page last updated 2006 Oct 31 (added Chris Chung video 2010 Oct 13)
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used in the following courses taught by Prof. Richardson
This page deals with
|Chris Chung, who was in MGTD06 at UTSC in 2008 made a short clip w Prof. Richardson about banner ads in 2010|
Dr. Ralph F. Wilson "...
while banner ads aren't as effective as they once
were, the truth is that a great many companies, large and small, still
use banner ads as part of their advertising mix and will continue to do
This statement was expressed by Dr. Wilson on his website in 2002 and still holds true for 2006.
|One of the best introductions
to Banner Ads comes from the e-commerce textbook by Schneider & Perry.
Now  in its 6th edition, this book was used by Prof. Richardson in
several courses between 1999 and 2002.
"Banner Ads" page 153 in the Schneider/Perry book 3rd edition
"Most Advertising on the Web uses banner ads... Banner ads are versitile advertising vehicles - their graphic images can help increase awareness, yet users can click them to open the advertiser's website and learn more about the product. Thus, banner ads can be both and informative function and persuasive function".
|The Basic Promotion Objectives,
according to traditional marketing, are
This article is in five parts:
|Some people have
suggested that the anonymity of people browsing may make it difficult to
measure the effectivess of online advertising however Charlie Morris points
Morris says "Online advertising is in fact an easy thing to measure and quantify. The Internet can provide a level of detail that no other medium can ever hope to. The online advertising business is a more mature one than many people realize, and the tools to measure the effectiveness of banner ad campaigns are there for those who know how to use them."
"Banner ads, as far as we're concerned, are sold by the page impression - each time a user views one Web page is counted as one impression. Prices are quoted in "CPM", a holdover from print ad days which means "cost per thousand". For example, if the CPM for a particular campaign is $20, then it would cost $2,000 for 100,000 impressions."
Morris explains "Banner ads yield two benefits.
First, they may entice users to click on the banner and go to the advertiser's site. Each time this happens is called a "clickthrough", and the number of clickthroughs divided by the number of impressions is called the "clickthrough ratio" or "click rate". This is easy to measure, and provides a direct measurement of a banner's effectiveness.
The second benefit of ad banners is building brand recognition. Despite ad agency claims to the contrary, this is almost impossible to measure."
page 155 in the Schneider/Perry book 3rd edition
"Measuring Web audiences is more complicated because of the Web's interactivity and because the value of the visitor to an advertiser depends on how much information the site gathers from the visitor".
|So if we understand
online ads, and if we know the theory of how they work, question is - should
SMEs use them?
Most e-business that is being build in 2002 is by small and medium sized enterprises, the big companies have all got their web sites up and running by 2000.
The e-business that is developing in 2003-2006 is mostly from smaller sized companies with more limited marketing budgets - and these are companies that are wary of the mistakes made by some of the big dot.coms in 2000-2002.
The question we will deal with in this following article, also by Charlie Morris, is if you decide to spend money on online ads, what is it that you should do?
Morris begins by stating that "thanks to the huge number of ad networks and affiliate programs out there, practically any Web site, no matter how small, can sell advertising. Thanks to the lubrication of computer networks, the world economy has reached a point at which you can buy or sell almost anything in any quantity, large or small."
These are some of those drawbacks noted by Morris
Web Marketing Today, July 1, 2000 www.wilsonweb.com/articles/bannerad.htm
|Dr. Wilson's article is
very helpful and goes beyond terminology to explain details of calculating
banner ad effectiveness
In an email May 24th, 2005,
Dr. Wilson said "You are quite welcome to quote anything you see on my
Copies of emails kept on file in the permissions binder.
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