Digital marketing for students Online Advertising

Customizing Promotions in Online Stores

2009-12-12T05:52:00.000-08:00

ABSTRACT

The main objective of this paper is to provide a decision-support system of micro-level customized promotions, primarily for use in online stores. Our proposed approach utilizes the one-on-one and interactive nature of the Internet shopping environment and provides recommendations on when to promote how much to whom. We address the issue by first constructing a joint purchase incidence-brand choice-purchase quantity model that incorporates how variety-seeking/inertia tendency differs among households and change over time for the same household. Based on the model, we develop an optimization procedure to derive the optimal amount of price discount for each household on each shopping trip. We demonstrate that the proposed customization method could greatly improve the effectiveness of current promotion practices, and discuss the implications for retailers and consumer packaged goods companies in the age of Internet technology.

About authors
Jie Zhang and Lakshman Krishnamurthi (2004)

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http://www.jstor.org/stable/30036689?cookieSet=1

Modeling the Click stream: Implications for Web-Based Advertising Efforts

2009-12-12T05:50:00.000-08:00

ABSTRACT

In this paper, we develop an analytical approach to modeling consumer response to banner ad exposures at a sponsored content Web site that reveals significant heterogeneity in (unobservable) click proneness across consumers. The effect of repeated exposures to banner ads is negative and nonlinear, and the differential effect of each successive ad exposure is initially negative, though nonlinear, and levels off at higher levels of passive ad exposures. Further, significant correlations between session and consumer click proneness and banner exposure sensitivity suggest gains from repeated banner exposures when consumers are less click prone. For a particular number of sessions, more clicks are generated from consumers who revisit over a longer period of time, than for those with the same number of sessions in a relatively shorter timeframe. We also find that consumers are equally likely to click on banner ads placed early or late in navigation path and that exposures have a positive cumulative effect in inducing click-through in future sessions. Our results have implications for online advertising response measurement and dynamic ad placement, and may help guide advertising media placement decisions.

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Patrali Chatterjee, Donna L. Hoffman, Thomas P. Novak (2003)

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http://www.bus.umich.edu/FacultyResearch/ResearchCenters/centers/Yaffe/downloads/Complete_List_of_Working_Papers/clickstr.pdf

A Comparison of Online and Offline Consumer Brand Loyalty

2009-12-12T05:48:00.000-08:00

ABSTRACT

In this study we compare consumer brand loyalty in online and traditional shopping envi- ronments for over 100 brands in 19 grocery product categories. The online purchase data come from a large traditional grocery retailer that also operates an online store for its prod- ucts. The offline data corresponds to the exact same brands and categories bought in tradi- tional stores by a panel of homes operated by ACNielsen for purchases made in the same city and over the same time period. We compare the observed loyalty with a baseline model, a new segmented Dirichlet model, which has latent classes for brand choice and provides a very accurate model for purchase behavior. The results show that observed brand loyalty for high market share brands bought online is significantly greater than expected, with the reverse result for small share brands. In contrast, in the traditional shopping environment, the difference between observed and predicted brand loyalty is not related to brand share.

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Peter J. Danaher, Isaac W. Wilson, Robert A. Davis (2003)

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http://portal.acm.org/citation.cfm?id=971527

The Digitization of Word of Mouth: Promise and Challenges of Online Feedback Mechanisms

2009-12-12T05:46:00.000-08:00

ABSTRACT

Online feedback mechanisms harness the bidirectional communication capabilities of the Internet to engineer large-scale, word-of-mouth networks. Best known so far as a tech- nology for building trust and fostering cooperation in online marketplaces, such as eBay, these mechanisms are poised to have a much wider impact on organizations. Their growing popularity has potentially important implications for a wide range of management activities such as brand building, customer acquisition and retention, product development, and quality assurance. This paper surveys our progress in understanding the new possibilities and challenges that these mechanisms represent. It discusses some important dimensions in which Internet-based feedback mechanisms differ from traditional word-of-mouth networks and surveys the most important issues related to their design, evaluation, and use. It pro- vides an overview of relevant work in game theory and economics on the topic of reputation. It discusses how this body of work is being extended and combined with insights from computer science, management science, sociology, and psychology to take into consideration the special properties of online environments. Finally, it identifies opportunities that this new area presents for operations research/management science (OR/MS) research.

About authors
Chrysanthos Dellarocas (2003)

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http://ccs.mit.edu/dell/digitization%20of%20word-of-mouth.pdf

Measuring the Customer Experience in Online Environments: A Structural Modeling Approach

2009-12-12T05:45:00.000-08:00

ABSTRACT

Intuition and previous research suggest that creating a compelling online environment for Web consumers will have numerous positive consequences for commercial Web providers. Online executives note that creating a compelling online experience for cyber customers is critical to creating competitive advantage on the Internet. Yet, very little is known about the factors that make using the Web a compelling experience for its users, and of the key consumer behavior out- comes of this compelling experience. Recently, the flow construct has been proposed as important for understanding consumer behavior on the World Wide Web, and as a way of defining the nature of compelling online experience. Although widely studied over the past 20 years, quantitative modeling efforts of the flow construct have been neither systematic nor comprehensive. In large parts, these efforts have been hampered by considerable con- fusion regarding the exact conceptual definition of flow. Lacking precise definition, it has been difficult to measure flow empirically, let alone apply the concept in practice. Following the conceptual model of flow proposed by Hoffman and Novak (1996), we conceptualize flow on the Web as a cognitive state experienced during navigation that is determined by (1) high levels of skill and control; (2) high levels of challenge and arousal; and (3) focused attention; and (4) is enhanced by interactivity and telepresence. Consumers who achieve flow on the Web are so acutely involved in the act of online navigation that thoughts and perceptions not relevant to navigation are screened out, and the consumer focuses entirely on the interaction. Concentration on the navigation experience is so intense that there is little attention left to consider anything else, and consequently other events occurring in the consumer's surrounding physical environment lose significance. Self-consciousness disappears, the consumer's sense of time becomes distorted, and the state of mind arising as a result of achieving flow on the Web is extremely gratifying. In a quantitative modeling framework, we develop a structural model based on our previous conceptual model of flow that embodies the components of what makes for a compelling online experience. We use data collected from a large- sample, Web-based consumer survey to measure these constructs, and we fit a series of structural equation models that test related prior theory. The conceptual model is largely supported, and the improved fit offered by the revised model provides additional insights into the direct and indirect influences of flow, as well as into the relationship of flow to key consumer behavior and Web usage variables. Our formulation provides marketing scientists with operational definitions of key model constructs and establishes reliability and validity in a comprehensive measurement framework. A key insight from the paper is that the degree to which the online experience is compelling can be defined, measured, and related well to important marketing variables. Our model constructs relate in significant ways to key consumer behavior variables, including online shopping and Web use applications such as the extent to which consumers search for product information and participate in chat rooms. As such, our model may be useful both theoretically and in practice as marketers strive to decipher the secrets of commercial success in interactive online environments.

About authors
Thomas P. Novak, Donna L. Hoffman, Yiu-Fai Yung (2000)

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http://www.jstor.org/stable/193257

Factors Driving Consumer Intention to Shop Online: An Empirical Investigation

2009-12-12T05:43:00.000-08:00

ABSTRACT

This article examines consumers' intention to shop online during the information acquisition stage. Specifically, the study incorporates 3 essential variables, which are likely to influence consumer intentions: (a) convenience characteristic of shopping channels, (b) product type characteristics, and (c) perceived price of the product. Results indicate that convenience and product type influence consumer intention to engage in online shopping. When consumers perceive offline shopping as inconvenient, their intention to shop online is greater. Also, online shopping intention is higher when consumers perceive the product to be search goods than experience goods.

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Kuan-Pin Chiang and Ruby Roy Dholakia (2003)

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http://www.jstor.org/stable/1480436

The Future on online advertising is a VIDEO

2009-12-11T01:35:00.001-08:00

This is a very useful video to give you the idea about the importance of online advertising industry.

http://www.youtube.com/watch?v=5rtiHiGmoxk

Online advertising: Pay-per-view versus pay-per-click — A comment

2009-12-11T01:30:00.001-08:00

Abstract

We analyze the choice of pay-per-view (PPV) and pay-per-click (PPC) when a web publisher is a price taker in the market for advertising banners, and the number of visits is decreasing in advertising. Several pricing recommendations are developed. First, the web publisher should always choose either PPV or PPC. Specifically, if the click-through rate is less than the ratio of PPV to PPC prices, then PPV should be chosen, and vice versa. Furthermore, if the click-through rate is exogenous, then the optimal amount of advertising is the same for both pricing methods. Finally, if the click-through rate is endogenous, the amount of advertising will be different under PPV and PPC

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Kenneth Fjell- Journal of Revenue and Pricing Management (2009) 8, 200–206. doi:10.1057/rpm.2008.39; published online 21 November 2008

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http://www.ingentaconnect.com/content/pal/rpm/2009/00000008/F0020002/art00009

The Online Advertising Industry: Economics, Evolution, and Privacy

2009-12-11T01:27:00.000-08:00

Abstract:

Online advertising accounts for almost 9 percent of all advertising in the United States. This share is expected to increase as more media is consumed over the Internet and as more advertisers shift spending to online technologies. The expansion of Internet-based advertising is transforming the advertising business by providing more efficient methods of matching advertisers and consumers and transforming the media business by providing a source of revenue for online media firms that competes with traditional media firms. The precipitous decline of the newspaper industry is one manifestation of the symbiotic relationship between online content and advertising. Online-advertising is provided by a series of interlocking multisided platforms that facilitate the matching of advertisers and consumers. These intermediaries increasingly make use of detailed individual data, predictive methods, and matching algorithms to create more efficient matches between consumers and advertisers. Some of their methods raise public policy issues that require balancing benefits from providing consumers more valuable advertising against the possible loss of valuable privacy.

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Evans, David S. 2009. "The Online Advertising Industry: Economics, Evolution, and Privacy." Journal of Economic Perspectives, 23(3): 37–60.

DOI:10.1257/jep.23.3.37

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http://www.aeaweb.org/articles.php?doi=10.1257/jep.23.3.37

Survey of internet users’ attitudes toward internet advertising

2009-12-11T01:25:00.001-08:00

A B S T R A C T

Many have speculated about the current state of Internet advertising (IA), how it compares to advertising in general (GA), and its implications for traditional marketing models and practices.

Although many estimates exist regarding who uses the Internet as well as guidelines about how best to design IA, little is known about Internet users’ attitudes toward IA, much less what characterizes these attitudes. To test this, a national sample of over 400 participants with at least some exposure to the Internet was surveyed. The results revealed no majority opinion of IA approximately a third of respondents liked, disliked, and felt neutrally toward IA, respectively. A regression analysis indicated that enjoyment of looking at Internet advertisements, its informativeness, and its utility for making behavioral (purchasing) decisions.

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Authors: Ann E. Schlosser Sharon Shavitt Alaina Kanfer

© 1999 John Wiley & Sons, Inc. and Direct Marketing Educational Foundation, Inc.

CCC 1094-9968/99/030034-21

JOURNAL OF INTERACTIVE MARKETING

VOLUME 13 / NUMBER 3 / SUMMER 1999

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http://www.business.uiuc.edu/Shavitt/pdf%20files/surveyinternet_copy%281%29.pdf

Why search engines should still be part of your marketing budget

2009-12-10T06:26:00.000-08:00

Abstract (Summary)

Every day about 70 million commercially oriented searches are done. These aren't searches for Britney Spears pictures. They're launched by consumers looking for a product or service. In a North American study done by Jupiter Media Metrix comparing paid placement search against costs-per-thousand (CPM) and costs-per-click (CPC) banner advertising with opt-in e-mail, search handily out-performed the competition. Overall satisfaction with pay-per-click (PPC) search listings was 41%, compared to 33% for e-mail and about 20% for banner advertising. In terms of satisfaction with return on investment, PPC scored 29%, compared with 24% for e-mail and 16% and 12% respectively for CPC and CPM banners.

Paid inclusion: Found on Inktomi, Teoma, AltaVista, Fast and Lycos. You pay to ensure your site will remain in the search engine's index. There's a set annual price per URL (each individual page on your Web site), ranging from $12 on Lycos to $39 for Inktomi and AltaVista. The paid inclusion fee does not guarantee position.

Influence of Web Advertising Strategies, Consumer Goal-Directedness, and Consumer Involvement on Web Advertising Effectiveness

2009-12-08T08:58:00.000-08:00

Abstract: Determining the best way to utilize on-line media for advertising purposes is a critical question. This research, based on the Elaboration Likelihood Model (ELM), incorporates consumer goal-directedness and involvement as moderators influencing when a particular advertising strategy (i.e., variation strategy vs. appeal strategy) will be appropriate for Web advertisements. The results of a laboratory experiment supported the use of ELM in the Web environment and showed how advertising strategies should be designed and implemented in accordance with consumer goal-directedness and involvement to achieve Web advertising effectiveness. The results demonstrated the uniqueness of the Web media and the importance of goal-directedness and consumer involvement in the Web advertising context.

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Author(s): Wang K (Wang, Kai)1, Wang ETG (Wang, Eric T. G.), Farn CK (Farn, Cheng-Kiang)2 Source: INTERNATIONAL JOURNAL OF ELECTRONIC COMMERCE Volume: 13 Issue: 4 Pages: 67-95 Published: SUM 2009

Click on the following link for details information.
http://portal.acm.org/citation.cfm?id=1554437

Audience Selection for On-line Brand Advertising: Privacy-friendly Social Network Targeting

2009-12-08T08:45:00.000-08:00

Abstract

Conference Information: 15th ACM SIGKDD International Conference on Knowledge Discovery and Data MiningParis, FRANCE, JUN 28-JUL 01, 2009ACM SIGKDD; ACM SIGMOD Abstract: This paper describes and evaluates privacy-friendly methods for extracting quasi-social networks from browser behaviour on user-generated content sites, for the purpose of finding good audiences for brand advertising (as opposed to click maximizing, for example). Targeting social-network neighbours resonates well with advertisers, and on-line browsing behaviour data counter intuitively can allow the identification of good audiences anonymously. Besides being one of the first papers to our knowledge on data mining for on-line brand advertising, this paper makes several important contributions. We introduce a framework for evaluating brand audiences, in analogy to predictive-modeling holdout evaluation. We introduce methods for extracting quasi-social networks from data on visitations to social networking pages, without collecting any information on the identities of the browsers or the content of the social-network pages. We introduce measures of brand proximity in the network, and show that audiences with high brand proximity indeed show substantially higher brand affinity. Finally, we provide evidence that the quasi-social network embeds a true social network, which along with results from social theory offers one explanation for the increase in brand affinity of the selected audiences.

Information about authors

Author(s): Provost F (Provost, Foster)1, Dalessandro B (Dalessandro, Brian)1, Hook R (Hook, Rod), Zhang XH (Zhang, Xiaohan)1, Murray A (Murray, Alan) Book Group Author(s): ACM Source: KDD-09: 15TH ACM SIGKDD CONFERENCE ON KNOWLEDGE DISCOVERY AND DATA MINING Pages: 707-715 Published: 2009

Conference Information: 15th ACM SIGKDD International Conference on Knowledge Discovery and Data Mining

Paris, FRANCE, JUN 28-JUL 01, 2009

ACM SIGKDD; ACM SIGMOD

Click the following link for further details.
http://pages.stern.nyu.edu/~fprovost/Papers/kdd_audience.pdf

Ontological analysis of web surf history to maximize the click-through probability of web advertisements

2009-12-08T08:44:00.001-08:00

Abstract: Due to an enormous in lux of capital over the past decade, the online advertising industry has become extremely robust and competitive. The difference between success and failure in such a competitive market often rests in the ability to deliver advertisements that are closely in line with a user's interests. In this work, we propose and test a new online advertisement targeting technique which adapts and utilizes several powerful and well tested information retrieval and lexical techniques to develop an estimate of a user's affinity for particular products and services based on an analysis of a user's web surfing behavior. This new online ad targeting technique performs extremely well in Our empirical tests. (C) 2009 Elsevier B.V. All rights reserved.

These are the Author.

Author(s): Deane J (Deane, Jason)1, Pathak P (Pathak, Praveen)2 Source: DECISION SUPPORT SYSTEMS Volume: 47 Issue: 4 Special Issue: Sp. Iss. SI Pages: 364-373 Published: NOV 2009

Click on the following link to have more detailed information.

http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6V8S-4W1BV2S-1&_user=835417&_rdoc=1&_fmt=&_orig=search&_sort=d&_docanchor=&view=c&_searchStrId=1132956889&_rerunOrigin=google&_acct=C000045119&_version=1&_urlVersion=0&_userid=835417&md5=9c71187d594452ef7eae2a7c2d7c3cdeOntological

Definitions of online advertising

2009-12-08T08:25:00.000-08:00

It's always good to start with the definition of the subject which is our talking point.

Definition by Businessdictionary.com

Use of internet as an advertising medium where promotional messages appear on a computer screen. Since the communication software (browser) reveals sufficient information about the site's visitors, online advertising can be custom-tailored to match user preferences.

2009-12-03T16:21:00.001-08:00

Blog Mission

Our blog mission is to provide useful and practical information for people like us; students who make their first steps in building online strategies and try to provide tangible and substantial results.

The creation of the blog will focus on providing relevant content and conversations about Online Advertising. We will introduce you to the theoretical and practical tools related to this issue in a friendly and professional way; it should help you becoming more knowledgeable about this challenging and interesting topic.

About Us

We are a group of Master students in Management, Corporate Communication and Marketing from University of Lugano, Switzerland.

The blog "Digital Marketing for students" is part of our group project & assignment. The goal is to apply theoretical and practical knowledge by undertaking a real digital marketing project and campaign. The task of this project is to maximize blog traffic using online and offline available techniques in digital communication mix with a maximum budget of 40 chf. per campaign.

The campaign will be run over 1 week, between November 24th and the 13th of December 2009.

Digital marketing Fall 09

2009-11-29T13:21:00.000-08:00

There we go, the perfect place to find all relevant information related to emarketing. Every one is welcome to share their favourite topics, articles, and opinions about online advertising.