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Chapter 2: Internet Advertising

Chapter 2: Internet Advertising. Payam Hanafizadeh and Mehdi Behboudi http :// www.igi-global.com/book/online-advertising-promotion/60769. THE INTERNET. The Internet is innately a flexible medium ; Furthermore, it appears to be a powerful tool for the transfer of information .

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Chapter 2: Internet Advertising

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  1. Chapter 2: • Internet Advertising

  2. Payam Hanafizadeh and Mehdi Behboudi http://www.igi-global.com/book/online-advertising-promotion/60769

  3. THE INTERNET The Internet is innately a flexible medium; Furthermore, it appears to be a powerful tool for the transfer of information. http://www.tpg.com.au/

  4. THE INTERNET Compared with radio (30 years) and TV (15 years), This statistic reveals the incredibly fast development of Internet diffusion (Sterne, 1997). http://www.ipl.org/

  5. ADVERTISING ORIGINS From a historical point of view, advertising can be seen as far back as the public criers in town markets(Dyer,1982) in ancient cities such as Sumer, Babylon, and Jerusalem. http://www.origins.co.in/

  6. ADVERTISING ORIGINS The crier’s behavior and the advert6isements of today’s world are different in many aspects but share the same principle. Advertising is not only a new phenomenon, it has also been a crucial element in human society from the day of creation up to now (Nilsson, 2006). http://yellowpages.sulekha.com/lucknow/origins-advertising-pvt-ltd-gomti-nagar-lucknow_contact-address

  7. Advertising Advertising is based on two premises: The first is marketing, which attempts to communicate and establish a relationship with customers by transferring value (Darroch, 2004);The second is communication, which serves as a process to create a unified idea between a sender and a receiver (Schramm,1995). http://www.dotcorner.com/web-advertising/

  8. Advertising Richards and Curran (2002) states: “Advertising is a paid non-personal communication from an identified sponsor, using mass media to persuade or influence an audience ”(p.63). http://advertising.yahoo.com/

  9. Advertising From an economic point of view, Advertising serves two major function: • Persuasion • Information http://www.linkedin.com/advertising

  10. Advertising In early Advertising and especially with the first banners, advertisers used simple and short massages such as click here, click Now. http://www.theday.com/apps/pbcs.dll/misc?url=/static/advertise.pbs

  11. ADVERTISING AND ITS ENVIRONMENT Belk (1975, p. 159) introduced five categories of situational characteristics: • Physical Surroundings • Social Surroundings • Temporal Perspective • Task Definition • Antecedent States http://www.adotas.com/2012/01/social-media-advertising-its-environment-and-impact/

  12. Core Concepts and Function of Advertising • How online advertising woks • Ad input: • Ad format • Online media • Social media • Multimedia • Mail media • Filters: • Motives for entering the web • Product appeal alignment with consumer needs • Arousal • involvement • User pleasure: • Cognitive tools attention • Memory • Attitude • User reaction: • Click/ignore • Visit website • Purchase

  13. Internet Advertising and Its Position in Marketing Marketing communication can be described as representing “the voice of a brand and the means by which companies can establish a dialogue with consumers concerning their product offerings”(Keller, 2001, p. 823). http://www.cybertegic.com/

  14. Internet Advertising and Its Position in Marketing The companies’ communication actions can more over be part of an information exchange between firm and buyer with the intention to preserve and develop customer relationships (Reid, Luxton, & Mavondo, 2005). http://www.smartinsights.com/internet-advertising/internet-advertising-analytics/display-advertising-clickthrough-rates/

  15. INTERNET AND PROMOTION MIX The promotion mix is traditionally perceived as consisting of five elements: • advertising • sales promotion • public relations • direct marketing • personal selling http://www.impactbnd.com/how-to-establish-a-promotional-mix/

  16. Why we use Internet Advertising Some Advantages of online Advertising include: 1. Migrating Audience to the Internet 2. Appropriate user 3. Measurability 4. Personalization 5. High exposure potential 6. Low cost 7. Updating 8. Unlimited access http://www.howstuffworks.com/web-advertising.htm

  17. COMMUNICATION • One- to- Many Communication • Interpersonal Communication • Computer Media- Based Communication http://communication.ucsd.edu/

  18. COMMUNICATION One -to-many communicational pattern Sender (advertiser) Prepared general content as well as the channels that receiver can give the feedback Receiver 1 Receiver 2 Media Receiver 3 Receiver 4 Receiver n

  19. COMMUNICATION Interpersonal relationships Sender (advertiser) Revising content and resending message based on consumer feedbacks Processing Receiver (consumer) Reacting based on new content Processing Media

  20. COMMUNICATION interactive pattern User Marketer Social network channel; shared content. Search engine channel; research based content. .E-mail channel; personalized content Suppliers Agencies

  21. SELECTING THE RIGHT WEBSITE FOR PLACING AN ADVERTISEMENT Nagi (2003) conducted a study concerning the selection of an appropriate website for positioning advertisements. In this study, Nagi, using the Analytical Hierarchy Process (AHP), offered The most appropriate website for publishing an advertisement in Hong Kong. http://www.chitika.com/publishers

  22. SELECTING THE RIGHT WEBSITE FOR PLACING AN ADVERTISEMENT • Nagi identified five criteria for evaluation: • Impression rate • Renting cost • Audience fit • Content quality • Look and feel(Nagi, 2003). http://www.ehow.com/how_5603935_place-ads-website.html

  23. Electronic Satisfaction The success and failure of online sites depend on how well customers are satisfied (Chen, Rogers, & He, 2008),particularly in the online environments that present different experiences that offline ones (Wolfinbarger & Gilly, 2003) http://www.prnewswire.com/news-releases-test/foresee-holiday-customer-satisfaction-study-amazon-sets-standard-jcpenney-apple-dell-drop-184919421.html

  24. Electronic Satisfaction • Oliver (1997) defines satisfaction as “The overall subsequent psychological state following the appraisal of the consumer experience against the prior expectations” • Anderson and Srinvasan (2003) suggest a definition of e-satisfaction as “the contentment of the customer with respect to his or her prior purchasing experience with a given electronic commerce firm”. http://www.electronicfasteners.com/Customer-Satisfaction-Survey.html

  25. Electronic Satisfaction High customer satisfaction causes a customer to return to the website (Chen, Rogers, & He, 2008). http://www.questionpro.com/

  26. Quality of Electronic Services E- SERVQUAL involves three concepts: • webQual • softQual • InfoQual http://www.qualityelectricservice.net/

  27. Quality of Electronic Services • These services can be categorized into two categories: • specialized • general services http://www.qualityelectronics.tv/

  28. Type of Business Model However, in order to investigate and select an appropriate website for placing an ad, the Rappa model offered in 2005 is considered here. Generally, there are nine types of electronic business models according to this study which include Brokerage, Advertising, Infomediary, Merchant, Manufacturer, Affiliate, community, Subscription,and Utility.

  29. Right Website Selecting Model (RWSM) Right website model (RWM) • E-ServQual • WebQual • SoftQual • InfoQual • Interactivity • Man-man • Man- machine Right website • E-Business Model • Brokerage • Manufacturer • Advertising • Infomediary • Merchant • Utility • Affiliate • Subscription • User-Oriented Design • Navigation • Easy search • Customizing • Visual Presentation

  30. http://www.economist.com/node/7138905 The End Of Chapter 2 http://www.pcmag.com/encyclopedia/term/45193/internet-advertising http://www.admedia.com/

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