Chapter 6

Case Study:

1.  Pay a visit to your favorite portal and count the total ads on the opening page.

Went to Google

visits

a) immediate interest

b) sort of interesting

c) not interesting

1

0

0

0

2

2

0

0

3

3

1

0

4

3

2

1

5

0

0

0

6

2

2

0

7

6

0

0

8

7

0

0

9

6

0

0

10

3

0

0

Out of the 38 ads on 10 visits:  97.4% fell in the 2 interest group with 84% in the immediate interest category.  I searched for orange, fruit and dwarf fruit trees in containers.  A few company had ads in 4 or more searches.  This shows they are quite efficient in their ad program and is more directly related to the subject. And I did not clear my cookies.

2.  Advertisers use different kinds of “profiles” in the decision to display ads to customer.  Identify the different kinds of profiles described in this case, and explain why they are relevant to online display advertising.

When advertisers profile people, they gather information on their interest by relevancy of the categories.  For example their age, location and interest and etc.  They could target their online display for sites that the target group would visit.  A video game company would probably target online game sites.

3.  How can display ads achieve search-engine-like results?

Display ads could achieve search-engine like results if they profile the people by their searches and purchases from the sites they visit.  They could display ads that are relevant to the search subjects.

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?

It depends because if you are hopping around from subject to subject then the ads would not be relevant to the current screen.  However, you would get ads of interest from your previous visits.  For instance if you went from movies site to a car site, then you get ads from a previous site, which might be ok since you were interested in prior subject anyway.  So it may be just as effective, just on a delay basis.

Questions:

1.  Is growth of the Internet, in terms of users, expected to continue indefinitely? What, if anything, will cause it to slow?

In the United States almost 75% of all household have Internet access and the growth has slowed down to almost 2% a year.  The slowing rate is due to those who use the Internet probably already has one and a majority of the population is already connected.

5.  What are some of the changes that Google has made to its search engine algorithms to improve search results and user experience?

They introduced Hummingbird to try to evaluate an entire sentence.   Latest is Mobilegeddon that ranks mobile-friendliness of Web sites.  Rank higher sites that optimizes for mobile use and lowers site that are less mobile friendly.

10.  What pricing strategy turned out to be deadly for many e-commerce ventures during the early day of e-commerce? Why?

They were pricing their products far below their marginal cost and some were losing money.  There were also giving away free products and services in hopes of attracting a large number of consumers, then the company could charge advertisers enough money for a profit.  Also trying to get customers to buy premium from their free product or services, which did not end with great success.

15.  What are some reasons why online advertising still constitutes only about 28% of the total advertising market?

Firms are concerned about the cost and benefits of online advertising and on the accuracy of the results measured.

20.  What are Web analytics and how are they used?

It is tracking and viewing the behavior of consumers across myriad devices and media channels.  Its purpose is to convert shoppers into customers who purchase what you sell.

 

Projects:

#7

Facebook advertising on the right margin based on my husband’s page showed a challenge coin and smartphone repair ads.  One is relevant based on his page but the smartphone repair is not relevant since he does not view Facebook on his phone.   However it is interesting because the company is in Duluth. So its relevant based on location.