Advertising

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• Advertising E-Commerce
• Cmpe 472Fall 2003

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Topics Covered

• Profiling - how does it work?
• Advertising Networks
• Comparing Media Models
• Improving Results
• Rich Media Other Examples
• Problems Challenges

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Cookies

• stored in a text file on your hard drive
• usage
• track users (unique ID)
• save passwords / prefs.
• temporary storage (shopping basket)
• each cookie can only be accessed by the domain
  that placed it (ads have own domain)
• may be disabled
• a cookie ? single user

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Targeting

• Targeting Options
• site categorization
• visitor frequency
• geography
• domain name
• service provider
• SIC codes
• company size (emp, )
• browser type
• operating system
• click stream

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Comparing Media

• Effectiveness
• Internet banner ad click through (98 2.11 99
  1 02 .3)
• Direct mail response 1-2
• Print ads response .5-.75
• CPM (cost per 1000 impressions)
• Niche magazines - 75-150
• Consumer magazines - 30-40
• Web sites (98 20-30 99 17 02 2-34)
• Network TV 6-15
• National radio 4-8

sources Morgan Stanley, Inter_at_ctive eCompany Now
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Media Buy Models

• CPM
• cost per thousand impressions
• Click-Thru (Cost Per Click)
• advertisers pay only when users click an ad
• Affiliate (Cost Per Sale / Lead)
• advertisers pay per sale or lead/inquiry
• Exclusives Sponsorships
• Barter
• trading space with another site

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Internet Ad Response Rates

• Improving click-through rates
• audio (300)
• placement (lower rt. 228 1/3 down 77)
• interstitials (44)
• animation (25)
• cryptic messages (18)
• posing a question (16)
• calls to action (15) e.g. see us now
• matching/targeting (400-600 or more)

sources Grey Interactive, DoubleClick,
webreference.com, Internet Profiles, AudioNet,
BusinessWeek
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Challenges for Net Advertising

• Excess Inventory
• roughly 80 unsold, punished for efficiency,
  caching
• Decreasing Effectiveness
• Click- throughs plummeting
• Deboning
• ad blocking, third-party cookie blocking
• The Agencys Goal / Result Conflict