Jean-Eric PELET MAJOR PROJECT 12.05.99
MAJOR PROJECT BA HONS ADVERTISING 1998-1999 SOUTHAMPTON INSTITUTE UK Jean-Eric PELET
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Jean-Eric PELET MAJOR PROJECT 12.05.99
CONTENT PART I: INTRODUCTION
p2
Introduction Rationale The History of the Internet Definition of the Internet Internet Demographics
p3 p5 p7 p8 p9
PART II: ADVERTISING ON THE INTERNET
p 12
Traditional Advertising Vs Interactive Advertising SWOT Analysis of an electronic publishing (or interactive advertising) Should a brand include online in its marketing mix? The Internet: towards an interactive relationship
p 13 p 17 p 21 p 29
PART III: CONCLUSION
p 31
Conclusion: Is there any interest for small and middle size businesses to advertise on the Internet? p 32 PART IV: EXAMPLE OF SMALL BUSINESS
p 35
FICTIF: Hairdresser - on the Internet: http://members.xoom.com/jepelet
p 35
Useful addresses
p 36
Appendices Appendix 1: Banners Appendix 2: UK audience
p 40 p 40 p 41
Glossary
p 44
Bibliography
p 58
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PART I Introduction………………………………………………………………….……p 3 Rationale……………...……………………………………………………………p 5 The History of the Internet…………………………………………….….…….p 7 Definition of the Internet…………………………………………...……...……p 8 Internet Demographics……………………………………………………….…p 9
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Introduction Businesses in virtually every sector of the economy are beginning to use the Internet to cut the cost of purchasing, manage supplier relationships, streamline logistic and inventory, plan production, and reach new and existing customers more effectively1. The purpose of this project is to examine the extent to which small and medium size companies can benefit from self-promotion on the Internet. Whereas the report will have the aspect of a theoretical approach (interpretation of figures, critical examination of key themes), the Website simulation will provide different samples of tools available on the Internet necessary to the building of a homepage (Website) or a banner advertisement (small advertising2).
With the growing popularity of local and regional Websites and online shopping in the United States in December 1996, about 627,000 Internet domain names had been registered. By the end of 1997, the number of domain names more than doubled to reach 1.5 million in the United States3. One can only wonder what advertising opportunities are actually available for a local retailer in targeted advertising in the UK or more largely in Europe. A vast amount of information concerning the topic already exists, on the Internet, as well as, in books, magazines and CD-ROMs. Furthermore, there are companies that create homepages, banners or any kind of advertising on the Internet. However, the fact is that this mountain of information twinned with the youth of the Internet (and thus, the controversial figures that run with it) make of this media a place where it could eventually be possible to advertise… Let us try to be simpler! In the multimedia production which will be annexed to this report, several clickable links will permit everyone to visit either graphic designer Websites of interest, or Websites from other companies who have already experienced such a project: creating their own advertising on the Internet, in order that one can follow guidelines, rather than getting lost or wasting their time.
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MARGHERIO.L.(Project director), The emerging Digital Economy [online]. The Secretariat on electronic Commerce, U.S. Department of Commerce, Washington, USA, 15.04.98. Introduction. Available from: http://www.ecommerce.gov/emerging.htm , p3 of 45 2 A banner advertisement is a small graphics link placed on a Web page. It usually looks like a thin rectangle presented in a prominent area of an appropriately interesting Web page. 3 MARGHERIO.L.(Project director), The emerging Digital Economy [online]. The Secretariat on electronic Commerce, U.S. Department of Commerce, Washington, USA, 15.04.98. Introduction. Available from: http://www.ecommerce.gov/emerging.htm, p2
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The process of advertising products and services is a little different on the Internet to methods used in more traditional media (e.g. TV, radio, press, magazines…). The Web does not present a “royal road” to easy advertising success; the global interactive facilities of the medium will not make an intrinsically poor advertising concept effective. The medium does, however, facilitate the adoption of interesting features that can be used to build a successful campaign. One of these features is that the Internet is a medium which combines text, pictures, sound and motion pictures. But when one knows that creating Web pages, which was once a specialist’s technical challenge, is now “as easy to achieve in practice as using a wordprocessor or desktop publishing package”4, business owners really should consider using the Internet for promotion in their marketing mix. An objection could be that the technology is not an end in itself. This report argues that the efficiency of banner advertising as well as for a Website is not essentially based on the “3D visual effects” or on the music changing at each page of the homepage. The contrary is wrong as well: as for every communication support, the form given to the message is obviously of interest. Thus the technology is not the issue, but what is essential is making the content work in a persuasive and commercially viable manner. By creating a Website integrating what is indispensable and what is to avoid in the building of an advertisement on the Internet, the aim of the multimedia production could be to indicate why it is important to regularly refresh the banner advertisement. Small and medium sized companies will understand that the use of action words such as “click here” are as important as the headline keywords that have been proved effective in other contexts, according to different results of survey made by specialists on the topic.
4
BARRETT Neil, Advertising on the Internet, How to get your message across on the World Wide Web, Kogan Page, 1997, p.90
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Rationale The growing number of Internet subscribers is one reason why companies should advertise on the Internet. It has been estimated that the volume of Internet users was as high as 100 million around the world, by the end of 1997”5. Other researchers have demonstrated that “hosts on the Internet were doubling every 12 to 15 months (Kantor and Newbarth, 1996)”6. Such an astonishing growth in advertising has never existed before. Unfortunately, problems must exist in the process of advertising on the World Wide Web; otherwise, every company would do so. What are these cons? The US manufacturer AMP, spends more than £2.4 million a year to mail out and update some 400 very specialised catalogues containing information on about 134,000 electrical and machine components. In 1996, while toying with the idea of putting the paper based catalogues on CD-ROM, Jim Kessler, AMP’s Vice President of Sales and Marketing, decided to try to leapfrog to the Internet instead. The benefit of going on the Web was obvious: less cost, more frequent updates and a glitzy userfriendly means for AMP to move away from its faxback system, which was costing the company £480,000 a year in phone bill7 alone. This example enables us to consider some reasons why a company should decide to advertise on the Internet. However, in many cases, the drive to advertise on the World Wide Web has come as much from imitation or perhaps a desire to be innovative as it has from a real, hard-headed consideration of the cost benefit ratios involved8. It is thus logical to understand the motivation that pushes companies in this direction: to imitate and to innovate without really knowing whether this operation could be relevant or not. This failure to recognize the Internet is an important point to consider.
While a growing number of companies are interested in developing an Internet presence, there is still a great deal of confusion about it and what this new medium has to offer to the advertising community. Many businesses feel compelled to have an Internet presence because “everyone else is doing it!” Or, as Berthon, Pitt, and 5
MARGHERIO.L.(Project director), The emerging Digital Economy [online]. The Secretariat on electronic Commerce, U.S. Department of Commerce, Washington, USA, 15.04.98. Introduction. Available from: http://www.ecommerce.gov/emerging.htm 6 BUSH Alan J, BUSH Victoria, HARRIS Sharon, Advertiser perceptions of the Internet as a marketing communications tool, Journal of Advertising Research, New-York, Mar/Apr 1998 7 O’CONNOR.J., GALVIN.E., Marketing and Information Technology, The Strategy, Application and Implementation of IT in Marketing, Pitman Publishing, London, 1997, p 45
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Watson (1996) state, “it is not unlikely that many advertisers are on the Web simply because it is relatively quick and easy, and because they fear that the consequences of not having a presence will outweigh whatever might be the outcomes of a hastily ill-conceived presence”9. But the Internet is not a medium that reaches every household. In addition, connection to the Website is often slow and unreliable. Web addresses are sometimes incomplete. Security and invasion of privacy are also emerging issues. Although the Internet represents a tremendous opportunity for advertisers, uncertainties and challenges also abound. Thus, trying to overcome these drawbacks obviously seems apparently technically difficult, but many tools and skills exist. The multimedia production will reference some of these by providing a broad range of useful clickable links.
8 9
Ibid. BUSH Alan J, BUSH Victoria, HARRIS Sharon, 1998, Op-Cit
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The History of the Internet 1969 – USA An experimental network called ARPANET (from the U.S. Defence Department’s Advanced Research Projects Agency) was devised by Bob Taylor10, the Director of Computer Research at ARPA. ARPANET was a government-funded research project . The original networked sites were military bases , universities, and companies with Defence Department contracts. As the size of this experimental network grew, so did concerns for security. The same networks used by companies and universities for military contractors were becoming more and more accessible to the public. As a result, in 1984, ARPANET split into two separate but interconnected networks: one for military use and one for educational use. The military side of the network was called MILNET. The education side was still technically called ARPANET, but became more commonly known as the Internet. The Internet became a high-speed electronic transportation mechanism, linking key sites at government agencies, defence contractors, colleges, and universities. But other independent networks were also under development. Soon, many of these independent networks began seeking permission to connect themselves to the highspeed lines, or backbone, of the Internet. Thus, the Internet grew to become a network of networks. In 1991, the Internet became available to ordinary citizens. More colleges, companies, individuals, artists, and government agencies hooked up to the Internet. The Internet ceased to be a network dedicated to the purpose of defence. It became a global communications medium open to the general public11.
10
V.A. SHIVA A, The Internet Publicity Guide, How to maximise your marketing and promotion in cyberspace, Allworh Press, New-York, 1997, p6 11 Ibid
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Definition of the Internet The Internet is a computer network connecting millions of businesses, homes, universities, government agencies, individuals and organisations in more than one hundred countries, using the Internet Protocol (IP) to communicate with each other. It offers a host of tools for communicating and sharing digital information. The term “Internet” is used to encompass all such data networks12, even though some electronic commerce activities may take place on proprietary or other networks that are not technically part of the Internet.
The Internet, developed by the U.S. government on advice from the Rand Corporation (a major consulting company in the United States) in the mid 1960s13, has existed for more than three decades. Why then has the Internet become a household word today? There are two keys reasons for the Internet’s current popularity. First is the pervasive use of e-mail, with e-mail addresses appearing on many business cards alongside phone and fax numbers. Second is the development of the World Wide Web (WWW), an Internet tool developed in the 1990s by Swiss Scientists to access and present multimedia information in a convenient and user-friendly manner14.
12
MARGHERIO.L.(Project director), The emerging Digital Economy [online]. The Secretariat on electronic Commerce, U.S. Department of Commerce, Washington, USA, 15.04.98. Introduction. Available from: http://www.ecommerce.gov/emerging.htm, p3 of 45 13 V.A. SHIVA A, The Internet Publicity Guide, How to maximise your marketing and promotion in cyberspace, Allworh Press, New-York, 1997, pxiii 14 Ibid
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Internet Demographics Internet Web usage estimates range from 42 million to 58 million. Media Metrix estimates the Internet population at 42 million, NetRatings - 44 million, Relevant Knowledge - 57 million and Nielsen Media - 58 million15.
These are all estimates based on varying combinations of the following types of measurement: •
sample mailings
•
random digital dialling (a questionnaire is administered to thousands of people who are phoned at random)
•
measurement of advertising banner traffic
•
interview panels - both consumer and business panels, and
•
metering software which measures traffic at Websites, at ISP connections, and at other points on the Internet.
Other factors affecting measurement are the Host Count, which counts the number of computers connected to the Internet. This is done by sending a signal and counting the number of computers that respond to this automated message. The same company, running the same counting computer, has conducted these studies since the beginning of Internet commerce in 199416. The advantage is that it is a consistent unit of measurement which indicates relative growth. Virtually every legitimate estimate of Internet usage factors the Host Count into its numbers. Another factor is how many individuals use each connected computer. Most estimates are an average figure ranging from 1 to 2 users per connection. A study by Boardwatch magazine placed the estimate at 1.37 users per connection17.
There is no definitive study on Web usage statistics. But use of Host Count, number of users per computer host and random digital dialling can help provide the closest estimates available.
15
INTERNET ADVERTISING BUREAU (IAB, www.iab.com. Available from: http://www.iab.net/advertise/metricsource.html) 16 Ibid. 17 Ibid.
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The Web doubled in size in less than 9 months and is currently growing about 20 million pages per month:18
Knowing the demographics and psychology of Internet users is important in determining how to market a company's Website effectively.
Where are Internet users: A majority of Internet users come from the United States. According to the Georgia Institute of Technology's Graphic, Visualization, and Usability Center (GVU), their 5th WWW user survey produced the following results based on 11,700 questionnaire responses19: Geographical repartition of Internet users
18
ALTA VISTA SYSTEM RESEARCH CENTER (Digital). Report available from: http://www.research.digital.com/SRC/whatsnew/sem.html 19 NET-INTELIGENCE, figures available from:
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Internet user ages and gender: Internet users are predominantly males •
The average Internet user is 33 years old.
•
58% of Internet users are male.
42% are female, however, the trend shows more women becoming Internet users - in 1993, women constituted only 5% of Internet users, increasing to 15% by 1995, 30% by 1996, and rising20. Internet user occupations: •
Over 53% of Internet users have completed at least four years of undergraduate study.
•
30% of Net users held occupations in education
•
28% held computer-related occupations
•
19% held professional and management occupations.21
http://www.net-intelligence.com/Demographics.htm 20 INTERNET ADVERTISING BUREAU IAB, available from: www.iab.com 21 Ibid.
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PART II Traditional Advertising Vs Interactive Advertising……………….………p 13 SWOT Analysis of an electronic publishing (or interactive advertising)……………………………………………………………………….p17 Should a brand include online in its marketing mix?.……………………p 21 The Internet: towards an interactive relationship..…………………….…p 29
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Traditional Advertising Vs Interactive Advertising Traditional advertising (TV, radio, press, magazines) is based on the reduction of information. Lots of information about a product or service is funnelled through a narrow bandwidth of extremely costly TV, print, and radio advertising to create a thirty-second sound bite, a sexy photograph, a jingle, or a saying. In this case, the viewer has recorded a short sound bite or image, and that is it. Traditional advertising is unidirectional: the advertiser targets a market for a product or service, creates a message, and splatters that message as far and wide as possible. The receiver of that message can either listen to it or not. There are few other choices and there is no room for audience response, apart from the consumption of the defined product or service when the message has been read (or seen) and accepted, and from the studies published by different organisation such as Nielsen (U.S.) or Médiamétrie (France). Traditional advertising is costly. There is a finite number of TV stations, radio stations, and major magazines. Getting prime-time access to the traditional media means of advertising is cost-prohibitive for most businesses and organisations. When it comes to reaching a global audience, there is no level playing field in the world of traditional advertising. Interactive Advertising Interactive advertising is bi-directional. Because it is interactive, the chance is offered to respond and make choices as to what one does or does not want to hear. It is possible to ask questions and explore what is of interest for the “inter-actor”, also known as the surfer. On the Internet, a user can communicate interactively by leaving e-mail messages, filling out forms, and even leaving notes in guest books to indicate likes and dislikes. Interactive advertising is personalised. People can choose whether or not they want to stay on a certain Website at first. The different hyperlinks provided on each page permit to everybody to probe deeper what they are interested in. Someone else coming to the same Website may have a very different experience, based on what he/she chooses to explore. The cost of interactive advertising is not comparable with the cost of developing a traditional marketing campaign (see comparison of costs of two Direct Marketing’s operations between ordinary sent mails and e-mails, on page 15). And a main feature
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of advertising on the Internet is that a Website can be updated as frequently as desired. Brand awareness on the Internet Vs traditional advertising Traditional advertising, by its very nature of broadcast ad technology allows the creation of brand awareness and brand images quickly, if expensively. It is difficult to see the Internet being able to this. Its strength lies in being able to add information in an interactive way on top of existing brand or product familiarity, as part of the media communications mix. However, the study conducted by the IAB (Internet Advertising Bureau) to value the advertising impact of online communications concludes by telling that the use of banners has tremendous communications power because they can impact the traditional marketing measures of: •
advertisement awareness
•
brand awareness
•
brand perceptions
•
potentials for sales
All from one exposure. Web ad banners not only have the ability to remind consumers about brands for which they are already aware. Web ad banners can and do inform users about products that were not previously on the consumers’ radar. Web ad banners are noticed by many Web users (and that even a single exposure can make a significant impact on brand-linked impression recall). Does the advertising merely remind users of information they already knew or do Web ad banners actually generate awareness for a new brand? The study conducted by the Journal of Advertising Research22, relative to the advertiser perceptions of the Internet as a marketing communications tool, shows that these banners could: •
remind consumers of a brand’s existence
•
stimulate latent brand associations
•
affect attitudes toward the brand
•
increase probability of purchase
22
BUSH Alan J, BUSH Victoria, HARRIS Sharon, Advertiser perceptions of the Internet as a marketing communications tool, Journal of Advertising Research, New-York, Mar/Apr 1998
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Thus, more than simply boosting awareness, ad banners can actually impact the way consumers think about advertised brands.
Source: Jean-Marc KNAKE’s major project
Conclusion Whereas in traditional advertising, the receiver does not choose whether he wants to read or listen to the message or not, in interactive communication, the customer is in control, not the advertiser. In interactive advertising, the deliverer of a message must be a communicator of relevant, appealing, and up-to-date information. If not, the customer will come to a Website and hop to one of a million sites (or channels) that are available in a matter minutes. Interactive advertising is about “infotainment” or “edutainment”. Good Websites make informing and educating the audience fun and entertaining. A Website should be organised for the user to explore information as deeply as they want to go.23 In no way do the advertisements on the Internet have the same effects as television commercials which engage viewers with full-motion video and sound. The comparison would change if only users could be persuaded to click on the ads,
23
V.A. SHIVA A, The Internet Publicity Guide, How to maximise your marketing and promotion in cyberspace, Allworh Press, New-York, 1997, p 64
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because that would bring out the Internet’s big advantage over television: its potential for interaction.24
24
TOMKINS R., Procter & Gamble is not alone in worrying about life after TV, The Financial Times, 28.08.98
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SWOT25 Analysis of an electronic publishing (or interactive advertising)
Internet characteristics •
The ability to inexpensively store vast amounts of information at different virtual locations
•
The availability of powerful and inexpensive means of searching, organising, and disseminating such information
•
Interactivity and the ability to provide information on demand
•
The ability to provide perceptual experiences that are far superior to a printed catalogue, although not as rich as personal inspection
•
The ability to serve as a transaction medium.
•
The ability to serve as a physical distribution medium for certain goods (e.g., software)
•
Relatively low entry and establishment costs for sellers26
•
No existing marketing channel possesses all of these characteristics.
Strengths The cost of electronic publishing is minimal compared with to the traditional advertising (TV, radio, press, magazines). The audience reach is wide, and the quantity of information that can be offered is effectively unlimited. The medium allows, for example, the newspapers to offer a much wider set of information, with cross-links to other articles, other publications of information, and even relevant websites of universities, companies or enthusiasts. The Web can help to recapture a past glory product, as a tool which helps to sample the product. After registering for a free sample of the product, the customer can then sign up online for a free trial version of another one. Rather than using the traditional method of building a site and driving traffic toward it, a campaign can “push” the product sample directly to the customer through targeted online advertising.
25
SWOT: Strengths, Weaknesses, Opportunities, Threats Robert A Peterson Sridhar Balasubramanian Bart J Bronnenberg, Exploring the implications of the Internet for consumer marketing, Academy of Marketing Science. Journal, Greenvale, Fall, 1997, p6 of 17 26
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Therefore, by sampling the product online, companies can see if customers from their target would be inclined to buy it. The Web also helps to build a consumer continuity database beyond traditional print and television advertising27, enabling companies to take a direct response approach to advertising on the Web. Calculating the return on investment is a tricky business. Three levels of high marks score concerning a campaign on the Internet can be defined according to Serino, media director at JMCTouch, the interactive department of Jordan McGrath, Case and Taylor says28. These three levels are: •
Share of mind, which is basically the amount of time people will spend on the site
•
Gaining the 10,000 surveys. A cheaper exercise on the Internet
•
Public in depth with the Internet
The Internet also allows companies to expand usage within their existing customer base, as well as extend their reach to a large number of low-volume, occasional users around the world. It permits a company to migrate its customers from older access vehicles.
For some companies (such as Polaroid), the Internet is advantageous because certain hits and clickthroughs are measurable, so it pays out from that perspective. But more importantly, “it makes sense for Polaroid to be moving forward, in this new medium because that is where their world is”29. Weaknesses Even if the marketing program calls for different elements such as search engines, newspaper, TV or magazine advertisements, business cards, letterheads, exhibition boards, product wrappers, and even if the URL30, (the address of the webpage) is known to as many users as possible, it is still not a guaranteed success. Users still need a good reason to visit the website.
27
Authors: Anonymous, Internet advertising success stories, Mediaweek, Brewster, 05.05.97 Ibid. 29 Op-Cit. 30 URL, Universal Resource Locator 28
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Communications speed Realistically, multimedia communications need a bandwidth of at least 2 million bits per second31, yet current modems technology has a maximum bandwidth of 56,600 bits per second32. Most of the modem actually used in the mass market only have a 28,800 bits per second speed modem. The telecommunications barriers will have to be surmounted before the Internet moves forward from the early adopter stage. Opportunities Because the Web user is far from being recumbent, on average people spend five minutes on a website. The issue for the advertiser is not simply how to captivate the viewer, but how first to attract, then retain the viewer. Surfing the Web is thus an active procedure, with users rapidly hopping from website to website.
Giving the users a good reason to visit a website can be achieved by ensuring that they know what is on this site –through separate coverage in search engines, Internet –interest magazines, or through what is currently the most popular form of advertising link: the ubiquitous banner. Threats (or “the disadvantages and potential pitfalls of the Internet as a marketing medium”) "Immaturity" of the Internet
The Internet and in particular the World Wide Web, has undoubted marketing potential, but will not become a mature, reliable and secure medium for some years to come. At present it is “surfed” by a large number of early adopters across the world, but until the speed and reliability of the service are improved, it will not be embraced by the mass market33. The general consensus at this point appears to be that the mass market use of the Internet for commercial transactions will not occur until around the turn of the century34.
31
MANCHESTER P., Bandwidth gap needs bridging, Financial Times, 03.10.1995 O’CONNOR.J., GALVIN.E., Marketing and Information Technology, The Strategy, Application and Implementation of IT in Marketing, Pitman Publishing, London, 1997, p 143 32
33
HEWSON, D. You will drop before you shop on the Net, Sunday Times, 16.06.1996 34
LAMBETH J., Business fails to make net profit, Computer Weekly, 18.07.1996
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Conservative Nature of Customers
Research indicates that even among early adopters, UK attitudes towards transacting financial services across the Internet are highly conservative35. Only onethird of Internet users are willing to carry out their banking transactions over the Internet, with security worries as the key stumbling block.
Poor Targeting Capabilities
The potential audience may be large but the customer has to search out the company’s website in order to view the advertising message. As more and more companies begin to advertise on the Internet, the problem of standing out amid all the clutter will pose major challenges to organisations. Indeed, the size of the static Web was about 125 million in mid-97. It grew to about 200 million distinct pages by November 97 and to about 275 million distinct pages as of March 98. This means that the Web doubled in size in less than 9 months and is currently growing about 20 million page per month36. Cost
Many homepages offer little more than an electronic version of a newspaper or magazine advertisement. It can cost a considerable amount of money to develop a homepage that offers greater functionality and which will stand out among the tens of thousands of others. This in turn will lead to problem of measurement and cost effectiveness. Incompatible Marketing Messages
Websites are often created by the IT department rather than the marketing department37. This is not necessarily a problem as long as both departments are in touch with each other. Unfortunately, the marketing message that ends up on the Internet may not necessarily complement the marketing message that is being put out by the rest of the organisation.
35
Insurance Technology Report, Net not ready for transactions, June 1996 ALTA VISTA SYSTEM RESEARCH CENTER (Digital). Report available from: http://www.research.digital.com/SRC/whatsnew/sem.html 37 Ibid. 36
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Should a brand include online in its marketing mix? The answer for most brands depends on whether there is economic value. Before being able to determine the prospect for positive return on investment, the company (or the online advertisers) must quantify the size of the opportunity that online implies for the brand. The size of the opportunity can be measured by: •
Sizing the percentage of the target market the company could potentially reach via the Web. (The advertisers refer to this metric as the “Web-enabled target market” of the company38)
•
Measuring the economic value to the company’s category that online users represent. (The advertisers refer here to this metric as Web users’ “economic value.”)
The economic value profile of those who are Web-enabled allows the marketer to determine the pound (or Euro or dollar or franc) value of the Web to the brand. If those who are Web-enabled are heavier users of the company’s category and if they are difficult to reach through other media, the Web is a strategic imperative. Let us take the following illustrative example taken from the IAB study: 23% of an automobile manufacturer ’s target market is online (Web-enabled metric). Because of the Web’s somewhat affluent demographics, Web users are more likely to purchase higher-margin luxury automobiles - and therefore account for 40% of the company’s profits (economic value metric)39. Illustrative example: Value of the Web to a brand
38
INTERNET ADVERTISING BUREAU (IAB, www.iab.com) and MILLWARD BROWN INTERACTIVE (www.mbinteractive.com), Online Advertising Effectiveness Study, 1997 [online], available from : http://www.mbinteractive.com/site/iab/exec.html, p 52
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Understanding the implications of the size and economic value of the Web-enabled target is the first element of a pragmatic and strategic approach to evaluating the value of marketing a brand via the Web. Millward Brown International40 currently tracks brand communication across media categories for over one third of the top one hundred advertisers41. While the size and economic value metrics suggest whether or not online holds immediate marketing opportunity for the brand, there is still a need to delve deeper to address how the marketer can use online for marketing to enhance the bottom line. After all, an online brand presence is much more than simply building a Website. How should a brand use online for marketing? The Internet is often referred to as a medium, but the term is rather misleading because it implies a singular communication format. It may be more constructive for marketers to think of the Internet as a technology that enables communication; this communication can be fashioned along two key dimensions: The first dimension is a continuum that ranges from proactive to reactive communication42.The second dimension ranges from broadcast communication to a personal dialogue. Continuum of Online Marketing Communication
This way of thinking implies for the marketer that the company can reach and communicate with its online target in a multitude of ways - from a broadcast 39
Op-Cit. MILLWARDBROWN INTERACTIVE available from: http://www.mbinteractive.com 41 Op-cit. 42 Ibid. 40
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advertisement that proactively reaches its target audience on a mass-reach website to a personalised e-mail delivered in reaction to an individual customer’s query. It means that online is not monolithic. It is multifaceted and requires an online communication mix appropriate to the brand’s marketing strategy. Development of a coherent strategy and effective tactics requires the marketer to first define business objectives and then to assess how the technology can be used to achieve the objectives. Some objectives are best achieved with a broadcast message, (building of a Website to boost the brand awareness of a company) while others are best achieved with a personal touch (sending of e-mails to a targeted audience, to a precise company…). Some objectives require waiting for consumers to initiate the dialogue so that the brand can react to their perceived needs, while other objectives are best achieved with the brand proactively communicating with the consumer. The Internet Advertising Bureau (IAB)43 suggests that development of realistic objectives begins with an evaluation of: •
The nature of the company’s product and service
•
The current level of Website category use by its target population
•
Perceived legitimacy of personalised communication related to the company’s product in the minds of consumers.
Exploring these areas will help the marketer to develop the appropriate objectives and optimise the online marketing mix of communication options. 1. Nature of the product Certainly the nature of the product should have a dramatic impact on the types of online communication a company employs. Brands requiring: •
higher levels of support and customer service, or
•
higher consideration prior to purchase, or
•
online acquisition
are among the categories that will benefit from a comprehensive website that reacts to consumer and prospect queries. But even brands that enjoy a high degree of active consumer investigation should
43
Op-Cit.
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communicate proactively - not just to inform the consumer that a corporate website can be accessed with a “Click Here” but also to carry the brand message directly to the consumer, communicating the unique brand proposition. Brands that can only be purchased offline, that have lower levels of formal information gathering prior to purchase or do not require significant customer support do not require a mega (huge) Website to satisfy a consumer’s need. While brands finding themselves in this category may attempt to create content appealing enough to entice users to their website, they not only run the risk of confusing the consumer regarding the focus of the brand, these brands will often obtain a greater impact on their bottom line with advertising and exclusive content sponsorships on adsupported content websites than with a colossal corporate website.
2. Consumers’ level of Website category use The consumers’ level of website category use demonstrates the percentage of online users that are currently seeking out brands in the company’s category through the Web. This metric sizes the percentage of its Web-enabled target market who have gone to its (or its competitor’s) website of their own volition.
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Based on MB44 interactive’s nationally representative “Interactive Consumer Network”, panel of Web users in the continental United States, the International Advertising Bureau finds that higher information complexity categories and categories that can be purchased online have, higher levels of website category use. Lower information complexity categories and those that cannot be purchased online, such as packaged goods, have lower levels of website use. While most brands could guess the level of website use for their category, it is prudent to validate the level and to measure change over time. The consumers’ level of website category use suggests the appropriateness of a website dedicated to the product or service. Some brands have built content websites that are related to the lifestyle needs of their consumers rather than focusing on the product or service. One example is Pepsi’s Web site (www.pepsiworld.com). The site is not about soft drinks; it is about entertainment and youth culture. An entertainment website is certainly more likely to attract users than one devoted to soft drinks. Brands wanting to enter the lower website with a view to duplicate Pepsi’s strategy, it should consider the following: •
How will it market its new media product?
•
Will its target audience perceive a branded destination content website produced
by its brand as credible? •
Can adequate resources be devoted over a long enough term for the strategy to
pay off? •
Will the publishing quality match the desired perception of brand quality?
•
Is direct development more economical than sponsored content?
•
Will the company get a better return on investment from pounds spent on website
development and maintenance than from Web advertising? What if the brand category has lower website use, but a profitable segment of its market is online? Lower website usage categories, such as packaged goods, can reap significant value from online communication marketing without a significant website investment.
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They can create value by focusing their online communication mix almost exclusively in: •
Web advertising
•
Exclusive long-term sponsorships
•
Similar brand communication strategies
They would leverage the power of the medium to proactively reach consumers and enhance the brand through advertising messages. A tightly focused website with extensive brand advertising may be the most effective communication mix.
In evaluating consumer level of website category use, it is prudent to consider whether category use data is consistent with the nature of the product. For instance, based on the table above, movie tickets currently have a lower level of website use by consumers. Perhaps some might believe that the nature of the product seems conducive to the Web. Web users might embrace the ability to find the closest theatre playing a specific movie. Immediate access to show times and location maps, combined with the ability to purchase tickets or reserve seating through the website might cause consumer’s level of website category use to increase. However, building a website with attractive content is not enough. Consumers have to know the service exists in order to use it. The Web is not a level playing field. Each website is more than a click away. Usage is separated by awareness (at least) and often a perceived need and preference for the service over competitive offerings. A direct marketing approach may not be sufficient to achieve marketing objectives. While some users may click on the banner so that they can “invest this way today,” the ad’s primary effect is likely to be enhancement of brand presence and perceived relevance in the minds of the consumers thereby creating long-term brand health. Finding the right mix among reactive website and proactive banner advertising investment is key to a brand’s online marketing success.
3. Legitimacy of personalised communication with the company’s target The nature of the product and consumer level of website category usage metrics help marketers determine the proper mix among proactive and reactive online marketing
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elements. When considering the dimension of personalised versus broadcast communication, it is important to bear in mind that consumers have finite time and can manage a finite number of relationships. A company could ask itself, why a consumer would want to have a relationship with its brand. Some marketers have side-stepped this question and answered, “We will require the consumer to give us their contact information - then we will have a relationship.”45 But a relationship is more than an e-mail or postal address in a database. Some brands lend themselves to relationships with consumers. Personal dialogue between a brand representative and the consumer is welcome and provides an advantage in some categories. For other brands, there is no perceived need for a relationship in the mind of the consumer and personal dialogue lacks credibility with the target market - and may even annoy them. This principle is captured in the direct marketing riddle that asks: “What is the difference between junk mail and personal mail?” Answer: personal interest. Some basic questions are: •
What is the personal interest (not gimmick) for the consumer?
•
What will a brand do for the consumer to justify the relationship?
•
Can the company maintain this relationship profitably?
Brands can communicate with different degrees of personalisation, ranging from pure personal communication (such as Auto-by-tel’s personal email response from a broker regarding the price and availability of an automobile that suits a consumer’s request)46 to segmented communication (such as CNN’s custom news service) to undifferentiated broadcast communication (the approach used by the majority of Websites). Unless the marketer will be creating genuine value for the consumer (and can do so profitably), the returns from sophisticated database and dynamic delivery tools may not justify the investment. The return on investment can and should be tested against the company’s economic objectives. Auto-by-tel can measure the
45
INTERNET ADVERTISING BUREAU (IAB, www.iab.com) and MILLWARD BROWN INTERACTIVE (www.mbinteractive.com), Online Advertising Effectiveness Study, 1997 [online], available from : http://www.mbinteractive.com/site/iab/exec.html, p 57 46 Auto-by-Tel is a leading Web-based auto marketplace where shoppers can access model and pricing information, including dealer invoice pricing and manufacturer rebate information on all new and used cars from 2,700 accredited dealers from across the United States.
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profit from selling cars with personalised response. CNN can measure the value from incremental exposure to advertising they sell as a result of the custom news offering. There are powerful tools that enable mass customisation of communication. The central questions relating to the deployment of these tools are: •
What value can be created for the customer?
•
What is the return on investment for the brand?
•
The company can then think through the question, “How should my brand use online for marketing?”
The company begins by listing its objectives, and subsequently develops a working hypothesis in terms of the appropriate mix of proactive and reactive communication, as well as the degree of personalisation. Coherent strategies and effective tactics must be built. Explanations are given in the IAB’s report, concerning the topic.
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The Internet: towards an interactive relationship Advertising and mass communications build an emotional and logic based relationship, database marketing, a knowledge based relationship, product experience builds an experimental sort of relationship, and maybe the Internet and Websites can build an interactive sort of relationship.
Traditional advertising's primary objective is to build brand awareness, that is, to distinguish a product from the crowd, to create an identity for a product, and form a relationship with the consumer. If a product has an identity for a consumer, that consumer is more likely to purchase that product than a competing brand. With so much advertising money poured into brand-building campaigns, Web publishers are eager to prove that the Web is an excellent medium for accomplishing this most basic of advertising goals. Although major brand advertisers like Procter & Gamble47 are testing Web advertising48, many analysts debate the branding value that current advertising models offer, especially in the case of banners, where some advertisers believe that there is only value in the users who click-through. Disputing this stance is the 1996 "HotWired Advertising Effectiveness Study", which determined that online advertising can build brand awareness. Despite the small size of banner ads, HotWired and Millward Brown International concluded that every ad impression contributes to brand awareness49.
Advertisers interested in brand building don't necessarily need users to click on their advertisements or visit their websites. They are more interested in users who simply remember their product. Brand building can be achieved through several ad models,
47
Tomkins R., Procter & Gamble is not alone in worrying about life after TV, The Financial Times, 28.08.98 48 ZEFF R. and ARONSON B., Running an Online Advertising Campaign, 1997. Available from: http://catalog.com/vivian/interest-group-search.html 49 INTERNET ADVERTISING BUREAU (IAB, www.iab.com) and MILLWARDBROWN INTERACTIVE (www.mbinteractive.com), Online Advertising Effectiveness Study, 1997 [online], fielded from June 1 to June 13, 1997,simultaneously across twelve leading Web sites: CNN, CompuServe, ESPN SportsZone, Excite, Geocities, HotWired, Looksmart, Lycos, MacWorld, National Geographic Online, Pathfinder (People), and Ziff-Davis. Available from: http://www.mbinteractive.com/site/iab/exec.html
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from sponsoring portions of websites to nesting advertising content within websites to interstitials. In short, branding focuses on affecting how a user thinks more than where the user clicks.
However, despite its considerable advantages in efficiently providing information and facilitating transactions, the Internet will not change the whole market in the foreseeable future for reasons that are economic, behavioural, and psychological. For instance, a single carton of milk will probably continue to be purchased at the nearest supermarket or convenience store because the distribution and transaction costs of such items are considerable as a proportion of the price paid. Of course, larger bundles of groceries may be amenable to Internet-based transactions. A plethora of research50 shows that many consumers view the shopping experience as a source of enjoyment and an opportunity for social interaction. For these consumers, the process of shopping adds value to the products and services they purchase and variety to their lives, and consequently they may never use the Internet for shopping. Other consumers may decide not to use the Internet in their shopping and purchasing activities for reasons that include lack of access, technophobia, and inertia. Still other consumers, will use Internet resources for certain aspects of purchasing while retaining conventional retailers for other aspects.
50
Robert A Peterson Sridhar Balasubramanian Bart J Bronnenberg, Exploring the implications of the Internet for consumer marketing, Academy of Marketing Science.Journal,Greenvale,Fall,1997,p11of17
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PART III Conclusion: Is there any interest for small and middle size businesses to advertise on the Internet?………………………………………………..……p 32
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Conclusion: Is there any interest for small and middle size businesses to advertise on the Internet? The exponential growth in online advertising revenue must, in some part, be proof that advertisers are increasingly willing to test out this medium. Moreover, advertisers in certain sectors, such as travel and financial services, are beginning to shift a significant percentage of their overall advertising budget to the Internet. Why? Because it works. How does it work? At best, it gives them the unique opportunity to take customers from being made aware of a product right through to enabling them to buy it -all within the same medium51. So, perhaps it is rather short-sighted to see the Internet as purely an advertising medium. In truth, it is one big marketplace, where advertising is simply the quickest way in to shops. In the UK, some 20 percent of the adult population now visits this market place at least once a month. If a company is not open for business online, many potential customers could go elsewhere to a competitor that offers an on-line service.
Yes, the Internet is an important yet uncertain medium for advertisers to consider as part of their marketing communications mix. Advertisers are the main decisionmakers in establishing a Web site and are faced with the task of developing and maintaining an Internet presence despite its uncertainty in contributing to the overall campaign. The Internet appears to be a necessary part of a marketing communications strategy even though its effectiveness is still undetermined.
Its implications are fascinating. With over 50 million users in the first five years of its existence and 15.2 million in the U.S. in 1997, the Internet is the fastest growing form of telecommunications in the 20th century52. It is competing against television for a place among the top forms of telecommunications. Creating £0.78 billion in commerce in 1996, the Internet looks poised to take the reins in the race for advertising dollars in the not-too-distant future53.
51
DOBRES C., IAB UK & Ireland, General Secretary, IAB Media Owners Portfolio 1999, issued from Campaigns, April 1999, p4 52 INTERNET ADVERTISING BUREAU, IAB, 1997, www.iab.com 53 Ibid.
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The ever-increasing penetration of the Internet is bringing a wider audience online, a process that is encouraging advertisers who had previously spurned the Internet, to look at it again. But Internet advertising growth becomes really apparent when making like-for-like comparisons between the same periods in each year. Revenue from Internet advertising in the first quarter of 1998 was 261 per cent higher than during the same period in the previous year54. The hike was almost as dramatic in the second quarter of 1998, showing a 200 per cent increase over 199755. Admittedly, these increases appear so great because revenue from Internet advertising was starting from a very low base, but they clearly indicate the way the wind is blowing.
The political power takes part in this tremendous evolution. The European Commission recently published a set of guidelines to encourage European SMEs56 on to the Internet and spell out the problems they face57. The EC is concerned that the potential of e-commerce is not being fully realised by the 17m SMEs in Europe. "E-commerce clearly has a great deal to offer SMEs but there are issues which will need to be resolved if this is to be achieved58." The report breaks down the issues into four broad areas: product information and marketing, trust and security, payment systems, copyright and consumer protection.
Although small and middle size businesses are helped by their government, the biggest changes come from the managers themselves, and from their own view towards the foreseeable. Thus, the success of Internet-based shopping programs depends on how well the programs are executed and promoted and the quantity and quality of competitive response. Even after a careful analysis of current conditions and trends, it is hard to predict the future growth of virtual shopping without making many questionable assumptions.
54
DOBRES C., IAB UK & Ireland, General Secretary, IAB Media Owners Portfolio 1999, issued from Campaigns, April 1999, p4 55 Ibid. 56 SMEs: Small and Middle Size Enterprises 57 NAIRN, G., European perspective: Wanted: buyers not surfers, Financial Times Information Technology, Internet Commerce, 02.09.98
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Which assumptions should be challenged? There is a long list of candidates: The catalogue is the best metaphor for electronic shopping, •
Internet retailers should compete on variety and price
•
Customers will not buy perishable products electronically
•
Virtual shopping is less entertaining than physical shopping,
•
Customers must search for information and make decisions before buying
•
People will not make impulse purchases on-line,
and so on59.
Rather than embracing new approaches on blind faith (with potentially ruinous consequences) or conducting large-scale tests that may turn into public embarrassments, firms can maximise their learning by testing several different approaches in small-scale experiments. By evaluating revolutionary ideas through an iterative process of prototyping, testing, and refinement, companies can successfully manage the risk of pioneering the future.
The great thing about the Internet is that it is in many respects the most accountable of all media. And as each month goes by, advertisers and their agencies are demanding greater amounts of data from media owners. Says BBH's Walmsley: "If I'm selling a product from my Website, I want to know if the people coming in from Yahoo! are five times more likely to buy it than people coming in from FT.com. I also want to know if the people coming from Yahoo! are spending more. This medium is only accountable if you put in place the systems and are prepared to insist on making it work."60The good sites that deliver the sorts of audiences advertisers want-and are willing to prove it- are emerging from the pack, showing that there is an interest, for small and medium size businesses to advertise on the Internet.
58
DOBRES C., IAB UK & Ireland, General Secretary, IAB Media Owners Portfolio 1999, issued from Campaigns, April 1999, p4 59 Burke R.R., Do you see what I see? The future of virtual shopping Academy of Marketing Science. Journal, Greenvale, Fall 1997 60 DOBRES C., IAB UK & Ireland, General Secretary, IAB Media Owners Portfolio 1999, issued from Campaigns, April 1999, p7
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PART IV Example of small business – Multimedia Production: visit my Website at:
http://members.xoom.com/jepelet
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USEFUL ADDRESSES
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Useful addresses
Building of a Website: cost www.hoh.co.uk/cost/index.htm Evaluation of a Website www.diversitycorps.com/insite.html DoubleClick Network offers a large selection of high-profile Websites http://www.doubleclick.net AdOne Classified Ad Network is a network specialising in classified ads http://wwwadone.com Link Exchange) is the largest with tens of thousands of sites in the network http://www.linkexchange.com Study of the advertising power on the Internet (interview with Cécile Moulard, chairman of Carat Multimédia – France) French http://www.actuamedia.fr The “Worldwild of the Advertising” site gives us a section concerning the measurements of the interactivity showing the different methods available to evaluate the frequenting of Internet Websites. French www.lapub.org/cybermedia/ Figures talking about the evolving of the Advertising on the Internet. From the CESP, French http://www.rol.fr/html/francais/audience/termin/termin.html. 2 000 banners!!! http://www.zaw.tm.fr Scientific American http://www.sciam.com/1297issue/1297cyber.html Advertising by using banners on your Website http://www.france.hyperbanner.net Advertising Rates, Guides, Site Selection, Co-operatives http://www.sisoftware.com http://www.eads.come/eads http://www.resource-marketing.com/banner.html http://www.resource-marketing.com/IBM http://www.swwwap.com/ 38
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http://www.imgis.com/ http://owq.com/wave/ http://www.ipgnet.com/bannerad/ http://www.jjj.com/webvert/ http://www.narrowcastmedia.com/ http://www.worldata.com/rcard.htm http://www.fwy.com/ http://www.focalink.com http://www.trafficresource.com http://www.webtrack.com http://www.netcreations.com/ipa/adindex.com http://www.directrix.com http://www.linkexchange.com http://www.intermotion.com/parade/bannermenu.htm http://www.delph.sponsor.net/auction http://www.cris.com/-raydaly/sponsors.shtml http://www.envision.net/marketing/inet/inetdata.1.html http://www.commonwealth.riddler.com http://www.sandbox.net http://www.avenue.com/about/ads.html http://www.srds.com http://www.ca-probate.com/comm-net.htm Advertising Information Resources http://www.utexas.edu/co/adv/world/ http://www.telmar.com/ http://www.admarket.com/ http://www.amic.com/amic-meme/research/hits.html http://www.adage.com/iMM/ http://www.interbiznet.com/ibn.nomad.html http://www.sjmercury.com/help/advertise.html http://www.nytimes.com/library/cyber/week/0526measure.html
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Web Usage Statistics, Demographics, and Research http://www.nielsenmedia.com/commercenet/ http://www.mit.edu/people/mkgray/growth http://www.interlog.com/-bxi/size.htm http://www.demographics.com/ http://www.npd.com/todsp.htm General Internet Information for Advertising, PR, and Marketing http://www.bnet.att.com http://www.mediacentral.com http://www.portfolios.com http://www.wilsonweb.com/webmarket/
Legal http://www.eff.org/pub/legal/
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APPENDICES Appendix 1 - Banners…………………………...……………………………..p 41 Appendix 2: UK audience………………………………………………..…..p 43
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Appendix 1
The different sizes of banners (according to the Internet Advertising Bureau) Unit used: the pixel Micro button, surface: 2728 pixels
Button #1, surface: 10 800 pixels
Button #2, surface: 7 200 pixels
Vertical banner, surface: 28 800 pixels
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Square button, surface: 15 625 pixels
Half banner, surface: 14 040 pixels
Full banner with vertical navigation bar, surface: 28 224 pixels
Full banner, surface: 28 080 pixels
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Appendix 2
UK audience Source: DOBRES C., IAB UK & Ireland, General Secretary, IAB Media Owners Portfolio 1999, issued from Campaigns, April 1999,p5. Research carried out by Fletcher Research at the end of 1998.
Breakdown of UK Internet users/UK population 90 80 70 60 50 40 30 20 10 0
ABC1 C2 DE
All UK Web users
All UK
Source: PriceWaterhousecoopers/IAB Total Internet advertising revenues on UK sites in 1997/1998, by quarter
Source: PriceWaterhousecoopers/IAB
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GLOSSARY
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Glossary
Agent A software program that automatically executes a prescribed task, based on personal or static information. American standard Code for Information Interchange (ASCII) A protocol for pure text.
Anonymous A user login name used to get access to most FTP sites.
Archie A UNIX program for finding files on the Internet. ARPANET Advanced Research Project Agency’s Network; the network created by the U.S. Department of Defence Advanced Research Project (DARPA); the network from which the Internet arose.
Asynchronous An event that is time-independent. Asynchronous Transfer Mode (ATM) A cutting-edge protocol for transmitting data at very fast speeds. ATM is probably the only protocol that will enable entire movies to be transported over wires. AVI A file format for storing compressed movies.
Bandwidth The amount of information that can be transmitted at one time through a communications channel at one time (seconds).
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Baud The number of bits that lets you access files and the content of files, and also provides for navigation between files.
Browser A program that lets you access files and the content of files, and also provides for navigation between files.
Bulletin Board (BBS) An older system that allows users to call and interact with each other. Similar to the Internet, but on much smaller scale.
C,C++ A computer language to develop computer software. Cache The act of storing a remote document locally in order to increase access speed on repeated requests. CD-ROM An information storage medium for storing large volumes of information from 640 megabytes (MB) to 1.2 gigabytes (GB). Central Processing Unit (CPU) The brains of computer.
CERN The European Particle Physics Laboratory in Geneva, Switzerland. The group that invented the World Wide Web (WWW).
CERT The computer Emergency Response Team to whom you should report security breaches.
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Cgi-Bin Custom programs that may be used to extend the Web and make it interactive. Clickthroughs or Cost Per Click or Cost Per Click Through The number of times that people who see a banner ad on the Web, click on it and end up at the advertiser’s Website Client Sometimes used to refer to a browser and at other times a computer contacting to a server or host. Clip Art Ready-made artwork; useful in creating Web pages.
Computer Professionals for Social Responsibility (CSPR) An organisation concerned with the ethical use of computers.
Connection When considering a company to place your promotional information online via your Website, this company must have your Website, this company must have a dedicated T1 Internet connection. It is like having more than one hundred phone lines. Cookies The data entered by any individuals using the Net (when a shopper chooses goods for example) are stored on the browser or client end, until the session be complete. This stored data is referred to as a ‘cookie’. CPM An Advertising Primer Web advertising is typically sold on a "Cost Per Thousand Impressions" basis or CPM. An Impression (also referred to as an "Exposure" or "Page View") occurs when a visitor to a Website views a Webpage where an ad is displayed, whether the ad is seen or not. Whenever a page is “served" to your computer screen, measurement software counts the “impression".
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Cracker Someone who breaks into computer systems. Crawler A program that moves along the Web looking for URLs or other information; a type of intelligent agent. Cyberpublicity The promotion of a Website address to other sites, directories, newsgroup, etc., to increase qualified traffic to the Website being cyberpublicized. Cyberspace A term for immersible virtual reality; sometimes used to denote the Internet. Database A collection of organised searchable data.
Decryption The act of making a secure file readable.
Digital Signature A secure mechanism to verify the identity of an individual. Domain Name The name of a computer system on the Internet. Each computer system has a unique domain name. Domain Name Server (DNS) A system that resolves an Internet Protocol (IP) address to a domain name.
Element A basic HTML command, such as < title >, which indicates the beginning of a title.
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Electronic Frontier Foundation An organisation of people concerned with the legal rights of computer users. Most current laws do not specifically apply to electronic communications.
Electronic Mail (e-mail) Personal messages sent between users of the Internet. E-mail Discussion Groups Users with similar interests who "converse" through e-mail Newsletters. Encryption The method of making a readable file secure.
Eudora The most widely used e-mail program on the Internet. It is easy to use and runs on multiple platforms.
File Transfer Protocol (FTP) Software that transfers files to and from remote computers.
Finger A program that identifies a user. Firewall A security measure that helps to limit pirate attacks.
Flaming An expression of displeasure at another user.
Frequently Asked Questions (FAQs) A list of helpful suggestions and answers to questions on various topics.
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Gopher A menu oriented FTP-type program that does not allow the use of pictures, links or other advanced www features. Graphic Interchange Format (GIF) A file format for images developed by CompuServe. Graphical User Interface (GUI) A graphical system for interaction with the screen using at least the mouse and the keyboard. Hacker Someone who is good at computers. A computer guru.
Home Page The first page of any Website on the Internet www.
Host A computer system that may be contacted by other computer systems. Hot List A list of user’s favourite sites on the Web. HyperText Mark-up Language (HTML) The language of the www which formats documents to look presentable. HTML is a subset of Standard Generalised Mark-up Language (SGML).
HyperText Transport Protocol (HTTP) The protocol for the www which allows text, image, audio, and video to be combined into a single document. HTTP also allows the linking of documents and documents components. HyperText Transfer Protocol Daemon (HTTPD) The www server software responsible for handling www requests.
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Hyperlink An HTML element that, when clicked, allows people to move to other documents, images, sounds, movies, or other elements.
Hypertext The method of organising documents, collecting documents, or components of documents for navigation.
Icon A small image representing a function or action. For example, a small picture of a stop sign to indicate the way to stop a program.
Inline Image An image appearing to be apart from the document it is with. Integrated services Digital Network (ISDN) A technology that offers six times the performance of the fastest modems, and beyond. ISDN can be used by both individuals and corporations. Intelligent Agent A program that performs intelligent functions automatically without manual user input. It can search for information, deliver information or respond to information. Interactive A method of allowing users to change the course of events based on their own decisions with regard to the rules of whatever they are interacting with. Internet The term for the world-wide network of computers and users.
Internet Network Information Centre (InterNIC) The organisation, which through a National Science Foundation (NSF) award, is responsible for providing information to the public about the Internet.
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Internet Protocol (IP) A method for handling the actual transmission of data over the Internet.
Internet Protocol Address (IP Address) A numerical address composed of four elements that uniquely identify a computer on the network.
Internet Relay Chat (IRC) A real-time talk forum. Internet Society (ISOC) An organisation that seeks to encourage the use and evolution of the Internet, and provides educational materials and a forum for discussion on the Internet. Interstitial Ad that pops up while pages are downloading. JPEG A file format for compressed images.
Lag The amount of time in between actions. Listserver A program that automatically dispatches outgoing on e-mail based on incoming email. Local Area Network (LAN) Local networks consisting of a few computers networked together. Login The act of accessing a remote computer.
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Login Name A word of series of characters users need along with a password to enter into a computer system.
Multipurpose Internet Mail Extensions (MIME) An Internet standard for transmitting audio, video, or still images by e-mail. MILNET The original part of the ARPANET currently used by the military. It was renamed when ARPANET split. Modem Refers to modulator-demodulator. A piece of hardware that connects to a computer which enables digital communication to a computer network. Mosaic The name of the original browser from the National Centre for Supercomputing Applications (NCSA) for accessing the Web. The first browser software for the WWW.
Mouse An input device used by one hand with choice entered by pushing buttons. MPEG A file format used for compressed movies.
Multiple Platforms Refers to the variety of computers platforms such as PC, Macintosh, workstations, etc. A software program that runs just on one type of computer.
National Centre for Supercomputing Applications (NSCA) The developers of the Mosaic software.
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NetComplete An integrated software program that offers a WWW browser, FTP, e-mail, IRC, and connection to the Internet.
Netiquette The unwritten rules of etiquette on the Internet. NetNews A forum for Internet news groups where all messages written by users are displayed as threaded list of messages. Netscape The popular WWW browser that currently offers many cutting edge HTML features. Newsletters Electronic versions of the common print format produced by an individual, group, organisation, or company and e-mailed to subscribers. Password A secret word or series of characters used to enter a computer system or software program. Phrack Someone who breaks into phone and computer systems.
Phreack Someone who breaks into just phone systems. Pirate A software pirate; someone who steals computer programs and usually sells or gives them away. Proxy A method for hiding databases by rerouting requests. 55
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Public Domain Software that is free. Robot An automatic program that will search for and retrieve information for the user. Serial Line Interface Protocol or Point to Point Protocol (SLIP/PPP) Currently the quickest and most powerful method to access the Internet with a modem. Server A software program or hardware that deserves data. It is a very powerful computer that is connected to the Internet. It needs to be powerful because thousands of people are connecting to it daily, retrieving information, and asking the computer to perform certain tasks.
Shareware Software that is openly available but is not free. Snail Mail A term being used to refer to traditional mail systems, such as the postal system, Federal Express, UPS, etc. Federal Express cannot, for example, guarantee delivery in less than sixty seconds. Standard Generalised Mark-up Language (SGML) The original mark-up language defined by the U.S. government for organising documents in hypertext format. Subscription Services A Website that requires users to log in. Surf To use the Internet and WWW.
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System Operator (SYSOP) The system operator of a computer system responsible for the day-to(day operations. T1 A physical connection that provides high-speed Internet connection that is more than a hundred times more powerful than a 14.4K modem connection. T3 A physical connection that provides even more powerful connection than a T1. A T3 connection is twenty-eight T1 lines. Telnet A software program that lets you log into remote computers. Throughput The amount of data transmitted through the Internet for a given request.
Transmission Control Protocol/ Internet Protocol (TCP/IP) The protocol for peer-to-peer communications and packet switching on the Internet.
URL (Universal Resource Locator ) The means of identifying a home page on the Web. Viewer An adjunct program that handles non-standard data.
Virtual Something that exists only in the electronic medium, such as a computer.
Virus A program that infects other programs and computers resulting in some sort of malfunctions.
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Wide Area Information Server (WAIS) A distributed information retrieval system. Warez Stolen software. Warez Site A place on a computer where stolen software can be found. Quite often placed surreptitiously on legitimate computer systems by pirates. WAV Popular file format use for audio files.
World Wide Web (WWW), “Web” An organisation of files on the Internet.
Wrapper A program that helps improve security by watching user access systems. 1
V.A. SHIVA A, The Internet Publicity Guide, How to maximise your marketing and promotion in
cyberspace, Allworh Press, New-York, 1997, p 191-196
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BIBLIOGRAPHY
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Bibliography Books BARRETT Neil, Advertising on the Internet, How to get your message across on the World Wide Web, Kogan Page, 1997 COMPUTER TECHNOLOGY RESEARCH CORPORATION, Electronic Commerce: The new business platform for the Internet,1997, first Ed.
O’CONNOR.J., GALVIN.E., Marketing and Information Technology, The Strategy, Application and Implementation of IT in Marketing, Pitman Publishing, London, 1997 V.A. SHIVA A, The Internet Publicity Guide, How to maximise your marketing and promotion in cyberspace, Allworh Press, New-York, 1997 Journals Authors: Anonymous, Internet advertising success stories, Mediaweek, Brewster, 05.05.97 Authors: Anonymous, The Internet – advertising’s future?, Best’s Review, Oldwick, 09.98 Burke R.R., Do you see what I see? The future of virtual shopping Academy of Marketing Science. Journal, Greenvale, Fall 1997 BUSH Alan J, BUSH Victoria, HARRIS Sharon, Advertiser perceptions of the Internet as a marketing communications tool, Journal of Advertising Research, New-York, Mar/Apr 1998 Robert A Peterson Sridhar Balasubramanian Bart J Bronnenberg, Exploring the implications of the Internet for consumer marketing, Academy of Marketing Science. Journal, Greenvale, Fall, 1997 Magazines DOBRES C., IAB UK & Ireland, General Secretary, IAB Media Owners Portfolio 1999, issued from Campaigns, April 1999 LAMBETH J., Business fails to make net profit, Computer Weekly, 18.07.1996 Newspapers HEWSON, D. You will drop before you shop on the Net, Sunday Times, 16.06.1996 MANCHESTER P., Bandwidth gap needs bridging, Financial Times, 03.10.1995 NAIRN, G., European perspective: Wanted: buyers not surfers, Financial Times Information Technology, Internet Commerce, 02.09.98 TOMKINS R., Procter & Gamble is not alone in worrying about life after TV, Financial Times, 28.08.98
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Online ADRESOURCE – WEB AD RESOURCES Web Advertising Terminology, Traffic, Statistics and Usage, available from: http://www.sisoftware.com/html/advertising_terminology.html ALTA VISTA SYSTEM RESEARCH CENTER (Digital). Report available from: http://www.research.digital.com/SRC/whatsnew/sem.html INTERNET ADVERTISING BUREAU (IAB, www.iab.com) and MILLWARDBROWN INTERACTIVE (www.mbinteractive.com), Online Advertising Effectiveness Study, 1997 [online], fielded from June 1 to June 13, 1997,simultaneously across twelve leading Web sites: CNN, CompuServe, ESPN SportsZone, Excite, Geocities, HotWired, Looksmart, Lycos, MacWorld, National Geographic Online, Pathfinder (People), and Ziff-Davis. Available from: http://www.mbinteractive.com/site/iab/exec.html MARGHERIO.L.(Project director), The emerging Digital Economy [online]. The Secretariat on electronic Commerce, U.S. Department of Commerce, Washington, USA, 15.04.98. Introduction. Available from: http://www.ecommerce.gov/emerging.htm NET-INTELIGENCE, figures available from: http://www.net-intelligence.com/Demographics.htm ZEFF R. and ARONSON B., Running an Online Advertising Campaign, 1997. Available from: http://catalog.com/vivian/interest-group-search.html Report Insurance Technology Report, Net not ready for transactions, June 1996
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