Consumer Behavior On

The World Wide Web

     Some of the exercises contain ads taken from the Internet which you are asked to evaluate in light of consumer behavior concepts as well as what makes for effective Web ads.  Other exercises ask you to search the Internet to find ads or to interact with consumer-oriented Websitess.  The purpose of this section is to give you an introductory background to the Internet to help you to do this.

An Overview of Cyberspace and Cybercommunication

     The World Wide Web (WWW or “Web”), the most popular component of the Internet (“Net”) and the main commercial component, is that portion of the Internet servers that support a graphical interface retrieval system which organizes information into thousands of interconnected pages or documents called Web pages (home pages, start pages, welcome pages, landing pages)—the introductory page or opening screen of a Websites), making navigation simple and exciting.  The Web is a digital medium that combines sound, graphic images, video, and hypertext on a single page.  Each home page is like a bookcover or gateway, acting as the starting point to additional information.

    Content providers are the parties that provide information on the WWW known as Websitess, which consist of one or more Web pages with related information about a particular topic, usually overlaid with graphics.  Today marketing content providers include companies, direct marketers, electronic retailers (e-tailers) and other organizations that have their own Websitess, as well as Websitess that contain secondary data.  The WWW is that portion of the Internet most heavily used by advertisers (the other components, which are beyond the scope of this book, are instant messaging or electronic relay chat; and Usenet discussion groups, newsgroups, and electronic bulletin boards or boards, on which members can read messages on a given topic, post new messages, and respond to existing messages.)

     On the WWW Netizens—those who spend a considerable amount of time on the Internet –can access an immense database of information in a graphical environment through the use of programs called Web browsers—software programs with a graphical user interface that enables the user to display Web pages as well as navigate the Internet.  In 1994, the first commercially available Web browser software that accommodated graphics, Netscape Navigator, was released (later followed by Internet Explorer).  People could now navigate in cyberspace by pointing and clicking on icons, making the Internet almost as user-friendly as the original online services (e.g., CompuServe, Prodigy, and America Online, all born during the 1980s).  To connect to the Web, one needs to gain access in one of four ways: through a commercial online service (e.g., America Online), a corporate gateway (e.g., AT&T’s WorldNet Service,) a local Internet Service Provider (ISP), or an educational institution. 

     Initially, people found it difficult to find information on the WWW—it was like trying to find a book in the library without a card catalog.  This problem created demand for another software program, the search engine—a computer program on the Internet where users could type in a name, word, or phrase, and the search engine would troll the Net to locate relevant information and Websites addresses.  In rapid succession a number of programs with catchy names like Yahoo! (founded in 1994 as a bare-bones directory founded by Stanford University students Jerry Yang and David Filo and now the Web’s most popular site, followed by MSN and AOL), Excite, and InfoSeek emerged as search engines.  These rapidly became high-traffic locations, and advertisers began to advertise on them using banner adslittle, rectangular static or animated billboards that are located on at the top of a Web page and that can serve as a gateway to send a consumer to an advertiser’s Web page.

     E-commerce—the sale of goods and services on the Internet—had its genesis when in 1995 Jeffrey Bezos envisioned a new business paradigm that involved selling books online at Amazon.com, and Pierre Omidyar launched eBay, an online marketplace. 

     Today, virtually every business, from the local florist to global corporations, has its own Websites, and many individuals have their own home pages. Since the online services and the search engines are the gateways to all of these sites, they also attract the greatest number of “hits”—landings on the site that might represent multiple requests by the same visitor and so doesn’t represent the number of unique users—and the greatest volume of advertising.  For many college students, the WWW is the first source of information from everything from news to term paper research to travel planning.  For advertisers, the Internet is a valuable component of an integrated marketing communication (IMC) program and, like other media advertising and promotional tools, is most effective when used in conjunction with the other program elements.

     The Internet is a digital interactive medium.   It is interesting to note that initially marketing was interactive, with the majority of marketing communication being carried out by salespeople and face-to-face communication in retail stores.  Subsequently, marketers and consumers relied more on mass communication, and, for the most part, interactivity left marketing communications.  With the Internet, marketing communications increasingly involve interaction between buyer and seller.

    Advertising on the Internet is considered interactive advertising since, unlike traditional advertising media, it offers the consumer an opportunity to respond to the ad (as do other interactive media: CD-ROM catalogs and magazines, stand-alone sales and information kiosks, and interactive TV). Interactivity is a big plus since it gets the customer actively involved, leading to better learning and often a sale.  While some observers believe these new interactive media will totally transform the nature of advertising as we know it, others say that, like TV and radio before it, it will simply be one more addition to the media mix.  Nonetheless, given that consumers can make purchases over the Internet, it also ads new channels of distribution.  Most Internet advertising most closely resembles broadcast advertising in that it has sound and motion.

 

Surfing the World Wide Web

     An important aspect of consumer behavior is the consumer decision-making process.  One important stage in this process, external search for information, can occur online.  There are two general ways people search for information on the Internet.  First is directed search/prepurchase search (“shopping”) with purchase of one or more particular products (and even brands) in mind.  Consumers know what they are looking for and usually have some existing information to rely on (e.g., a producer’s name, brand name, or a set of terms which describes the product category).  Here, they usually search for key/search terms in search engines as described below.  Second is browsing or casual search, with no particular immediate purchase in mind.   Here, the user might not have an immediate need or might have a less precise view of the information that might be available.  Browsing relies heavily on hyperlinks or links (electronic connections from one Websites to another Websites) between documents, allowing the browser to navigate through cyberspace in a non-sequential manner. 

     The Web has been likened to a library lacking a card catalog—there is no central authority that lists all possible sites accessible via the Internet.  This results in surfing—gliding in an unplanned fashion from home page to home page.  There are, however, two organized ways to find information on the WWW—general-purpose search tools such as browsers and search engines, and specially designed tools, such as shopping bots:

     First are Web browsers.  You can search by pointing your Web browser toward a uniform resource locator (URL)—the Websites address or domain name, which identifies a particular location (i.e., Web server and file on that server of the site where the information you need is located).  You can enter the URL for that site in the search window (by clicking “File- Open Window”) of your Web browser, which takes you directly to that site’s home page.  (The original six top-level domains [TLDs] widely used in the U.S were: .com [commercial or “dot.com”], .edu [education], .net [network operations], .gov [U.S. government], .mil [U.S. military], and .org [organization.  In 2001 to these were added .biz [commercial or business], .info [unrestricted by organizational type], .name [for individuals], .pro [for accountants, lawyers, and other professionals], .aero [for the air transport industry], .museum [for museums], and .coop [for cooperatives]).  

     A second organized way to surf the Web is to use a search engine—a computerized directory that allows users to search the WWW for information in a systematic way.  The big four sites are Google, Yahoo!, MSN, and America Online.  Others include Alta Vista, Excite, HotBot (gives you a choice among three other search engines too), Infoseek, and Lycos, among others.  Each search engine contains collections of links to documents throughout the world, and each uses its own indexing system to help you locate the information you are looking for.  Some search for titles or headers of documents, while others search words in the documents, and still others search other indexes or directories.

     All search engines allow you to enter one or more key words or search terms into the text box.  They then return listings of hyperlinks.  Alternatively, you can click on a list of broad topics (art, business, entertainment, etc.) to go to subdirectories or else home pages.  Most search engines use a best match search process and present search output (the “retrieval set”) in order ranked by relevance, based on: how many of the search items were found in the document, how often the search items were found in the document, where in the document the search items were found, and proximity of the terms to one another. 

      It is not uncommon to find a large number of hits; if this is the case, the rule of thumb is to scan the first 50 hits, and if these don’t provide useful information, to consider redesigning the search strategy.   The retrieval set usually takes the form of a list of Web pages representing the records retrieved, ranked in order of their potential relevance to the query and presenting a certain number (say, ten) at a time.  Each of these incorporates a hypertext link to the source document. 

There are seven types of search engines:

(a) Hierarchical search engines or directories add value through human intervention in the assignment of subject headings to records in databases.  In a hierarchical search engine, all sits fit into categories.  In addition, all sites are evaluated prior to inclusion.  Such sites only contain submissions from users—they don’t perform a search of the Web—hence, they are not comprehensive, omitting a large portion of the information on the Web.  Websites creators may their page for inclusion in the evaluation process.  The maintenance of such directories is a labor-intensive process—therefore such search services are selective in the sites that are included.  However, such selection reduces the amount of garbage one often encounters in an Internet search.  Yahoo! is an example of a directory built on a hierarchical, subject-oriented guide.  Others include Ask Jeeves, Excite, LookSmart, and Lycos.  All sites have to fit into a certain category/subject heading and subcategories (e.g., Stolichnaya vodka is indexed as Business and Economy/Companies/Drinks/Alcoholic/Vodka).  Going to Business and Economy/Companies/Sports/Snowboarding/Board Manufacturers gives almost 60 companies that sell snowboards on the Web.  Searching is via menus of these subject headings and/or through keyword searching. 

(b)    Collection search engines.  Alta Vista, Fast, Google, and Northern Light are examples of search

 engines that use a spider—an automated program that crawls around the Web and collects information.   The advantage of these is that they tend to be very comprehensive.  Because there are so many sites, they rank the best matches first.

(c)    Concept search engines. Excite is an example of a concept search engine—they use a concept, rather than a word or a phrase, as the basis for the search.  To narrow the original search, one clicks on one of the sites found in that search to do another search.  The percentage key gives the user an idea of how close a particular site is to his or her concepts.  For example, Ask Jeeves is a natural language search engine—it allows users to type in natural-language questions.   Concept search engines can be a relatively efficient and focused way of searching.  The disadvantage is that they aren’t as comprehensive as collection search engines. 

(d)    Meta-engines/meta search engines/mega-search engines search multiple search engines simultaneously for words and phrases.  They then combine results, remove duplicate entries, and /present a single listing.  Examples include MetaCrawler, Dogpile, and Debriefing (the latter is maintained by librarians who are constantly refining and upgrading the site).  Some of these can be found in the list of search engines when you click on the “search” button of your browser, and others are found by typing into the Web browser “www.searchenginename.com (e.g., www.dogpile.com; www.debriefing.com).  They are a quick way of searching across several search tools, although they might not support some of the more sophisticated search facilities.  There are also specialty search engines that limit searches to specific topic areas such as law, business, and medicine, as well as Web community sites such as www.theglobe.com. 

(e)    Robot search engines/search bots. This newest type of search engine acts like meta search tools

 and searches many Internet search engines in parallel.  They differ from meta search tools in that they are loaded at the local workstation rather than operating in client server mode.  Also, they use robots (“bots”) or intelligent agents to roam the Internet in search of information.   Shopping bots are specialized search bots designed to locate and compare products.  They take a query, visit shops that might have the sought product, bring the user the results, and present them in a consolidated, compact format that facilitates comparison shopping.  Many also provide access to an order form.   Some shopping bots are comprehensive in coverage (e.g., MySimon.com, NetMarket.com, Bizrate.com, Clickthebutton.com, Dealtime.com, and Planetretail.com) while others focus on a specific product range (e.g., BargainBot for books, Bargain Finder Agent for Music and CDs, Gift finder for gifts, Price Scan for computer software and hardware, and insuremarket.com for insurance needs).  Most shopping bots claim to eliminate the searching necessary to identify the right product at the best price. 

     Once a search has been performed, the user needs to assign relevance rankings to the items retrieved.  The intelligent agent uses this information in the next iteration to modify its search operation.  For example, Travelocity.com finds the best deals for your traveling needs, while BargainFinder (www.BargainFinder.com) does so for your music needs.  Some Web retailers have designed their sites to either refuse the robot admission or to confuse the robot, as they wish to avoid a “cheap” image.

     (f) Search engines for specific sites.  E-tailers with large catalogs of products, such as Amazon.com, need a search engine to support users in navigating their way through the cyber-store. 

     Some search engines (e.g., Yahoo! and Lycos) serve as portals (entry/starting points) for Internet exploration, and they typically offer e-mail, news, search, and games.  America Online is a well-organized Web portal from which a Web surfer can link/jump to many locations highlighted by AOL.  Commercial Websitess pay portals to be featured in this way.  Such portals can be vertical—serving one industry or market (such as an ethnic market) or horizontal—serving multiple industries and markets. 

     Which search engine should you use?  The best search engines cover about 30 percent of the estimated pages out there. Drs. Steve Lawrence and C. Lee Giles of the NEC Research Institute of Princeton, NJ found northern Light, Snap, and Alta Vista as reported in the July 8, 1999 issue of the scientific journal Nature to index more of the Web (16%) than other popular search engines.  In terms of freshness (the time it takes a search engine to index changes made to pages) they found Alta Vista, Excite, and Hotbot to be the most up-to-date search engines.  Also popular are Yahoo!, GoTo.com, MSN, and Lycos. However, by 2002, Google had become so dominant that to “Google” something or someone—that is, to search the Web for that thing or person—had become considered a verb. 

     It is a good idea to use multiple search tools since there is surprisingly little overlap between the major search engines.  You will get different results with different search engines because retailer and manufacturers pay to be linked to search engines.  Meta-engines are efficient since they search multiple search engines simultaneously. 

     There are also specialty search engines that limit searches to specific topic areas such as law, business, and medicine as well as Web community sites such as www.theglobe.com.  These niche or “vertical” search engines only search within a narrow band of interest.  They are sometimes called vortals (a contraction of “vertical” and “portal”), and they might also offer expert reviewers and provide the “best” recommended sites in a given area.

     (g) ) Blog search engines such as Technorati, Blogdigger, BlogPulse, blog.iderocket.com, or Google Blog Search.  If you’re looking for very current information (such as today’s buzz), these are useful. 

     Searching is on the basis of full text and/or product categories.

The procedure for searching is:

  1. Get to the search engine, either by clicking on the “search” button in the browser or by typing the search engine’s URL (e.g., www.yahoo.com) in the search window.
  2. Enter your search request (keyword[s]) in the search engine’s search window.  Although different search engines use slightly different rules for controlling the parameters of your search, there are certain rules of Boolean logic/search language (remember the “new math” diagrams that illustrated the inclusivity or exclusivity of sets with AND, OR, and AND NOT?) that can generally be used <Operators>:

·         Use a plus sign (+) in front of a word to indicate that it must appear in each Web page of the query results (e.g., hotels+San+Fransisco).  Without the plus sign the word isn’t considered mandatory.

·         Use a minus sign (-) in front of any word that shouldn’t be included in any Web page in the search results (e.g., Cars-Ford)

·         Enclose a multiword phrase in quotation marks to tell the search engine to list only sites that contain those words in that exact order (e.g., “Seattle Preparatory School”).

·         AND works like the plus sign, indicating that all the words joined by AND must appear in the document (e.g., to find documents that contain the words wizard, oz, and movie, enter: wizard AND Oz AND movie).

·         OR joins words, at least one of which must appear in the document (e.g., to find documents that contain the word dog or puppy, type: dog OR puppy).  OR is often used to broaden a search (e.g.: (travel OR tourism OR cruises OR cruising OR vacations OR vacationing OR vacationers) AND (Caribbean OR Bermuda OR Jamaica OR Virgin Islands))

·         AND NOT or OR NOT is similar to the minus sign and is used to exclude words in the document, words that are likely to match your search requirements but have nothing to do with the search topic. (Thus, to find documents that contain the word pets but not the word dogs, enter: pets AND NOT dogs; e.g.: Dolphins NOT NFL).

·         NEAR should be used when words should be near each other (e.g., Moon NEAR River).

·         () Parentheses are used to group portions of Boolean queries together (e.g., to find documents containing the word fruit and either banana or apple type “fruit AND (banana OR apple”).

·         Title search allows you to search for titles of web documents (e.g., “title:Mars” or “t:Mars” will retrieve all documents with the word “Mars”). 

·         * Wild card (e.g., eco* will return economy, economics, ecology, etc.)

+ Some Hints for Searching:

·         Be specific.  Tying in “DVD Players Reviews” will give you a better set of results than the more general “DVD Players.”

·         Add quotation marks.  Keep exact phrases and proper names intact by enclosing them in quotation marks.  Use words most likely to be used (e.g., try “John F. Kennedy” and “born” rather than “John F. Kennedy” and “birth date”).

Use the “advanced Search” feature tool.  For example, you can scour only certain kinds of documents by excluding pages with certain words. 

3.       After typing the search request, click on the search button.  (The search engine then searches the entire Web or a subset of the Web to locate sites meeting your search parameters.)

  1. In a period of several seconds to up to a minute or more, the search engine returns a list of sites containing the information that meets your criteria.  Look at the top or bottom of the current page to see how many sites are listed.  If there are too many, you can either just look at those at the top of the list (click on a link to go to a document) since those should be the best matches, or start over and narrow your search (e.g., by typing in additional terms, using AND, or using NOT).

     Websitess are also discovered via word-of-mouth communication as well as checking favorite Websitess on others’ home pages.

 

The World Wide Web as an Advertising Medium

Overview

       Of all the options available to Internet advertisers, the WWW holds the greatest potential.  It is like no other communication medium because of its ability to combine several of the unique qualities of the other media (i.e., print, sound, and visual) into one, while allowing for two-way communication between advertiser and customer.  It allows for detailed and full-color graphics, audio transmission, delivery of in-depth messages, 24-hour availability, and two-way information exchanges between the advertiser and the customer.  A Web page can provide corporate and product information as well as allow the consumer to make a purchase.  The primary difference between the Web and the other three cyberadvertising media is that while they are push media and might therefore be resented by consumers, the Web is a pull medium—the consumer actively searches for the advertiser’s home page.1  Consumer benefits for browsing using the Internet include: convenience, saving time, saving money, breadth of information, and comparison shopping.  Te key to online marketing is customization and one-to-one selling.  Amazon.com, for example, knows each of its customer’s preferences, so it can offer books to suit each individual’s interests. 

Web audiences

     As in offline marketing online marketing has two broad target markets: consumers and businesses.  The consumer market (business-to consumer or “b-to-c”) is upscale and leads an active lifestyle; they use the Internet largely to save time and for convenience.  Although the Internet consumer market grew rapidly in the late 90s, growth has slowed in the early twenty-first century due to the “digital divide” between those who can and can’t afford PCs and online access, the existence of some adults who feel no need for the Internet, and ex-users who feel the Internet doesn’t meet their needs.  The trend in target marketing on is toward niche marketing.  Consumers are more likely to spend time on a site if there is information of specific interest them.  For instance, profitable pet supplier Waggin’ Tails specializes in high-margin products, unlike the defunct Pets.com, which tried to do it all. 

 

         The business-to-business (“b-to-b”) market (not the concern of this book) is much larger, with over 90% of all businesses having a Websites.  Businesses use the Web to acquire product information efficiently without having to make a phone call or wait for a salesperson to visit.  A marketer can reach thousands of prospects it wouldn’t have otherwise been able to reach, and at a significantly reduced cost.

     Web objectives.  Unlike other media, the Internet is a hybrid of media.  In part it is a communications medium, allowing companies to create awareness, provide information, form and change attitudes, and create a brand or organizational image, all communications objectives.  But the Internet is also a direct response medium, allowing users to both purchase and sell products via e-commerce—the direct selling of goods and services on the Internet (or, from the consumer’s perspective, we guess you could call it, uh, Windows shopping).  Thus, firms can have both communications objectives and sales objectives, as well as miscellaneous objectives.   

     Communications objectives include:

·         Create awareness.  Web advertising can create awareness about both the company and its products and brands.

·         Disseminate information.  Early use of the Internet for commercial purposes was to provide in-depth information about a company’s products and services.  In b-to-b marketing, this is virtually mandatory as most buyers now expect a firm to have a site providing detailed information about its offerings.  In the government sector contracts are often put out to bid on the Internet.  Many consumer marketers use the Internet to communicate more product information, with ads often referring consumers to the Websites.  A surrogate for amount of information gathered is amount of time users spending on a site—stickiness.

·         Create and change attitudes toward the organization and its offerings via persuasion and preselling. 

·         Create an image.  Many Websitess are designed to reflect the image a company wishes to portray.  >  However, banner ads tend to be poor at this. 

      Websitess can also have behavioral or sales objectives.  E-commerce involves the direct selling of goods and services on the Web.  Behavioral objectives include:

·         Gaining or increasing Websites registrations. 

·         Stimulate trial through electronic coupons.  These can either be printed from a Web page or requested online for mail delivery. 

·         Stimulate site visits/drive traffic to the Websites (e.g., via banner ads which pop up when you visit another site), which can be measured by click-through rates (click through rates are typically .25% or less).

     Miscellaneous objectives include:

·         Improving customer service.  Companies can improve customer service and build customer relationships by providing information, answering inquiries, and offering an opportunity to register complaints.

·         Increasing distribution. Websitess can be used as an exclusive Websites or in addition to bricks-and-mortar sites (traditional retail stores) for product distribution.  Most successful are businesses that operate in both the physical and virtual worlds, allowing consumers to toggle back and forth between the two.  Also, such fence-straddlers are able to leverage their existing assets of stores, catalogs, powerful brands, and the like across both realms.  Any company can spend $25,000 to put up a Websites, but then the must spend $150 million building distribution outlets and customer service centers, plus launching a marketing campaign; traditional marketers already have they in place. And., consumers are increasingly ordering big-ticket items like digital cameras, computers, and appliances online, and then picking them up in nearby stores like Sears and Circuit City.  This helps consumers get the goods faster and be able to inspect them before taking them.  For instance, Merck-Medco clobbered Net upstarts Drugstore.com and PlanetRx.  Websitess can also be used to distribute coupons and samples.  Through affiliations—relationships among Websitess in which companies cross-promote one another’s products and each is credited for sales that accrue to its own site—companies have increased their exposure base by linking to other sites for purposes of creating awareness as well as distributing their product.  For example, some sites sell products for other companies without ever taking physical possession of the goods.

·         Creating customer experiences.  This is the total experience the customer has with the brand on the Internet—including how customers enter and navigate what type of visuals and movement they get, how they get a response and in what form or format, and simply how the online brand experience “feels.” 

·         Developing a relationship with the customer (relationship marketing) by encouraging frequent interaction with the site.

·         Build a database by having consumers register with the site, i.e., fill out an electronic form requesting additional information (e.g., name, e-mail address, mailing address or zip code, and basic demographic information).

·         Gather research information.  Companies can learn more about their target markets – demographics as well as buying behavior, a practice known as profiling and yielding profile information.  However, a privacy issue has arisen regarding the quantity and nature of information collected about consumers.  Information is sometimes collected with the consumer’s agreement, as when they fill out surveys or registration forms in return for receiving sales promotions like samples and electronic coupons.  However, data is often also collected involuntarily without their awareness due to the use of. cookies (not the Mrs. Fields type!)— tiny files (information tags) placed on (downloaded to) users’ hard drives by servers on Websitess they visit (usually without their knowing it) so that a Websites can identify a particular person—or at least a particular browser (preferences, login information, and so forth)—the next time it visits a particular site.  Cookies collect clickstream information (literally the sequence of pages and what on those pages buyers click on and where when online) about your interaction, including where you visit, how long you stay there, how frequently you return to certain pages, where on a site you click, and even your electronic address.  They allow Websitess to give users different information depending on whether they are first time vs. repeat visitors.  Cookies came about because Websitess needed to recognize return visitors to offer them customized information and service.  However, cookies raise privacy concerns for visitors, who are typically unaware of the cookies (unless they’ve programmed their computer to warn them when a cookie is about to be placed).  But, cookies don’t personally identify Web users.  Names, addresses, lists of favorite Websitess, and other backend records of consumer activity aren’t accessible via cookies; rather, cookies build marketer-specific anonymous profiles of visitor activities.  Simply, users are tracked anonymously with encrypted identification numbers. 

         Also used to gather surfers’ personal data is spyware—programs secretly downloaded without users’ consent  and buried in a user’s computer to monitor their online activities, resulting in delivery of pop-up ads.  Another is known as adware—software hat Internet advertising firms download to PCs with user permission that tracks users’ Web surfing and feeds the data to an advertiser.  The adware then hits surfers with pop-up ads based on their interests. 

 

Types of Web Advertising

     
     The Internet is a broad net, ranging from websites to search advertising.  There are several formats/channels for delivering interactive Web ads, the most common being corporate Web/home pages, search engine advertising, and e-mail advertising.  We’ll also briefly overview several other kinds of Internet advertising.

     1. Banner advertising. Banner ads (display banners), the most basic and common form of Web advertising, are paid placements on other complementary corporate, entertainment, or media Websitess that have high traffic.  They resemble billboards, spread across the top or bottom of a Web page, and contain editorial material.  They usually include a link (or hot link) to the advertiser’s own home page.  Thus, the ad must not only catch attention but also entice visitors to click on the ad to jump to the advertiser’s home page (therefore more and more of them are animated).  Through hyperlinking to the advertiser’s home page, the customer can learn more about the particular product. 

     Many high-traffic sites that provide information content (e.g., Yahoo! And HotWired) contain banner ads, allowing the advertiser to get a high level of exposure.  Other sites have lower exposure but are more targeted (e.g., a running shoe brand could advertise on a site devoted to information on running).  Banner ads sometimes contain electronic commerce capability, i.e., products can be ordered directly from the banner ad.  A variation on the banner ad is the skyscraper—a tall, skinny banner ad

     Banners have evolved.  In 1999, they were like print ads, containing simple graphics and text.  By 2001 banner ads could alternate images, by 2003 some contained animation, and by 2006 rich-media technology let viewers select from a rotating wheel of embedded videos and use pull-down menus without leaving the Web page. 

   A cousin of the banner ad is the button ad (a.k.a. tiles)—an ad smaller than a traditional banner ad.  Buttons resemble icons--side of a Web page, and they contain only a corporate or brand name or a logo.  Also, ads larger than traditional banner ads are gaining popularity among online advertisers. 

    Attention-getting elements of banner ads include copy, color, and graphics, in that order.  Some tips for creating effective banner ads include:

·              Include action words, e.g., “press,” “enter,” and “click here.”

·              Use animation—it can increase response rates by 30 to 40%.

·              Use bright, contrasting colors rather than nondescript dull colors such as beige and gray.  Best are yellow, orange, blue, and green, rather than reds and blacks. 

·              Relevance of the banner ad to the Websites on which it appears is important.  Both its content and design/style should relate to the Websites.

·              Interactivity is important—users expect this.  With lower click-through rates today (less than .1% today, vs. .25 to .5 percent in 2000 and 10 to 40 percent when banner ads were first introduced), banners must display their interactivity even before they are clicked on. 

·              Size is important—as in print ads, larger sizes are generally more effective at attracting attention and interest, but they also cost more.

·              Updating the banner ad constantly is important since the life of a banner ad is very short.

·             Yellow, orange, blue, and green are the best bright colors.

·               Animation gives you more value since it allows increased space by rotating copy.

·               Download times for 28.8 modems shouldn’t be too slow.  This requires judicious use of enhancements such as graphics, animation, and sound.

·               Location of the ad in the lower corner of the Web page next to the scroll bar increases the number of ad clicks (the number of times users click on an ad banner) and click-throughs (or click rate)— the percentage of ad views that result in an ad click; how often a viewer responds to a banner ad by clicking on it to go to the advertiser’s home page.

·               Incentive banners increase click-throughs.

·               Company and/or brand name should be included to generate awareness.

     Unfortunately, the percentage of consumers who click on banner ads has rapidly declined because consumers realize that they take them away from the Websites they are visiting, as their novelty has worn off, and as their static nature has made them boring compared with newer technologies.  Today less than .25 to .5 % of consumers click on them, vs. 10 to 40 percent when banner ads were first introduced.  Also, banner ads are considered to be intrusive and annoying by many consumers.  Plus, they increase page load times due to their complex graphics and animation.  In fact, there are now ad blocker programs (e.g., AdWipe) that allow consumers to load pages sans banner ads.  Consequently, some advertisers are ditching banner ads totally, instead using old-fashioned TV spots to drive traffic directly to their websitess, rather than through intermediaries like portals.

The ideal is to make Internet advertising have the visual impact of TV and the interactivity available on the Internet.  The trend is to make ads more involving and interactive.  Thus, increasingly advertisers are using enhanced banner ads—banner ads with complete information already in them, as opposed to having to click for additional information.  Some also include rich media—enhanced video, audio, and animation in online advertising—based on software technologies, like Macromedia’s Flash animation, which is now built into browsers so plug-ins aren’t needed, or on Shockwave, Java, Acrobat, and Enliven —audio plug-ins, media streaming, or some other enhancement.   Generally, these ads with full motion, animation, and sound perform better than traditional banner ads. However, their complex graphics and animation increase Web page load times 

      Also increasingly popular are keyword-activated banner ads or smart banners that pop up when users input keywords in a major search engine.  For instance, auto-by-tel.com could buy a smart banner that is prompted only when users type the keyword “auto.”  Cost ranges from a few hundred dollars a month to about $500,000  per day (about the same as a :30 on a very popular TV show) on leading portals like &Yahoo and MSN, depending on the number of visitors and how targeted they are.  Thee spots are so hot that the portals, like the TV networks, sell them long in advance,   Interactive banner ads, which came into being in the mid-2000’s, spring to life when the Web surfer crosses them with the cursor (no click necessary). 

2. Corporate home pages/Websitess.  Another common form of Internet advertising is to establish a corporate home page and a number of linked subsequent pages providing further information that serve as a Websites.  Here, a marketer makes available detailed information about the firm and its products.  These range from being reminiscent of product brochures to full-fledged showrooms.  Domain names (URLs) should be intuitive or easily guessed (e.g., WWW.companyname.com) and descriptive to increase chances that visitors who don’t know the domain name can find your site.  Domain names should also be unique and memorable.  Firms such as idNames and GoDaddy Software, Inc. assist companies in identifying, registering, and managing domain names.   Others, like 1 & 1, offer hosting that includes maintenance of domain names, website connectivity, e-mail accounts, and some limited applications for as little as about $10 per month. 

      The home page (welcome page, start page) represents the consumer’s “first look’ at the websites.  Therefore, it plays a pivotal role in gaining and maintaining consumers’ attention, either driving them further into the We site or away from it.  Home page “essentials include information clearly identifying the company and its brands, what is inside the Websites, and how to contact the company.  The home page can be one to several pages long, but short is usually better, with hyperlinks offering routes to additional information.  Including much more than these “essentials,” such as complex graphics, might make the home page too complex and slow to download.  The home page can be thought of as an alternative “storefront”—a location where people can come to find out more about the company and its products.

      First, a Websites must be designed or built.  The nature of these sites varies—some companies treat them as a brochure to promote their products; others try to create a “cool” information and entertainment environment that people will often visit; and still others treat it as an online catalog store or virtual storefront where merchandise can be purchased (e-commerce).

     Websitess can be hard sell (designed with the objective being to stimulate an immediate purchase) or soft sell (the objective is to indirectly promote the product via informational or lifestyle presentations).  If the hard-sell approach is used, it is important to make the information useful.  For example, Proctor & Gamble places tips about treating stains and using Tide detergent on its site.  But Tide also has a Candystand game site where users can soil a shirt and then wash it. 

     As we’ve seen, the Web is a multimedia environment, combining attributes of different media: sight (print), sound (radio, TV, film), and motion (TV and film).  In addition, it offers two-way interactivity—the user can interact with the ad, requesting information and offering opinions. 

     Integration of Web advertising with off-line advertising media is important (integrated marketing communication).  However, just as, say, radio advertising can’t simply be a transfer of the audio from a TV commercial, neither can Internet advertising simply be a transfer of offline advertising.  When designing an Internet ad, one must consider the medium’s creative strengths and weaknesses, just as one does with any other medium.  The Internet’s greatest strength is the detailed information that can be provided.  Thus, in an IMC campaign, media such as TV and print can be used to develop a brand image, and the URL can direct people to the Websites to provide detailed information and to help close the sale. (Recall that the two major Internet advertising objectives are communicating information and making a sale.)

      Good Websitess are characterized by: 1. substantive information, 2. entertainment value, 3. ease of use, and 4. interactivity.  Regarding substance, the number one thing people seek online is—information!  Content (news, data, and entertainment) is king.  Thus, most Websitess contain rich product descriptions, mimicking brochures and posters.  Information should be of interest to readers.  Information on products as well as sales/promotional offers should be constantly updated to keep people coming back for more and to keep them abreast of new products and services, sales promotions, and other developments.  The bottom of the home Web page should state when the page was last designed or updated (like “freshness dating” on perishables such as milk and beer).  Especially the opening screen should resemble a poster.  Hyperlinks should be used to allow customers who want more detailed information to “drill down” to get it.  This way, users who don’t want too much information don’t feel overwhelmed.  Give a brief overview of your product, and then allow users to click into specific areas they wish to learn more about. It is also useful to post a FAQ (frequently asked questions) page. 

     Since Internet shoppers can’t ask clerks for help, more Websitess now also offer advice.  Godiva.com features a gift selector that helps shoppers budget, and Discovery.com (the Discovery Channel) launched a telescope-buying guide. 

     When providing information, keep in mind that the Web is all about KISS—“keeping it short and sweet” (or, “Keeping it simple, stupid,” as they say in the army).  Studies show that Web surfers don’t read---they scan, so your site should be scanable.  Studies consistently reveal that content and headlines grab the visitor before photographs and other design elements.  Graphic design is the second-most important skill needed to develop a Websites.  The top-ranking skill?  Writing!  The shorter, quicker, and more to the point sentences and paragraphs are, the better.  Bulleted items should be used where there is lots of information to present.  Also, use lots of one or two-sentence paragraphs, listed items, and clear and consistent identifiers marking important statements and the starting and ending of sections.  Registration forms should also KISS. 

    Key visual elements include eye-catching graphics but not so complex that they require long download times (one way to achieve this is to provide small visuals and make them clickable to larger versions).  Text should be simple dark (ideally black) type (one or at most two typefaces) on a contrasting background.  Type should be large enough to read on small screens.  Lists should be short (the “rule of ten” says, like The Ten Commandments and David Letterman’s lists, they should be ten or less.)

     While hard sell sites might attract surfers seeking product information, they are unlikely to attract and capture the interest of more casual browsers.  To get most people to visit to your site requires a second important characteristic—an entertaining soft sell approach by using goodies such as games and downloadable ringtones and podcasts.  For example, the Cartoon Network site allows kids to direct the action in an interactive cartoon.  Videos and online video games are growing in popularity.  A company called YaYa develops software for marketers it calls “avergaming,” which integrates advertisements and product placements, with the marketer inserting its product or logo throughout a game.  For example, Honda’s game lets players choose a Honda and then race around city streets that are plastered with Honda logos.  The “Chrysler Get Up and Go” campaign gave Websites visitors a test to determine their travel personality and uncover which of the automaker’s vehicles suited their profile.  The Suave Naturals personality test guides a woman to reveal her “fragrance personality.”  Vanilla Coke’s Mystery game involves finding “the boss” by asking animated suspects sitting in a nightclub and uncovering clues.  The Vanilla Coke brand appears throughout the game.  Each week there is a different puzzle, and if you solve that week’s puzzle you win a prize, such as a Vanilla Coke T-shirt or CD.  At subservientchicken.com, visitors could command the “chicken”—a man in a tacky chicken suit in an equally tacky living room—to do any stunt they wished. (It was an offbeat take on BK’s longtime message: “Have it your way.”)   Advertisers can gather consumer data such as e-mail addresses and zip codes as a condition of playing. 

     A sticky site is one that is able to attract repeat visitors and have them stay for extended time periods.  Rational branding emphasizes the need for a Websites to provide unique information and entertainment to keep visitors returning for long visits.  For example, Proctor and Gamble’s beinggirl.com promotes the Always and Tampax brands through this teen advice site.  The “ask Iris” section answers questions like, “Are you more likely to be eaten by a shark f you’re on your period? 

     A third crucial websites characteristic for both hard information seekers and casual browsers is ease of use, achieved through multiple navigational tools—the more navigational tools available, the more likely a visitor will like the site.  Navigational tools help guide visitors around the site; examples include hyperlinks, home and section icons (“click here” blocks), a site-specific search engine, a site map which is accessible from every page, a navigation bar (left side of screen preferred), gift finders specific to gender or age, and a site index.  These should follow the KISS rule.  To help KISS, Websitess should be designed to present a minimal amount of information on the top pages, with more information readily available to those interested in more details by clicking on links.  The fewer clicks needed the better, because people get lost or bored.  Ease of use is also achieved through having graphics and information that can be easily and quickly downloaded.  The trend is toward streaming media—which launches moving images, video, or audio without the need for downloading.  Americans are increasingly using faster broadband connections (such as DSL and cable modems) that will allow richer and higher quality sound and audio to come into their homes.  Such streaming ads command much higher click-through rates than traditional banner ads.  Also, the checkout procedure should be straightforward—two-thirds of shoppers abandon their shopping carts, many because they get lost here, due to factors such as failures with account setups, a checkout process that is too long, checkout requiring too much personal information, poor site navigation, long download times, and confusing error messages, and unexpected shipping costs added on (therefore shipping information and costs should be included as early as possible in the checkout process.  Back buttons should take shoppers back to the product page to recheck an item if they wish, and the number of pages and clicks needed to go through to complete a transaction should be at a minimum.  Some e-tailers email consumers to remind them of searches they’ve made to help stimulate a purchase, while other sites remind hem of earlier searches when they log back in.