Transcript Internet Advertising

Internet Advertising 101
Early Advertising
• During the early part of the commercial
phase of the Internet…
• Retailers viewed the Internet in the same
way they viewed other advertising
mediums
– Billboards
– Magazines Ads
– Television
• Another place to showcase our products.
Early Commercial Websites
• A few web pages showing off the latest
products.
• Did NOT capitalize on two key features of
the WWW.
– Richness
– Interactivity
Early Model
• A company’s website was like an online
Billboard, but…
– More detailed than a billboard ad
– Often not as appealing as a Billboard
• Lack of technical expertise…hard to make
the web page look as good as the
billboard ad.
Online Catalog
• Once early pioneers (like Amazon) made
online purchasing a reality…
• A company’s website was simply a
translation of a their print catalog
Print
Catalog
Web
Pages
Product-Based Marketing
• Most retailers organize their stores and
catalogs based on the products.
• Thus, the products become the focus of
advertising campaigns
• The assumption is that customers know
what products they want to buy and are
simply choosing the best brand.
Product-Based Marketing
• Vast majority of websites for retail stores
– Wal-Mart
– Target
– Staples
– Home Depot
• The Homepage starts with high-level
product categories.
Alternative: Customer-Based
Marketing
Dell Computers is a perfect example:
• From 2004-2007, Dell’s website forced you to
identify what type of customer you are
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Home
Small Business
Large Business
Educational
Government.
• This strategy was pretty much a failure for Dell.
• Why?
B2B: Customer-based Model
Customer-based models work very well for
B2B companies.
• Example
– SAP sells software and services for many
different customer types
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Banking
Defense & Security
Healthcare Providers
Higher Education & Research
Insurance
Customer-based Marketing
• What is the purpose?
• With Product-base, you assume the
customer knows what they want.
Customer-based Marketing
• The customer may not know exactly what they
want…
• In fact, they may not have the slightest
clue…and they may need help.
• The idea is to introduce them to a new product
that may be a good fit for their needs.
– Example: Siena College was interested in buying a
software system to manage printing on campus.
Related Concept: Trust and Media
choice
• Example: Siena College was interested in
buying a software system to manage printing on
campus.
• The head of IT&S says…I heard the company
called PaperCut sells this kind of stuff.
• Then we go to PaperCut.com and we see…
“Solutions for Higher Education”
• Right now, we are a dream customer for
PaperCut.
Trust and Media
• Highest Level
• Personal Contact
• The Web
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• Lowest Level
ConsumerReports.com
epinions.com
a random blog
pop-up add
• Television
– Infomercial
– Commercial
Product-Based + Customer-Based
• A company can enjoy the benefits of both
models.
– This is what Dell does now…
• Each individual product can be found from
two paths
– Product Categories
– Customer-focused Websites
• E-commerce makes it easier to combine
the two. How so?
Internet Advertising at it’s best
• Each item you sell can have a product
category and a customer category.
• Once a customer identifies themselves
you can custom-tailor what they see.
– In general, e-commerce technology (dynamic
web pages) enable you to make a customcatalog for every type of customer
– Even the ones you didn’t know existed.
• How do customers identify themselve?
Customer Segmentation
• Once you know some details about a customer
you can target them more effectively.
• Segmentation Example:
– Children vs. Adults
– Placing a Polly Pocket advertising during Sponge
Bob might be more effect than placing it during
Judge Judy?
• Internet allows for more precise segmentation.
– How do customers identify themselves?
Identify Customers
• For a Brick & Mortar • For an E-commerce
business, you might
business, there are
not know anything
numerous
about a customer until
opportunities to learn
they actually make a
about your customers
purchase.
• It’s a lot easier to
• But you could follow
follow someone
them around the
around the web.
store…
• Browser Cookies
Identify Customers
Television
• Someone watching
Nascar racing may
be more receptive to
a Slim Jim ad versus
someone watching
Antique Roadshow
Internet
• Someone who types
“Digital Camera
Reviews” in Google
may be more
receptive to a Canon
Camera ad..
Identifying Customers & Trust
• Customers are more likely to share
information about their identity, interests,
etc. if they trust you.
• Other faculty members trust me, so they
often ask me, “What laptop should I buy?”
• In the advertising world, “Trust” is very
valuable.
Google: Trust + Knowledge
• If you are trusted and knowledgeable,
people will seek you out for advice.
• In general, a large segment of the
population trust Google because of its
effectiveness in delivering good
information.
• This comes from Google’s search model
and methodology.
Google Page Rank
• People search the WWW using Keywords.
– Single word: Camera
– Word combinations: Camera Reviews
• There are millions of web pages that have
these keywords.
• Google ranks these pages based on
relevance
Google Page Rank Model
• Page Rank is a measure both “relevance”
and “trust”
Web Page
Page Rank = 9.5
Web Page
Page Rank = 8.5
Camera Reviews
Web Page
Page Rank = 8.5
Web Page
Page Rank = 7.5
Web Page
Page Rank = 8.0
Page Rank Intuition
Hubs
• These are websites that
have links to useful or
important websites.
• In the early days of the
WWW, these were
peoples “hot links”
• The hub owner maybe
someone trust-worthy
Authorities
• These are website that
are trusted authorities for
certain key words (i.e.,
“camera reviews).
• They may have links to
other trusted authorities.
Hubs & Authorities
An Authority site related to “Camera
Reviews”
Page Rank = 9.0
A Hub related to “Camera Reviews”
Page Rank = 5.0
Page Rank Explained
• Today, your page rank goes up if trusted
hubs or authorities point to your site.
• Then, you become a trusted site.
• Q: But how did the first trusted sites get
determined?
• A: In the beginning all sites started with a
page rank of 0.1. Hub owners have a
tendency to link to “authorities,” websites
that are nonsense just don’t get linked.
Page Rank Common Sense
Your page rank comes from:
• How long you’ve been around (more
opportunities for links to your page).
• If people often visit your site…for each
keyword search Google tracks which sites
you actually visit
– If more people visit the #5 ranked site, it may
move up to #4 or #3.
• If other highly ranked sites point to you.
Brief History of Google
• Initially, Google was the research project
from a pair of Stanford student who
wanted to make a better search engine.
• Search engines were failing because they
ranked website based on the frequence of
keywords.
• Google quickly became the #1 search
engine.
Google’s $$$Billions
• Once you gain of audience of millions,
companies will pay to place ads on your
website.
• Initially, Google made money off of
“sponsored links” that were relevant to the
search.
• Then Google saw a better way…
Google Advertising Tools
Adwords
• Companies pay Google.
• Google places the
companies ads in search
results
OR
• On other websites, who
participate in Adsense.
Adsense
• Google pays you (website
owner)
• Google places ads on
your website and gives
you a cut of the profit.
• The money you get
comes from companies
who participate in
Adwords
Search vs. Google’s Ad Network
Search
Ad Network
• Ads are only placed in • Ads are place on any
Google’s search
website that
results
participates in
Adsense.