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Advertising & Branding Industry

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Advertising & Branding Industry

  1. 1. <ul><li>Final Presentation </li></ul><ul><li>E-Business - HEC 2009 </li></ul><ul><li>A. Osterwalder </li></ul><ul><li>15th December 2009 </li></ul><ul><li>Ana Ron Elizade </li></ul><ul><li>Irene Sáenz de Santa María Valín </li></ul><ul><li>Eduardo Sáinz de los Terreros Sastre </li></ul><ul><li>Fernando de Santiago Martín </li></ul><ul><li>Gonzalo de Pablo Mariscal </li></ul>12/15/09 E-BUSINESS
  2. 2. <ul><li>Industry Structure </li></ul><ul><li>How is the Web transforming the industry? </li></ul><ul><li>What can we see and sense? </li></ul><ul><li>Ways of working </li></ul>12/15/09 1 E-BUSINESS
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  4. 4. <ul><li>Definitions: </li></ul><ul><ul><li>Branding : It is the application of marketing techniques to a specific product, product lin, or brand. </li></ul></ul><ul><ul><li>Advertising : It is the description or presentation of a product, idea, or organization, in order to induce individuals to buy, support, or approve it. </li></ul></ul><ul><li>Insight: </li></ul><ul><ul><li>Brand: Distinguishing name and/or symbol intended to identify a product or producer </li></ul></ul><ul><ul><li>Description: Detailed account of the certain or salient aspects, characteristics, or features of a subject matter or something seen, heard, or otherwise experienced or known. </li></ul></ul><ul><ul><li>Presentation: Formal submission or delivery of a document or negotiable instrument for the appropriate notice or action (acceptance, negotiation, payment, etc.) of the named entity. </li></ul></ul><ul><ul><li>Product: The end result of the manufacturing process, to be offered to the marketplace to satisfy a need or want. </li></ul></ul><ul><ul><li>Organization: A company, business, firm, or association. </li></ul></ul><ul><ul><li>Individuals: Single person. </li></ul></ul>12/15/09 E-BUSINESS
  5. 5. <ul><li>Ancient Rome and Arabic: Out-of-Home advertising and Billboards are the oldest forms of advertising </li></ul><ul><li>19th Century: Growth of mail-order advertising </li></ul><ul><li>1836: First paid advertising in newspapers </li></ul><ul><li>1840: First advertising agency </li></ul><ul><li>1920s: Advertising come to radio </li></ul><ul><li>1940s: Advertising come to TV </li></ul><ul><li>1950s: Modern of selling advertising space to multiple sponsors </li></ul><ul><li>Late 1980s-Early 1990s: Cable TV. Thematic channels </li></ul><ul><li>21 st Century: Advertising through Internet </li></ul><ul><ul><li>Increasing trend of interactive and &quot;embedded&quot; ads, such as via product placement, having consumers vote through text messages, and various innovations utilizing social network services </li></ul></ul>12/15/09 E-BUSINESS
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  7. 7. <ul><li>Brand : It is a distinguishing name and/or symbol intended to identify a product or producer. </li></ul><ul><li>Intellectual Property : It is a number of distinct types of legal monopolies over creations of the mind, both artistic and commercial. </li></ul><ul><li>Human Capital : It refers to the stock of skills and knowledge embodied in the ability to perform labor so as to produce economic value. </li></ul><ul><li>Broadcasting network : It consists of links and nodes arranged so that messages may be passed from one part of the network to another over multiple links and through various nodes. </li></ul>12/15/09
  8. 8. <ul><li>Organization : Refers to companies which have brands and use advertising to improve its performance. </li></ul><ul><li>Ad Agency : It is a service business dedicated to creating, planning and handling advertising for its clients. </li></ul><ul><li>Broadcaster : It is the agent responsible for the distribution of audio and/or video signals which transmit programs to an audience. </li></ul><ul><li>Client : It is usually used to refer to a current or potential buyer or user of the products of an individual or organization. </li></ul><ul><li>Salesperson : It is the agent whose activity is mainly involved in selling products or services in return for money or other compensation. </li></ul>12/15/09
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  11. 11. HOW IS THE WEB TRANSFORMING THE INDUSTRY Web Technologies Influencing the Industry New problems being solved Advantages for customers 12/15/09 1 E-BUSINESS
  12. 12. Traditional Mass Media Advertising New communications environment: evolving network of new media EVOLUTION High capacity Interactive Multimedia The fundamental differences between online and traditional advertising result from a combination of internet technologies and the nature of the web. 12/15/09 1 E-BUSINESS
  13. 13. <ul><li>WEB TECHNOLOGIES: </li></ul><ul><li>-Search engines: </li></ul><ul><li>A tool designed to search for information on the World Wide Web </li></ul><ul><li>-Banner ads: </li></ul><ul><li>A form of advertising on the World Wide Web that is intended to attract traffic to a website by linking to the website of the advertiser </li></ul><ul><li>-Buying online ad space: </li></ul><ul><li>Advertising networks sell space to advertisers </li></ul><ul><li>Addopting the cost-per-click approach to pricing </li></ul><ul><li>Addopting the use of auctions to allocate the advertising spots on the page showing results of the search. </li></ul><ul><li>-W eb-based vehicles: </li></ul><ul><li>Web versions of business directories similar to the yellow pages ; web versions of newspaper classified ads ; web versions of direct mail and telephone marketing </li></ul><ul><li>-IndividualIP (Internet protocol): </li></ul><ul><li>Address which typically identifies the location of the individual </li></ul><ul><li>-Data bases: </li></ul><ul><li>It is possible for online entities to gather data on what people have done online </li></ul>12/15/09 1 E-BUSINESS
  14. 14. <ul><li>-New opportunities for touching customers </li></ul><ul><li>-Enriching products and services with information </li></ul><ul><li>-Squeezing out costs through process automation: Companies can reach a wide audience for a small fraction of traditional advertising budgets </li></ul><ul><li>-Redesigning internal business process through enhanced communication and knowledge sharing </li></ul><ul><li>-Reduces Time and money spent </li></ul><ul><li>Global product promotion; reach new markets world wide </li></ul>12/15/09 1 E-BUSINESS
  15. 15. <ul><li>Vital Web presence </li></ul><ul><li>-Gives a competitive advantages </li></ul><ul><li>-Removes Location and availability restrictions </li></ul><ul><li>-Heightens customer service </li></ul><ul><li>-Streamlining the ordering process by taking orders online </li></ul><ul><li>-Companies can reach a wide audience for a small fraction of traditional advertising budgets. Companies can reach a wide audience for a small fraction of traditional advertising budget. Various methods: pay per impression, pay per click, pay per play or pay per action </li></ul>12/15/09 1 E-BUSINESS
  16. 16. CREATIVITY, EXPOSURE, SPEED AND INFORMATION ACCESS -The nature of the medium allows consumers to research and purchase products and services at their own convenience - Every step on the process is faster : the Internet is faster than traditional selling methods - More information about products and the selling of products: customers can access to information by him/herself - Disponibility : Products can be sold or ordered 24 hours a day, seven days a week, 365 days a year without the need for support staff -Online ordering helps to eliminate errors and make order processing more efficient -The Web eliminates many of the extra costs that are associated with ordering: Ordering by phone can cost long distance fees and errors can occur with product codes -It is simple to quickly re-order the same products from a previous date with one click of the mouse: Once logged on, a customer is able to lookup their order history to quickly see what they have ordered in the past 12/15/09 1 E-BUSINESS
  17. 17. <ul><li>Business Model: The method of doing business by which a company can sustain itself -- generate revenue </li></ul><ul><li>Main advertising models: </li></ul><ul><ul><li>Banner: A web site provides content mixed with advertising messages </li></ul></ul><ul><ul><li>Portal: Search engine that may include varied content or services </li></ul></ul><ul><ul><li>Classifieds: List items for sale or wanted for purchase. </li></ul></ul><ul><ul><li>User Registration: Content-based sites that are free to access but require users to register and provide demographic data </li></ul></ul><ul><ul><li>Query-based Paid Placement: Sells favorable link positioning or advertising keyed to particular search terms in a user query. </li></ul></ul><ul><ul><li>Contextual Advertising/Behavioral Marketing: Freeware developers who bundle adware with their product </li></ul></ul><ul><ul><li>Content-Targeted Advertising: It extends the precision of search advertising to the rest of the web </li></ul></ul><ul><ul><li>Intromercials: Animated full-screen ads placed at the entry of a site </li></ul></ul><ul><ul><li>Ultramercials: Interactive online ads that require the user to respond. </li></ul></ul>12/15/09 1 E-BUSINESS
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  20. 20. <ul><li>INTERNET provides new advertising opportunities  Popup, banners, e-mail advertisements,... </li></ul><ul><li>Since the rise of &quot;entertaining&quot; advertising people may like an advertisement enough to wish to watch it later or show a friend  have FUN with company’s advertisements </li></ul><ul><li>Growing importance of the niche market using niche or targeted ads  advertisements are targeted to a specific group and can be viewed by anyone wishing to find out more about a particular business. </li></ul><ul><li>Industry DIVERSIFICATION  Ad Agencies </li></ul><ul><li>Freelance advertising  public competitions to create ads for company’s products. </li></ul><ul><li>Advertising EDUCATION  importance of advertisement in cultural and technological changes </li></ul>12/15/09 1 E-BUSINESS
  21. 21. <ul><li>Today’s Advertisements try to influence people  CONSUMERISM </li></ul><ul><li>Advertising campaigns poor in ethical values  sex and race discrimination </li></ul><ul><li>Solution  new tax over advertising companies which advertisements break established rules </li></ul>12/15/09 1 E-BUSINESS
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  23. 23. <ul><li>Psychological factors -> thinking, feeling, sensation, and intuition -> completely enthralling experience, not one with negative connotations </li></ul><ul><li>Companies should aim to strengthen customer interactions with advertisements on the Web </li></ul><ul><li>Unfortunately, most companies provide a generic experience to all customers instead of delivering a personalized experience. </li></ul>12/15/09 1 E-BUSINESS
  24. 24. <ul><li>Commercial advertisers often seek to generate increased consumption of their products or services through branding </li></ul><ul><li>ETHICS -> large numbers of advertisements (i.e.flashing banners), misleading images looking like error messages from the operating system, websites unethically using online advertising for revenue, without monitoring the links </li></ul><ul><li>MALWARE -> advertising methods unethical and even illegal (external applications which alter system settings, spawn pop-ups, and insert advertisements into non-affiliated WebPages) -> labelled as SPYWARE/ADWARE. </li></ul><ul><li>PRIVACY AND ANONYMITY -> tracking the browsing of users across websites </li></ul><ul><li>ENVIRONMENT -> 77% of consumers describe themselves as “green” and “actively living their lives conscious of their health and environment” </li></ul>12/15/09 1 E-BUSINESS
  25. 25. <ul><li>Results-based and measurable </li></ul><ul><li>Rich, varied and interactive </li></ul><ul><li>Targeted effectively at desired consumer segments </li></ul><ul><li>Attuned to consumer desires to control media experiences </li></ul><ul><li>Direct response focus </li></ul>12/15/09 1 E-BUSINESS
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  29. 29. 94% of all email messages are spam 12/15/09 1 E-BUSINESS
  30. 30. <ul><li>&quot;Consumers are getting harder to influence as commercial clutter invades their lives.&quot; More: &quot;People are tiring of ads in all their forms... [a recent] study found 65% of people now feel 'constantly bombarded' by ad messages.&quot; </li></ul><ul><li>(The Economist, 2004) </li></ul>12/15/09 1 E-BUSINESS
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  32. 32. WAYS OF WORKING Activities we have Performed -Looking for information about the history, the evolution, the structure and the operations of the industry in: The Online Advertising Industry: Economics, Evolution, and Privacy http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1376607 History of advertising www.mediaknowall.com/Advertising/history.html History of internet advertising” www.historyoftheinternet.net Business models on the web digitalenterprise.org/models/models.html#Advertising http://digitalenterprise.org/models/models.html http://www.monitor.com/Portals/0/MonitorContent/documents/Monitor_Truth_About_Internet_Business_Models.pdf SEVERAL ARTICLES WEB SITES Pzrservices.typepad.com/advertisimgisgoodforyou VIDEOS Vator Reports: The Rapidly Changing Online Marketing and Advertising Industry http://www.youtube.com/watch?v=WKn-lLzCLik 12/15/09 E-BUSINESS
  33. 33. CONCLUSIONS I What have we learned <ul><li>Advertising is the description or presentation of a product, idea, or organization, in order to induce individuals to buy, support, or approve it. </li></ul><ul><li>How the industry in structured </li></ul><ul><li>-How new technologies are influencing and changing the advertising industry. </li></ul><ul><li>-What are search engines, banner ads, buying online ad space. </li></ul><ul><li>-Consumer concerns in this industry </li></ul><ul><li>-What these concepts mean in the advertising industry </li></ul>ETHICS MALWARE PRIVACY AND ANNONYMITY 12/15/09 E-BUSINESS
  34. 34. REALLY HIGH INFLUENCING THE DECISSION MAKING PROCESS OF THE ADVERTISING COMPANIES 12/15/09 1 E-BUSINESS
  35. 35. CONCLUSIONS III Way of Thinking Changes 12/15/09 E-BUSINESS
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