Group 7: Role of Internet in Advertising and Marketing 07529278g Chau Wai Kei, Ricky 08543443g Chan Kam Pan, Benjamin 08569890g Yip Wing San, David 08544974g Kong Wai Tai 08511550g Shi Ting 08508220g Zhu Wei, Rebecca Part 1: Problems derived from the Article Problem 1 • High Cost - traditional media Ads 30 sec advertisement $89,220 – 470,830 • Can only choose one time-slot • More time-slot, Cost will gradually increase Problem 1: Solution (with Information system) • Cost saving by using internet advertising ☆ Pay as you click strategy e.g. Google, Yahoo • Availability of 7*24 Part 1: Problems derived from the Article Problem 2 • Only target in one location.(Geographical limitation) • For Global Business, need to spend money on advertisement in different region • Cost will increase definitely Problem 2: Solution (with Information System) • Internet is a common shared public resource • People from different countries can see the Ads. • Enterprise can flexibly reuse their advertisement materials in different regions by little modification. Part 2: Discussion on questions and answers Q1. Why are companies like Chrysler now looking more favorably at the Internet as a great medium for their advertising dollars? What has happened to change their view? Internet is the ultimate marketing machine that makes advertising become valuable channel for customers. 1/3 of U.S. households have high-speed Internet connections. The Americans spend 30 percent of their time in internet surfing Chrysler requires strong branding while brand advertising inherently about leaving an impression on a consumer Marketers understand customer preferences on product because online behavior can be counted, tracked and analyzed in ways that mass media cannot. Part 2: Discussion on questions and answers Q2. How do Google’s online ad revenue sources and strategy differ from Yahoo’s? Which online ad strategy is superior for attracting advertising from small companies? For attracting advertising from large companies? Defend your position. Google: The main revenue model for Google is the online advertising. Advertising tools: AdWords and AdSense. automatically adjust the text advertising according to user’s search words or the content of the web site. Yahoo: Revenue model: search advertising, online classified and a host of commission-generating business. Portal website Posting online advertising banner VS Different: Google is Text-based Link Advertisement while Yahoo is online banner which full of emotional attachment to its brand Large companies like Pepsi, P&G, Chrysler Yahoo. Reason: Similar to traditional TV advertisement, can create and foster an emotional attachment to its brand. Small companies, want to take online advertising as a brand building tool Yahoo is the Best Choice (Morgan Stanley Internet analyst Mary Meeker: “If you’re new to online advertising, yahoo is your first call”) Normal small size companies use Google AdWords (Price is low , pay as you click) Part 2: Discussion on questions and answers Q3. If you were director of marketing communications at Chrysler, how would you distribute Chrysler’s advertising dollars among online and traditional TV and print media? Defend your position. Suggestion Advertising dollars among online, traditional TV and print = 5:3:2 Reason According to a survey, 63 % said that online advertising was a brand building tool “equal to or better than” advertising on TV or in print. Internet is causing a paradigm shift in advertising, the audiences changed from local to global helping company to enhance their advertising power. Rapid expansion of internet broadband, it allows more creative advertisement formats, Users tend to spend more time surfing Internet instead of watching TV or magazine. Part 2: Discussion on questions and answers Q4. Google and Microsoft’s MSN realize that they must move beyond search advertising revenue to block Yahoo’s attempt to dominate the move of big advertisers to online advertising. Use the Internet to discover how the three rivals are faring in the battle for online advertising and the reasons for any changes you find. Google AdSense allows website which is either personal or company’s to add a Google’s advertising module into the website and share the advertising revenue with Google. AdWords Text-based advertisement according to user’s searching result Provides more customization and interactive modules for its users to attract more people to use its service. E.g. iGoogle Microsoft Focusing on multimedia advertisement which includes video, dynamic pages and sound. Utilized its leading position in instant messaging market and integrates the advertisement publisher into the software package. Launched a SearchPerks reward program (Users can earn tickets while each search conducted per day, once they get enough ticket, they can use it as redemption of gift.) Yahoo The first one launched Web browser toolbar Mainly focus on providing content (Include news, financial service, entertainment ext) Use its own content to attract customer Different classification of advertisements provided to web surfer based on the browsing contents More likely to be a portal site than a search engine operator Seek for cooperation with Google Yahoo-Google advertising agreement Failed Part 2: Discussion on questions and answers Q5. Online advertising can be viewed as an entertainment experience, as a helpful source of clues to find what you and other customers want, or as a bothersome intrusion, into your online experience and right to privacy. Break into small groups with your classmates to discuss this issue. Attempt to formulate a joint position on these aspects of online advertising to present to the rest of the class. Brothering issue Annoying advertising content such as video, sound effect Irrelevant adverting links on the web page Tricky Pop-up Ads without user’s switch on/off control Our group position Online advertisement is useful Help users in finding their needs. Below 3 points must be changed Point 1 Avoid interruptive advertisement posted on website Point 2 Don’t force the customers to watch automatically pop-up ads or redirect to other advertisement page Point 3 Avoid using full screen or popup window when mouse/roll over a particular area of the webpage Provided solution Plain text Ads Spam Ads filter provided by SEOs Providing users with options to decide whether to view the Ads or not Q&A • Thanks for your attention!