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Targeted Advertising or Power pages;
A white paper study on the Targeted Approach.
How it works for you and why you need it.
Targeted advertising pages using Internet
The process of marketing encompasses three
functions: to inform, remind and persuade. The
growth of the Internet signified a dawn of a new
age of marketing; a low cost form of marketing
that presented vast economies of scale. It can
further be said that using the Internet provided
a business advantage [Aldridge et al. 1997].
However, the Internet's business advantage is
not as great anymore as most medium and large
sized companies have a web site. In the mid and
late 1990's, e-commerce companies were willing
to spend vast amounts of money on advertising,
apparently without concern for the returns on
the investment. Companies who were keen to
harness the potential of the Internet soon
became disillusioned with over-hyped
expectations. E-commerce companies are now
reducing expenses and investment in online
marketing and technology [Aldridge et al.
1997:162, Bonanos 2001, Mollison 2002, Joseph
& Poon 2001].
It stands to reason that a more targeted
approach would be more efficient and cost
effective. Customising of advertising messages
to be appropriate for individuals receiving the
information would reduce resources required to
generate revenue. The main benefit of this
marketing technique is that advertisers are able
to target individuals with advertising that is
related to their interests or needs. However, a
major issue with Targeted Marketing is privacy.
The reason is that a collection of information
is required about individuals in order to make
it effective. The more detailed the information,
the more accurate the targeting. The use of
targeted marketing does not guarantee commercial
success as many other factors are involved;
there are numerous examples, which prove this to
be the case [Bonanos 2001].
Search engines currently play a significant role
in targeted online marketing. It is even claimed
to be highly successful for advertisers.
Although this may be a general belief, little
investigative research has been done on this
topic. Related areas, which this paper will
attempt to investigate, include search engines
and their ability and effectiveness of
delivering targeted advertising. In summary, the
problem addressed here is value of Internet
marketing. It would appear that marketing via
search engines is not a straightforward process.
This paper is an investigation into Keyword
Targeted Marketing as provided by most search
engines. Issues that are discussed include the
reasons for using this form of advertising, the
media used in the advert presentation, the
various levels of accuracy in matching keywords
to banner advertisements, the metrics used to
evaluate performance and challenges that have
been discovered in its implementation. A company
that wants to increase its exposure to potential
clients via search engine usage, may do so by
'buying' certain keywords which describe their
business. Usage of any of these keywords by a
potential client of this search engine will
result in a pop-up advertisement on the user's
screen. Marketing and advertising on Internet
websites have entered an exiting new era with
many possibilities to be explored. However, some
less invasive measures to explore these
possibilities might have to be found.
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