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Web Site Advertising and Retailing Discuss the advantages of net advertising Discuss the multifaceted approaches of advertising Discuss net advertising dos and don’ts Discuss the use of log files, DoubleClick and tags
as methods for gathering advertising statistics Discuss the use of web banners Discuss the use of the web for retailing Discuss changes in internet-based retailing
approaches Discuss affiliation programs
Security Objectives Discuss the roles encryption and certificates play Contrast symmetric and asymmetric encryption Discuss key activities in certification management Define: Cryptography, digital ID, key, digital
signature, hash coding, hash algorithm, message digest, private key, public key, CERT
Discuss protecting intranets with firewalls and corporate servers against being attacked through the Internet
Discuss the role Secure Socket Layer, Secure HTTP, and Secure Electronic Transaction protocols play in protecting e-commerce
The Net as an Advertising ResourceIt’s fast
Print ads: 4-6 weeks to create, 2-6 weeks to publication
Web ads: matter of days Changes can be made quickly
Inexpensive Direct mail: $.50-$.75/piece vs. email:$.10/piece
(no limit on length)Allows pictures and testimonialsMultifaceted
Nature of Communication: Two Methods
Personal contact model (one-to-one) Also called prospecting Firm’s employees individually search for, qualify,
and contact potential customers
Mass media model (many-to-one) Firm delivers message and broadcasts it through
billboards, newspaper, television, etc. Addressable media is sometimes distinguished from
mass media Addressable media is directed to known addresses,
and includes direct mail, telephone calls, and e-mail
Multifaceted Advertising ApproachesUsenet new groupsFree email services (17.8% WSJ 3/21/99):
FreeMark Communications,Juno Online ServicesGames: BayBank, www.riddler.comInteractive screen savers(freeloader)Framing: http://totalnews.com (formerly)AdvertorialAd Robot (push technology)“persistence:” ICQ
Web Terms Used in Advertising
CPM is a dollar amount for each thousand people in the estimated audience
A visit occurs when a visitor requests a page from a web Further page loads counted as part of the
visit for a time period chosen by the site administrator
Trial visit -First time a visitor loads a web site; A subsequent visit is a repeat visit
Page view Each time a visitor loads a page- if the
page has an ad, this is called an ad view
Web Terms Used in Advertising Impression -- each time a banner ad loads
If a visitor clicks the ad to open it, it is called a click or click-through
Advertisers use market segmentationDivides the pool of potential customers
into common demographic characteristics, such as age, gender, income level, etc. called segments
Targets specific messages to these groupsMicromarketing- targeting very small
market segments
What about Web Banners?Unique to NetUsually limited text with hot linkDifferent sizes sell for different pricesSite may rotate banner (e.g., Yahoo
and C-Net)Lots of competitionHard to assess impact
Web Banner Statistics WSJ 2/24/99
Average price per 1000 online impressions dropped 5.6% to $35.12 from $37.21 a year earlier
Web surfers click on .5% of banners, down 1% from last year and 2.5% two years ago
Lycos business, career, or computer sections: $35/1000
Lycos mortgage-rate page: $150/1000
Running Time cyberatlas 8/28/2000Over 7,000 new banner ads appear each
week, but they only run an average of less than three weeks (based on year study of top 500 websites)
Staying power depends on industry automotive banners: 7.8 weeks (avg) hardware/electronics banners: 4.1 weeks (avg)
Most ad campaigns garner less than 44,000 impressions
Choosing the Best Place to AdvertisePopular sites (C&S):
AOL Yahoo Microsoft’s Network Lycos Inc
Post in all categories that fit and on industry-appropriate forums
Give robots your URLwww.submit-it.comPut URL at bottom of your e-mail
Definition of BrandingElements of branding
Differentiation Relevance
Degree the product offers utility to the customer
Perceived value
Creating and Maintaining Brands on the WebWhat is the role of brand names?Top 100 e-commerce sites spent an average
of $8 million to create and build their online brands in 1998
In 1999, dot-coms spent $3.1 billion in traditional advertising including TV, radio and print (WSJ 4/3/2000)
Dot-com advertising spending 2% of total $87.5 of US advertising spending (WSJ 4/3/2000)
Emotional vs. Rational Branding
Emotional appeals work well in mass media because ad targets are passive Do not work well on Web, however, because
Web is active mediumRational branding
Gives people valuable service in exchange for viewing ads
Examples include free e-mail and secure shopping services
Navigators can play a role here
Advertising Considerations
Mix traditional with net advertising place e-mail address and URL on advertising,
catalogs, letterhead, business cards (resumes) pick a memorable URL Play media off one another- Victoria’s Secret
Use promotions: First on-line purchase Coupons
Identify target markets
Advertising Do’sView the competition
get ideas for your site check out other’s HTML
Spend time as a userStay abreast of trendsInclude complementary links (“Welcome to my
site, please leave!”)Check your links periodicallyPost press releases to mailing listsRelationship Marketing
Relationship Marketing (1:1 Marketing)Market via more personal touch
Get personal testimonials of people in the trenches who have used product
Personalized web pages Contribute to discussion groups Company exec may answer e-mail
Focus on maintaining and enhancing relationships costs 5 times as much to acquire new customer than
to retain current oneUse in addition to other advertising
Net agents
“intelligent agents”, “software agents”Software, often applying artificial
intelligence, to support buyers locating information or products receiving personalized information on the basis
of a predetermined profile return comparative information based on user
Can make decisions or initiate requests“Cholesterol” of Internet
Getting Statistics about Advertising ImpactDoubleClick, MatchLogic, RealMedia, Inc.
buy ad space on Web and keep their own tally of ads on a page
some customers ban these advertisers from using any data from their web siteP&G, GM and MatchLogicIBM bars websites where it advertises (>800 web sites)
from collect its ad-campaign data
HTTPD logsTagsCookies
DoubleClick, Inc
Sells advertising space on network of 1400 websites
Information to better customize adsPredicts what you will buy on Web based
on what you have purchased online and offline
Pay $1 billion to buy Abacus Direct may need to revise privacy statement
Plan requires help of online retailer
Getting Statistics about Advertising Impact
Use HTTPD log filesLog counts every access
includes access to each image may be hard to determine unique independent
entriesLogs contain domain names, not user names, of
visitorsLogs also include time, date and accessed URL Get logs from ISPLogs themselves may be large
Use of Log FilesTo count visitors
count users accessing home page but, users may skip home page by accessing inside
page directlyTo improve pages
access patterns by time (may help determine best time for updates)
pages being accessed audio, movies or popup images that may be omitted Software available (Refer-it’s Analog)
New Standard to Count Visits: Tags
Fast Steering CommitteeProgrammer adds simple software
codes to Web ad no one owns codes can be freely inserted
Advertisers don’t trust numbers Cache ads aren’t counted
Meeting Key Customer Needs
Efficient information access intelligent agents interactive personalized “smart
catalogs”Seller-driven/ Web-centric Buyer-driven/ Customer-centricCasting technologies
Reasons for Going Online (PcData 2/23/99)
63% of respondents listed convenience as the most important reason why they shopped on-line.
25 % mentioned pricing For all the fuss about the
Only 10% of the respondents listed selection as the primary motivator to go on line.
Internet Retailing (e-tailing) (WSJ 4/5/2000)
Last year doubled to $15 billion Expected to rise 53% to 23 billion in 2000 Costs rising faster than sales
advertisingwarehousesonline assistance (Land’s End, eToys)
Building a high quality e-tailing website costs $30 million
Building a brand costs$100 million
Internet Retail Establishments
Brochure tells company’s story in text and pictures
Company mailbox automated mail response to e-mail requests
Specialty store storefronts with product catalogs http://www.virtualvin.com/; http://www.fridgedoor.com/
CybermallSubscription
Storefronts and Cityscapes
There are “no bad parts of town”Don’t pay premium for name alone.Reasonably priced storefronts offer
some advantages.Belong to multiple communities
put host page in one location place links to your pages in other malls
Push products (insurance)may do better face-to-face
CybermallsRetail complex that houses dozens of
specialty stores http://malls.com/awesome
$25 mo/ 5 pages - $850 mo/maintained
CUC NetMarket: www.netmarket.com ZD Net’s Computershopper: www.zdnet
.com/computershopperMalls with traffic and big business
tenants (i.e., IBM) cost more
Subscription/Fee-Based Marketing
Marketing-subscription mixed model Revenue derived from fee and it also accepts
some level of advertising Used by newspapers and magazines Successful web models include New York Times,
the Wall Street Journal, ESPN, Reuters, and Northern Light
Fee for transaction Model Online travel agents and car-buying services
can remove an intermediary from a value chain
Affiliation Programs
Description of AMAZON.COM’s affiliate program (started in 1996): We pay 15% on individually linked books and 5% on all other items. You build a custom bookstore, music store, and video store on your site or simply put up a link to Amazon.com and get paid on all sales. We do the customer service, shipping and tracking of sales. With our program there are no hidden sales quotas or performance tiers. Put up a link and start earning today.
www.referit.com
Security on the Internet
CERTEncryptionDigital Signatures/Certificate
AuthoritiesProtocolsFirewalls
Computer Emergency Response Team (CERT)
Housed at Carnegie Mellon UniversityResponds to security events and
incidents within the U.S. government and private sector
Posts CERT alerts to inform Internet users about recent security events
Posts CERT DNS attack advisory about domain name service attacks
Providing Transaction Privacy
Encryption The coding of information by using a
mathematically based program and secret key to produce unintelligible characters
SteganographyMakes text invisible to the naked eye
CryptographyConverts text to strings that appear to have no
meaningScience that studies encryption
Encryption
Mutation of information in any formplain text cipher text plain textBased on algorithm and key
Key - very large string of zeros and ones:the larger the better! Algorithm - mathematical function 40-bit keys are considered minimal,128-bit
keys provide much more secure encryption
Encryption Functions
Hash Coding Calculates a number from any length string
Asymmetric (Public-key) Encryption Encodes by using two mathematically related
keys
Symmetric (Secret or Private-key) Encryption Encodes by using one key, both sender and
receiver must know
CryptographyPrivate (Secret) key cryptography - Symmetric
shared key (both parties agree) does not scale nonrepudiation is impossible Date Encryption Standard (DES);Triple DES
Public key cryptography - Asymmetric public and private keys digital signatures suited for multiple users slow RSA
Nonrepudiation
verification that a particular transaction actually occurred
prevents parties from denying a transaction’s validity or its existence
Digital SignatureMathematical algorithms for encryptingA puts private key and document togetherA generates unique number called digital
signature (fingerprint or message digest)Fingerprint attached to original message and
further encrypted with private keyMessage sent to BB decrypts using A’s public keyChecks for modification with calculations to get
matching fingerprint
Certificate Authority (CA)Alternative to secure transmissionUses trusted third party to authenticate public
keyCertificate is digitally signed by CA to verify
identity and credentialsIdentification requirements vary by CAEvery digital certificate is uniqueDigital certificate is sent along with digital
messageHave expiration date
Certification ManagementDigital certificates
issue register generate manage revoke
To insure users authorized transaction transaction hasn’t been tampered digital receipt and time stamping
Hierarchy for CA
Root central facility/Policy approvalCertification Authorities/Cybernotaries
Local Registration AuthoritiesEncryption Entities
Digital Signature EntitiesUser Certificates/Digital Signatures
End Entities
Local Registration Authorities (LRAs)
END ENTITY LRA CACert. EnrollmentRequest
Authentication
Cert. Pick-up Key Pair Support(generate,archive, recover)
Key ManagementCert. IssuanceCert. RevocationCert. SuspensionCert. Renewal
Cert. RevocationRequest
Hardware TokenSupport
Cert. RenewalRequest
Misc
Cert. DistribtutionForwarding cert toend users, LRAStoring certs
CA Tutorial
http://www.kpmgca.com/download.htm
VeriSign OEM
CA software: cross-platform, shrink-wrapped product
PKI and digital certificate solutionsSupports LRA
Query manager (SQL) Transaction Manager (integrity of
certificates) Signing server Middleware Framework
Secure Sockets Layer (SSL) Protocol
Secures many types of connections between two computers on Internet
Developed by NetscapeHad backing of AppleSoft, DEC,
MasterCard InternationalProvides a security handshake in
which the client and server computers exchange the level of security to be used, certificates, among other things
Secure Sockets Layer (SSL) Protocol
Provides either 40-bit or 128-bit encryptionSecures data packets at network layerSecures connections between two
computers; checks certificatesSession keys are used to create the cipher
text from plain text during the sessionCan secure communications in addition to
HTTP (i.e., FTP)Uses public and private key encryption
Secure HTTP (S-HTTP) ProtocolExtension to HTTP that provides numerous
security features Client and server authentication Spontaneous encryption Request/response nonrepudiation
Provides symmetric and public-key encryption, and message digests (summaries of messages as integers)
Open protocol designed to secure web transactions using special packet headers
Secure Electronic TransactionBacked by MasterCard, Visa, IBM, Netscape and
MicrosoftSecures credit card transactionsUses digital certificate
consumer’s name few digits of consumer’s credit card name of bank that issued card
Merchant uses public key cryptography to verify consumer’s identity
Provides confidentiality of payment infoProvides merchant authentication
Firewalls
Control damage to your data and computer systems
Protect against spoofingImplement access controls based on
contents of the packets of data transmitted between two parties or devices on a network
Single point of control for security on network
Firewalls
Should be stripped of any unnecessary software
Categories of firewalls include Packet filters
Examine all packets flowing through the firewall
Gateway serversFilter traffic based on the requested
application Proxy servers
Communicate on behalf of the private networkServe as a huge cache for Web pages
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