Lei Shi

ITS 380

Chapter 6


Case Study Questions

1.      Pay a visit to your favorite portal and count the total 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

www.franchiseindia.com is a very good web portal. On its opening page there are 66 ads. It is a very good portal for young entrepreneurs. An entrepreneur struggling with fund availability, the ads on this portal can be categorized as below: (a) 35 (53%)  (b) 18 (27%)  (c) 13 (20%).  This portal is using instant ads very efficiently. It just tells the entrepreneur the target market and the business details. There is a team of experts to help him to ensure the best utilization of his resources.


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

Profiles are built by recording of behavior of consumers online, and gathering information about their interests, age, gender, location, preferences, etc. This makes it possible for advertisers to choose from a very large list of profiles, to determine the relevance and target the specified profiles.


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

Search ads work well because they capture the interest of people at every instance of searching, and displays ads relevant to those searches. Display ads can have the same results as search ads if they are used through behavioral profiles, which is when information about the sites you visited and what products and services you have looked at is constructed.


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?

Search engine marketing promotes websites by increasing their visibility and position in search result pages. For this search engines analyses most popular key words or phrases of internet searches world over. Ads based on immediate prior click stream use web browsing behavior on a computer for some specified period of time.





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

Although the number of new online users increased at a rate of 30% a year or higher in the early 2000s, over the last several years, the growth rate has slowed to about 2%-3% a year in the United States. The cause of the slowing growth is the saturated market. Almost 75% of all households in the United States have access to the Internet. As this number steadily increases, the total growth in the number of users will tapper out


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

Google adds a lot of results in their search for mobile users, and continually updated their software to improve search engine results and improve user’s experience.

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

The pricing strategy that turned out to be deadly for many e-commerce firms in the early days of e-commerce was a low price leader strategy, which even resulted in “free” pricing. The idea was to attract enough eyeballs with free goods and services to amass a large, committed audience.

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

      There are a lot of types of online ads such as computers, consumer, financial services, media accounts account for the majority.

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

Web analytics is the measurement, collection, analysis and reporting of web data for purposes of understanding and optimizing web usage. Web analytics is often used as part of customer relationship management analytics.




6.      Visit your Facebook page and examine the ads shown in the right margin. What is being advertised and how do you believe it is relevant to your interest or online behavior? You could also search on a retail product on Google several times, and related products, then visit Yahoo o another popular site to see if your past behavior is helping advertisers trach you.

The ads that are on Facebook page are quiet relevant to my preferences. The advertisements started popping up recently after I searched for them on Google. I recently purchased a projector on Amazon and new products related to electronics category started showing up on my News feed.