Web Site Advertising and Retailing

1
Web Site Advertising and Retailing

• Discuss the advantages of net advertising
• Discuss the multifaceted approaches of
  advertising
• Discuss net advertising dos and donts
• Discuss the use of log files, DoubleClick and
  tags as methods for gathering advertising
  statistics
• Discuss the use of web banners
• Discuss the use of the web for retailing
• Discuss changes in internet-based retailing
  approaches
• Discuss affiliation programs

2
Security Objectives

• Discuss the roles encryption and certificates
  play
• Contrast symmetric and asymmetric encryption
• Discuss key activities in certification
  management
• Define Cryptography, digital ID, key, digital
  signature, hash coding, hash algorithm, message
  digest, private key, public key, CERT
• Discuss protecting intranets with firewalls and
  corporate servers against being attacked through
  the Internet
• Discuss the role Secure Socket Layer, Secure
  HTTP, and Secure Electronic Transaction protocols
  play in protecting e-commerce

3
The Net as an Advertising Resource

• Its fast
• Print ads 4-6 weeks to create, 2-6 weeks to
  publication
• Web ads matter of days
• Changes can be made quickly
• Inexpensive
• Direct mail .50-.75/piece vs. email.10/piece
  (no limit on length)
• Allows pictures and testimonials
• Multifaceted

4
Nature of Communication Two Methods

• Personal contact model (one-to-one)
• Also called prospecting
• Firms employees individually search for,
  qualify, and contact potential customers
• Mass media model (many-to-one)
• Firm delivers message and broadcasts it through
  billboards, newspaper, television, etc.
• Addressable media is sometimes distinguished from
  mass media
• Addressable media is directed to known addresses,
  and includes direct mail, telephone calls, and
  e-mail

5
Multifaceted Advertising Approaches

• Usenet new groups
• Free email services (17.8 WSJ 3/21/99) FreeMark
  Communications,Juno Online Services
• Games BayBank, www.riddler.com
• Interactive screen savers(freeloader)
• Framing http//totalnews.com (formerly)
• Advertorial
• Ad Robot (push technology)
• persistence ICQ

6
Web Terms Used in Advertising

• CPM is a dollar amount for each thousand people
  in the estimated audience
• A visit occurs when a visitor requests a page
  from a web
• Further page loads counted as part of the visit
  for a time period chosen by the site
  administrator
• Trial visit -First time a visitor loads a web
  site A subsequent visit is a repeat visit
• Page view
• Each time a visitor loads a page- if the page has
  an ad, this is called an ad view

7
Web Terms Used in Advertising

• Impression -- each time a banner ad loads
• If a visitor clicks the ad to open it, it is
  called a click or click-through
• Advertisers use market segmentation
• Divides the pool of potential customers into
  common demographic characteristics, such as age,
  gender, income level, etc. called segments
• Targets specific messages to these groups
• Micromarketing- targeting very small market
  segments

8
What about Web Banners?

• Unique to Net
• Usually limited text with hot link
• Different sizes sell for different prices
• Site may rotate banner (e.g., Yahoo and C-Net)
• Lots of competition
• Hard to assess impact

9
Web Banner Statistics WSJ 2/24/99

• Average price per 1000 online impressions dropped
  5.6 to 35.12 from 37.21 a year earlier
• Web surfers click on .5 of banners, down 1
  from last year and 2.5 two years ago
• Lycos business, career, or computer sections
  35/1000
• Lycos mortgage-rate page 150/1000

10
Running Time cyberatlas 8/28/2000

• Over 7,000 new banner ads appear each week, but
  they only run an average of less than three weeks
  (based on year study of top 500 websites)
• Staying power depends on industry
• automotive banners 7.8 weeks (avg)
• hardware/electronics banners 4.1 weeks (avg)
• Most ad campaigns garner less than 44,000
  impressions

11
Choosing the Best Place to Advertise

• Popular sites (CS)
• AOL
• Yahoo
• Microsofts Network
• Lycos Inc
• Post in all categories that fit and on
  industry-appropriate forums
• Give robots your URL
• www.submit-it.com
• Put URL at bottom of your e-mail

12
Definition of Branding

• Elements of branding
• Differentiation
• Relevance
• Degree the product offers utility to the customer
• Perceived value

13
Creating and Maintaining Brands on the Web

• What is the role of brand names?
• Top 100 e-commerce sites spent an average of 8
  million to create and build their online brands
  in 1998
• In 1999, dot-coms spent 3.1 billion in
  traditional advertising including TV, radio and
  print (WSJ 4/3/2000)
• Dot-com advertising spending 2 of total 87.5 of
  US advertising spending (WSJ 4/3/2000)

14
Emotional vs. Rational Branding

• Emotional appeals work well in mass media because
  ad targets are passive
• Do not work well on Web, however, because Web is
  active medium
• Rational branding
• Gives people valuable service in exchange for
  viewing ads
• Examples include free e-mail and secure shopping
  services
• Navigators can play a role here

15
Advertising Considerations

• Mix traditional with net advertising
• place e-mail address and URL on advertising,
  catalogs, letterhead, business cards (resumes)
• pick a memorable URL
• Play media off one another- Victorias Secret
• Use promotions
• First on-line purchase
• Coupons
• Identify target markets

16
Advertising Dos

• View the competition
• get ideas for your site
• check out others HTML
• Spend time as a user
• Stay abreast of trends
• Include complementary links (Welcome to my site,
  please leave!)
• Check your links periodically
• Post press releases to mailing lists
• Relationship Marketing

17
Relationship Marketing (11 Marketing)

• Market via more personal touch
• Get personal testimonials of people in the
  trenches who have used product
• Personalized web pages
• Contribute to discussion groups
• Company exec may answer e-mail
• Focus on maintaining and enhancing relationships
• costs 5 times as much to acquire new customer
  than to retain current one
• Use in addition to other advertising

18
Net agents

• intelligent agents, software agents
• Software, often applying artificial intelligence,
  to support buyers
• locating information or products
• receiving personalized information on the basis
  of a predetermined profile
• return comparative information based on user
• Can make decisions or initiate requests
• Cholesterol of Internet

19
Getting Statistics about Advertising Impact

• DoubleClick, MatchLogic, RealMedia, Inc.
• buy ad space on Web and keep their own tally of
  ads on a page
• some customers ban these advertisers from using
  any data from their web site
• PG, GM and MatchLogic
• IBM bars websites where it advertises (gt800 web
  sites) from collect its ad-campaign data
• HTTPD logs
• Tags
• Cookies

20
DoubleClick, Inc

• Sells advertising space on network of 1400
  websites
• Information to better customize ads
• Predicts what you will buy on Web based on what
  you have purchased online and offline
• Pay 1 billion to buy Abacus Direct
• may need to revise privacy statement
• Plan requires help of online retailer

21
Getting Statistics about Advertising Impact

• Use HTTPD log files
• Log counts every access
• includes access to each image
• may be hard to determine unique independent
  entries
• Logs contain domain names, not user names, of
  visitors
• Logs also include time, date and accessed URL
• Get logs from ISP
• Logs themselves may be large

22
Use of Log Files

• To count visitors
• count users accessing home page
• but, users may skip home page by accessing inside
  page directly
• To improve pages
• access patterns by time (may help determine best
  time for updates)
• pages being accessed
• audio, movies or popup images that may be omitted
• Software available (Refer-its Analog)

23
New Standard to Count Visits Tags

• Fast Steering Committee
• Programmer adds simple software codes to Web ad
• no one owns codes
• can be freely inserted
• Advertisers dont trust numbers
• Cache ads arent counted

24
Meeting Key Customer Needs

• Efficient information access
• intelligent agents
• interactive personalized smart catalogs
• Seller-driven/ Web-centric
• Buyer-driven/ Customer-centric
• Casting technologies

25
Reasons for Going Online (PcData 2/23/99)

• 63 of respondents listed convenience as the
  most important reason why they shopped on-line.
• 25 mentioned pricing For all the fuss about
  the
• Only 10 of the respondents listed selection as
  the primary motivator to go on line.

26
Internet Retailing (e-tailing) (WSJ
4/5/2000)

• Last year doubled to 15 billion
• Expected to rise 53 to 23 billion in 2000
• Costs rising faster than sales
• advertising
• warehouses
• online assistance (Lands End, eToys)
• Building a high quality e-tailing website costs
  30 million
• Building a brand costs100 million

27
Internet Retail Establishments

• Brochure
• tells companys story in text and pictures
• Company mailbox
• automated mail response to e-mail requests
• Specialty store
• storefronts with product catalogs
• http//www.virtualvin.com/ http//www.fridgedoor.
  com/
• Cybermall
• Subscription

28
Storefronts and Cityscapes

• There are no bad parts of town
• Dont pay premium for name alone.
• Reasonably priced storefronts offer some
  advantages.
• Belong to multiple communities
• put host page in one location
• place links to your pages in other malls
• Push products (insurance)may do better
  face-to-face

29
Cybermalls

• Retail complex that houses dozens of specialty
  stores
• http//malls.com/awesome
• 25 mo/ 5 pages - 850 mo/maintained
• CUC NetMarket www.netmarket.com
• ZD Nets Computershopper www.zdnet.com/computersh
  opper
• Malls with traffic and big business tenants
  (i.e., IBM) cost more

30
Subscription/Fee-Based Marketing

• Marketing-subscription mixed model
• Revenue derived from fee and it also accepts some
  level of advertising
• Used by newspapers and magazines
• Successful web models include New York Times, the
  Wall Street Journal, ESPN, Reuters, and Northern
  Light
• Fee for transaction Model
• Online travel agents and car-buying services can
  remove an intermediary from a value chain

31
Affiliation Programs

• Description of AMAZON.COMs affiliate program
  (started in 1996) We pay 15 on individually
  linked books and 5 on all other items. You build
  a custom bookstore, music store, and video store
  on your site or simply put up a link to
  Amazon.com and get paid on all sales. We do the
  customer service, shipping and tracking of sales.
  With our program there are no hidden sales quotas
  or performance tiers. Put up a link and start
  earning today.
• www.referit.com

32
Security on the Internet

• CERT
• Encryption
• Digital Signatures/Certificate Authorities
• Protocols
• Firewalls

33
Computer Emergency Response Team (CERT)

• Housed at Carnegie Mellon University
• Responds to security events and incidents within
  the U.S. government and private sector
• Posts CERT alerts to inform Internet users about
  recent security events
• Posts CERT DNS attack advisory about domain name
  service attacks

34
Providing Transaction Privacy

• Encryption
• The coding of information by using a
  mathematically based program and secret key to
  produce unintelligible characters
• Steganography
• Makes text invisible to the naked eye
• Cryptography
• Converts text to strings that appear to have no
  meaning
• Science that studies encryption

35
Encryption

• Mutation of information in any form
• plain text cipher text plain text
• Based on algorithm and key
• Key - very large string of zeros and ones
• the larger the better!
• Algorithm - mathematical function
• 40-bit keys are considered minimal,128-bit keys
  provide much more secure encryption

36
Encryption Functions

• Hash Coding
• Calculates a number from any length string
• Asymmetric (Public-key) Encryption
• Encodes by using two mathematically related keys
• Symmetric (Secret or Private-key) Encryption
• Encodes by using one key, both sender and
  receiver must know

37
Cryptography

• Private (Secret) key cryptography - Symmetric
• shared key (both parties agree)
• does not scale
• nonrepudiation is impossible
• Date Encryption Standard (DES)Triple DES
• Public key cryptography - Asymmetric
• public and private keys
• digital signatures
• suited for multiple users
• slow
• RSA

38
Nonrepudiation

• verification that a particular transaction
  actually occurred
• prevents parties from denying a transactions
  validity or its existence

39
Digital Signature

• Mathematical algorithms for encrypting
• A puts private key and document together
• A generates unique number called digital
  signature (fingerprint or message digest)
• Fingerprint attached to original message and
  further encrypted with private key
• Message sent to B
• B decrypts using As public key
• Checks for modification with calculations to get
  matching fingerprint

40
Certificate Authority (CA)

• Alternative to secure transmission
• Uses trusted third party to authenticate public
  key
• Certificate is digitally signed by CA to verify
  identity and credentials
• Identification requirements vary by CA
• Every digital certificate is unique
• Digital certificate is sent along with digital
  message
• Have expiration date

41
Certification Management

• Digital certificates
• issue
• register
• generate
• manage
• revoke
• To insure
• users authorized transaction
• transaction hasnt been tampered
• digital receipt and time stamping

42
Hierarchy for CA

• Root central facility/Policy approval
• Certification Authorities/Cybernotaries
• Local Registration Authorities
• Encryption Entities
• Digital Signature Entities
• User Certificates/Digital Signatures
• End Entities

43
Local Registration Authorities (LRAs)
44
CA Tutorial

• http//www.kpmgca.com/download.htm

45
VeriSign OEM

• CA software cross-platform, shrink-wrapped
  product
• PKI and digital certificate solutions
• Supports LRA
• Query manager (SQL)
• Transaction Manager (integrity of certificates)
• Signing server
• Middleware Framework

46
Secure Sockets Layer (SSL) Protocol

• Secures many types of connections between two
  computers on Internet
• Developed by Netscape
• Had backing of AppleSoft, DEC, MasterCard
  International
• Provides a security handshake in which the client
  and server computers exchange the level of
  security to be used, certificates, among other
  things

47
Secure Sockets Layer (SSL) Protocol

• Provides either 40-bit or 128-bit encryption
• Secures data packets at network layer
• Secures connections between two computers checks
  certificates
• Session keys are used to create the cipher text
  from plain text during the session
• Can secure communications in addition to HTTP
  (i.e., FTP)
• Uses public and private key encryption

48
Secure HTTP (S-HTTP) Protocol

• Extension to HTTP that provides numerous security
  features
• Client and server authentication
• Spontaneous encryption
• Request/response nonrepudiation
• Provides symmetric and public-key encryption, and
  message digests (summaries of messages as
  integers)
• Open protocol designed to secure web transactions
  using special packet headers

49
Secure Electronic Transaction

• Backed by MasterCard, Visa, IBM, Netscape and
  Microsoft
• Secures credit card transactions
• Uses digital certificate
• consumers name
• few digits of consumers credit card
• name of bank that issued card
• Merchant uses public key cryptography to verify
  consumers identity
• Provides confidentiality of payment info
• Provides merchant authentication

50
Firewalls

• Control damage to your data and computer systems
• Protect against spoofing
• Implement access controls based on contents of
  the packets of data transmitted between two
  parties or devices on a network
• Single point of control for security on network

51
Firewalls

• Should be stripped of any unnecessary software
• Categories of firewalls include
• Packet filters
• Examine all packets flowing through the firewall
• Gateway servers
• Filter traffic based on the requested application
• Proxy servers
• Communicate on behalf of the private network
• Serve as a huge cache for Web pages