2. Introduction
• Invention of internet (early 1980s).
• Experimental use in the early years
• Increasing use of internet by people however lack
of revenue generation from internet or using
internet.
• Some companies tried generating money from
internet with the idea of showing banner ads on
the websites. So in a way advertising became the
foundation of revenues from the internet.
• Some of the pioneers to generate revenues from
internet were companies like Yahoo, Lycos,
Excite, Google.
3. Introduction
• Advent of Portals: one stop destinations on the
internet
• Advent of Ecommerce
– Amazon, EBay
• Internet Media : news, videos
• Social Networking and communication (chat)
– MySpace, Orkut, Facebook
• Now Internet has become a virtual space where
people search for information, communicate, work,
socialise, shop, do research and much more.
4. Internet Marketing
• Internet marketing also referred to as i-
marketing, web-marketing, online-marketing or e-
Marketing, is the marketing of products or
services over the Internet.
• The interactive nature of Internet marketing in
terms of providing instant responses and eliciting
responses are the unique qualities of the
medium.
• Internet marketing is sometimes considered to be
broad in scope because it not only refers to
marketing on the Internet, but also includes
marketing done via e-mail and wireless media.
6. Display Advertising
• Web Banners, Static/Animated
images, Interactive Flash Ads
• Widely used for Branding
• Now a days large banner ads due
to increased screen resolutions
• Example : MakeMyTrip.com
8. E-mail Marketing
• A form of direct marketing
Widely used for Branding
• to encourage customer loyalty
and repeat business
• acquiring new customers or
convincing current customers to
purchase something immediately
• Example : ICICI Bank
10. Interactive Advertising
• Using Interactive media to promote
products, brands, services etc. Like
video and flash ads
• Allowing customer to participate :
e.g. Amazon allows customer
reviews for books sold online.
• Maruti SX4 website has virtual test
drive offer to the customers
12. Search Engine Optimisation
• Concept of a search result : Link
• Optimising website to increase its
relevance to specified key words
• Promoting a site to increase the
number of back-links, or inbound
links, is another SEO tactic.
(Sponsored Links)
• Example : cardekho.com
14. Advantages
• On Demand Marketing
• Low cost and high return on investment
• Durable, Low Cost and Quick Updation
• Measurable Results (Analytics)
• Efficient and Effective
2006 CPM Rates
Courtesy wikinvest
Media
Channel
Internet TV Radio Magazine Newspaper
CPM $6 $18 $7 $11 $26
15. Disadvantages
• From the buyer's perspective, the
inability of shoppers to touch, smell,
taste or "try on" tangible goods
before making an online purchase
can be limiting
• However, there is an industry
standard for e-commerce vendors
to reassure customers by having
liberal return policies as well as
providing in-store pick-up services
16. Effect on Industries
• Online Banking
• Internet Auctions
• Online Advertising
• Analytics
17. Scope for further Growth
WORLD INTERNET USAGE AND POPULATION STATISTICS
World Regions
Population
( 2010 Est.)
Internet Users
Dec. 31, 2000
Internet Users
Latest Data
Penetration
(% Population)
Growth
2000-2010
Users %
of Table
Africa 1,013,779,050 4,514,400 110,931,700 10.9 % 2,357.3 % 5.6 %
Asia 3,834,792,852 114,304,000 825,094,396 21.5 % 621.8 % 42.0 %
Europe 813,319,511 105,096,093 475,069,448 58.4 % 352.0 % 24.2 %
Middle East 212,336,924 3,284,800 63,240,946 29.8 % 1,825.3 % 3.2 %
North America 344,124,450 108,096,800 266,224,500 77.4 % 146.3 % 13.5 %
Latin America/Caribbean 592,556,972 18,068,919 204,689,836 34.5 % 1,032.8 % 10.4 %
Oceania / Australia 34,700,201 7,620,480 21,263,990 61.3 % 179.0 % 1.1 %
WORLD TOTAL 6,845,609,960 360,985,492 1,966,514,816 28.7 % 444.8 % 100.0 %
A very similar form of internet as we see today was developed in early 1980s. However this was only pages full of texts
Earlier internet was a not at all used for business or commerce. It was only used by a bunch of university students, research scientists and military who were experimenting with networks and their interconnections.
Towards the end of the 20th Century Internet went from obscurity to integrity; from the toy for geeks or a tool for scientists to a way mass media and communication.Today there are many businesses thriving on the internet and some of them even totally depending on it.
But during the evolution of internet it was very difficult for the early entrepreneurs to find a way of generating revenue from the internet.
Later some of them tried to generate money from internet with the idea of showing banner ads on the websites.
So in a way advertising became the foundation of revenues from the internet. Some of the pioneers to generate revenues from internet were companies like Yahoo, Lycos, Excite, AskJeeves
Soon the internet hosted many websites as portals i.e. one stop destinations on the internet to get any kind of information about absolutely anything a human can imagine. It has become these portals’ responsibility to inform about the people about ways to meet their needs by using the advertised products and services. Thus a big medium to reach enormous masses.
Now we get almost everything on internet: Internet has become like a virtual space where people search for information, communicate, work, socialise, shop, do research and much more.
Advent of Ecommerce : With news and videos on internet. Youtube.com also allows its members to upload videos so that they can contribute and broadcast themselves.
Internet has indeed become an integral part of daily lives of the people.
Evolution of search engines and their optimisations! Search engines have become like the highways of the internet. In order to find any kind of information on any topic people first access the search engines. Example google.com
These are the some of the internet marketing tools as
Display Marketing
E-mail marketing
Interactive Marketing
Search Engine Optimization
Display advertising appears on web pages in many forms, including web banners. These banners can consist of static or animated images, as well as interactive media that may include audio and video elements. Adobe Systems Flash or .gif are the preferred presentation formats for such interactive advertisements.
Display advertising on the Internet is widely used for branding. This is why metrics like interaction time are becoming more relevant. However, this may change in the future as display advertising is becoming much more targeted to users, much like search engine ads are extremely relevant to what users are looking for. Display advertisers use cookie and browser history to determine demographics and interests of users and target appropriate ads to those browsers.
Banner ad standards have changed over the years to larger sizes, in part due to increased resolution of standard monitors and browsers, in part to provide advertisers with more impact for their investment. The standards continue to evolve. Posters, fliers, transit cards, tents, scale models are examples of display advertising.Examples: jeevansathi.com, banks, cars etc
Here we see 5 Display Ads.
For Iphone offer, PNB, IIPM, LIC pension plan, MakeMyTrip.com
All have paid indiatimes.com for showing their advertisement. In a way all the five are reaching to all the indiatimes.com visitors or readers.
E-mail marketing is a form of direct marketing which uses electronic mail as a means of communicating commercial or fundraising messages to an audience. In its broadest sense, every e-mail sent to a potential or current customer could be considered e-mail marketing.
However, the term is usually used to refer to:
sending e-mails with the purpose of enhancing the relationship of a merchant with its current or previous customers, to encourage customer loyalty and repeat business,
sending e-mails with the purpose of acquiring new customers or convincing current customers to purchase something immediately,
adding advertisements to e-mails sent by other companies to their customers, and
sending e-mails over the Internet, as e-mail did and does exist outside the Internet (e.g., network e-mail and FIDO).
It also helps to keep the current customers intact.
Examples : Icicibank,
E-mail marketing is a form of direct marketing which uses electronic mail as a means of communicating commercial or fundraising messages to an audience. In its broadest sense, every e-mail sent to a potential or current customer could be considered e-mail marketing.
However, the term is usually used to refer to:
sending e-mails with the purpose of enhancing the relationship of a merchant with its current or previous customers, to encourage customer loyalty and repeat business,
sending e-mails with the purpose of acquiring new customers or convincing current customers to purchase something immediately,
adding advertisements to e-mails sent by other companies to their customers, and
sending e-mails over the Internet, as e-mail did and does exist outside the Internet (e.g., network e-mail and FIDO).
It also helps to keep the current customers intact.
Examples : Icicibank,
Interactive advertising uses online or offline interactive media to communicate with consumers and to promote products, brands, services, and public service announcements, corporate or political groups.
In the inaugural issue of the Journal of Interactive Advertising [1], editors Li and Leckenby (2000) defined Interactive Advertising as the "paid and unpaid presentation and promotion of products, services and ideas by an identified sponsor through mediated means involving mutual action between consumers and producers."
This is most commonly performed through the Internet; often using video content as a delivery medium.
With Online book reviews, Amazon involves customers and makes them feel welcome. It indicates that amazon concentrates on customers even more than Publishers and Books.
Maruti SX4 website is another example of interactive advertising which lets customer experience the car sitting at home and even allowing them to register for a test drive through the website.
Example: Maruti SX4 website, Tata Nano’s website and Games, Aamir Khan Releasing mangal pandey game on zapak.
With highly interactive website for consumers, maruti is advertising SX4 giving a true feel of the car even before the customer visits the nearest showroom for a test drive.
Also the potential customer may register for a test drive on the website itself
These give a lot of information to the customer who is sitting at home and also feels included in the sales program.
a basic belief that a link from one page on a website to another is a kind of recommendation to the next page. i.e. A link from page A to page B as a vote by Page A for page B. The link or the page which received the higher votes is more popular and thus more likely to get the relevant information that one is looking for.
SEO considers how search engines work and what people search for. Optimizing a website may involve editing its content and HTML and associated coding to both increase its relevance to specific keywords and to remove barriers to the indexing activities of search engines
Promoting a site to increase the number of back-links, or inbound links, is another SEO tactic. i.e. Sponsored Links
Example : BMW paying for Cars keyword
Example of cars keyword.
We see here that carwale.com can give some money to google to increase the relevance its website link. So that it appears first in the search results as we see it above.
The other links we see are as per the relevance and the number of users which usually link to the website.
Internet Marketing gives businesses of any size access to the mass market at an affordable price and, unlike TV or print advertising, it allows truly personalized marketing. Specific benefits of e-marketing include:
On Demand Marketing: As compared to interruptive nature of advertisement on TV and other medias, where ad is shown to even those people .who don’t want to see, Internet provides On-Demand Information. People search on net what they want and when they want.
Low cost and high return on investment. Hundred times cheaper than conventional marketing tools like TV or News Paper advertisement. Just compare the cost of printing a full News Paper Ad for one Day vs. the cost of e-mailing to 25,000 e-mail addresses. Internet is clearly the winner.
Durable : An advertisement in a newspaper is worthless the day (perhaps two days) after the paper is released. Having a booth at a business fair or conference only lasts as long as the conference – it doesn’t reach anybody once it is over. And the costs of both print ads and conferences can rack up quickly. On the other hand, apart from details such as dates and prices, much of your website content will still be valid and viewable years after you’ve done the work to launch it and the costs are much more reasonable than print.You can choose when you want to pay for people to see your ads online. Pay for every time someone sees your ad, or only when they click on it. You can even have them fill out a form that identifies them or just pay when you actually get a sale from another website. With print you pay the same, no matter how much business it generates.
Biggest advantage of Internet Marketing is the measurability. You can obtain detailed information about customers’ responses to your advertising. Examples are:
How many people saw the advertisement banner
How many clicked on them
How many asked the information or a price quote
How many sales resulted from the campaign
How many people visited your website and what keywords did the y use to find it.
Calculate profit per 1000. i.e. CPM
What page of your site is most popular
more efficient and effective compared to other media channels. A standard advertising cost metric is CPM or Cost per Thousand Impressions. For example, a $1 CPM equates to a cost of $1 to reach 1,000 theoretical viewers or readers (theoretical because not everyone will read or look at an advertisement). Internet CPM rates in 2006 averaged $6, much less than most traditional media (see table below).
An advertiser can tell, for example, who clicked on an Internet ad and even who bought a product or service during an internet session
There is also a disadvantage of internet marketing especially e-commerce/ online shopping or auction
The number of banks offering the ability to perform banking tasks over the internet has also increased. Online banking appeals to customers because it is often faster and considered more convenient than visiting bank branches. Currently over 150 million U.S. adults now bank online, with increasing Internet connection speed being the primary reason for fast growth in the online banking industry.[citation needed] Of those individuals who use the Internet, 44 percent now perform banking activities over the Internet.
Online advertising techniques have dramatically been affected by technological advancements in the telecommunications industry. Many firms are embracing a paradigm that is shifting the focus of advertising methodology from traditional text and image advertisement creatives to rich multimedia experiences such as those containing more updated technology like HTML, JavaScript, and Adobe Flash. As a result, advertisers can more effectively engage and connect their audience with their campaigns which seek to shape consumer attitudes and feelings towards specific products and services. The paradigm shift from dialup to high speed internet has fueled these changes.
In a national survey between November 30, 2009 and December 27, 2009, the Pew Research Center found that 74% of American adults (ages 18 and older) use the Internet. [3] The same study found that 60% of American adults use broadband connections at home. 55% of American adults connect to the Internet through a wireless network like a public/private access point, a WiMax network, or a cellular 3G/4G network through a mobile cellular device.