Online Advertising Metrics
by Group 7
(Mary Barnard, Huei-Chun
Yuan, Redemptor Perez, Clarke Hercules)
Current Online Trends
·
Most
heavily advertised products: Computer equipment and books
·
Largest
online advertisers: Amazon and Barnes & Noble
·
10
of the 15 heaviest online advertisers are not in the Fortune 500
·
Flowers
are sixth most often purchased item online
·
Major brands not found
advertising online: Exxon, Kraft, Nabisco, Shell,
Burger
King, Coke, Pepsi, Nike
● Sites spend billions
on ads, but will they get their money
back? www.cnet.com
Online
targeting
1.Segmentation
Segmentation allows online
advertisers to active target specific sets of customers. The categories are gender, income,
education, and age. However, studies
have shown that the heaviest online users are those who have access to both at
work and at home.
2.MOTIVES OF CLICK-THROUGH
·
Curiosity Works –
exploit this old, but reliable tactic to entice surfers to keep on clicking
·
Coupons and Discounts –
Why pay more? People are always looking for a good deal.
·
Product Interest – 98%
of clicks occur due to interest in the product itself and not for any other
reason
Only when an advertiser understands the demographics
and psychographics of its customers can it do optimal targeting. For
advertisers, first is likely to buy the products. Second, advertisers need to
know what target audience does online and what ad approaches appeal to them.
These are the basic concepts to keep in mind before applying the technology.
3.technology
personalization tools
Rules based software (Broadvision) uses cookies
to track a user’s web movements in an effort to segment users into categories
or clusters. Rather than speaking to
individual preferences or taste, rule based software guides users to a product
when he or she would rather not make a choice.
This technique is valuable for goods requiring a certain level of
expertise.
Collaborative filtering (NetPerceptions)
tracks a user’s click-throughs and combines these with answers to
questionnaires to make recommendations that will be consistent to the user’s
preferences and taste
Web Personalization www.computerworld.com
Want to learn more?
www.personalization.com
Tracking options
A Baltimore start-up had devised a tracking system
called AdLeann that serves ads based on such data as an ad’s success in
attracting click-throughs. The company claims that its ads garner a
click-through rate three times higher than the industry norm.
Tracking technological
developments
There are services marketers can subscribe to track new developments.
Also, a variety of websites can also keep marketers abreast of the latest
developments.
High-speed access is a major factor that will allow for more creativity, more flexibility, and more revenue. High-speed access is many times faster than 56 kbs access, is always on, and it’ll facilitate on-demand radio. However, most of the Internet users know little about high-speed access such as DSL and cable modems.
High-speed access from home is currently only a tiny percentage of the overall market, but it is the tide that will lift the internet ad industry.
According to the poll from Strategies Group in 1999, 30 percent of the online users say that they did, indeed, listened to Internet radio within the last three months.
Strength:
Online broadcasters can make their advertising more effectively by combining voice ads as well as banner ads
Online Radio Listeners are Active Web Consumers. www.internetnews.com
A great advantage they take over locals is the focus on national brands and contracts.
Many of them provided customized content, which allows listeners promote and demote genres of music artists. The stations can be personalized to know your tastes, which may bring the customers back again and again.
A prototype of online station radio.sonicnet.com
Weakness:
Factors like national broadcasts of local ads, low bandwidth are prevent streaming radio from becoming a giant factor in the US ad industry.
While 1296 US broadcasters and 1071 international operators now have a streaming broadcast operation, there are only 196 internet-only broadcasters
The top radio station in terms of cumulative listeners is Texas Rebel Radio with roughly 84000 online listeners. www.texasrebelradio.com
A full list of all internet radio stations wmbr.mit.edu
To see what’s going on in radio stations www.webradio.com
Survey indicates that around four out of five US Internet users are not on any kind of automated commercial e-mail list. Advertisers are clearly missing out on this opportunity.
Advantages:
Increased Brand Awareness:
Unprecedented Growth in Online Sales:
Personalized Marketing Campaigns:
Qualified Lead Generation:
An Improved Customer Relationship Management Plan.
These are just a few
of the benefits that will result from implementing a targeted Opt-in e-mail
marketing program. Opt-in e-mail not only reaches a large, qualified audience,
but it remains personal and applicable to the interests of the consumer.
News and articles
about opt-in e-mail www.allen.com
How to capture the
motivated customers?
Offering e-mails during the site registration is the most effective and efficient way.
Putting a link on the site is another way
Pitfalls:
Overloaded mailboxes: E-mails will break trough the clutter only if it is welcome and succinct
Customer service: Is there sufficient customer service staff and server capacity to hand their reply? Will the company risk alienation and forfeit feedback by making the e-mail “send-only”?
Appearance of spamming: Do customer signing up for a certain website?