E-CommerceE-CommerceCourse 4Course 4

Internet and advertising

1- Is internet just a media like others?

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 1999

• 75% of all ad revenus were made on 10 sites

• Vs. 68% in 1998

– Source (iAB)

But as more and more consumers are seeking and know about

specialized sites

• Market segmentation

• Media fragmentation become a reality

What about rates?

Various methods

• barter 8%

• Active or passive banner (CPM) 58%

• Sponsor 29%

• Referral 6% (Could go up to 53% by 2004)

Examples

http://home.netscape.com/ads/usrates.html