Lecture #10:
Internet Marketing II

 

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Introduction

Marketing on the Internet is growing daily, with more firms adding websites and/or paying to advertise on other commercial sites. Furthermore, web programming is getting more sophisticated, thanks to Dynamic HTML, Java Script, PHP, and a host of other languages and applications. Web Marketers are now able to better track the visitors to their sites, as well as allow these users to "customize" their viewing so that only certain information is delivered.

The purpose of this lecture is to examine the different types of web Marketing and advertising, as well as to present tips for effective Marketing on the web. Examples of particularly effective websites are provided to illustrate these concepts.

Web Advertising Basics

There are four different methods of advertising on the WWW. They are:

  1. Private domain, which is a company's own dedicated website. The site is essentially a non-stop commercial for the firm.
  2. Sponsored Content Site, such as USA Today. The site features the content of the daily newspaper, but allows for advertising.
  3. Search Engines, such as Yahoo. Search engines allow for very customized advertising; in fact, the ads a viewer sees are often a function of the topic(s) for which they are searching. The advertiser is charged only for the number of times their ad appears on visitor monitors.
  4. Entry Portals, such as Netscape, which is the first thing that web visitors see after logging in (unless they change the default setting, of course). Netscape has sold much of its homepage to ABC News
Web analysts are finding that, in spite of the popularity (and prevalence) of dedicated corporate websites, advertising on the other three forms is proving to be the most effective. All things considered, a corporate site with 5000 "hits" per day is not nearly as effective as "piggybacking" on other sites that have much higher "hit" rates (some sites have over 1,000,000 visitors per month). This phenomenon is more easily understood when one realizes that companies would be much better off advertising on network television than try to start their own dedicated cable TV channel.
Cost of Advertising

Having a presence on the web can be very expensive. While a corporate website may only cost about $35 per month (plus $150 or so for the initial set-up and domain registration) to keep on the web, development and maintenance costs can run into many thousands of dollars, regardless if this is done internally or externally.

At other types of sites, advertising can be billed in either of three ways:

  1. Flat Fee, which may or may not come with traffic guarantees.
  2. CPM, which stands for cost per thousand. The average rate is $35 per 1000 views. Compared to TV ($6-14), magazines ($8-20), and newspapers ($18-20), web advertising is very expensive.
  3. Click-Through, which means that advertisers are charged by the "click." If a web visitor clicks on the ad (thereby spawning a separate page by the advertiser), then the advertiser is charged. Click-through can be expensive, averaging $0.25 per click.
All told, the most expensive sites average between $30,000 and $100,000 for a three-month business card size display ad. Much depends on the nature of the stite, and how "qualified" the viewers are for the advertiser.

Types of Ads

Aside from the dedicated corporate website, there are three types of advertisements on the web. They are:

  1. Banner ads, such as those on the various search engines. Banner ads are rectangular in shape, and are roughly about 460 X 68 pixels. They have become the most prevalent form of web advertising.
  2. Classified ads, like those at EPage. This site features over 250,000 paid classified ads, much like those in a newspaper.
  3. Display ads, like the larger ads now appearing sites, as well as the (anoying) pop-unders and pop-ups (can anyone say "X-10 camera?").
Effective Web Marketing

The state of the art in web Marketing has changed dramatically in just a few years. What was once considered cutting edge is now dull and unimaginative; what was once considered front-line Marketing is now at the back of the pack.

The reasons for these rapid changes are complex. One contributing factor is the rapid development of new programming languages, as well as sophisticated browsers, the "viewing" software for the WWW. Another factor is that there still is no paradigm for web Marketing; advertisers are essentially blazing a new trail in search of a paradigm. In the mean time, Marketers are quick to try new ideas, and abandon others. In due time, of course, a paradigm will emerge, but until then, accepted practice on the web is likely to change from one month to the next.

Listed below are twenty guidelines for effective web Marketing, given the current state of software, programming, and common practice:

  1. Keep It Simple. This is one of the most difficult objectives, for web programmers with any amount of pride feel inclined to showcase their talents in as many ways as possible. As it turns out, though, the trend is awat from flash and pizzazz, and toward a simpler, leaner web page. In fact, there are many commercial homepages that fit compactly into the 800 X 600 pixel monitor screen (this acconts of 54% of web viewers) with no navigation arrows whatsoever. From this simple homepage, visitors can link to various other layers, but the initial impression is one of simplicity. The consensus seems to be that too many bells and whistles detract from content and even the sponsoring company. This objective does not mean that web sites must be boring and drab; rather, it means to exercise restraint, and keep the focus on the company.
  2. Accommodate Multiple Browsers and Versions. With two dominant browsers, and several versions of each floating around, it's difficult to know what each user's online capabilities are. Thus, savvy web programmers write scripts that literally go into the user's computer to determine which browers and version is being used. This information is then used to determine which version of the website the user will be able to see. For example, someone using Netscape 2 will see a no-frills version of the site, while another visitor with Netscape 4 will see/hear the full-blown site with all of the bells and whistles. The programming to accomplish this objective is not difficult, and, in fact, the user will never even know anything is going on. This avoids the frustration users have when their browser cannot handle the latest programming fads, yet keeps others (i.e., those with the latest browsers) from having to view the no-frills version.
  3. Incorporate Java Scripts and Applets.The latest craze on the web is the use of Java scripts and applets. Scripts are essentially "event handlers," which are actually loaded before the main code for the web page. It handles one or more different "events," such as mouse movements over specific parts of the page, or selections made by the user. (The buttons to the left of this screen are controlled by a Java script. Run your mouse over them and watch how they change colors. Applets are little programs that run in the background, and can be used to carry a news or stock ticker, sports scores, weather information, etc. These scripts and applets can be subtle yet very effective on a page, and give the page a very professional look. They are not very difficult for experienced programmers to install; in fact, numerous after-market books contain scripts for many common functions that are free for the taking, and can be inserted nearly verbatim into the HTML document.
  4. Stay Current in HTML Programming. HTML is a dynamic language. DHTML has been around for several years, and XHTML and XML will soon be changing the rules of the game. Change comes quickly in this field, and even just a few months of inactivity can allow competitors to leap ahead. HTML in general is a quirky language, often with multiple ways of accomplishing a given outcome. Furthermore, no one really knows the limits of HTML and what it can do. Thus, web programmers must be willing to experiment and try to stretch the language, as well as dissect and reverse-engineer other websites to search for new ideas. This is easily done by using the "reveal source code" command that is in the drop-down menu following a right-click on the screen or frame. The code magically appears, revealing the entire program driving that particular web page. Of course, one must realize that others will also be looking at your website for new ideas. Still, this is one of the best ways to keep up with the latest programming tricks.
  5. Use White Space Effectively. Just as in print advertising, white space can and should be used carefully. The current trend among web Marketers is to rely heavily upon basic white backgrounds, and to use it liberally throughout the website. The reason is simple: white is a classy background. While this does not rule out using other background colors (or even background images that range from subtle to garish), it does reinforce the overall trend to make simpler websites. Furthermore, nearly any color looks well against a white backdrop, allowing for good contrast and eye-catching appeal.
  6. Don't Overload Users With Kilobytes.There is one sure-fire way to repel visitors to your site: drag down their computers with kilobyte-heavy images and graphics. Text will seldom cause a system to choke, but a picture that "weighs" 150kb certainly will. Once photos get above 30kb they start taking progressively longer amounts of time to "load" into the system, forcing visitors to wait while the picture appears one line at a time. What's a visitor to do? Leave, of course.
  7. Don't Sell Too Hard. Protocol for the web is starting to dictate that the degree of selling be softened. It should be recalled that visitors to a website do so of their own volition, much like visiting a retail store. Thus, selling efforts, while certainly being acceptable, should be more subtle, and less up front. This means treating the website less like an ad insert in the Sunday paper, and more like a corporate resource that also provides for retail transactions.
  8. Provide "Value-Added" Service to Users. Closely related to the tip above, web Marketers need to give visitors something they cannot get elsewhere. Thus, visitors should be given product tips, installation advice, company history, etc.,...anything that may entertain or educate customers, as well as divert attention from selling efforts.
  9. Utilize Available User Information. Many web users do not realize that whenever they visit a website, they leave behind "fingerprints." Web programmers know how to reach into a user's computer and grab his "cookie" file, which contains information about the user's web habits and other characteristics. While it is not possible to capture actual e-mail addresses, it is possible to recognize visitors by their "cookies." Once the visitor has been enticed to leave other information on their own accord (e-mail address, demographic data, etc.), the web Marketer can build huge files on their web visitors which can be used to market far more directly than might otherwise be done. ABC News loads advertising preferences for returning visitors, meaning that the banner ads one user sees may be very different from what another user sees.
  10. Provide Online Shopping Where Appropriate. While the selling effort must be more subtle, it does not preclude the practice at all. Even industry leaders can get in on the action. For example, weather.com has a very attractive website; buried deep within it is a page with shirts and caps featuring their logo. Users almost have to look for the Merchandise page, but it's there, and once users find it, the selling begins in earnest.
  11. Make Navigating Easy and Logical. This objective is critical if visitors are to remain at the site for any length of time. Furthermore, poor navigation may causes visitors to never return. This means that visitors must be able to get around the website with little or no problem, and never feel like they are getting lost. While browers always include a "Back" button, visitors should never be forced to use it in order to find their way out of a site.

  12. Each supporting web page at the site must have buttons from which the user can select: Back, Top, Bottom, Next, etc. A website is not like a book whose pages are sequential; users can "bounce" around at will. But, visitors will "bounce" right out of the page if they feel confused or lost. Simple navigation aids must be provided, even if it means loading a common menu onto each page at the site.
  13. Provide Interactivity and Customization Whenever Possible. This objective dovetails nicely with collecting the user's "cookie" file, because it allows the Marketer to now possess more complete information about the visitor. Weather.com allows visitors to set up their own "Personal Homepage" which will call up the person's local weather whenever they load this site on their browser. Furthermore, it allows for more specific advertising banners to be directed at these visitors, perhaps based on geography, age, gender, income, etc., data for which are collected when the visitor stes up his or her "Personal Homepage." MSNBC also allows visitors to set up news category preferences, which allows MSNBC to look very good while it is collecting massive amounts of information about its visitors.
  14. Look Good, or Don't Do It. Whereas it was considered cutting edge to just have a website, today it means nothing if the website does not look professioanl. This means having a clean, crisp look to the site, as well as using professionally-prepared graphics and photographs. It doesn't take rocket scientists to be able to program basic HTML documents, but it does take some effort to make good-looking HTML.
  15. Frequent Updates are Vital. Marketers would be well-advised to follow this dictum. A web page that is not updated regularly is dead. On the other hand, a regularly updated site will continue to attract visitors infinitely. For example, on 11 September 2001, major news providers were sending updates every 15 minutes or so to their sites. This allowed visitors to tune in frequently to be able to get current information. For other businesses, though, updating may need to be only weekly, or even monthly. For example, during October the Budweiser site had Halloween-oriented graphics.
  16. Select an Easy-to-Remember Domain Name. This is no different from having an easy-to-remember phone number, but, surprisingly, it took Marketers awehile to figure out how it should be done. Initially, web advertisers chose domain names (e.g., "yourcompany.com") that relied mostly on the company's complete name, or perhaps their initials. But what part of the company is best remembered by consumers? The products, of course. Thus, many firms are now naming their sites after their brands. For example, instead of calling anheuserbusch.com, it is budweiser.com.

  17. This advice may be difficult to act upon, though, because some savvy operators have already gone out and registered domain names for many of the more popular products, and are holding them for "ransom" (i.e., they'll sell them if the price is right). Thus, Marketers need to register their domain names quickly, perhaps even months or years before the site is ever used. Trademark law on the web is still uncertain and unproven, leaving things wide open for people to register domain names for which they hold no real right to use in other contexts.
    This caveat aside, Marketers should strive to use a domain name that will be the easiest to remember, and most logical for visitors to figure out. In the absence of an actual web address, visitors will often start typing names in the address line, hoping to find what they are looking for.
    A final advisory governs the use of punctuation. Periods are now allowed in domain names, but hyphens are. Hyphens may cause confusion, though. Who would've thought it was wal-mart.com instead of walmart.com? A missing hyphen from the user can keep your website out of reach, yet oh-so-close. Wal-Mart had to wait several years to be able to get their un-hyphenated name.
  18. Use Graphics and Photos Effectively.Nothing helps break up boring text better than colorful, tasteful graphics and photos. While the size of these files must be monitored, small images can make a site visually attractive. Whenever possible, provide "thumbail" photos for visitors to see, and give them the option of clicking for a full-size photo if they desire.

  19. Graphics and photos can be used throughout the document, ranging from simple "buttons" used as icons for navigating, to complicated "image maps" that are huge hyperlinks to various other pages. Image maps are partitioned into pixel blocks by the programmer so that any mouse click over a particular portion of the photo or graphic will allow to user to move to other pages.
  20. Keep What You Need, and Get Rid of the Rest. This objective builds on the "keep it simple" objective presented above. If material becomes dated, get rid of it, or archive it. If something is no longer relevant, delete it. Keep only that which is necessary, and resist the temptation to let the website get "fat."
  21. Give People a Reason to Come Back. There needs to be a compelling reason for people to return. My daily local weather report is a good reason for me to bookmark The Weather Channel. But if they never changed information or forecasts, there would be no reason to come back. Likewise, viewers would not come back every Thursday night for Seinfeld if the same episode were shown each time. There must be something fresh, something new, for visitors to want to come back.
  22. Use Audio and Other Special Effects Where Appropriate. Savvy programmers have begun embedding compressed audio on their sites to further enhance the presentation. This audio is always an option, though, because it requires software and/or browser "plug-ins" in order to access it. For example, the Real Audio player allows users to hear selected audio clips on their computers. Back when the  Chicago Bulls were still good, web users could tune in to the website to listen to clips from championship basketball games.

  23. The addition of audio (and even video now) can greatly enhance a website, but must be used correctly and with restraint. Too much emphasis can distract visitors from the intent of the website.
  24. Provide Secure Transactions, and Provide a "Shopping Cart."It is not enough to just allow customers to shop online; the necessary next step is to provide secure, encrypted transactions so that customers will feel safe entering credit card numbers and other personal information. Furthermore, a "shopping cart" program makes shopping much easier. Customers need only to click on an object, and specify quantity, size, style, etc., and the item is added to an electronic "shopping cart." When the customer is ready to "check out," the total is tallied, shipping charges and taxes added, and the transaction processed.

  25. Shopping carts were one expensive, but have since come down in price. Shopcart.com offers a basic cart for $35 per month; other web hosts go lower than this.
Given the rapid rate of change on the Internet, these guidelines could easily be outmoded in a short time. Astute web Marketers must stay on top of their game by constantly watching what others are doing, and by staying current in programming and technology. The rate of change is faster here than in any other aspect of business; to "blink" only allows others to move forward.

But while the speed of development on the Internet may be intimidating, it must be remembered that the Net presents the single best avenue for growth in this decade, and holds the best prospects for the future.

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