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Paper Abstract: Describes current trends in online advertising and assesses their overall effectiveness. Development of first banner ads and recent developments such as floating ads, superstitials, interstitials, centered rectangular ads, pop-under ads, skyscrapers, super-sized banners, surround sessions and text ads. Effect of broadband adoption. Discusses key to successful Web advertising. Paper Introduction: Online Advertising Creative Approaches and Their Effectiveness Introduction Internet historians trace the origins of the online banner ad toOctober when AT T placed such an ad on HotWire Banner ads evolvedrapidly using visually rich graphics and text to permit Internet surfersto purchase items from inside the banner itself For some time thesebanner ads enticed consumers to purchase products but according toCalishan consumer interest began to decline Less than percentof all consumers continued to point and click on banner ads leadingadvertisers to reconsider Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. Less is more: ASCII might trump rich media in the world of online advertising. Way beyond the banner. Yahoo's core advertising isexpected to bring in $346 million, a 6 percent increase over 2 2. Available at www.atnewyork.com/news/article.php/1563441.Kirkpatrick, D. This makes it possible for Internet ads tobe positioned in a manner designed to reach the largest possible market inthe most effective manner. At the bottom end are old-fashioned banner ads that can be created by anybody with a bit of HTMLknowledge; at the top there are sophisticated TV-style branding ads favoredby big name companies such as Coca-Cola and Ford. Online advertising: The big slow sell; it goes one to one with your customer.. Nevertheless, Smith (2 2) believes that online advertising willcontinue to face a long, hard, sell job because consumers and Internetsurfers are increasingly resistant to the intrusive ads that clutter mostInternet sites. |85 |][pi|][pi| || | |c] |c][p| || | | |ic] | ||Pro: Ideal for news outlets, where readers don't ||want to leave website. This evolution of CRM is seen astransforming an isolated moment of interest on the part of a potentialcustomer into outright loyalty by stringing relevant, interactivepromotions together. (2 3). Venes (2 3) cautions that classicgames such as Pac Man should not simply be reworked with a brand logo.Creating new games, offering incentives for playing, and developing adirect relationship with customers requires a certain degree of creativity. 65).Overture, which invented the concept, made it work by syndicating its adsto popular Websites such as Yahoo! Further, The Economist (Prime Clicking time, 2 3), stated: Search firms pioneered the new form of advertising, variously known as "search-related" or "pay-per-performance". While the Internet is conceptualized as a mass medium, the truth is thatpersonalization is an important goal for online marketers. Space: You probably ignore most online advertising these days, and that's a problem for marketers, who are being forced to come up with innovative ways to capture your clicks. (2 3). "Journalism" costs only 3 cents (p. Sponsored content areas on Web sites are therefore increasinglysignificant in the Internet advertising arena. Gaffney (2 2, p. * Games, especially with prizes, can drive traffic, increase stickiness and build loyalty. Even more important in the view of Green and Gogoi (2 3), is thefact that the people traditional advertisers want and need to reach arespending more leisure time online. 1-3) provided the following description of the newonline ad formats, along with cost data, an assessment of ad effectiveness(Eff), and the so-called "annoyance factor (AF)" inherent in all onlineads. Paid search ads are simply seen by advertisers as more cost-effectivethan other forms of Internet ads and as targeting individuals who arealready (because they are using a keyword search system on a server)interested in a particular product or service. By 1997 the banner ad response rate had dropped to a paltry 2 per cent. Gotham (2 2)suggests that successful Web advertising campaigns go beyond banner spaceuse to deliver sponsorship programs that capture users' imaginations andmind-share. Online promos more sophisticated, successful. The report identified five distinctdayparts on the Internet: early morning (Monday through Friday, 6AM to8AM), daytime (Monday through Friday, 8AM to 5PM), evening (Monday throughFriday, 5PM to 11PM), late night (Monday through Friday, 11PM to 6AM), andweekends (all day Saturday and Sunday). Vendors such as EyeBlaster, Unicast, and Pointroll can all brag that rich media works in raising awareness and direct response rates when they are used in Web marketing campaigns. Less than .5 percentof all consumers continued to point and click on banner ads, leadingadvertisers to reconsider their strategies for attracting consumersinterest. Overture handles the paid-search piece -- which gave Yahoo $12 million in 2 2 revenues. As Google andOverture/GoTo.com compete in this category, The critical battle between the two firms will probably be over "content-targeted" advertising--which links ads not to selected keywords, but to the content of web pages. ReferencesCalishan, T. (2 2). Further analysis showed that certain demographics are easierto reach on particular types of sites during specific dayparts. In other words, as marketing and advertising researchers examineInternet use and behavior patterns, they gain access to detailed knowledgeregarding who is online, when they are online, and which sites they visitwhile online (Schwartz, 2 3). Perhaps most significantly, games can be an important part of a smallcompany's Web site strategy. In developing ads for the Internet, advertising professionals arebeing assisted by a new body of data indicating when ads should be run foroptimum impact. And you thought the Web ad market was dead. Buying into online advertising: Internet advertising gains favor among marketers, thanks to better targeting and new technologies. And today advertisers are getting an average clickthrough rate of just .3 per cent from their banners (Robinson, 2 2, p. EST. , June. It isestimated that the costs of creating one and getting it placed on Web sitesare 25 percent higher than with standard ads. This means that as more and more consumers log onto the Internet,advertising dollars will follow. As Taylor (2 2) has pointedout, there are relatively few major companies that have not penetrated theInternet to some degree or another. 2) stated: As traditional marketers return to the Net, they're discovering that the landscape has changed dramatically since the go-go '9 s. The first level is a simple sweepstakes whichattracts some initial interest, particularly if the prize is expensive orexciting. These ads have theadvantage of directly targeting Internet users who have already expressedan interest in a particular area or subject (Elgin, 2 3). (2 2). Although media andproduction charges are higher for rich media advertising now, thedifferences are decreasing. (2 3). (2 2). DiscussionOverview of the Sector After the first banner ad appeared in 1994, Robinson (2 2) statedthat banners began to appear everywhere on the Web - and users wereclicking on them and spending well: Before long, banners were flashing and jiggling around everywhere and, most importantly, people were clicking on them. As the technology becomes more standardized,claims Robinson (2 2), the prices will inevitably fall. Even then, however, Internet advertising was beginning to makeits presence felt vis-à-vis television advertising. (2 2). Banner ads evolvedrapidly, using visually rich graphics and text to permit Internet surfersto purchase items from inside the banner itself. Available at www.business2.com /articles/mag/print/ ,1643,4 43 , .html.Gotham, R. Measurement tools are better, giving more insight into what works . The future of online advertising. Available at www.internetnews.com/IAR/article.php /_222 331.Prime clicking time: Online advertising. In the hands of geeks, Web advertising actually works. It should be recalled that it took big companies years torealize that they could benefit significantly by selling products on Ebay.This shift in online advertising has been driven at the grassroots level.Kirkpatrick (2 3) says that the big corporations are only now beginning touse paid search ads because it represents a new way of reaching out to anelusive but nevertheless well-identified target market. By the end of 2 2, the average amount anadvertiser was willing to pay when a searcher clicked on an ad rose to $.35from $.23 a year earlier (Kirkpatrick, 2 3). (2 2). Daytiming, as the practice of targeting ads tomarket segments by the time of day is called, uses the Internet in a moresophisticated way than was possible just a few years ago. Available at www.business2.com/articles/web/print/ ,165 ,12341, . |5 |][pi|][pi| || | |c] |c][p| || | | |ic] | ||Pro: 2 % higher clickthrough than banners. which is the clear leaderin branded advertising and paid search. 26).Though pioneered in the U.S., paid search ads are now making their presencefelt in Europe as well. Good Web advertisers use oscillationto rotate different ad sizes and locations with respect to the contentwithin the same kind of pages that users frequent in order to ensure thatthey are not tuned out. ||Con: Web users complain that ads take over the ||screen. As advertising revenue decreased, banner ads became larger, louder,and more intrusive. Ishag, the 29-year-old founder and CEO of London-based Espotting Media, which helped introduce paid placements in Europe three years ago (p. Pardon me, but would you care to view this ad? | |] |] ||Pros: Much, much cheaper than ever before, and ||clickthrough rates have rebounded. Elgin (2 3) maintains that placing ads nearsearch results offers the simple appeal found in the Yellow Pages withdifferent economics. Gotham (2 2, p. Internet users, acting in what Calishan (2 2)characterizes as self-defensive behavior, began using ad-blockers and otherprograms to avoid the banner ads. As this report has demonstrated, Internet advertising, marketing andpromotional strategies are becoming increasingly sophisticated astechnology itself evolves and as professionals in the field become moreadept at developing innovative ways of using the medium. That's still pretty low. Next in usage levels are eveningsand weekend. (2 2). EST. ||Check it out: Americangreetings.com ||Superbanner Twice as wide as a |$6-$3|[pic|[pic| ||standard banner. (2 3). This is done by using software to boil text down to a handful of keywords and to serve up related ads next to it. The question of whether or not rich media ads are effective was alsoaddressed by Robinson (2 2), who noted: Those clickthrough rates really do seem to suggest that rich format ads are the way forward. The Internet offers a relativelyinexpensive and ultimately cost effective way to reach consumers in boththe business and household sectors with personalized, appealing, andinteractive advertising content. EContent, 25(6), 42-44.Spiers, D. Having gone public and new structured as GoTo.com, Overture is afast-growing, profitable Internet start-up (Prime Clicking time, 2 3). is expected to generate $267 million. Rich media is seen bymany analysts as offering marketers a unique opportunity to attractconsumers. Secondly,dynamic ad placement goes hand in hand with larger, compelling ad sizesthat must be refreshed periodically. ||Check it out: Unicast.com ||Large rectangle Oversize ad placed |$1 -$|[pic|[pic| ||in the center of the page. A second-tier player, it may be acquired. In response, some companies developednew strategies to provide ad sites and to attract consumer interest.Instead of becoming larger and louder, ads became smaller and quieter.Other advertisers, recognizing a need for less expensive alternatives tothe banner, have developed commercial applications to help Web sites serveup text-based advertising (Calishan, 2 2). ||Check it out: Unitedvirtualities.com ||Interstitial or Superstitial |$3 -$|[pic|[pic| ||Full-page ad, often with video or |45 |][pi|][pi| ||animation. Fortune, 147(7), 388.Lockhorn, J. Business Week, 3838, 26.Robinson, G. The best sign that advertisers like this new way of reachingcustomers online is the fact that they are paying more for it. Online Advertising: Creative Approaches and Their Effectiveness Introduction Internet historians trace the origins of the online banner ad toOctober 1994, when AT&T placed such an ad on HotWire. Promotions require theproper placement and a premium incentive. | |c][p|c] | || | |ic][| | || | |pic]| | ||Pro: Raise brand awareness 11%, nearly three times ||more than banner ads do. (2 3). Analyst: Online advertising outlook bright. |8 |][pi|] | || | |c][p| | || | |ic][| | || | |pic]| | || | |[pic| | || | |] | | ||Pro: Average clickthrough is 2% on Google. The new advertising methods and formats discussed herein representwhat can be thought of as a first wave in advertising efforts online. 2) provided the following visual depiction of onlineadvertising spending: Figure 1: Online Ad Spending, US [pic]These data demonstrate that after declining in 2 1, online ad spendingincreased in 2 2 and is estimated to increase again in 2 3. Taylor (2 2)believes that the key to successful Internet advertising will bepersonalization, or the degree to which advertisers and marketers acquirethe ability to target their efforts to specific market segments or sectors. The banner ad that was developed in 1994 has given birth to newadvertising formats that range from pop-ups and pop-unders to interstitialor superstitial full page ads that contain video or animation. Despite the fact that in the earlydays, pundits believed that Internet surfers would scoff at mixedadvertising with search results, it is now clear that this is simply notthe case. 54).Robinson (2 2) believes that an interesting by-product of a move towardrich media is a split in the advertising market. While onlineadvertising accounts for just 4 percent of overall US ad revenues, thesteady increase in spending by marketing giants is helping Internetpublishers flourish. Venes(2 3) analyzed this innovative strategy and stated that online ad gamesare composed of more than simple Flash virals or the more costlyextravaganza of Xbox Live. This is in direct contrast to the situation confronting onlineadvertisers in 2 1 when Spiers (2 1) stated that a Web advertising crashtook place. The marketers were happy, as they were getting clickthrough rates (the number of times visitors click on the banner ad) of around 1 per cent. Gaffney (2 2, p. ||Check it out: LATimes.com ||Pop-up Ad opens in a window on top |$1 -$|[pic|[pic| ||of the webpage. Morrissey (2 3) argued that thanks to a number of favorable factors,the online advertising industry is poised for much stronger growth thanexpected in 2 3. Some Internetmarketers have identified a new relationship strategy known as incentiverelationship marketing (IRM). The use of games to attract consumers is seen by Venes (2 3) asparticularly appealing to companies that target younger consumers.Building games around a brand's corporate sponsorship can be an effectiveroute for companies that are not associated with youth or gamingdemographics. (2 3). Buy how will we accept these new browser intruders? The leader in the paid search market is Overture Services whichauctions s pots in search results to advertisers and has an estimatedrevenue of $1 billion and $39 million in net income. To be the first sponsored link in America when somebody searches for "The Economist", say, an advertiser must bid around $2.5 per click. Companies such as VerizonCommunications, Master Card, Siemens, and Pitney Bowes have used this newstrategy effectively (Slavens, 2 3). 56). , June 14. At an average of $.35 per click paidsearch undercuts the cost of Yellow Page ads. Using e-mailfor example, is an excellent strategy for reaching specific customers inboth the B2B and B2C sectors. "Latent clicks" or "view-throughs" are defined as actions taken by users other than clicking. April 15. The online advertising comeback. Robinson (2 2) also commented on rich media: In an attempt to compensate for falling ad revenues, the ads have got bigger and a lot louder. (2 3). In discussing the future of online advertising, Gotham (2 2)asserted that there are several rules of thumb for effective onlineadvertising. Paidsearch on Yahoo! ||Con: Average clickthrough rate: just .75%. Arace for dominance in this promising market is already under way betweenGoogle and Overture. Users' increased bandwidth speeds also make rich media more commonplace these days. 1 ) stated: Some Web publishers have aggregated users into affinity or life stage groups and are merchandising their sites to appeal to specific audience segments that are most desirable to advertisers. ||Check it out: Yahoo.com ||Surround session Users are served |$9 -$|[pic|[pic| ||ads from one advertiser during their|115 |][pi|][pi| ||entire visit to a site. BothOverture/GoTo.com sell paid search ads in an auction style, offeringkeywords to the highest bidder. The Economist, 367(8326), 65.Reinhardt, A. Venes (2 3, p. Business 2. Mediaweek, 12(4 ), IQ1-IQ4.Thomas, O. Banners began to appear on just about every Web page on the Internet and surfers began to develop 'banner blindness'. Hourly datain the report were segmented by gender, age, household income and location(home or work), and site category. Knowledgeable Web publishers are givingadvertisers share of voice by restricting the number of ads per page and byallowing the ads more space to deliver their message. Technology can also lend a hand in targeting users by day-part or time so the Web can mimic and supplement broadcast television attributes in serving a marketers' campaign when the target has the highest responsiveness to the message. Now windows pop up, drop down and come screaming across our screens in disturbing and sometimes bizarre ways. Paid search ads that appear as text-only ads during a keyword searchon a search engine are clearly gaining in appeal. It buys traditional search technology from Google, but Yahoo's deal to buy Google rival Inktomi could make Yahoo and Google part company. | |][pi|][pi| || | |c] |c][p| || | | |ic][| || | | |pic]| ||Pro: Low cost; intrusive. , June. (2 2). Online publishers are offering creative ways to advertise . Google's name draws consumers to its search site, Google.com, where it doesn't have to share revenues with portals. Business Week, 3831, 75.Hyman, G. According to Schwartz (2 3), this Nielsen/NetRatings study confirmedthat daytime is the largest daypart, measured in terms of both totalaudience and total minutes spent online. Internet companies are nowfighting over the paid search market. REVENUE/NET INCOME: $1 million/$7.5 million (p. This situation invariably led a number of advertisers to move brieflyaway from the Internet and reposition their advertising spending. (2 3). Generally speaking, the more sophisticated a promotion is, the betterthe results. 65).Making the ads relevant to surfers through content modification will be oneof the key determinants in this competition. Prices are down 6 percent and ads in booming search sites are cheap . Technologies that offer this kind of data help justify the use of Web advertising to skeptics who believe that if a user doesn't click, the ad is wasted.In other words, what is needed is improved marketing efforts that segmentmarkets in much the same manner as other media do. Search-related ads are not yet closely followed, but it is estimated that theindustry sold more than $1.5 billion in search term-related ads in 2 2.Overture/GoTo.com, which places ads from 8 , advertisers on the sites ofpartners like MSN and Yahoo!, anticipates that this sector of the industrywill be worth $8 billion by 2 7. ||Con: Average clickthrough rate is 1% to 1.5%. ||Check it out: Any commercial website ||Floating ad or Shoshkele Animated |$25-$|[pic|[pic| ||object, like a car that races across|35 |][pi|][pi| ||your screen. A recent analysis of paid search strategies in The Economist (Primeclicking time, 2 3) reported that This kind of advertising is expected togenerate $2 billion this year, almost a quarter of all online advertisingsales. The Internet Advertising Bureau ... |$5-$7|[pic|[pic| || |5 |][pi|][pi| || | |c] |c] | ||Pro: In tests, raise brand awareness 7%. First, this analyst says that bigger is better and thatcompelling ad units and dynamic ad placements are a must. AF|Banner Standard rectangular ad still|$6-$6|[pic|[pic||found atop most webpages. Today, online advertising has moved far beyond the limitations of theoriginal banner ads. Ad prices, which fell 6 percent in2 1 and 2 2, also appeal to potential online advertisers. However,as early as 2 2, Maddox (2 2) reported that B2B and B2C advertisers wereagain looking at interactive marketing as an alternative to television orprint ads. With banner ads, they pay whether anyone responds or not. Each of these ads have both positive andnegative aspects; many Internet users find these formats overly intrusiveand have turned to blocking programs to "shut off" the influx of ads thatappear when they are online. Traditional advertisers such as McDonalds are movingonline and some of the biggest US companies (e.g., General Motors and EsteeLauder) now make up 11 of the 25 Internet advertisers. Recapping the factors that are making the Internet more attractive tomajor advertisers, Green and Gogoi (2 3) identified the following fourissues as critical: . B to B, 88(5), 13+.Smith, S. Available at www.econtentmag.com/?ArticleID=856.Elgin, B. Journal of Business Strategy, 23(3), 9-11.Green, H., & Gogoi, P. and MSN and sharing the resultingrevenues. Elgin (2 3) identified other major players in paid search asfollows: GOOGLE The search-technology leader's paid-listings business isn't half as big as Overture's, but it's catching up fast. Floating ads, superstitials, interstitials, centeredrectangular ads, pop-under ads, skyscrapers or vertical advertisements,super-sized banners, surround sessions, and texts ads appearing alongsidesearch results are among the most recent developments in the field (Thomas,2 2). Wide acceptance of these technologies is a must. The sudden interest observed by Green and Gogoi (2 3) is at least inpart due to the fact that online publishers are now catering to traditionaladvertisers, offering zipper technology, dedicated advertising teams, andbetter tools for measuring results. Summary and Conclusion Online advertising has become an evermore important focus formarketing professionals and product managers. The Internet isstill very much in its infancy and will undoubtedly continue to evolve overtime. Ads don't just wait patiently to be clicked on anymore; now they slither down pages, tilt screens sideways, pop up in windows, and blare full-screen music videos.... Floatingads are also popular as are skyscrapers, super banners, surround sessions,and text-only ads (Thomas, 2 2). At the same time, while paid search ads and their streamlinedapproach to marketing and advertising are growing in appeal and popularity,other Internet ad professionals are using interactive games, sweepstakes,and promotional strategies to reach their own target audiences. However, the Internet accounted for only about 12 percent ofan individual's daily media consumption and as clickthrough numbersplummeted, ad buyers began to turn away from the Internet in favor oftraditional advertising venues. Business Week, 3825, 86.Gaffney, J. Green and Gogoi (2 3) argued that a turnaround in online marketingis in full swing. Kirkpatrick (2 3) claims that this is areasonable forecast when one considers that by itself US Yellow Pages salestotaled over $14 billion in 2 2. In addition to innovative online ad formats, Internet advertisers arebenefiting from the strategy of mixing ads in with search results on majorInternet search engines. Searchadvertising is inexpensive at $.35 per click and this is very much part ofits appeal. The game's afoot. One of the few success stories in 2 1 was the stunning riseand acceptance by publishers and users alike of novel ad formats.Oversized and Flash-enabled rectangles, large skyscrapers, pop-overs, pop-unders, and various types of superimposed animation ads that began toproliferate in early 2 1 appealed to advertisers because they looked, inmany ways like familiar print or televisions spots. Getting personal: Marketers try to create one-on-one messages that are welcome, even anticipated. Long-time Internet surfers spend 1 hours a week watching television or 36 percent less than someone who is notonline. Forexample, during the early morning, 51 percent of the users of news andinformation sites are males aged 25 to 54, although that demographic onlyrepresents only 41 percent of total Web use during that part of the day. The Web portal gets most of its search technology from partners Google and Overture. ||Check it out: Google.com | Hyman (2 3) points out that as the use of pop-up and pop-underadvertising has proliferated across the Web, many Web surfers and thebrowsers that serve them have begun to object to this form of advertising.Pop-up blocking software is selling quite well and some browsers areproviding it free of charge while others have decided not to sell pop-upads in order to protect users from the inconvenience they represent.Nevertheless, says Hyman (2 3), there were 11.3 billion pop-up ads onlinein the first half of fiscal year 2 3 and advertisers are pleased with theresults that these ads render. More significantly, these ads are not targetedjust to the youth market or representative of youth-oriented brands. They only pay for referrals, at a cost of about 37 cents, when somebody clicks on the link. (2 3). The percentage of standard banner and button placements has fallen from 92 percent in 2 1 to just 84 percent in 2 2, according to AdRelevance. In addition, Morrissey (2 3) believes that broadband adoption ismaking the Internet more readily available and more central to consumers'lives. Research described bySpiers (2 1) indicated that almost 6 percent of consumers now watchtelevision and surf the Web simultaneously. For publishers, they help keep CPM (cost perminute) rates reasonable. The plunge set some of the biggest Internet companies runningfor cover and, says Gaffney (2 2), even the giant Yahoo site saw its adrevenues drop from $1 billion in 2 to $538 million at the end of 2 1. At an average of$.35 per click, paid search is much less expensive than the $1-per leadaverage for Yellow Pages listing. Another important trend identified by Gotham (2 2) is state-of-the-art targeting. This makes it possible to build interest and gaininformation about a prospective customer with an initial effort, which isfollowed up with increasing incentives to purchase a product or service. ||Check it out: News.com ||Pop-under Ad opens in a window under|$2-$5|[pic|[pic| ||the webpage. As Lockhorn (2 2) noted, many of the newer online advehicles are, if anything, more rather than less intrusive than previousbanner formats and clickthroughs. 35) identified the following characteristics ofonline ad games as important: * An increasingly diverse range of companies are adding interactive games to their sites. Not only do banner ads cost just a fraction of what they did then, but online publishers have unveiled nearly a dozen new attention-grabbing formats. Building a better pop-up ad. Level three customizes a game for marketers, usingtheir products, services, or brand as an integral part of the game itself.This gives the promotion direct and immediate context (Slavens, 2 3). ``This is what Internet advertising was meant to be,'' says Daniel C. New Media Age, April 24, 32-35. Simultaneously, spending online for advertising hasfluctuated. EContent, May. authorized seven new types of online ad in February last year, all of which go way beyond the banner. ||Con: 72.4% of people close the ads without reading ||them. ||Con: Highly intrusive. The purpose of this study is to examine the kinds ofadvertising that are now available on the Internet and the relativeeffectiveness of those advertising strategies. As a result of the growth in broadband,and a gradually improving economy, Morrissey (2 3) anticipates faster thanexpected online advertising recovery both in terms of current onlineadvertisers increasing ad budgets and new traditional advertisers becomingmore willing to test and allocate dollars to alternative media channels. How much they pay per click, at least in the basic version of the ad programs, depends on how high firms want their listings to rank and how popular is their associated search term (or "keyword"). Keyword search advertising, according to Kirkpatrick (2 3), isgrowing even as Web ads in general declined by 12 percent in 2 2. It is expected that revenues will increase more than the5 percent forecast of early 2 3, led by Yahoo! That makes paid-listing ads among the most cost-effective direct-marketing techniques. * Simply bolting a game onto your site is a common mistake; it must be tailored so that it's relevant to your brand. They seem tobe more "serious" than the pop-up and pop-over ads, and because they arelinked to a surfer's own search activities, perhaps more relevant as well. Available at www.business2.com/articles/mag/print / ,1643,4 552, .html.Venes, R. it slices, it dices, it helps the kids with their homework, and opens a bottle of beer. Reinhardt (2 3) also commented on this phenomenon: Advertisers love the concept because it offers great economics. Failingdotcoms which accounted for 7 percent of online ad spending in 2 ,abysmal clickthrough rates for banner ads, and an advertising recessionacross all media made 2 1 a difficult time for the online advertisingindustry. A final strategy that is significantly improving online advertisingwas discussed by Slavens (2 3) who suggested that both B2B and B2Cadvertisers are beginning to leverage customer information and improvetheir customer relationship management (CRM) activities. Somebody searching for ``fish & chips'' on Yahoo, probably isn't looking for caviar. Figure 2: Ad AnalysisAD Format Cost Eff. (2 3). |75 |][pi|][pi| || | |c][p|c][p| || | |ic] |ic][| || | | |pic]| || | | |[pic| || | | |] | ||Pro: Highly intrusive. Business 2. This suggests, says Smith (2 2), that these newad formats are capable of delivering better branding and direct responseresults for advertisers. (2 3). Combining a compelling rich media advertisement with dynamic placement and effective audience targeting will deliver performance and profits for both advertisers and publishers.The key to successful Web advertising, regardless of the specific formatthat is employed, is to always keep the users in mind. The placementof ads near Internet search results has dramatically increased on Google,MSN, and Yahoo! As a general rule of thumb, the newer and more intrusive the creative execution, the higher the clickthrough rate....Banner and button ads get clickthrough rates of around .1 .3 per cent, while a particularly successful rich media enriched ad campaign can regularly drive clickthrough rates as high as 14 percent (p. Business 2. They include rich media banners built using Flash and lava, rich media skyscraper ads that take up more space than conventional banners by running down the right-hand side of a page, pop-ups that automatically launch in a new browser window when a Web page is loaded, and transitional ads that appear in the main browser window between two Web pages (p. Just as with search-based advertising, the idea is that surfers are more likely to click on ads relevant to a web page's content than on a scattershot banner ad (Prime clicking Time, 2 3, p. Mainstream advertisers have been somewhat slow to take advantage ofthe new medium. These are the basic strategies that have been developed in recentyears to improve outcomes of Internet advertising tactics. June 11. Part of the impetus behind this shift was the recognition thatInternet ad companies and servers have become increasingly more accurate intargeting online ads to appropriate market segments or niches (Maddox,2 2). Advertisers pay only if people actually click on such "sponsored" links. As people spend more time online, marketers are following them.Ad Formats In discussing innovative strategies online, Smith (2 2) commentedthat Web advertising at many content sites seems to attract media buyersbest when it mimics the immersiveness and intrusiveness of offlineadvertising. A number of different research studies suggest that onlineadvertising, having fallen off in the late 199 s and early 2 s, is nowenjoying a renaissance (Smith, 2 2). The second level is an instant win or similar game that directsprospects to a special Web site where marketing messages accompany thechance to win prizes. EPrize offers three levels of promotion that ratchet up theincentive and interaction. | |c][p|c][p| || | |ic][|ic][| || | |pic]|pic]| ||Pro: Can be amusing and attention-getting. Vertical banners, called skyscrapers, and large rectangles, which run in the middle of webpages, now account for 8 percent of online ads; the remaining 8 percent is composed of pop-ups, full-screen videos, and other new types.New strategies for reaching online customers have proliferated as consumersbecome more resistant to now "traditional" banner ads and less willing torespond to those ads. An embrace of rich media is a key and critical step in thisprocess. And Internet users were also happy -- after all, banner ads were novelties way back in the mid-nineties, and we still believed that by clicking on one we'd be whisked off to a new and exciting site. In most cases, these are separate lists along the right side of the screen, with the ads labeled as such. For example, if a user sees an ad for Avis and decides to go to avis.com to rent a car a few days later, that action can be credited to user's exposure to the ad. Search engines are picking up steam: Mixing ads in with search results paying off. * The most successful games are integrated with other above- and below- the-line promotional and marketing activity. Gaffney (2 2) commented that in 2 1, online advertising fell nearly11 percent from $8.2 billion in 2 to $7.3 billion in 2 1. In the very near future, the industry will go beyond just targeting ads to users, and become more effective at learning what the user does after seeing an ad. 11) contends that state-of-the art richmedia is a must: Browser technology goes well beyond simple text and supports the use of rich media that can combine graphics, audio, video, and animation. Internet Magazine, September-October, 54-58.Schwartz, M. The familiar banner still tops most webpages, but newer, flashier formats are gaining ground. ||Check it out: Hollywood.com ||Skyscraper Vertical banner. But then it all started to go wrong. The paid-listing providers split the take with the search engines. Those who have Internet access spend 11.1 hours each week onlineup from 9.4 per week hours in 2 . Another bonus: Customers segment themselves via the words they enter. This particular strategy, in theview of Slavens (2 3) is likely to be most successful in the B2B arena.However, it also has some appeal in the B2C sector. (2 2). A few thorns in the rosy future of online advertising. Available at www.clickz.com/tech /ad_tech/print.php/1 8671.Maddox, K. EST. ||Con: They work only with the latest Web browsers. | |c][p|c][p| || | |ic][|ic][| || | |pic]|pic]| ||Pros: Unavoidable; can accommodate movie trailers ||and TV spots. Of that group, 71 percent arebelieved to pay more attention to their computer screens than theirtelevisions. Schwartz (2 3) stated that Nielsen/NetRatings, a researchcompany, recently released a profile of Internet usage data. ||Con: No graphics. For example, Centrum Vitamins utilized its pharmaceuticalcompany's association with golfer Lee Westwood in a putting game online.In short order, the game achieved 5 , plays and over 2 , users. One group, EPrize, has been successful in building Internet-basedpromotion platforms that turn "spikes and tails" or the cycle of a typicalone-time promotion where interest spikes shortly after the promotion buttails off later into long-term relationships. (2 1). Thomas (2 2, pp. It is felt that these costswill fall as the format becomes more popular. It will be argued, asMaddox (2 2) has maintained, that Internet advertising is an important advenue and that there are few companies in either the business-to-consumers(B2C) or the business-to-business) (B2B) sectors which can afford not toadvertise on the Internet. 54).In relatively short order (less than a full decade), advertisersbecame disenchanted with banner ads (as did consumers. Another trend is the use of rich media, which mixes many differentelements into a single ad format (Calishan, 2 2). The days of seeing several ads blinking competitively on aWeb page have mostly ended. 88).These data clearly demonstrate that paid search ads are profitable and thatthey are also increasingly popular. ||Con: .9%? This is because they give people immediate access towhat they are already looking for. ||Con: Costly. Targeting by dayparts online. REVENUE/NET INCOME: $1.2 billion/$182 million ASK JEEVES This search site had trouble selling banner ads, but turned a profit after Google began offering its paid listings on the Ask.com site and gave it a split of the revenue. Further, Gotham (2 2, p. Renewed interest in this medium andincreased willingness to spend - and spend in larger amounts than before -seems to be driven by innovative packaging as well as the proliferation ofad designers and servers. Third, Gotham (2 2) argues that less is more and clutter isunacceptable. Withmore and more individuals and households logging onto the Internet, it isquite likely that the strategies discussed herein will soon be eclipsedand/or supplanted by new methods and protocols. * However addictive the game play, high-value prizes provide a compelling incentive to play and forward the game. Currently, due in large measure to new online ad formats, businessesin both the B2C and B2B sectors are spending more than in the pat two yearson this ad medium. Thus, incentive-based games and quizzes can be a highly interactiveway of delivering a brand message. For some time, thesebanner ads enticed consumers to purchase products but, according toCalishan (2 2), consumer interest began to decline. ||Con: On small screens, readers can't see ads. Online ads take off - again: Mainstream marketers are hiking their Internet ad spending. That registration-derived user data can also be used to manage the frequency with which users are sewed an advertiser's message and in what format. Some analysts predict that this will rise to $7 billion by 2 7. Internet Advertising Report. Robinson (2 2) does point out that sophisticated rich media ads aremore expensive to create and cost more to place on websites. html.Taylor, C.P. B to B, 88(3), 13.Slavens, R. REVENUE/NET INCOME: $375 million/$15 million YAHOO! ||Check it out: NYTimes.com ||Text ad No-frills, text-only ad that|$2 -$|[pic|[pic| ||appears alongside search results. Many collect registration data because it is a powerful means for targeting users by age, geography and gender. Paid search is expected to comprise some 33 percent ofonline ad revenue in 2 3, up from 7 percent in 2 1. Reinhardt (2 3) suggested that these relativelyunadorned links appeal to serious Internet users because they are immediateand are not overloaded with excess graphic or audio features. In terms of spend relative to competitors,smaller companies that use this strategy gain more return for theiradvertising dollar. The idea is to use search terms as a proxy for a surfer's consumption interests--and dish up text-based commercial listings related to the search terms, along with the search results. These are auctioned off, with the top spots going to the highest bidders. B to B, 87, 16+.Morrissey, B. Skyscrapers aloneincreased 1,835 percent. Smith (2 2) reported on research conducted by Jupiter Media Metricsthat compared the popularity of ad sizes in 2 1 versus 2 2 that revealedwhile banner impressions increased 74 percent, large format squares,rectangles, and skyscrapers increased 542 percent. If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.

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