"Consumers and New Technologies: A Marketing Perspective"

Course 4 Advertising and the web

Jacques Nantel Ph.D

May 2003

The role of various media

signs

Television

Print

radio

DirectMarketing

Attention

Action

Interest

Source: Steve Golberg Microsoft

The role of various media

signs

Television

Print

radio

DirectMarketing

Attention

Action

Interest

Source: Steve Golberg Microsoft

Internet

Basic measurement techniques

• Hits

• Hits/audit

• Audit with profile

• Clickstream (visits)

• Time spent on a site

• Purchases

Advanced measurement techniques

• No of visits versus Unique visitors

• Cookies

• Electronic Passport

– All of the above techniques give more and more info about the profile of visitors

2- How do you make money with advertising on the net?

It is harder than ever to finance a site only with ads

Many players but few profitable ones

• In 2002 90% of all advertising was done on less than 5 sites – (AOL 2 billions $ on a total of 8 billions)

Various revenu models

• Barter trade 8%

• Banner ad (CPM) 48%

• Sponsor (affiliate) 29%

• Commission

US Advertising revenus (in 000$)

351423

491

656 693

934

1217

1777

1953

2124

1986

2162

1893 18681790

1660

15201460 14701450

Average Full Banner Rate Card* in the US, by Web Site Genre, Q3 2002-Q4 2002 (in dollars per thousand impressions)  

B2B$52,5

0

Automotive$37,8

6

Computing and technology$28,1

9

Home garden$25,0

0

Local and regional$25,0

0

Yellow and white pages$25,0

0

Sports and recreation$22,0

0

Business anad finance$20,0

0

General news$17,9

6

Fashion, romance and celebrity$16,7

1

Reference and education$15,5

2

Health and fitness$15,0

0

Community$13,0

0

Employment$11,0

0

Travel$11,0

0

Portal$10,7

0

ISP and telecommunications $9,57

Kids and family $9,50

Shopping and auction $5,33

Incentive $4,00

Movies and television $3,50

Personal expression $2,00

Search engine $1,75

Games $0,75

Click-through Rates : CTRSource : NetRatings

01

23

45

67

Tau

x d

e C

TR

%

Online advertising is not efficient

• It plays against consumers’ decision making strategies

• It is rarely a business model in itself

Solutions are linked to

• Relationship marketing and CRM

• Up-selling and cross-selling

• E-mail marketing (Permission and viral)

• Ad placement: Content and search engines

Also : ad Servers

– Doubleclick

– MSN passeport électronique

– AOL Liberty