Thao Le

ITS 380

Professor Shin-Ping Tucker

10/18/2019

Chapter 6: E-commerce Marketing and Advertising Concepts

Case study

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 these 10 times and calculate the percentage of the three kinds of situations. Describe what you find and explain the results using this case.

 

Opening page visits

1st

2nd

3rd

4th

5th

6th

7th

8th

9th

10th

Percentage calculated

Immediately of interest

2

1

0

3

3

2

4

3

2

4

48%

Sort of interesting

2

3

2

2

1

2

1

2

2

1

36%

Not interesting

1

1

3

0

1

1

0

0

1

0

16%

 

YouTube is the website that I visit every day for entertainment. Based on the ads which show up while I am using this web, there are 48% of immediately of interest and relevant to my favorite, 36% of sort of interesting or relevant and 16% of ads which is not interesting or relevant to me.

Most of the advertisements shown on YouTube's main page as well as a pop-up while I am watching videos are ads of different companies such as US banks, Walmart, Amazon or other local detailers that I usually search on Google or Facebook.

The percentages that I calculated obviously show that the majority were ads that are interesting or relevant and they really catch my attention. Sometimes, I feel so surprising why they can know I like that kind of goods.  A few are not related to my favorite so I just ignore them.

 

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.

Advertising through online display is considered as the most effective method of advertising in the technology era like today. Advertisement in the past was done through different offline channels which reached the masses in common, whether they are the target customers or not. This might be costly and caught less attention from the customers. So, the customers who extremely need the product that is advertised would be left from reaching and promoting the product to. Hence now profiles are used by ads giants such as Facebook, Google, and YouTube for making the ads displayed to the right customers at the right time with their right needs based on their age, interests, gender, location, preferences, and behaviors. Profiling is a method of displaying ads on banners on the user window of products that interests the customers. Profiling can be of several kinds based on the behavior of the customer online and the preferences based on his search engines and information through other sources. Advertiser gathers your personal information such as online shopping behavior, interest, age, recent search through cookie. These profiles help to reach the right customer. Therefore, profiles help both the customers and the sellers for creating a market and buying and selling the right product.

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

What consumers are searching are likely what they are seeking. Therefore, search engine works well to capture customers’ need and pop up an ads that suits their search. If display ads can understand customers through analyzing gathered personal information, it would be as effective as search engine is.

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?

I do not really think instant display ads based on my immediately prior clickstream will be as effective as search engine marketing techniques because if you unintentionally visit a site that you did not need to, showing an advertisement right related to that website right after that might not interest you at all. Therefore, had advertiser measured the time spent on a certain website, the data collected would be more valuable since the more time someone spends at a website, the more likely that is the product he/she is interested in. In this case, the ad-sale conversion rate would be much higher.

Project

1.     Surf the Web for at least 15 minutes. Visit at least two different e-commerce sites. Make a list describing in detail all the different marketing communication tools you see being used. Which do you believe is the most effective and why?

 

The two sites I choose to visit were Facebook and Amazon. There are a lot of different marketing communication tools that are used.

-    Media Advertising:

Both Amazon and Facebook also use media advertising extensively in order to communicate and send their marketing message to their customers. For example, Amazon TV ads use a video clip featuring former Top Gear host Jeremy Clarkson promoting Amazon Fire TV, a promotion deal reported costing Amazon GBP 160 million.

-    Seasonal sales promotions:

Amazon announces seasonal sales promotions during holidays through its website, newspaper, magazine, emails or flyers.

-    Coupon: Amazon Prime members can use exclusive money off coupons from their favorite brands.

-    Other sale promotion: product demonstrations, contests, displays, free samples; buy one/get one free.

-    Businesses use Facebook page as advertising for their products. For example. share social media images, links, videos, anything, as long as it is connected to the business and it seems like something target audiences would enjoy.

In my opinion, media advertising is the most effective marketing communication tools that both Facebook and Amazon are taking advantages of it. Because, in fact, that today nobody is attracted by flyers in the mailbox or through reading newspapers. Using social media and shopping online is becoming a habit every day. The number of people use a smartphone are increasing day by day. There is no doubt that media advertising includes video, pictures online are catching the attention of customers. Furthermore, using hot influencers is becoming more popular like a way to attract consumers. 

2.     Visit Facebook and examine the ads shown in the right margin and in your News Feed. What is being advertised and how do you believe it is relevant to your interests or online behavior? You could also search on a 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.

 

Every time I visited Facebook, I will encounter a lot of ads related to an item I shopped or searched online. This means that advertisers and commercial website tried to benefit each other. The advertiser pays the company for showing its product on the website, plus other related items in order to generate more revenue of people’s curiosity and their need for online shopping. So, a company like Facebook tracking people data is not an abnormal thing. It received money from the advertiser and tracking people activity on the internet to find out what product people want to buy. Then use it to start generates items that are related so people want to think about it. This tactic is a very smart idea of combining online social media with selling products, this is why Facebook earns a lot of cash out of people’s behavior in online shopping.