BUAD477: Promotion in the Internet Marketing Mix

Search Engines: Not So Sneaky

2006-10-12T00:21:00.000-04:00

Article #6: The Search Engines' Little Secret

Search engines, such as Google and Yahoo, are continuing to grow and are very useful. They both provide an easy way to query information quickly and easily, however they are providing an avenue that is not as helpful as some may think. The growing popularity of the search engines has brought along with it a way for corporations to abuse the original purpose these search engines were created.

One form of abuse lies within each search by a Internet user. This search provides a “paid placement” for a company. Once someone searches for a certain product, for example, a hyperlink representing one specific company that has purposely paid to be on the top of the page automatically appears at the top of a list. This form of paid advertisement jades the original intent of those searching for information: to find what they are looking for quickly and easily. Rather, search engines are selling the placement of each search result to the highest bidder so that they may increase sales and market share for their company.

By company’s continuing to violate “truth-in-advertising”, they discredit the search engines and, in my opinion, diminish the original purpose fhat these search engines exist at all. On the other hand, for a company such as Altavista to compete with Yahoo and Google, it must entertain different options to raise capital for its business. One way of may exist through a paid placement of their company at the top of a search list or selling advertising options through search engines. These companies can expose their name on multiple planes for a price and it will positively impact their business. So, some forms of advertisement serve a purpose. Nevertheless, the mission for each search engine should be to provide an easy way to query information rather than exposing a company’s name through advertisements.

Internet Ads on the Up and Up

2006-10-06T11:43:00.000-04:00

Article #5: Sector Wrap:Internet Advertising Up

With the increased involvement in Internet advertisements in the last few quarters of 2006, the sudden increase of online advertisements should not come as much of a shock to anyone. In fact, it should be expected that most of the money spent on advertisement would be largely invested through the Internet. There has been a large increase in Internet use within the last few years so one would expect, more than any other medium available, those who are looking to increase there business would want the greatest amount of exposure hence the increase in Internet advertisement. It all makes sense. If you were a new employer looking to get your company’s name exposed to the public, wouldn’t you want to advertise in a place where you would receive the greatest exposure?

As an investor, I would be most interested in the new phenomena of Internet advertising, especially if I was not already involved in some way. According to the Interactive Advertising Bureau and PricewaterhouseCoopers “Online ad revenue reached $7.9 billion in the first half of 2006, a 37 percent increase over the same period last year”, one would expect investors to be most interested in why such a shift is occurring. In addition, the entire online advertisement industry is a multi-billion dollar industry that must be respected and analyzed. Especially with the sudden increase in the last quarter, those who choose not to involve themselves in some type of marketing via the Internet are missing out on huge investment opportunity. The Internet is the “next frontier” for marketers to reach potential clients and for businesses to flourish and will be utilized even further within the next few quarters.

Do Clicks Really Count?

2006-09-29T14:46:00.000-04:00

Article #4: Counting Advertising Clicks: "Vastly Overrated"

Online advertisers view banners, headlines, and other methods of exposure on the Internet as a window of opportunity for businesses to display their name and services to the public. A common method of determining how effective these advertisements are is through the “science of counting clicks”. Unfortunately, this method has become suspect to much criticism recently.

Even though Americans are spending more time online each day, do they have a set destination? Are they susceptible to clicking a link and taking the time to educate themselves on whatever product or service is being offered? Greg Stuart of the Interactive Advertising Bureau believes that advertising banners serve a different purpose than advertisers would have the public believe. Instead of being a way to influence people to purchase or raise brand recognition, the banner is simply viewed and taken at face value. He believes that, “Lots of people refrain from clicking on banners because they don't want to take a detour or fear a barrage of pop-ups.” Such fear has negatively affected the original intentions of those who pay for banner ads as a way to promote or extend their business.

Although many people do not click on the advertisements, whether it’s a banner or ad located somewhere else on the website, the exposure that these give to the viewer is significant. Obviously, if the viewer were to click on the ad, it would serve the purpose of leading to a business or service that paid for the ad. However, by simply being exposed to the advertisement, some interest may lead to a future “click”. Thus, the success of the advertisement should not be based solely on clicks, but instead on how effective the ad captures the attention of the viewer.

How Effective is Your Online Advertising?

2006-09-22T14:42:00.000-04:00

Article #3: How to Monitor the Effectiveness of Online Advertising

Imagine there is a small business owner who manages a local demolition company. In recent months, he notices there is a higher demand for the demolition and pavement replacement throughout his local city. So, to reach a wider demographic for his services, he decides to invest in an Internet advertisement. Little did he know, his decision would not only greatly benefit his business but, more importantly, he will be able to monitor the effectiveness of this online advertisement with ease.

According to Businessweek.com, “One common concern facing many small businesses is the ability to track how well their Internet advertising campaigns are performing.” With the example I used above, the small business owner has the ability to use a tracking system to see where potential clients are looking at his site. He can even add banners on other sites that will automatically direct those interested in demolition to his specific advertisement. According to the article, “This is a good way to find out which sites are not only providing you (the small business owner) with the best impression to click ratio, but the best click to buy ratio as well.” The concept of tracking potential clients is not a new concept, however small business owners can make educated financial decisions based on the amount of times their website or banner is clicked.

There are major online companies available to these owners for the specific purpose of tracking the amount of clicks that are made on each of their websites. One such company is Business.com. They are proficient at “something as simple as a tracking code on the URL submitted to each unique campaign can provide gross level information.” This is most helpful to those wanting to maintain an effective website that will eventually build their business and, at the same time, effectively help their customers find their site.

Advertising on MSN

2006-09-15T21:36:00.000-04:00

Article #2: Advertising on MSN

In the world of Internet Advertising, MSN has developed a way for consumers to use their website to advertise through using several different methods. These new options were created to increase each company’s effective advertising range. Some of the options that are provided by MSN vary “from simple text ads to full-featured media campaigns.”

MSN’s graphic ads such as banner advertising, button advertising, and their skyscraper advertising are a very effective way for people or companies to advertise their products and services. The banner advertising is used to display different advertising on the same or different web pages. Button advertising is very similar to banner advertising, but much smaller and a skyscraper advertisement is “a large sidebar that follows the viewer as he or she scrolls down the page”. These creative ways of advertising are great for getting a company’s name exposed on several different marketing fronts. I believe that the more one can expose their company name to the consumer, the better chance one has of being recognized by consumers in the future.

Out of the several options that are available for Internet Advertising, MSN has done a great job in providing different platforms that people or companies can use to advertise on the Internet. MSN, along with other Internet providers, including Google and AOL, are supplying more and more methods for people to advertise everyday. It is very difficult for many companies to differentiate themselves from their competitors. MSN and other creative Internet providers are developing ways for companies to reach the consumer through several effective Internet Advertising options so that they may increase each of their businesses.

Paid Search Through Google

2006-09-04T21:08:00.000-04:00

Hello, my name is Joe Rizzo. I am currently a Senior Marketing Major at the University of Delaware. As a fulfillment of my Information Technology Applications in Marketing course, I will be discussing various issues related to Internet Marketing. Specifically I will be focusing on Online Advertising and Paid Search. I feel as though these two topics are most appropriate considering the increase in use of the Internet and how employers may now use this media as a way to grab new clients. One specific way of doing this is through paid search.

Article 1: Google Tests Mobile Ads in U.S. and Europe, JumpTap Jumps In

The world is becoming smaller by the day in the eyes of technology. A perfect example of this phenomena is seen with Google’s newest introduction of mobile ads in the US and Europe. This new mode of advertisement can reach a wide variety of viewers. In fact, as of last quarter, Google has reached “approximately 4.5 million users on average”. Comparably, the search engine “Yahoo and its mobile search offering trails slightly behind, at 3.8 million. MSN and AOL have far smaller mobile reach, 1.1 million and 700,000 users, respectively”. Thus, all are huge populations that will benefit greatly with this new form of advertising.

Specifically, Google’s new interface will have a tremendous impact on the paid advertising portion of the Internet market. Like the already existing platform offered by pioneers such as JumpTap, the introduction of mobile advertising has the potential to become a very successful for Google. It is up to Google to find the appropriate marketing strategy to expose the public to such a platform. In my opinion, Google is well prepared to make such a decision. However, even the most successful search engine has the potential to make a bad advertising decision from time to time. I believe that Google is more than qualified to jump into the mobile advertising segment of marketing. However, like any business decision, I would hope that there is an adequate amount of marketing research to back such a decision. Google has proven that it is a leader in the search engine segment of the Internet and has made several successful advertising strategy decisions. I hope that this new platform will benefit Google and gain more for such an efficient and dominant organization.