Online Advertising
-TV creates awareness and impressions
-Magazine print ads supply the details
-Newspapers and radio drive the traffic to local dealers
-The internet can do all the above and generate pre-sold prospects
“Let's be fair. Print advertising has had over 100 years to ‘get it right,’ radio has had 80 years and television has had 50 years. The internet as an advertising medium has had, at most, 6 full years to perfect itself. Don't give up yet.”- Jonathan Jackson, Online Advertising Analyst, emarketer.com
Why Internet Advertising: Internet advertising has been a major medium of advertising since 1994. Research has proven that it is very cost effective with the amount of feedback that it draws. It has taken over many types of advertising mediums already with the very short existence that it has been around. Here is a chart of the other forms of Advertising:
Advantages and Disadvantages of the Major Types of Media |
|||
Type of Medium |
Advantages |
Disadvantages |
When to Use |
|
Direct Mail |
Most personal form of advertising By selecting names by zip code, mailing can be pinpointed to precise geographic area Mailing lists may be used to target specific groups Can evaluate its effectiveness by calculating response rates |
Difficult to find mailing list of prospects by occupation at home addresses Cost for reaching each prospect is high Many people don’t like unsolicited offers |
If the right mailing list can be found, this is potentially the most effective medium – no other medium gives the prospect as much a feeling of being specially selected Particularly valuable in competitive situations |
|
Directories |
Specialized audiences Long life |
Not timely Often have competitive clutter |
Only appropriate for ongoing recruiting programs |
|
Internet |
Relatively cost-effective Can target types of viewers Messages can be timely Ads can be interactive Able to reach a global audience |
Should be one component of the marketing strategy Difficult to gauge impact of Internet advertising Range of costs can vary dramatically |
Appropriate for ongoing campaigns, especially as a resource for additional information. Banners, Ezines and links can help drive traffic to the site. |
|
Magazines |
Can select targeted audiences Ad size flexibility High quality printing Prestigious editorial environment Long life – prospects keep magazines and reread them |
Wide geographic circulation – usually cannot be used to limit recruiting to specific area Long lead time for ad placement Costs can be high |
When job is specialized When time and geographic limitations are not of utmost importance When involved in ongoing recruiting programs |
|
Newspapers |
Short deadlines Ad size flexibility Circulation concentrated in specific geographic areas Reach a diverse audience Classified sections well organized for easy access by active job seekers |
Easy for prospects to ignore Considerable competitive clutter Circulation not specialized – you pay for unwanted readers Poor printing quality Targeting specific audiences is limited |
When you want to limit recruiting to a specific area When sufficient numbers of prospects are clustered in a specific area When enough prospects are reading help-wanted ads to fill hiring needs |
|
Outdoor (roadside billboards) and Transit (posters on buses & subways) |
Difficult to ignore. Can reach prospects as they are literally traveling to their current jobs Precise geographic selectivity Reaches large numbers of people many times at a low cost |
Only very brief message is possible Requires long lead for preparation and must be in place for long period of time. (Usually one to three months.) |
When there is a steady hiring need for large numbers of people that is expected to remain constant over a long period of time |
|
“Point-of-Purchase” (Promotional materials at recruiting location) |
Calls attention to employment story at time when prospects can take some type of immediate action Creative flexibility |
Limited usefulness: prospects must visit a recruiting location before it can be effective |
Posters, banners, brochures, audio-visual presentations at special events such as job fairs, open houses, conventions, as part of an employee referral program, at placement offices or whenever prospects visit at organization’s location frequently. |
|
Radio and Television |
Difficult to ignore. Can reach prospects who are not actively looking for a job better than newspapers and magazines Can be limited to specific geographic areas Creatively flexible. Can dramatize employment story more effectively than printed ads Little competitive recruitment clutter |
Only brief, uncomplicated messages are possible Lack of permanence; prospect cannot refer back to it. (Repeated airings necessary to make an impression.) Creation and production of commercials – particularly TV – can be time-consuming and costly Lack of special interest selectivity; paying for waste circulation |
In competitive situations when not enough prospects are reading your printed ads When there are multiple job openings and there are enough prospects in specific geographic area When a large impact is needed quickly. A “blitz” campaign can saturate an area in two weeks or less Useful to call attention to printed ads or web site |
http://www.nursenc.org/recruitmentandretention/youth/docword/Advantages%20and%20Disadvantages%20of%20the%20Major%20Types%20of%20Media.doc
History
On October 27, 1994 Hotwired became the first to bring paid advertising into the World Wide Web. Before this date names companies got there names on the Internet only by being linked in from another site. Back then there were only fourteen advertisers who sold spaces, in four shorts years nearly half of the Fortune 5000 companies purchased ad space.
What's the Point?
A company that looks to advertise on the internet uses this medium for on of two reason, branding and direct sales promotion.
Branding: Refers to causing an impression of a logo or company motto on societies collective brain. The company uses there advertisements to cause a lasting impression and improve the thoughts of the companies performance.
Direct Sales: These specific types of ads are created for impulse purchases on a have to have basis. Advertisers want to send out the message using there advertisements to take an action immediately in buying of there item. This is used for specific objects to be bought instead of a whole name or promotion.
Most Popular Types of Advertising
-Banner ads-the most popular type of internet advertising today. Banners were the first type of advertising in 1994 an continues to be the main staple of success. Banners are graphical bars containing text and/or graphics which are designed to gain the attention and induce the action to click on the advertisement which relocates them to the advertisers site. Banners come in an array of shapes and sizes, although standard sizes are becoming more common. For example a Full Banner is 468X60 pixels, and a half banner is 234X 60. Banners can also be considered skyscrapers where the advertisement is vertical and on the left or right hand side of a webpage. Banners try to gain attention by being animated and are usually in GIF format. Many other forms of banners exist on WebPages such as skyscrapers and bulky boxes.
-Emails- Email advertisements can be put into two types. Opt-in mailing and spam-mailing. The difference is that Opt-in mailing sends emails to pre-qualified people that has shown interest in receiving information and spam sends the mail to un sanctioned recipients. Spam mail is in a huge debate which has proven to ruin companys and there credibility. These spam mail causes cluttered inboxes and dissatisfied consumers. This form of advertisement is very cost-effective where companies will pay $250 for a list of 10 million email addresses.
-Interstitial ads-according to nearly every person pop-up ads are the most irritable type of advertisement. Pop ups consist of a small window that pops up over the main browser when you enter a site. These windows can contain anything to gain the attention of the viewer from graphics, animation and even games. These pop-ups are considered to be very intrusive were it draws the attention of the browser from the webpage there viewing to teh advertisement displayed. Advancements have been taken and the new pop-under ads which display themselves outside the material viewed have have better click through rates and are said to be less intrusive. This example below popped up onto my site after going to the askjeeves.com website. Some advertising agencies find a new name for more active interstialas as supersiatlas. These websites have more interactive experience and research says are 120% more effective. These types will be explained in more detail later on this page.
Keyword ads: Keyword advertising is the most popular way for the product and website to become recognized. More then 20% of all websites are indexed through such search portals as yahoo and google. Webmasters pay a fee for there webpage to be indexed and web browsers search for keywords on such portals. Researchers say that only the top 50 websites in a search will be browsed through so specific terms and keywords are key for there success. Portals such as Google offer exclusive sponsorship for websites for a required fee for there websites to be shown above the editorial pages.
Rich Media: Since the start of online advertising, banner ads have been the most dominant. However, banners tend to have a decline in click through ratings. New ads have been developed since 2000 and continue to improve these types of ads are Rich media ads. These ads incorporate more then htm and gif type animation but new types such as java, streaming video, flash player and sound. These ads continue to improve with the fast improving rate of technology.
Sponsorships: These types of ads are an excellent way for advertisers to build credibility and target specific audiences. Sponsorship ads enable sole sponsorship on a site or a channel. These ads can be purchased or either exchanged for the ill scratch your back you scratch my back tactic. Prices can be expensive but sponsorship ads build more credibility and can be put on websites that the ads are trying to target. An example is when Verizon paid Lifestyle channel of BET.com 3 million dollars to sponsor and the the only telecommunicate ions advertiser.
How Advertising online works
Web pages act just as classified sections or any type of median to advertise to the public. There are two types of sites to sell allotted space on there page. These sites fall under two groups: E-commerce sites and Content Sites. E-commerce sites are websites that make revenue off of products that they sell while Content sites are sites such as search tools, information about the internet, magazine-style sites all of whom are there for the reader to look at. The revenue that content sites collect are primarily from advertising such as TV and radio. Content sites are more likely to sell space because its there only revenue.
There are various Internet advertising techniques:
1. The ad owner pays a fixed amount for each person who visits the page with the
ad.
2. The ad owner pays a fixed amount for each click on an ad that links to the
advertisers' web site.
3. The ad owner pays a fixed rate to have his advertisement posted for a
specified duration.
4. The ad owner has the option of either promoting their product or service
through survey based contests on our site.
http://www.galatta.com/advertising/internet_advertising.asp
How advertisers Zero in on consumers
Online advertising targets audiences to understand there wants and needs through many specific means. Cookies were first created by Netscape in order to get to know the user better. These cookies are text files are hard drives which stores information about the user. Advertising placement is used to promote advertisements to users in allotted areas. These areas can be displayed at certain hours and days of the years to target to users who are browsing then. For example a 6:00 am to 9:00 am for business people, 2:00pm to 6:00pm for school kids. Most of the advertising done requires the process of pay-per-click companies. These pay-per-click companies act as middle men between large advertising companies and site owners.
Planted Targeting Ads: These types of ads are also considered spy ware ads that piggy back onto other downloads and plant themselves onto someone's hard drive. Gator is the most popular type of "spy ware" around. This utility monitors a user's Web browsing activity and displays relevant advertisements. Until this week, the service promised advertisers that it could slap promotions onto a computer screen when a reader visited a competitor's Web site. Many legal issues have been coming up regarding this spy ware utility. This promotion targets websites directly to what the browser is viewing.
Costs of Advertising/Measuring its effectivness:
"Half my advertising is wasted. I just don't know which half."
Determining appropriate costs of advertising on the internet can be very difficult because of the broad ways to measure its effectiveness. Web Hosts vary determining costs of space through impressions and click troughs. Since the start in 1994 ads have been measured by success by click through rates which are the amount of viewers who view the page compared to the amount of viewers who click on the banner. These amounts are always very dismal and have gone done in the past. The common rate is under 1% and is said to be about .54%. This number can only show the viewers that have visited the ad but does not reflect the revenue that is collected due to the ad. The number that best reflects this is the Cost per acquisition. Using cookies and other new Tec advances, web hosts can track the click through rate and purchase rate of browsers who buy items after clicking through the advertisement. This technique can only be helpful for the direct sales ads and not branding ads. Branding ads can only be measured through research which has been done. Brand awareness is easier to be implemented in the collective memory because viewers only need to view a text banner to simply recognize and then recall the company.
Performance:
Internet advertisements have come along way since its start. Currently the internet is the cheapest medium to advertise on a encompasses only 3.5% of companies total marketing budget but is said to be the second most profitable median. The internet ads have gone through such times as the dot com busts and surges and continues to improve. Rich media has increased 47% of click through rates and regular banners and other ads have increased 11% of click through rates in 2004.
Legal Issues:
As more and more viewers use the internet daily the boundaries are endless. With this fact in mind legal issues have always surfaces when talk about internet advertisements. The internet has the same rules and regulations that other mediums have such as copyright infringement and things of that nature. However the internet has caused many new problems to occur. Due to the huge capability of viewers to browse internationally many people are concerned over the jurisdiction that is enforced. For example marijuana can be purchased online in Amsterdam, this causes a problem for other countries to view this item and purchase it. Spam is another huge problem witch is causes an extreme backlog of email to unsolicited consumers legal issues are trying to be brought into affect but only viewers isp servers control what is seen. Recently Gator was in court battling to see if they had the write to piggy back onto downloads and showing advertisements of competitors. The turnout:
On July 16, a federal district court judge in Virginia sided with the publishers when he granted their request for a preliminary injunction. His order prohibits Gator from "[c]ausing its pop-up advertisements to be displayed on any website owned by or affiliated with the Plaintiffs without the express consent of the Plaintiffs."
Future of Internet Advertising:
As technology seems to be increasing at an exponential rate so does the possibilities of internet advertising. As broadband use increases through users and faster internet is utilized the rate that advertisements that are shown will be never ending. The new era of advertisements using rich media will have faster and bigger pictures with more animation that will attract the viewer. Research continues to be done on its effectiveness and companies will strategically plan to send there messages in more of a tactical way. Revenue will never be known for the future because it depends on the amount of viewers purchase items through ads. The rate of increase on return has been going up at faster and faster rates since its existence and will never be known when it will end.
Love them or hate them, internet ads are here to stay. Consumers may hate the different advertisements they see in a daily web browse but they do work. They continue to be very cost effective for business do to there low cost and high rate of return.
For more information please visit this website to see other terms related to online advertising. http://www.adglossary.com/
See what other have to say about online advertisements at this chat: http://www.7nights.com/asterisk/archive/2004/10/internet-advertising-your-take
Bibliography
http://www.webdevelopersjournal.com/columns/types_of_ads.html
http://www.wilsonweb.com/wmt5/plan-4promotion.htm
http://news.com.com/2100-1032_3-1008954.html