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Selling Dreams In Cyberspace - Express Computer (Dec 7, 98) |
The first Web advertisement was placed on the October 1994 edition of the HotWired website, and webvertising has not looked back since then. The differentiating factor of Internet advertising is the interactivity that it offers - just like the medium, and it requires the participation of the Internet user.
Advertising on the Internet is usually non-intrusive - the advertisement usually consists of a one-liner that requires the user to click on the advertisement for further information. This automatically takes him to the homepage or website of the advertiser, either for more information, or to try or purchase the product.
According to the Internet Advertising Bureau (http://www.iab.net/), advertising spend on the Web crossed US$900 million in 1997, and is expected to hit US$ 2 billion in 1998, with banner advertising generating 58 percent of all online ad revenue, sponsorship deals 37 percent and interstitial ads 3 percent. According to eStats, a site that showcases Internet statistics, worldwide advertising spend is projected to grow exponentially to US$16.9 billion in 2001, with banners accounting for 40% of web ad sales, with the rest going to sponsorships (40%), and interstitial ads (20%).
Banner & Panel ads: These are small, rectangular graphic images which usually have a call to action (like "Call India - 48 cents / minute"). Banners are placed on high traffic websites to get a high Opportunity To See, and are hyperlinked to the advertiser’s homepage, to transfer the surfer there at the click of a mouse.
Banner advertisements
Sponsorships : In this case, an event or maybe even an entire website is sponsored by an advertiser. Procter & Gamble sponsored the online contest of the movie "The Mask of Zorro" that was held on Rediff.com, offering participants a chance to win free tickets to the movie. In return the online movie promotional site was co-branded with the Head & Shoulders.
Goa Interactive, a site that aims to be a one-stop-shop for Goa related information, is an example of a sponsored site. This entire site is sponsored by the Goa based Naik Group, who promote their services through these pages.
Goa Interactive - a sponsored website
Interstitial: A relatively new model of Internet advertising is the interstitial - a short-lived, usually animated ad that pops up in the browser window for about 5 - 10 seconds while a page is downloading, then disappears. With greater impact than ad banners, interstitial ads deliver a brand message between links or site pages. Interstitials are, by nature, obtrusive and intrusive, like the 10-second sponsor spot that keeps popping up at the most interesting parts of a serial on television, or between Hindi blockbusters been screened on most satellite channels today. However, a study of 180 advertisements carried out for advertisers showed that 15% of respondents found interstitials irritating compared with the 7% who found banner advertisements irritating.
Whatever form it takes, online advertising is looked upon as a necessary evil and usually has three basic objectives: creating awareness, generating traffic, and conversion.
Creating awareness - Often used when introducing, branding, or promoting a product or service; announcing special events or products. A Web banner is an ideal way to do the job, because it's there for potential customers to see whether they click the ad or not, which makes putting the branding upfront on the banner so important. The effectiveness can be tracked by measuring impressions (number of times the banner was seen).
Banner for creating awareness
Generating traffic - This involves getting users who see the advertisement to go to the advertiser’s site. A site offering software for download is a good example of this goal - the advertisements lure users to their site with a good collection of useful software. Effectiveness can be tracked by measuring the click rate (number of people who click on the advertisement to go to the advertiser’s site)
Banner for generating traffic
Conversion: Conversion involves shifting a visitor's response from passive viewing to action - say maybe to purchase something or register themselves at the site. One example is a site that shows visitors lyrics of popular songs they are looking for. When the particular song is displayed, they are given an option to hear a sound clip, and even purchase the cassette or CD online on the spot ! Conversion rates can be tracked to measure how well the objective is being achieved.
While an increasing amount of advertisers are taking to the Net with online campaigns, Internet advertising revenues still account for only 1.3 percent of the overall market, according to a survey by InterMedia Advertising Solutions. Not surprisingly, the study found that the computer services and software industry, at 49.7 percent, continues to account for the overwhelming majority of online ad revenue. The industry to come closest to this was the financial industry, generating 8.5 percent of all online ad revenue.
Among the big spenders, Microsoft spent the most on online advertising, at US$7.7 million, followed by IBM, with US$7.6 million. Besides being big spenders, the IT industry also boasts of extraordinary advertising. Earlier this year, the Internet Advertising Bureau presented its first annual "Marketer-of-the-Year" award, honouring Intel Corporation for leadership in the use of the Internet as an effective marketing tool.
In India too, the IT industry is actively advertising online - IBM, Intel, NIIT, HCL Infosystems, D. E. Shaw are some of the infotech advertisers with Rediff On The Net. When Microsoft launched the Internet Explorer 4.0 browser last year, they jointly sponsored a treasure hunt on our site. With return air-tickets being given away, the contest created demand for the new browser (which was offered free on CD-ROM) since only users with the new browser could access and participate in the contest. HP India recently held the Image Tunnel Contest completely online - conducting, hosting, and advertising the contest only on the Internet, with a printer in store for the winner.
From static banners to ones that move, dance, sing, expand and collapse (E*Banner), from banners that people miss to those that get people clicking and buying, advertising on the Internet has come a long way in the last four years. The medium still being in its infancy, newer methods and techniques are still being developed today to grab and hold the users attention. The day is not far away where online advertising will show you something you need, only when you need it, and allow you to buy it online without even leaving the page you are on.
As the saying goes, "The best is yet to come!"
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Internet advertising |
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Advertising comparison: Internet vs. Traditional
At the time of publication, Lyndon Cerejo (email) was a Programme Strategist with Rediff On The Net (www.rediff.com)