Chapter 6 E-commerce Marketing and Advertising Concepts
1. Pay a visit to your favorite portal and count the total of ads on the opening page. Count how many of these ads are (a) immediately of interest and relevant to you, (b) sort of interesting or relevant but not now, and (c) not interesting or relevant. Do this 10 times and calculate the percentage of the three kinds of situations. Describe what you find and explain the results using this case.
I normally used Google, but it does not have any ads so I tried Yahoo. I assume that since I never use it the ads I have seen are kind of “randomly” selected. I have visited the main site a couple times and most of the ads were located in the c category; only a couple of them, products that I have previously search on Amazon (5), were located in the category (b).
2. Advertisers use different kinds of “profiles” in the decision to displays ads to customers. Identify the different kinds of profiles described in this case, and explain why they are relevant to online display advertising.
Trade-off between privacy and efficiency, display products that the consumer wants; expanding the scope, breadth, and depth of personal information, targeting based on the behavior of the customer; tracking cookies/number, captures what people is searching; data exchange firm, targeting personification, the advertisers choose who to show their ads; banner ads based on granular vision, ads based on cookies; tracking process to individual-level behavior, evaluates individual in real time.
They are relevant because depending of the clients the advertisers want to reach; it would choose the most effective method to reach them.
3. How can display ads achieve search-engine-like results?
They can be successful because tracking what these potential clients are interested in, can give enough information in order to know who can be a potential customer and who not in order to focus on the potential buyers.
4. Do you think instant display ads based on your immediately prior clickstream will be as effective as search engine marketing techniques? Why or why not?
Sometimes they will. Let’s say I visit a clothing brand for women because I am thinking about buying something for a girlfriend, my mom, or my sister, it would not make sense to me if I start seeing ads about women clothing all time. However, it can be a powerful web of advertising on regular basis since during long periods of time some sort of website will be more visited by the customer and it would provide a closer profile of the client.
1. Is growth of the Internet, in term of users, expected to continue indefinitely? What, if anything, will cause it to slow?
Internet users increase every year, but eventually most of the population will have access to it, so the increments will be smaller.
5. What are some of the changes that Google has made to its search engine algorithms to improve search results and user experience?
Mobile-Friendly, if the page that you are trying to find does not show up on your mobile device, it might be because it does not offer a mobile-friendly interface.
10. What pricing strategy turned out to be deadly for many e-commerce ventures during the early days of e-commerce? Why?
Free services. They though it would bring enough customers, which would be willing to pay a premium fee in the future but the outcome did not work out. Instead customers jumped to different options, and even though they had a big number of consumers during the time, they did not find the way to make it profitable.
15. What are some reasons why online advertising still constitutes only about 28% of the total advertising market?
The TV industry stills being an important industry that counts will millions of daily users. For that reason, businesses keep investment on it, plus some people still watching more TV and shopping at the physical location, than online content and online shopping.
20. What are Web analytics and how are they used?
Web analytics are different software that measure, collect, and report web data with the objective of understanding and optimizing the web site. Web analytics are being used to track information of the customers and predict future purchasing and behavioral acts.
6. Visit Facebook and examine the ads shown in the right margin. What is being advertised and how do you believe it is relevant to your interests or online behavior? You could also search on retail product on Google several times, and related products, then visit Yahoo or another popular site to see if your past behavior is helping advertisers track you.
The ads located in the right margin on Facebook when I opened it were related to sports events and providers of the events, and sport clothing companies; last night I was reading a sports newspaper related with the game that was being advertised. You can determine that these companies have tracked my web searches or have access to them, in fact, when I search some products on Amazon or Craigslist, the next web page I visit is normally full of the kind of products I was searching a minute before.