Marketing on Internet

• Introduction.
Not a long time ago if we read any article about publicity on Internet or Publicity On−Line, we could heard
that advertising was the biggest and main source of incomes for a website.
Nowadays, many webs still depend on the publicity to get incomes. But the number of the ones that use
Electronic Commerce to get money is increasing.
Moreover, there are more over Traditional Advertising Agencies that are creating departments or divisions
specialized on Internet.
There are three big sources of incomes for the Websites on Internet, which are:
* Advertising.
* Electronic Commerce.
* Payment per Subscription.
♦ Current State of the Advertising on Internet.
In 1998 in Spain 1.000 million pesetas were bound for making Advertising campaigns on Internet. In 1999,
the amount of money spent reached 2.500 million and 2.000 million are supposed to be invested in year 2.000.
A survey held by the famous and prestigious firm Forrester Research, says that 30 billion dollars will be
invested till the year 2.004. A third of this investment will be generated outside the USA.
The investment in Internet outside the USA will go from the current 500 million dollars to 10 billion in the
year 2.004; half of them invest in Europe.
In spite of the great figures, we have to consider that these 5 billion dollars are just 5% of the investment in
traditional Advertising.
In Internet there are two ways of making an Advertising Campaign, one of them is free and the other is paid.
On Internet the first can be as effective as the second one.
♦ Getting to know our Clients.
One of the advantages that Internet offers it users is the chance to know the people who visit our Website.
This way we can offer the possible Advertising Agencies or Media Centers, our visit volume and or public
characteristics.
Once we now what and how we are going to sell, we have to choose who we are going to sell to. This aspect
is related with the product, service or website we have, but we can be surprised by the results.
We can find statistics and data about the Internet users, but they are just demographic, cultural or social. The
data we have to try obtaining are buying habits, preferences, needs, and the only way to obtain them is our
own website with the help of Marketing One− to− One or Relational Marketing.
We can also pay for that information or reach an agreement with the websites or companies that have that data
and work selling them to other websites.
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♦ What can be advertised on Internet?
It could be said that everything can be advertised on Internet, except of course those things that are illegal.
But it can be defined which products are mostly sold on Internet and those that are more likely to be sold in
the future.
The following chart gives the Top10 products that sold more in 1998 and the ones that are supposed to sell
more in the year 2002.
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3
4
5
6
7
8
9
10
YEAR 1998
COMPUTER STUFF
TRAVELS
BOOKS
PRESENTS AND FLOWERS
LEISURE
MUSIC
FOOD AND DRINKS
SPORTS
JEWELRY
TOYS AND HOBBIES
YEAR 2002
TRAVELS
FOOD AND DRINKS
COMPUTER STUFF
LEISURE
BOOKS
MUSIC
TOYS AND HOBBIES
SPORTS
PRESENTS AND FLOWERS
ELECTRONIC STUFF
Source: http://www.emarketer.com
Although this list does not represent the kind of products that use publicity on Internet, it gives us an idea of
what kind of websites offer room to insert publicity.
Products just for adults do not appear in this list although the truth is that nowadays they are a big power in
visits and electronic commerce.
♦ AGEMDI.
AGEMDI was created on 29th September 1999. It is the strategic link between Direct and Interactive
Marketing Agencies. It is the natural evolution of the AGEMD, which does not include Internet related
agencies.
Nowadays the AGEMDI has 45 associated agencies: 29 related with Direct Marketing and 16 Interactive
ones.
The AGEMDI is integrated into the FECEMD (Spanish Federation of Electronic Commerce and Direct
Marketing) where it is related with other 6 associations.
Between the services the AGEMDI offers we can find:
Information and advising.
Promotion.
Relation with other business associations of agencies or advertisers.
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Investigation: Sector surveys.
Defending the interests of the associated agencies.
• Advertising Process on Internet.
To understand the general characteristics of the Advertising on Internet Process we can follow the chart
below.
Advertising on Internet Process
−Banner
−Sponsors
−Press Notes
−Patronage − Web
−Affiliation − Searchers (Target)
− News
− Newsletters
− Islands
− Portals
CHART 1: ADVERTISING ON INTERNET PROCESS
Chart 1 shows the Advertising on Internet Process. Before starting an Advertising Campaign on Internet, an
Internet Marketing Plan should be done. This plan will determine the objectives to reach and the target or
public. According to the target and the objectives one or another publicity action should de taken and different
media should be chosen.
The person in charge does not have to forget that the objective is the target or user, and that it is possible to
see his reaction to the Internet Campaign and change the things that do not work on it.
Publicity on Internet has some characteristics other media don't. This way it is possible to build a relation
person− to− person or face− to− face, even when having to deal with great distances.
Effectiveness of Internet Publicity
Dialogue
Richness
of the
Message
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TV
Reach of the message
CHART 2: EFFECTIVENESS OF INTERNET ADVERTISING
Source: Pablo Martín Tharrats
As we can see in the second chart Effectiveness of Internet Advertising Internet has characteristics and
elements that make it very appropriated for an effective communication and a more effective publicity than
any other communicational media or advertising. The company can start a face− to− face dialogue making the
message it wants to transmit more efficient. Because the firm can make as many messages or campaigns as
Users (being able to reach a big number of users).
• Sorts of Advertising.
There are many different types of making publicity on Internet. In this project we are going to present the
most common ones and explain the most relevant.
Banner. They are publicity spaces in the websites. They are usually squared or rectangular, but they have no
standard size. They can hold static or dynamic image. Thanks to the banners we can entry to other pages or
mini− pages. They can be used to sell, promote, reinforce, or make known a product, a service or a company.
As it is the most important one we will see it in depth later.
Publicity in the Hard Disk of the computer. Some companies will pay for the users to hold publicity in their
computers that would appear on the screen. FREEMAC was going to give a million iMac computers with just
a condition. These computers would have in their hard disks two Gigabytes (1/3 of their capacity) with
publicity that would appear on the screen at any time.
This present was not completely free. The users not only had to sign a three− years contract with Earthlink
Network to connect to Internet (paying 20 dollars a month), but also fill in a form to divide the publicity the
user receive.
This strategy did not work as it was expected and they could not give all the computers they had.
As it has been proved this is not a very well developed system yet. Marketing planners had to work harder and
wait a bit if they want this idea to grow, as it is not as bad as it may seem nowadays to nowadays users.
E− mail. They are notes distributed with the push technology. They are directly sent to a user instead of
waiting for an answer. It is quite an effective system if the company personalizes the message and use a
database to divide the users and just take the ones that are in the campaign target.
The indiscriminate sending of e−mails is called SPAM and it effectiveness is very poor.
www.hotmail.com
www.com
Interstitials. They are big size adverts that content images with movement and sound. This kind of adverts
benefits from the moments the computer uses to download the page the user wants to see, to occupy the screen
with an advertising message.
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An interstitial usually last between five and ten seconds. On of the fist interstitials appeared on a net game
called You Don't Know Jack:
http://www.won.net/channels/bezerk/jack/jack−play.html
Other examples:
http://www.avecrem.com/
The impact on the user is bigger than with other advertising tools of Internet because the images look like the
ones on TV spots.
Moreover, it gives more information than a banner because it can be as big as the screen and as we have seen
before, it can last up to ten seconds.
Pop− up. This type of advert appears as a second navigation window when the user is downloading a website.
As it happens with the interstitials, this is not a voluntary exposition to the advert. However, the user can close
the window to stop the view of the pop− up.
It is very hard to measure the effectiveness of the pop− up because there is no click− per− through ratio.
http://es.yahoo.com
Sponsor or Promote. This kind of advertising make it possible to create stronger links between the products
and makes, and some contents on the net.
Cyber spot. Cyber spots are adverts that have mobile images and sounds created with a computer. If the user
wants to visualize it, the computer must have been installed some special software programs.
Chat. It is a virtual room where the users can talk to each other in real time. Users enter a web page and click
on a button that normally says CHAT. A new window open and the have to fill in some information like the
nickname and usually the e−mail address.
This way the owners of the chat get very useful information use it to create databases for other on−line
actions.
Forum. It is an on− line version of an advert board; with advise, questions, ideas,
They are mostly used to get fidelity and give a service to the client.
Web Page. It is the most common and effective way to advertise a company or a product on Internet.
It is usually created with movement and some of them have also sound. The webs are even more effective
than the banners because the user has to want to see the information the web contents. Furthermore, it can
held other kind of On− line advertising such as banners, pop− up windows, chats,
3.1. The Banner.
Although the banner is losing the importance and the strength it used to have, it keeps on being the most
representative and extended form of On− Line Publicity.
It is very important to understand the utility and function of the banner. This is to create traffic, to attract the
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users to our website or micro−site. This traffic can be generated out of the web where the banner is placed to
promote or make other websites be known, or it can be generated in our own web to promote ourselves.
3.1.1. Kinds of Banners.
Here is a brief list of the sort of banners that we can find in a website. But the page or the agencies determine
the standard size. In this case we have taken the most common sizes given in pixels.
NAME
Full Banner
Full Banner with vertical bar of Navigation
Half Banner
Vertical Banner
Button
Micro Button
SIZE (PX)
468 x 60
392 x 72
234 x 60
120 x 240
120 x 60 120 x 90 125
x 125
88 x 31
http://www.negocios−ar.com.ar
Her are some examples of banners with different sizes:
CASIE (Coalition for Advertising Supported Information and Entertainment; program associated with the
American Association of National Advertisers in the Internet Advertising Bureau) has develop a serial of
standard recommendations about the banner's size.
NAME
Full Banner
Full Banner with Vertical Navigation Bar
SIZE (PX)
468 x 60
392 x 72
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Half banner
Square Button
Button#1
Button#2
Micro Button
Vertical Banner
234 x 60
125 x 125
120 x 90
120 x 60
88 x 31
120 x 240
www.gettheclick.com
www.lanacion.com
3.1.2. Stages of the Banner.
The stages in the evolution of its use are:
1.− In the first phase the banner was an image. GIF, animated in most of the cases. It was used as an
inducement to take the users to a website. The number of percentage of visits measured the efficiency.
2.− When its efficiency, or the percentage of visits, fell the creators gave new applications. One of them is
creating a Brand Name. Through the banner the company wanted to make the Internet users to remember or
simply recognize a brand.
3.− From this phase the banner evolved to a more extended use, obtaining data; helping the companies to
create Data Bases about the people interested in its product, service or web.
4.− The last use the banner has been given is selling from the banner itself. A new window does not open, it is
the banner what maximize and the user can ask for information, sell, buy,
The consequences of the evolution of the banner are the appearance of the portal.
The ancestors of the portal were the SEARCHERS or MOTORS OF SEARCH. These had as their main
source of incomes publicity, and the banner as the main representative of this publicity.
When the efficiency of the publicity went down, especially the banners', the incomes also descent. The sum
up of the previous results with the fall of visits that many searchers suffered and that their efficiency was in
doubt, make the companies use a new Strategy to re− launch their business and that is the moment when
portals appeared.
Phases in the Life of a Banner.
• Banner with high percentage of visits. The publicity campaign just consisted in creating a banner and
measure the results; but there were no actions after that.
• The banner pursues other aims than creating Traffic or sales, as create a brand name, obtain data,
New applications are created and used.
3.1.3. Factors that improve Banners' success.
When someone hires room is a website to put a banner, they have to consider the following factors if they
want to succeed:
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The place the banner is located in the page. The best place for a full banner is the beginning or the end of the
website, while the buttons can be place anywhere and the vertical bar are usually located on the right side of
the screen.
The frequency the banner appears. According to a survey carried out by DOUBLE CLICK(Internet
Advertising Solutions Company) the users mostly answer a banner after the first or second time they see it.
The percentage of clicks falls from the second exposition to the banner.
Animation or movement in the banner.
The use of bright colors or certain combinations of colors.
The use of easy readable text fonts.
The use of colloquial language.
Ask questions in the banner to catch the attention.
Ask for a click (CLICK HERE, PINCHA AQUÍ).
The appearance of the word free. Although it will not always take the right kind of clients.
Show the benefit.
Quick load of the banner.
Look for the right target.
Test the banners.
Place it in a web are target will visit.
But of course it is not necessary to use them all at the same time but we have to consider them, because they
can help to improve and reach the website's objectives.
3.1.4. Most frequents errors in a Banner.
In the same way we can define a list of actions to develop and reach the best results; we can also create a list
with the most common errors.
The most common errors when creating a banner are:
Overloaded banner. Although the screens of most of the computers have enough resolution and potency it is
recommendable to create light banners between 10 and 15 KB.
Internet Technologies. Internet offers many different options to design a banner but not every computer or
navigator can hold or have the necessary programs to visualize the last innovations.
Too Many Images. Animated banners have more acceptance but they usually have lot of images and banners
become too long. The best banners are those with three images, from the third image the public get bored and
tired of looking at it and they lose their interest..
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Moreover, the more images the banner has heavier in Kb it is.
Not correctly Linked. It is not as unusual as it may seem . When the banner works, meaning the user click on
it, the banner goes nowhere or does not go to the right website.
This happens not only with the low budget campaigns or small companies, but also with the big enterprises.
Not Comprehensible Message or Objective. On TV the creative team designs the idea that gives us a clear
message. In some banners that message does not exist or is very confusing.
A banner can create confusion or cannot attract enough the user's interest so he/ she does not click on it.
3.1.5. Technologies to design a Banner.
Although most of the Banner's images are GIF or JPG, we can also see some that use different technologies.
These are some of the technologies used:
Banner with images: GIF, JPG.
Banner with animated images: Animated GIF.
HTML/ FORMS
Dynamic HTML
Plug− ing Shockwave
Flash Banner
Java
With audio or video
etc.
3.1.6. Ways of making an Adverting Campaign on Internet using Banners.
There are several options when trying to make an advertising campaign. The chosen option will be determined
by the budget assigned to publicity.
The possible ways to make an advertising campaign with banners are:
Buy words for our banner in a Searching Motor.
Buy room for our banner in a website or a Searching Motor.
Insert our website/ banner in a WEBRING'S.
Insert our web in a Program of Free Interchange of Banners.
Exchange banners with other sites.
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3.2. Websites.
With the right budget, a media planning and an interesting promotion a web can attract thousands of people in
a very short period of time.
Attracting users to the site is a complicated work that requires a lot of creativity, Marketing techniques
knowledge and of course computer knowledge to apply the internet designs.
3.2.1. Business Cycle of a Web.
Although publicity is not the only source of incomes of a website, we will consider it as the only source in the
next chart.
Business Cycle of a Web
Source: http://www.cyberkyosko.com
The third chart shows the Business Cycle of a Website. And as shown it is a ringlet.
At the beginning a web has to find and get traffic that visit that website. Thanks to this traffic that visit that
website, they can negotiate the sale of publicity on the page; and this will give incomes to the site. These
incomes should be used to create services and contents to maintain and attain more traffic.
3.2.2. Promotion.
A survey about the ways Internet users contact with a web site (July 1997) had the following results:
71% used searchers
9.8% asked friends or workmates
8.5% used newspapers or magazines
8.4% visited the site from other web's links
8.1% surfing the net
3.6% thanks to the TV ads
3.3% through off− line Internet directories
From the article Internet Marketing and Technology Report Vol. 4 Number 2nd March, 1998 we get some
very interesting conclusions.
The survey carried out with 1,500 websites shows that the 48% of their traffic depends on searchers. 70% of
the websites receive the 20% of their visits thanks to the searchers.
We are going to see the most common and effective kinds of promotion for a web:
The role of the company. The company has to advertise the electronic address of their website and the e−mail
in their other advertising actions (as TV, newspapers, radio)
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Interchange of links. The company has to look for websites related with the one it want to promote so it will
be able to reach the right target while having a bigger presence on the net.
http://www.mercadeoglobal.com
Searchers and Directories. Getting a wide presence on the searchers is another way to promote the website
On− line. The web has not only to appear in a thousand searchers but it should be in the first position in the
most important ones; nationally, internationally and locally.
Placing our website on the first positions of a searcher is the first step the company has to take. Every user go
to them when he/ she is looking for something specific, but the company has to select those that are important
for us to be in.
There are more than 3,000 searchers in the net so it would be nearly impossible to be in all of them.
Once we have selected the searchers we want to appear on, we have to find between 10 and 30 words our
target 2would probably look for in a searcher. We have also to summarize our contents in a sentence that will
appear on the searcher when our web have been selected thanks to our 10− 30 words.
Our web can be find on a searcher because we have send them the information to appear in it or thanks top a
program called SPIDER that localize webs surfing the net.
www.google.com
www.altavista.com
• Advertising Campaigns on Internet.
4.1. Marketing on Internet.
A publicity campaign on Internet can be planned in two different ways if we consider the marketing on
Internet view.
Brand Marketing. What the company wants is to spread or promote the name or the image of the firm or the
product. The company will become known on the whole net.
What the firm wants is the campaign to reach as many people as possible.
It is possible to get this inserting the company banner or fulfilling the advertising campaign in a website with
a lot of visits as searchers or portals home pages.
Target Marketing. What the company is looking for is becoming known among those that are interested in the
company, the product or the web. In this case the focus will be more selective because the campaign has to be
directed to those targets that have been previously chosen for the product, service or web in the Internet
Marketing Plan.
The way to plan the campaign will be on specialized webs or searchers and portals that talk about the subjects
or public is interested in.
One of the main characteristics of Internet is that it can separate different kinds of targets easier than
Traditional Markets.
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4.2. Aims of an Advertising Campaign on Internet.
When creating an Advertising Campaign on Internet the company has to define the possible objectives. They
can be:
Introduce a product/ service/ web.
Locate de brand in the market.
Fight the competence.
Create a brand image.
Push Product: sell a product/ service/ web
Obtain data of the users and/ or the company target.
Driving Traffic: generate traffic in a web.
Give services to the clients.
Search of suppliers, partners
4.3. Beyond the Banner.
Experts in advertising say that an advertising campaign do not end with the click on the banner. On the
contrary, that is when the campaign hardest part starts, when the company has to get the objectives marked in
the Marketing on Internet Plan.
The objectives of the publicity on Internet, seen as a part of the Marketing on Internet Plan, as a Strategy to
reach the general objectives are:
Sell. It is probably the most used objective. Once the user has clicked on the company banner and has visited
our web, we have to create a design structure of the web to aim our goal. We have to offer in a brief and clear
way the product/ service, and give information and services; everything in an easy and simple way of locating
and downloading from the net.
Be known as a brand. This is an aspect which profitability is hard to demonstrate. Once we have make the
advertising campaign with this goal we can see if the visits have increased in the web; although it is difficult
to associate the volume of visits in the period the campaign in taking place.
Increase the visits. The campaign is easy to associate with the visits volume.
Contacts. This objective is becoming more and more important. The relevant information is the one that told
us who visits the web and their likes and preferences. This way the company can offer the visitors exactly
what they wish.
4.4. Keys for the Publicity on Internet to succeed.
The steps to follow to obtain a bigger success in a Campaign on Internet can be summarize in the following
way.
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• Define the campaign's objectives. Establish an objective to follow. It can be: sell, increase the traffic,
obtain data
• Know the target or user.
• Select and plan the campaign.
• Select the kind of publicity we are going to use.
• Design the campaign: banners, press notes,
• Hiring.
• Test and follow the results of the campaign.
• Modify the campaign to solve the problems if necessary.
4.5. Advertising Agencies on Internet.
Here are some agencies that work on Internet without being helped by any other institution or advertising
companies, and some other that after being well positioned, as Advertising agencies have also become
Internet Advertising Agencies.
eMarketer. It is the world's leading provider of Internet statistics. Its reports combine original analysis with
aggregated numbers from leading sources worldwide. eMarketer's award−winning website has been visited by
millions of online professionals from over 140 countries; its newsletters are sent to over 350,000 e−mail
addresses every week. The company's articles, market projections and analytical commentaries are featured by
hundreds of news organizations and business publications every week.
Headquartered in New York City, the company is launching eMarketer Japan in Tokyo and will soon be
expanding to Europe. eMarketer is a privately held company, and was founded in 1996.
McCann− Erickson
http://www.mccann.com/
Bassat, Ogilvy & Mather.
http://www.bassat.es/
Saatchi&Saatchi.
http://www.saatchi.com/innovation/launch.html
Young & Rubicam.
http://www.yr.com/
247.
http://www.247europe.com
J. Walter Thompson.
http://www.jwt.com./
Nowadays, we can also find portal just for advertising specialized on Internet Advertising companies and
information.
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http://www.awinfo.com/awinfo_esp.htm
Marketing on Internet Page 1
Advertising Campaigns
(Objectives)
Media
Internet User
Objetives Control
Corrections
Results
Advertiser
Internet Marketing Plan
Advertising Agency
Internet
TRAFFIC
generate
PUBLICITY
Search/
Obtain
TRAFFIC
With the
PUBLICITY
we can generate
INCOMES
With the INCOMES
we can create/ buy
SERVICES & CONTENTS
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