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Web Advertising

Web advertising is an attempt to attract visitors to the site where they receive information, interact with the sellers and eventually place an order.

To know more about these, click on one of the links below:

               Reasons for Internet advertising
               Advantages of Internet advertising
               Methods of Internet advertising
              

Why Internet Advertisement?

  • Three-quarters of PC users give up some television time to surf the internet

  • Internet users are well educated with high-income, which makes them a desired target for advertisers

  • Ads can be updated any time with a minimal cost; therefore they are timely and very accurate

  • Ads can reach very large numbers of potential buyers all over the world

  • Online ads are much cheaper in comparison to television, newspaper, or radio ads.  Such ads are expensive since they are determined by space occupied, how many days (times) they are shown, and on how many national and local television stations and newspapers they are posted.

  • Web ads can be media rich, including voice and video

  • Web ads can be interactive and targeted

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Advantages of Advertising on the Internet

  • Internet advertisements are accessed on demand 24 hours a day, 365 days a year, and costs are the same regardless of audience location

  • Accessed primarily because of interest in the content, so market segmentation opportunity is large

  • Opportunity to create one-to-one direct marketing relationship with the consumer

  • Multimedia will increasingly make Web sites more attractive 

  • Distribution costs are low (just technology cost), so millions of consumers are reached at the same cost as that of reaching one

  • Advertising and content can be updated, or changed at any time, and are therefore always up-to-date

  • Ease of logical navigation — you click when and where you want, and spend as much time as you desire there

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Methods of Advertising

Banners

Examples of banners

Benefits

  • be customized to the target audience

  • be customized to one-to-one targeted advertisement

 

Banner Swapping

  • Direct link between one’s site to the other site
  • Ad space bartering

 

Banner Exchanges

Banner exchange organizations
  • a firm submits a banner
  • receives credit when shows others’ banners
  • can purchase additional display credits
  • specify what type of site the banner can be displayed on
  • use the credit to advertise on others’ sites

 

Search Engine Placement

Advantages:

  • submit your URL to a search engine and be listed

  • keyword search is used

  • minimal cost is associated with it

Disadvantages:

  • search engines index their listings differently

  • meta tags can be complicated

 

E-mail

  • Several million users can be reached directly

  • Send the company information; low cost

  • A wide variety of audiences; customer database

  • Target a group of people that you know something about

  • Problem: Junk mail or spamming
  • Solution: opt-in e-mail

 

Chat Rooms

  • Virtual meeting ground

  • Can be added to a business site for free

  • Allows advertisers to cycle through messages and target them again and again

  • Advertising can become more thematic (based on a theme)

  • More effective than banners

 

Affiliate Programs

Affiliate marketing is among the hottest topics in e-commerce today. As online retailers compete for traffic and market share, many e-tailers have found that affiliate programs are the most successful and cost effective way to target particular groups, drive traffic to one’s site, reduce customer acquisition costs, and to build one’s brand. 

The process is simple: 

  • Site A agrees to place links or buttons on its site from Site B. 

  • Whenever Site B generates a sale from the link or button on Site A, 

  • Site B pays Site A a commission – typically ranging from 5-20%. 

Benefits of Affiliate Programs: 

Increased Revenues

Affiliate programs can offer financial advantages to both the e-tailer and its affiliates. For pure play e-tailers, affiliate programs have become an important source of revenue.

Establishing Brand Identity

Partnering with affiliates gives web sites greater visibility and generates awareness. Deciding with whom to affiliate should be given consideration. For the affiliate, links to better-known sites provide credibility to the target market. Therefore, using affiliates that are respected and known by the target market is of importance.

Lower Customer Acquisition Costs 

Affiliate programs enable the retailer to target both niche and mass audiences and to acquire customers with low acquisition costs.

 

Customer Loyalty Programs

Programs designed to build customer loyalty now form a major part of the marketing plans of most consumer marketing organizations. 

Customer loyalty programs for consumer goods are relatively easy to design -- reward frequent customers with giveaways or discounts. Airlines, car rental companies and videotape rental outlets have similar frequent buyer programs.

The concept is simple: find out what consumers want, and when, and make it easier and cheaper to get. In return for providing a discount, the merchant acquires valuable marketing information which they can use to generate repeat orders down the track.

In the United States, companies outsource this activity to another site that promotes  the incentives of many merchants. The most active incentive sites include:

 MyPoints, CyberGold, and Netcentives.

Promotions

Promotions represent another way by which a company can improve its client base and revenues. Promotions take many forms, including discount coupons, sweepstakes, contests, giveaways.

Promotions are effective ways in which businesses can increase global awareness of their Web site and offerings,

They encourage a desired behavior pattern from consumers
resulting in additional clients, higher customer retention rates and greater revenues.

www.clickrewards.com ;www.mypoints.com ;www.greenpoints.com

www.coolsavings.com; www.couponcentral.com

 

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