This report is intended to gain

an insight into Internet Advertising and Online Advertising Strategy. This

report, even though old, was originally published by the research department

at Morgan Stanley Dean Witter Equity Research, however, its content was

never indexed by Google, meaning you could not find it by doing a search

in Google

under

Internet Advertising or under any keywords. This time we hope that the

great content of this report can get a chance

to get indexed by Google so everyone can benefit from its great content.

The debate as to how successful

Internet advertising is consists of two separate issues: branding

vs. selling and impressions vs. performance.

Is Internet advertising capable of branding? Yes, and here is why:

Internet ads are relatively

simple to create. Even rich media banner ads are still simple for most

programmers to create. Yet even the most simple

banner ad is a tool for creating brand awareness. Internet ads are relatively

inexpensive to develop. Not only are banners much less expensive to create

than television or radio ads, but they

even put direct mail to shame; and then there is the low cost of e-mail compared

with traditional mail. Jupiter Communications estimates that a direct marketing

campaign on e-mail costs about $0.01–0.25 per piece, versus $1.00–2.00

using traditional mail. Internet advertising is easy to update as conditions

change. Internet advertising is easier and faster to test. A wide variety

of creative content can be tested in matched cell tests so as to come up

with the most effective approach as quickly as possible. Internet advertising

promises real-time interaction with consumers.

Not only are customers developing

brand awareness from Internet advertising,

but they are also able to link directly to the seller’s Web site and

purchase a product. Internet advertising can compress the sales cycle into

one interaction with the customer (information gathering, further research,

company contact, and sale). No other medium can boast this kind of customer

interaction. Payment for Performance and Impressions Advertisers on Internet

are pushing for more quantifiable results. Cost-per-click, cost-per-lead,

and cost-per sale are different ways of quantifying results, and advertisers

are pushing Web publishers to use more performance based pricing. Web publishers

retort that they don’t control the creative content, nor what happens

once the consumer clicks on the ad and is taken to the advertiser’s

site. For this reason, Web publishers prefer to be paid on the basis of impressions

(cost per thousand impressions, or CPM, is the most common such technique).

Even if consumers don’t click on an ad, publishers argue, branding

is occurring and the site should be compensated.

In addition, Internet allows

for targeting by individual browser as well

as by context or demographic. Internet is able to target specific

messages to individual browsers or e-mail accounts. It can also work like

other media

that narrow cast contextually to households in particular demographics.

Internet allows advertisers to access valuable background information

on

consumers through the use of cookies, click stream tracking, domain

name recognition, and other means. The three major actions performed

online: research, browsing, and purchasing all leave behind

electronic trails of demonstrated interests that are incredibly

valuable to advertisers.

Internet produces a transactional database. By collapsing the ordering,

billing and payment cycle into an integrated process, Internet improves

payment and lowers cost while maintaining an updated transactional database.

Early data indicate that Internet may prove to be more effective than

traditional media in direct response advertising. Proof of such effectiveness

may result in upward pressure on Internet advertising pricing and downward

pressure on traditional mass market advertising pricing.

Be Aware of The Falling

Click-Through Rate; Consumers who were once “surfers” are

evolving into “searchers.”

As happened to the catalog industry,

Internet advertising market is suffering a severe decline in responsiveness.

The first banners

were displayed in 1994, and received a click-through rate of about 10%. From

there, it has been all downhill; CTRs fell to 2–3% in 1996–97.

1998 saw CTRs reach 1%, and as of today they have fallen even further; we

estimate today’s CTRs to be in the 0.4% area. However, the best banners

still garner CTRs over 10%, sometimes reaching over 15%. Meanwhile, we still

do not have an effective measure of “click-through rates” for

other media, although companies like Wink Communications will give some insight

into the CTR for television commercials soon.

The reasons for the falling

click-through rates are relatively simple. Internet users are becoming more

discriminating. They are also generally not using Internet as entertainment

(like most TV, the easiest comparable), but rather as a tool to gather

information, communicate, etc. Taking time out from whatever task

is being pursued to click on an ad is the exception, not part of the typical

user’s game

plan. The

newness of the Web has also worn off, causing consumers to be less fascinated

by advertising.

Television is the most similar media in appearance to Internet, and

as such, comparisons are inevitable. However, if one compares the creativity,

action, audio, and excitement of a television ad with those of an Internet

ad, there is no comparison. Current Internet ads may be boring to some, but

the emergence of more active video and sound will make them more appealing

(and interruptive?). The smart marketers are really not paying much

attention to click-throughs anymore … CTRs are a misapplication

of the accountability of the Net. Just because you can count click-throughs

doesn’t

mean it’s the right thing to count. Several studies have shown

that a high click-through rate is not necessarily a sign of a high conversion

(or sales) ratio.

In fact, the correlation between click-throughs and sales is loose at best.

AdKnowledge reports that the campaigns generating the highest click-throughs

generate the most conversions only 14.3% of the time. That means that 85.7%

of the time, the campaign generating the highest CTR generated a lower conversion

rate than other campaigns with lower CTRs. Clearly, click-through rates are

a poor measure of sales and thus performance. Studies have shown that a high

click through rate is not necessarily a sign of a high conversion or sales

ratio. CPMs: The Rate Card Impressions, which are so important in the offline

world (particularly when used in calculating the CPM), are difficult to quantify

on the Web.

Television and radio

are intended to entertain consumers. In contrast, Internet is used for

a mixture of business and personal communication,

research,

and entertainment purposes. This will likely impact how receptive consumers

are to Internet advertising. Compared with traditional media, Internet

has a very small level of advertising content. Newspapers are traditionally

62% advertising and 38% content. Magazines are 52% advertising and 48% content.

Television is about 25% advertising and 75% content. At 9% advertising

and 91% content, according to eStats, Internet currently has a lower

percentage

of ads than all of these traditional media. The free ISP model may

change Internet’s ad/editorial breakdown for many users. By our rough

calculations, when a free ISP’s continuous banner/toolbar is displayed

on a user’s screen, the ad content could increase to about 20%.

Internet is now more like broadcast television than cable television

in its lack of subscription revenue for programmers, as search engines

sprang up, allowing users to better navigate the Web. Because nearly

everyone was lost in cyberspace, nearly everyone used search engines. Now, instead

of focusing on niche content sites, advertisers could obtain a broad reach

by placing ads on search engine sites.

Advertisers have come to embrace

Internet and search engine marketing on Internet, and although some are

still scratching their heads, no one believes

they can

continue

to ignore

it. Internet is neither a cluster

of cable channels nor several large broadcast networks. Rather, Internet

offers advertisers the opportunity to follow both broadcast and cable television

strategies. Advertisers can gain broad reach as well as target specific demographics.

And just when advertisers started to think they had this “Internet

Thing” figured out, the Web evolved, again. Search engines became not

simply directors of traffic, but also destinations for traffic. “Portals” are

distinguished from search engines (although most have a search engine ability)

by their aggregation of content; they serve as people’s jumping off

points on the Web and as their destination. To become a destination, portals

grouped their content sites into channels that appeal to different groups

of users. Thus, two users might both start at the Lycos portal, but each

would pursue a different channel of content within Lycos’ complete

offering of Web properties. Advertisers quickly discovered the advantages

of the new model by transacting with the largest portals. In this manner,

they could purchase broad-reaching advertising on the opening portal pages,

plus specific, demographically targeted advertising on selected channels

or sites within the portal. Because of these advantages, and because users

flocked to the aggregators for the same reasons advertisers did, advertisers

focused their spending on the largest portals. Internet: Networks of

Networks, Networks of Sites The largest portals serve as networks of channels

on which advertisers display their messages. Content aggregators portals

purchased niche content providers to develop their networks of channels.

This was one means for smaller, less trafficked sites to share in the advertising

of Internet. Many of the smaller sites felt that they needed to link

up with large portals, or they would be left to fend for themselves to secure

advertising. From this sprang the advertising network. Media sellers, such

as DoubleClick, 24/7 Media, and Engage, formed networks of sites. By forming

networks that resembled those of the portals, the media sellers could offer

something to both advertisers and the sites in the network. Ad networks gave

advertisers the ability to target broadly across all types of sites, narrowly

on channels of sites, and more specifically on particular sites. This is

called run of network, run of channel, and run of site advertising, respectively.

The sites on the network gained most of the advantages of being part of a

portal without actually joining one access to more advertisers and

their dollars.

The three categories that we see dominating Internet advertising going forward

are:

1) Considered Purchases: These are goods or services that require

research before a purchase is made. Automobiles and travel are two such

areas, as

consumers are apt to do extensive research before purchasing these high-cost

items.

2) Highly Varied Items and Services:

Items for which many different variations exist are likely to be advertised

heavily on the Internet.

Jobs fit this category, as consumers can use the Internet’s search

abilities to dig deeply into databases to find what they are looking for.

3) Electronic

Delivery Services: Services that can be conducted electronically will

also be big advertisers on the Internet. Financial services, insurance,

and credit card issuers fit this category.

Attractive Demos Internet users

have some very appealing demographics for advertisers. The typical Internet

user is in one of the more coveted age

groups: 32% are between the ages of 35–44 and 23% are 25–34,

according to eMarketer. More important than age groups to advertisers, Internet

users have money! 29% of users earn $50,000–75,000 a year, and 18% earn over $100,000

per year, according to Jupiter Communications. While 18% of Internet users

earn over $100,000 annually, only 13% of the general U.S. population earns

that much. Only 21% of the general population falls in the $50,000– 75,000

range, compared with 29% of Internet users. Interestingly, the bottom end

of the spectrum (those earning under $30,000) are also over-represented in

the Internet population. Best of all for technology advertisers, Internet

users are early adopters of technology and (obviously) have access to a personal

computer, making them ideal for certain types of technology advertisers.

1. In the next 6 years we expect Internet to increase its share of advertising

nearly 5-fold.

2. The global market for advertising

and marketing services is enormous. We

expect approximately $678 billion in 2000. Should Internet get

just 12% of this market, it would reach $81 billion globally.

3. New data-driven, ROI-obsessed

companies are being created that are attacking this significant and

growing opportunity by building impressive knowledge

bases. The insight bred in these knowledge bases increases exponentially

as the companies apply technology to harness the tremendous amount

of data created by all those clicks. We expect that the leaders will

generate sustainable

advantages for their clients and for their competitive position.

As a result, some of these companies will create significant market

capitalizations for investors.

4. The power of these new companies

may fragment the power of the top advertising sites. Sell-side ad networks

and buy-side media buyers may be able to create

synthetic networks that “spread the wealth” to a wider range

of “top sites” as long as they offer better ROI for

marketing dollars than the current top sites do. Wherever the eMarketing

specialists

find the best value for advertisers may also be the best place for investors.

5. Internet did not invent

direct marketing, but it may fulfill its dream of accountability and

ROI. Internet helps eliminate some of advertising’s

limitations and turns it into more of a science. By running

a number of matched cell tests to determine the most effective creative,

best ad

sequencing, and optimal number of ad exposures for a given prospect,

the marketer can

use precision targeting and cross-selling to iteratively optimize campaigns

based on real-time changes in marketing conditions in Internet Advertising

and e-mail.

6. Long–term, Internet

advertising may be the most expensive on a CPM basis, have the highest

power ratio because of its efficiency in targeting and

still be the best value for marketers.

7. If there is eventually

a zero-sum game among media, newspapers seem to be the most vulnerable

to Internet

threat. With higher ad pricing and

power ratios than other media, newspapers may have the most to

worry about. We may soon move from a stage in which everyone wins because

Internet

usage

is incremental to more of a zero sum battle for share of time

and ad spend.

8. The “tail may wag the dog” information

gleaned from interactive advertising may determine decisions on pricing,

positioning,

and promotion in other media. Although we do not forecast Internet

to become the largest advertising medium, it could be the most important.

The

immediate feedback and iterative process of Internet Advertising

is likely to create intelligence on the pricing, positioning, and messaging

across

all media.

9. Privacy issues are at

a sensitive stage right now. E marketing

companies must be sensitive to the concerns of consumers and legislators

regarding privacy in all of their host countries. As Internet

creates and tracks databases of transactional, behavioral and contextual

information and

as this information is linked to other data we already have privacy

concerns will be aired at the national and state level. In the

worst case, cookies could be demonized and be made “opt–in,” reducing

(but not eliminating) the ability to target advertising, personalize

content, and improve customer service. Even in this worst case,

however, Internet

Advertising and direct e-mail will offer the best targeted marketing

medium, just to a lesser extent.

10. Broadband promises to

deliver rich media which allows marketers

to get beyond banners and use sound and motion for more creative

commercial offers that generate higher response rates. This means better

pricing,

larger budget commitments and a greater opportunity for well-positioned

eMarketing

services companies, providing another wave of opportunity. While

still hard to quantify, some analysts point to broadband as another

cable TV

business

in the making. To put this in perspective, in the U.S. national

and local cable systems represent $11 billion in advertising, about

7% of the

total.

Additionally, a convergence of TV/Internet and wired/wireless appliances

may lead to convergence in interactive marketing plans.

Please continue

with:

Part 2;

the importance of Power Ratios , Part

3; new Media vs. old Media , Part

4; Media and Internet Use , Part

5; Impression Measurement, Internet Advertising Metrics,

Part 6

; Calculating CPM and CPM Pricing , Part

7; Effective CPM is currently the only statistic on which comparisons

can realistically be based ,

Part

8; New Vs. Old Media: A Big Market from Which to Gain Share , Part

9; Internet Advertising; Right type of Medium and Targeting ,

Part

10; Broadband brings Rich Media , Part

11, Rich Media Studies , Part

12; What Could K.O. Internet Advertising? , Part

13; Email ,

Part

14; Advertising or Direct Marketing? , Part

15; What Does Internet Advertising Market Consist of? , Part

16; Rich Media still has some drawbacks ,

Part

17 Inventory and Concentration , Part

18; Market Share and Concentration Data , Part

19; Global Impact, Part

20; Residential and Business Use ,

Part

21; Pageviews , Part

22; Advertising vs. Direct Marketing , Part

23; Investment Conclusion

Advertisement

Since the price of gold reached an all time high of $1300 an ounce, the Internet ads offering cash for gold is making more sense. If you don’t do your homework, you might not get the highest value for your gold.

Most Internet Gold Buyers ask you to mail unwanted gold, watches, and jewelry in a postage-paid envelope. In a few days you are promised to receive a check in the mail. If you think the amount is too small, you should send the check back and your jewelry should be returned at no charge. But how do you know how much you should receive?

Before you sell your gold, make sure it isn’t antique. Antique jewelry is worth more intact than melted down. A verified antique jeweler should advise you before sending your gold. Hence walking to a trusted store is more prudent.

You should also check the price of gold online. Call several jewelry stores, coin stores, and pawn shops to ask what they pay for gold. If they won’t say, don’t do business with them. Because the price of gold fluctuates, call all the stores on the same day. Most gold buyers offer more for larger amounts of gold and diamond and might negotiate. If you are sure you want to sell to the online gold buyers, you must check their standing with the Better Business Bureau. Cash For Gold Orange County.

We invite you to call or stop by Monaco Jewelers to get the best value for your gold. We walk you through this process to make sure you get the highest value. Monaco Jewelers take pride in buying the highest amount of gold monthly in Orange County California. We are also proud to pay more than any other Cash For Gold Internet Buyer in Southern California.

Advertisement:

Create Personal Blogs

Choose any keyword, and the systme will deliver News on those keywords. Here are some examples:

Call 949-500-8638 for more detail or email info @ katir.com

Ciência, saúde, biologia, e notícia em linha da tecnologia dos institutos de investigação principais

Advertisement

San Diego Reputation Management

Nashville Reputation Management

Detroit Reputation Management

Madison Reputation Management

Sacramento Reputation Management

Texas Reputation Management

	Innovative Solutions for Updating Content with Current News ; Info Updating ; News Update ; Page Update
	© 2002-2004 Internet Personal injury is a legal term for an injury to the body, mind or emotions, as opposed to an injury to property. The term is most commonly used to refer to a type of tort lawsuit alleging that the plaintiff’s injury has been caused by the negligence of another, but also arises in defamation torts. The most common types of personal injury claims are road traffic accidents, accidents at work, tripping accidents, assault claims, accidents in the home, product defect accidents (product liability) and holiday accidents. The term personal injury also incorporates medical and dental accidents (which lead to numerous medical negligence claims every year) and conditions that are often classified as industrial disease cases, including asbestosis and peritoneal mesothelioma, chest diseases (e.g., emphysema, pneumoconiosis, silicosis, chronic bronchitis, asthma, chronic obstructive pulmonary disease, and chronic obstructive airways disease), vibration white finger, occupational deafness, occupational stress, contact dermititis, and repetitive strain injury cases. If the negligence of another party can be proved, the injured party may be entitled to monetary compensation from that party. In the United States, this system is complex and controversial, with critics calling for various forms of tort reform. Attorneys and lawyers often represent clients on a "contingency basis," in which the attorney’s fee is a percentage of the plaintiff’s eventual compensation, payable when the case is resolved. Oftentimes, having an attorney becomes essential because cases become extremely complex, such as in medical malpratice cases. Accident Lawyer Orange County Auto Accident Attorney Los Angeles Auto Accident Lawyer Los Angeles Car Accident Lawyer Los Angeles Los Angeles Car Crash Attorneys Los Angeles Pedestrian Accident Attorney Los Angeles Pedestrian Accident Lawyer Motorcycle Accident Attorney Orange County Motorcycle Accident Attorneys Orange County Orange County Car Accident Attorney Truck Accident Lawyer Orange County Los Angeles Motorcycle Accident Lawyer Attorney Los Angeles Personal Injury Lawyer Attorney Advertising, Online Advertising,