Web advertisements have advantages over traditional ads such as being media-rich, dynamic, targeted, and interactive. Common online ad methods are banners, pop-ups, and emails. Internet ads can be updated anytime and accessed on demand globally. Push technology directly delivers customized information to users by creating user profiles and selecting desired content. The effectiveness of ads is difficult to measure and is typically based on metrics like click-through rates and purchases.

1. Advertisement in Electronic
Commerce
Chapter 4

2. Advertisement
Advertisement is an attempt to spread
information in order to influence a buyer–
seller transaction.
 In tradition sense, advertising is impersonal
One way mass communication
 Direct marketing: but very expensive

3. Web Advertisements
 Unlike traditional advertising on TV or
newspapers which is impersonal, one-way mass
communications,
 Internet advertising is
 media-rich,
 dynamic,
 more accurate,
 target specific and interactive.
 The most common advertising methods online
are banners, pop-ups, and e-mails.

4. Internet Advertising Terminology
 Impression, (call up a page with banner )
 banner,
 clicks,
 click ratio,
 cookie,
 CPM,
 Hit,
 Interactive Advertising,
 meta tags,
 reach,
 Page
 visit

5. Why Internet Advertisement
 Updated anytime, Accessed on demand
 24 hours, 7 days a week
 Cost is same regardless of audience location
 Access due to primary interest
 Provide opportunity to create one to one relationship
 More attractive ,Multimedia advertisements
 Distribution cost is low
 Contents can be updated frequently
 Ease of logical navigation
 Global reach
 enormous growing area (as compare to TV, newspapers
table 4.2 ,figure 4.1)

6. Advertising Methods
 Banners
 Forced advertisement
 Banners are electronic billboards and is the
most commonly used form of advertising on
the Internet
 Keyword banners appear when a
predetermined word is queried from a search
engine.

Random banners appear randomly

7. Advertising Methods
 Banner Swapping
 Banner exchange
 Exchange services arrange for banner display
 Paid advertisement
 Splash screen / pop ups /pop behind
 Spot leasing in search engines
 URLs, SEO
 E-Mail Advertising
 Chat rooms(2000 chats generate 8 billion hour of
internet usage and billion dollars)
 Forms

8. Advertisement Strategies
Visually appealing
Targeted to specific group
Content should be valuable to customers
Emphasize brands and firm’s image
Must be part of an overall marketing
strategy
Seamlessly linked with ordering process.
Placements of internet ads (click zone)

9. Advertisement Strategies
 Designing Internet Ads (five major areas)
 Page loading speed
 Business content
 Navigation efficiency
 Security and privacy
 Customer focus
 Passive pull strategy
 Waiting to customers
 Active push strategy
 Actively advertise to customers
 Associated ads display
 Ads as commodity (sold as product)

10. Implementation of strategies
Customizing ads
Interactive ads
Comparison as medium of advertising
Attracting visitors to site
 Short list top search engines, improve company
ranking to in these
 Online events, promotions and attractions like
special sales bargains, incentives

11. Advertisement Considerations
Target audience need to be surfer
Target audience needs to be understood
Traffic of site should be estimated
Estimate the results
Consider co-branding

12. Push Technology
 Push direct delivery of information
 Point-casting instead of broadcasting
 Streaming web pages from a web server to web
browser
 Mass customize to suit customer needs
 Self service delivery: allow surfers to download
pages
 Aggregated delivery: wide variety of contents
 Mediated delivery: surfer controls the information
 Direct delivery: PC interface pulls information

13. Push Technology
 User gets involved in three steps
 Creation of profile
 Selection of content
 Downloading the content
 Push on intranet
 Toady’s competitive environment push technology is used to
deliver information to workers.
 Intelligent agents:
 Applications that creates and knows the customers profile
and it can tailor an ad to the customer . This type of agents
called product brokering

14. Economics and effectiveness of
advertisement
Its difficult to measuring the results of
advertisements
 Model based on CPM (click per thousand
impressions)
 Click through
 Interactivity
 Actual Purchase
 Fixed monthly fees
 User registrations

15. Online catalogs
 Static catalogs/Dynamic catalogs
 Readymade/Customized catalogs
 Interactive catalogs
 Customized catalogs assembled specially a
customer/company

16. Advantages and Disadvantages of e-
catalogs
 Advantages of e-catalogs
 Easy to update
 Search and comparison capabilities
 Able to integrate
 Timely updates
 Global reach
 Multimedia support
 Cost saving
 Easy to customize
 (Table 4.3)

17. Special Advertisement topics
 How much to advertise
 Advertising objectives
 Capabilities of spending
 Short term needs
 Long-term commitment to the medium
 Analyzing web traffic (Audit)
 Impartial and external review is crucial
 Internet ethics or standards
 cookies

18.  Localization needs
 Language, graphics, dates formats
 Major web ads players
 Advertising agencies
 Developers/ASPs
 ISPs
 Market researchers
 Traffic analyst