Lecture 4 Advertising and Brand Management

eBusiness

eBusiness
Lecture 4 - Advertising and Brand
Management

Advertising and Brand Management Lecture 4 - 4.2

Introduction to Lecture 4
Topics covered:

Banner adverts
Other forms of web advertising
Email marketing
Creating and maintaining brands
Search engine positioning and domain
names

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Advertising and Brand Management Lecture 4 - 4.3

Advertising on the Web

Different messages should be sent to
different audience types
Current customers
Potential customers
Former customers

Online advertising should be co-ordinated

with traditional advertising

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Lecture 4 Advertising and Brand Management

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Advertising and Brand Management Lecture 4 - 4.4

Banner Adverts
Small rectangular object on a web page
Includes a hyperlink to the advertisers
website
Animated GIFs and rich media objects used
to grab attention
Standardised sizes of banners have been
adopted

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Advertising and Brand Management Lecture 4 - 4.5

Placement of Banner Adverts

Different ways to arrange for other sites to
display your banner advert:
Use a banner exchange network
Identify suitable sites and pay them directly
Use a banner advertising network

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Advertising and Brand Management Lecture 4 - 4.6

Banner Advert
Cost and Effectiveness
Medium

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Description

Total Cost

Audience
size

Cost per
thousand

Network
television

30 second
commercial

$80,000 to
$600,000

10 million to $5 to $30
20 million

Major
newspaper

Full page
advert

$20,000
$20
000 to
$80,000

100,000
100
000 to
600,000

$80 to
$130

Radio

60 second
commercial

$200 to
$1,000

50,000 to
2 million

$1 to $18

World Wide
Web

Banner advert $200 to

(one month)
$30,000

10,000 to
50 million

$1 to $50

Targeted email

Single mailing

10,000 to
10 million

$5 to $15

50 to
$150,000

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Lecture 4 Advertising and Brand Management

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Advertising and Brand Management Lecture 4 - 4.7

Other Forms of Web Advertising

Pop-up adverts
Pop-behind adverts
Interstitial adverts
Rich media adverts (active adverts)
Site sponsorship

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Advertising and Brand Management Lecture 4 - 4.8

Email Marketing
Key considerations:
Expected conversion
rate?
How to handle email
processing?
Combine content and
advertising?
How to avoid spam?

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Advertising and Brand Management Lecture 4 - 4.9

Email Permission Marketing

Legal issues surrounding unsolicited
commercial email (spam)
Companies can face legal action
Key factor is to obtain customer approval
Opt-in email is part of permission marketing
Conversion rate for opt-in email can rise up
to 30% (0.5% for banner adverts)

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Lecture 4 Advertising and Brand Management

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Advertising and Brand Management Lecture 4 - 4.10

The Value of Brands

Powerful statement of quality and value
Immediately recognised by customers
Makes products easier to advertise and
promote
t
Key elements:
Differentiation
Relevance
Perceived value

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Advertising and Brand Management Lecture 4 - 4.11

Brand Strategies
Brand Leveraging Strategies
Established sites extend their dominant positions to
other products and services
Add features that are useful to existing customers

Brand Consolidation Strategies

Single portal that connects to existing services
Logo and brand of each participating service is
featured prominently

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Advertising and Brand Management Lecture 4 - 4.12

Affiliate Marketing Strategies

Affiliates website provides
information about another
companys product
Provides link through to the
sellers
seller
s site
Affiliate receives commission
based upon pay-per-click or
pay-per-conversion
Affiliate program broker offers
affiliate opportunities

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Lecture 4 Advertising and Brand Management

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Advertising and Brand Management Lecture 4 - 4.13

Viral Marketing Strategies

Seeks to exploit customer-to-customer
communications offered by the web
Encourages customers to tell other potential
customers about an offering
The number of customers increases in the
same way that a virus multiplies

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Advertising and Brand Management Lecture 4 - 4.14

Search Engine Positioning

Search engine sites provide classified
hierarchical lists of categories of URLs
Intention is to appear in the first ten
returned listings for a related search
Placement is determined by search engine
rankings
This is achieved through search engine
optimisation

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Advertising and Brand Management Lecture 4 - 4.15

Search Engine Placement

Search engines offer paid
placements
Companies can also buy
banner ad space
Search engine placement
brokers are often used
Google sells such services
directly through Google
AdWords

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Advertising and Brand Management Lecture 4 - 4.16

Domain Name Considerations

Well established brands want URLs that
reflect their name or reputation
Important marketing consideration is that
URL should be memorable
Domain names can be bought, sold and
leased
Desirable domain names are increasingly
commanding a premium price

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Advertising and Brand Management Lecture 4 - 4.17

Domain Name Sale Prices

Domain name

Price

Business.com

$7.5 million

Altavista.com

$3.3 million

L
Loans.com

$3 0 million
$3.0
illi

Wine.com

$3.0 million

Autos.com

$2.2. million

Express.com

$2.0 million

WallStreet.com

$1.0 million

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Advertising and Brand Management Lecture 4 - 4.18

Summary
Banner adverts are most common way of
advertising on the web
A variety of other advertising options available
Customer permission is vital for email marketing
Brands can provide a powerful statement of quality
and value
Search engines are an important means of
directing visitors to a companys eCommerce site

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Lecture 4 Advertising and Brand Management

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Advertising and Brand Management Lecture 4 - 4.19

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