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									                       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
 •   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
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
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.


   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.


   Revenue model: search advertising, online classified and a host of
 commission-generating business.

   Portal website    Posting online advertising banner

  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.

   Advertising dollars among online, traditional TV and print = 5:3:2

   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
 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.

   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.

  Focusing on multimedia advertisement
which includes video, dynamic pages and

  Utilized its leading position in instant
messaging market and integrates the
advertisement publisher into the software

  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.)

  The first one launched Web browser

   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
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
• Thanks for your attention!

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