertisers, particularly those whose e2perience is limited to the off<line

world, lack a coherent framework and concrete methods for achieving the broader

ob)ectives of on<line brand building. These advertisers need an approach for aligning the

promises they make to consumers, the %eb design necessary to deliver those promises

on<line, and the economic model re#uired to turn a profit.

These three elementsSthe promise, the design, and the economic modelS

together form the inseparable components of a successful Internet business, or what

might be called a digital brand. In one industry after another, aggressive Internet upstarts

are putting established brands at risk, creating very strong brand recognition and en)oying

e2plosive visitor growth The reason may have less to do with the established brands

themselves than with their managers.

dvertisers know what a brand is in the physical world$ the sum, in the

consumer:s mind, of the personality, presence, and performance of a given product or

.0




service. These @ As@ are also ;onsumers Turning to Digital 5rands essential on the

%orld %ide %eb. In addition, digital brand builders must manage the consumer:s on<line

e2perience of the product, from first encounter through purchase to delivery and beyond.

Digital brand builders should care about the consumer:s on<line e2periences for

the simple reason that all of themSgood, bad, or indifferentSinfluence consumer

perceptions of a product:s brand. To put it differently, on the %eb, the e2perience is the

brand. ;onsider an e2ample. If a consumer buys lipstick from a retailer in the physical

world and has an unpleasant in<store e2perience, she is more likely to blame the retailer

than the manufacturer.

5ut if the consumer purchases that same product from Arocter C Bamble:s

1eflect.com %eb site, her wrath is more likely to be directed at ACB. Thus the on<line

advertiser:s ob)ective shifts from creating brandsSat least as defined in the off<line world Sto creating Internet businesses that can deliver complete, and completely satisfying,

e2periences. 6et many advertisers, particularly those whose e2perience is limited to the

off<line world, lack a coherent framework and concrete methods for achieving the

broader ob)ectives of on<line brand building. These advertisers need an approach for

aligning the promises they make to consumers, the %eb design necessary to deliver those

promises on<line, and the economic model re#uired to turn a profit. These three elements

Sthe promise, the design, and the economic modelStogether form the inseparable

components of a successful Internet business, or what might be called a digital brand.

Building 2rust

5ringing the si2 elements of trust to your Internet value proposition, though, does

not automatically lead to deep, trusting relationships. That comes through a step<by<step

process in which the consumer and advertiser e2change value. 4ach time the consumer

volunteers some personal information, the advertiser rewards the consumer with a more

personalized service. This mutual give<and<take eventually leads to an advancedcollaboration based on trust. The research has identified four stages of trust building$

.




Attraction

t the first stage, the consumer browses the site and even makes a transaction. No

real relationship e2ists between the advertiser and the consumer, and none may be

warranted. The best strategy is to provide the consumer with information, without

demanding any in return.

t first blush, this may seem like an imbalance between what advertisers give and

what they get back. 5ut what the consumer is giving the advertiser is something #uite

valuable$ time and attention, along with a view of how the site is traversed. The time and

attention translates into the @mind share@ needed to create a brand preference.

The average consumer on 1alston Aurina:s Dog ;how %eb site, which offers no

product for sale, spends more than si2 minutes per session learning how to care for pets.

That:s far more timeSand concentrationSthan consumers devote to a 8<second TV ad.

6ser-*riven /ersonali4ation

t the second stage, consumers start shaping %eb pages to their specific tastes.3or e2ample, ;Dnow customers can personalize their home pages with favorite artists

and wish lists. The company shows that it is willing to deliver some value to the

consumer before gaining financially.

;harles "chwab now invites users to set up a personal page through the

y"chwab service, where users can not only track stocks but also get customized sports

news, weather information, and even cartoons. sers aren:t re#uired to open a "chwab

account to do so.

Advertiser-*riven /ersonali4ation

In the third stage, advertisers begin using insights provided by consumers to beam

information back to them. Thus, ;Dnow uses its knowledge of consumersSdeveloped at

.




the earlier stages of trustSto suggest products they might like which consumers then rate

as either on< or off<target.

s the process continues, ;Dnow learns consumers: preferences and zeroes in on

what they really like. It is worth emphasizing that advertisers should rein in their urge to

make immediate use of data and personalization technologies. This approach takes

patience, a trait lacking at many dvertising organizations.

Too often they bombard consumers with promotional offers as soon as they get

their hands on an e<mail address. %e suggest a gradual approach, as nothing aggravates

many Internet users more than unsolicited e<mail. best practice is to let the user set the

pace of personalization and contact from advertisers.

ser<driven personalization should precede advertiser<driven offers. 1ecentresearch by Arofessor 6oungme oon of the 7arvard 5usiness "chool has shown that

premature personalization can backfire. oon found that consumers were less likely to

buy products pitched to them through messages if the messages were based on

information they had not given to the advertiser themselves. ccording to @Is 6our %eb

"ite "ocially "avvy&@ a ay/?une *999 7arvard 5usiness 1eview article, consumers

were more likely to buy when the message was personalized and based on information

they had volunteered.

2rust-Based Collaboration

t the final stage, the advertiser and the consumer work together closely. The

consumer gives the advertiser access to the most sensitive personal information family,

finances, or healthE and in turn gains customized e2periences and consultative problem<

solving assistance. In our view, very few on<line advertisers have reached this level of

trust with their consumers.

Trust building at a basic level may be enough for some advertisers, particularly if greater trust does not bring greater spending by consumers. -nly by sustaining trust can

advertisers e2pect to establish enduring relationships with consumers, and it is by

keeping a central focus on that idea that advertisers build a value e2change that delivers

consistent and progressive mutual benefits. %ith the si2 building blocks of trust in place,

advertisers should be able to chart a course for building great on<line businesses.

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#ARIS AS'E!TS " NLINE MARKETING


#III. DATA ANAL5SIS AND "INDINGS

5arious As"ects Of Online Marketing

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EFFECTIVENESS OF VARIOUS ONLINE MAR+ETING

TOOLS

The above graphical representation shows us the effectiveness of various online

marketing tools such as sending newsletters, SEO, PPC, anner ads etc. Out of these

SEO, paid advertisements and presence on social networking sites are the most effective

while sending newsletters, e!coupons, and other marketing tools are the least effective

ones.

/2




The above graphical representation shows the effectiveness of "obile

#dvertising, T$ and %esktop %ispla&

elow is the graphical representation of the efforts re'uired in e(ecution of

the various online marketing tools

/3




/




The above graphical representation shows the effectiveness of content

marketing and the mone& being spent on the same.

/.




FINDINGS-

Through this stud& we can conclude that the most promising and effective digital

marketing tools seem to be) Content marketing, SEO, S""

Content marketing is a strategic marketing approach focused on creating and

distributing valuable, relevant, and consistent content to attract and retain a clearly<

defined audience S and, ultimately, to drive profitable customer action.

;ontent marketing:s purpose is to attract and retain customers by

consistently 'r&a!" a"/ 'ra!" r&%&0a" a"/ 0a%,a$%& 'o"&" with the !"&"!o" o# ')a"!" or &")a"'!" 'o"(,m&r $&)a0!or. It is an o"o!" ro'&(( that is best

integrated into your overall marketing strategy, and it focuses on o"!" m&/!a, not

renting it.

5asically, content marketing is the art of communicating with your customers and

prospects without selling. It is non<interruption marketing. Instead of pitching your

//




products or services, you are delivering information that makes your buyer more

intelligent. The essence of this content strategy is the belief that if we, as businesses,

deliver consistent, ongoing valuable information to buyers, they ultimately reward us

with their business and loyalty.

nd they do. ;ontent marketing is being used by some of the greatest marketing

organizations in the world, including P:G; M!'ro(o#; C!('o S(&m(; a"/ Jo)"

D&&r&. It:s also developed and e2ecuted by small businesses and one<person shops

around the globe. %hy& 5ecause it works.

;ontent is the present / and future / of marketing

Bo back and read the content marketing definition one more time, but this time

remove the relevant and valuable. That:s the difference between content marketing andthe other informational garbage you get from companies trying to sell you 'stuff.(

;ompanies send us information all the time / it:s )ust that most of the time it:s not very

relevant or valuable can you say spam&E. That:s what makes content marketing so

intriguing in today:s environment of thousands of marketing messages per person per

day. Bood content marketing makes a person stopread think behave differently.

Thought leaders and marketing e2perts from around the world, including the likes

of "eth Bodin and hundreds of the leading thinkers in marketing have concluded

that content marketing isn:t )ust the future, it:s the present see the video below on

the history of content marketingE.

SEO is an important factor to think about when adapting or designing a website.

The following takes a look at the benefits of "earch 4ngine -ptimization "4-E.

6ou may have heard of "earch 4ngine -ptimization "4-E, which is an online

marketing strategy that improves search engine rankings of a website along with online

traffic. fter finding out what "4- is you may be wondering how "4- will benefit youand your website.

It is beneficial to adapt or design a site for "4-. dapting or designing a site for

"4- leads to$

• "earch engine inde2ing

/0

http://contentmarketinginstitute.com/2012/12/social-media-content-marketing-predictions-2013/

http://contentmarketinginstitute.com/2012/12/social-media-content-marketing-predictions-2013/




• "earch engine ranking

• Increased visitor traffic

• -nline revenue

"earch 4ngine -ptimization "4-E is beneficial for a website. Not only does it

optimise a site and increase visitor traffic, but, it increases a site:s money making

potential. This helps to make a site more successful. Take time to learn more about "4-

and its importance.

/




I6. !N!LSIN

;onsumers have shut off the traditional world of marketing. They own a DV1 to

skip television advertising, often ignore magazine advertising, and now have become

so adept at online 'surfing( that they can take in online information without a care for

banners or buttons making them irrelevantE.

"mart marketers understand that traditional marketing is becoming less and

less effective by the minute, and that there has to be a better way.

The sole purpose of effective online marketing advertisements is to utilise a

campaign strategy at the lowest possible cost and risk investment, in order to ma2imisesales potential and receive a high return on investment profitE.

-nline marketing costs are somewhat ine2pensive in comparison with other

mediums. ;ost effective design and well planned campaign strategies can reach a broader

target audience which can be viewed from virtually anywhere in the worldE for a smaller

price tag than most traditional advertising budgets.

-nline marketing allows consumers of the world to research and purchase services

and products at their own pace and convenience. This is massively appealing to the many

diverse societies of the world. Aeople are also drawn in better if the option of choice is

abundant and results are seen #uickly.

The overall success and effectiveness of an online marketing campaign largely

depends on the business goals laid out, as well as cost volume profit ;VAE analysis a

form of cost accountingE.

-nline marketing allows for statistics to be measured more easily and at a lower

cost. Virtually all elements of an online marketing campaign can be traced and tested in

some way, shape or form. ethods in which this can be done include pay per impression;A$ cost per thousand viewersE, pay per click AA;$ a host company is paid every time

an advertisement is clicked onE, pay per play AAA$ pay per audio advertisement playedE

or pay per action AA$ an advertiser pays for a specific action related to an

advertisement, such as a form submission or a purchaseE. %eb analytics are also a useful

tool in being able to effectively track the e2posure, response and overall efficiency of

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online marketing by collecting, analysing and reporting back internet data. 7ere,

advertisers can determine the best return on investment 1-IE. Tracking and measuring

can be done almost instantaneously since online marketing encourages interaction by

clicking on the ad and visiting the website, as well as other target actions.

Aay per click advertising is notably the most effective means of generating

immediate traffic to a website. dvantages of this form include only paying when a user

interacts with an ad clicks on itE, the source of traffic can be easily tracked as well as

identify which ads are achieving the best result in a campaign, and targets an audience

more specifically ads appear when a web user searches for keywords that are relevant to

a specific company or businessE.

-nline marketing campaigns can be implemented much faster than traditional

forms of advertising, reaching a targeted audience within a matter of days and in somecases, hours.

-nline marketing provides a greater fle2ibility level whereby campaigns can be

altered to test new markets, evaluate new programmes and make changes more specific to

a targeted market.

"earch engine optimisation "4-E companies who specialise in helping companies

best market their products and services online can successfully place them on the top or

first page of ma)or search engines and directories, such as Boogle, "N and 6ahoo. This

will ensure that competitors are kept at bay at a lower level on a search engine websiteE,

with the sole aim of generating #uick and efficient sales or services, as well as increasing

a profit ratio.

• Effective Online "arketing Tools

Tools that can be used to make an online marketing campaign at its most effective

include$

Doma!" "am& / website addresses should be uni#ue, simple, short, andmemorable, as well as strongly reflect what a company stands for and intends to offer

their target audience. This is essentially a company:s very first online marketing tool. If

the name chosen isn:t memorable and reflects the nature of the company, it is not likely to

achieve success.

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Co"&" / better content makes for abetter website. ;ontent should be packed

with keywords that search engines can easily pick up on when a web user is online.

+&or/( in online marketing are truly a #uality tool as this is what will draw a targeted

audience onto your website.

N& ma&r!a% a"/ ,/a&( / constant and consistent updates whereby new

information is added will give your website content more bulk that has the added benefit

of enticing viewers to return. Improvements will by no means go unnoticed by the public

at large.

S!m%!'! / by keeping things simple and concise, a targeted audience doesn:t

feel that their time is being wasted, as in today:s fast paced society, time is of the essence.

arketing your website / advertising your website on other websites such asQeuzzo or doing d"ence can greatly create more awareness of a company:s brand,

services or products.

B%o( / are fast becoming essential tools for online marketers as they can build a

content rich website, as well as attract targeted traffic from all ma)or search engines.

-nline marketing is a collaboration of elements that produce a successful web

based advertising strategy or campaign. Identifying the tools needed and making the most

of them re#uires an enormous amount of skill, practise and e2pert thinking minds. The

work that is put in ultimately determines the level of success that will be achieved.

01




Re2erence

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http$00www.slideshare.net0factor0an<overview<to<digital<marketing

https$00www.coursera.org0learn0marketing<digital

e+%KS"ocial edia arketing 3or Dummies

Comparitive Study between digital and trditional marketing

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