Advertisement in Electronic Commerce. Advertisement in the Digital Economy. Theknot.com and Wedding411.com Information about planning weddings Assistance selecting vendors Site includes promotions and ads from vendors Promosinmotion.com VW bugs painted with Web site logos
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Why Internet Advertisement?
Source: Morgan Stanley Technology Research.
Customized to the target audience or one-to-one ads
Utilize “force advertising” marketing strategy
Direct link to advertiser
Multi media capabilities
Declining click ratio—viewers have become immune to banners
Size of banners is too smallAdvertisement Methods
Banners--banners are everywhere
Keyword banners Random banners
Source: Korean Engine (no longer in business).
Multiple of number of guaranteed ad views
Number of hits
Number of times customers click on banner
Only effective for large corporations
Based on how customer interacts with the ad view
How much time was spent viewing the ad
Referral fee based on customers moving to ad site to make a purchaseEffectiveness and Pricing of Advertisement
Methods for measuring advertisement effectiveness, conducting cost benefit analyses, pricing ads