internet marketing report

Internet Marketing Report | Milind Gokhale

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Internet Marketing Report

Table of Contents

Introduction .......................................................................................................................... 2

Internet marketing ................................................................................................................. 3

Display Advertising .............................................................................................................. 3

Email Marketing ................................................................................................................... 4

Interactive Advertising .......................................................................................................... 6

Search Engine Optimisation .................................................................................................. 7

Advantages of Internet Marketing ......................................................................................... 8

Disadvantages ....................................................................................................................... 9

Effect on industries ............................................................................................................... 9

Scope for further growth ..................................................................................................... 10


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Introduction

1. A very similar form of internet as we see today was developed in early 1980s. However this was only pages with lines and lines of texts.

2. Earlier internet was a not at all used for business or commerce. It was only used by a bunch of university students, research scientists and military who were experimenting with networks and their interconnections.

3. Towards the end of the 20th Century Internet went from obscurity to integrity; from the toy for geeks or a tool for scientists to a way mass media and communication. Today there are many businesses thriving on the internet and some of them even totally depending on it.

4. Internet grew very rapidly: After the invention of Radio it took 38 yrs before 50 million people were using it. With TV it took 13 years. However Once internet was opened up for the public, it took just 4 years before it had 50 million users. This was explosive growth.

5. However during the evolution of internet it was very difficult for the early entrepreneurs to find a way of generating revenue from the internet.

6. Later some of them tried to generate money from internet with the idea of showing banner ads on the websites.

7. So in a way advertising became the foundation of revenues from the internet. Some of the pioneers to generate revenues from internet were companies like Yahoo, Lycos, Excite, AskJeeves.

8. Soon the internet hosted many websites as portals i.e. one stop destinations on the internet to get any kind of information about absolutely anything a human can imagine. It has become these portals’ responsibility to inform about the people about ways to meet their needs by using the advertised products and services. Thus a big medium to reach enormous masses.

9. Now we get almost everything on internet: Internet has become like a virtual space where people search for information, communicate, work, socialise, shop, do research and much more.

10. Advent of Ecommerce: With news and videos on internet. Youtube.com also allows its members to upload videos so that they can contribute and broadcast themselves.

11. Internet has indeed become an integral part of daily lives of the people.

12. Evolution of search engines and their optimisations! Search engines have become like the highways of the internet. In order to find any kind of information on any topic people first access the search engines. Example google.com


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Internet marketing

• Internet marketing also referred to as i-marketing, web-marketing, online-marketing or e-Marketing, is the marketing of products or services over the Internet.

• The interactive nature of Internet marketing in terms of providing instant responses and eliciting responses are the unique qualities of the medium.

• Internet marketing is sometimes considered to be broad in scope because it not only refers to marketing on the Internet, but also includes marketing done via e-mail and wireless media.

• These are the some of the internet marketing tools as

1. Display Marketing

2. E-mail marketing

3. Interactive Marketing

4. Search Engine Optimization

Display Advertising

1. Display advertising appears on web pages in many forms, including web banners. These banners can consist of static or animated images, as well as interactive media that may include audio and video elements. Adobe Systems Flash or .gif are the preferred presentation formats for such interactive advertisements.

2. Display advertising on the Internet is widely used for branding. This is why metrics like interaction time are becoming more relevant. However, this may change in the future as display advertising is becoming much more targeted to users, much like search engine ads are extremely relevant to what users are looking for. Display advertisers use cookie and browser history to determine demographics and interests of users and target appropriate ads to those browsers.

3. Banner ad standards have changed over the years to larger sizes, in part due to increased resolution of standard monitors and browsers, in part to provide advertisers with more impact for their investment. The standards continue to evolve. Posters, fliers, transit cards, tents, scale models are examples of display advertising. Examples: jeevansathi.com, banks, cars etc


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1. Here we see 5 Display Ads. For Iphone offer, PNB, IIPM, LIC pension plan, MakeMyTrip.com

2. All have paid indiatimes.com for showing their advertisement. In a way all the five are reaching to all the indiatimes.com visitors or readers.

3. PNB, IIPM are using advertisements for branding as it seems while LIC, Iphone are using it to market their product.

Email Marketing

1. E-mail marketing is a form of direct marketing which uses electronic mail as a means of communicating commercial or fundraising messages to an audience. In its broadest sense, every e-mail sent to a potential or current customer could be considered e-mail marketing.

2. However, the term is usually used to refer to:

1. sending e-mails with the purpose of enhancing the relationship of a merchant with its current or previous customers, to encourage customer loyalty and repeat business,


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2. sending e-mails with the purpose of acquiring new customers or convincing current customers to purchase something immediately,

3. adding advertisements to e-mails sent by other companies to their customers, and

4. Sending e-mails over the Internet, as e-mail did and does exist outside the Internet (e.g., network e-mail and FIDO).

3. It also helps to keep the current customers intact.

4. Examples : Icicibank (An email sample sent by icici bank to customer)


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Interactive Advertising

1. Interactive advertising uses online or offline interactive media to communicate with consumers and to promote products, brands, services, and public service announcements, corporate or political groups.

2. In the inaugural issue of the Journal of Interactive Advertising [1], editors Li and Leckenby (2000) defined Interactive Advertising as the "paid and unpaid presentation and promotion of products, services and ideas by an identified sponsor through mediated means involving mutual action between consumers and producers."

3. This is most commonly performed through the Internet; often using video content as a delivery medium.

4. With Online book reviews, Amazon involves customers and makes them feel welcome. It indicates that amazon concentrates on customers even more than Publishers and Books.

5. Maruti SX4 website is another example of interactive advertising which lets the customer experience the car sitting at home and even allowing them to register for a test drive through the website.

6. Example: Maruti SX4 website, Tata Nano’s website and Games, Aamir Khan Releasing mangal pandey game on zapak.


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1. With highly interactive website for consumers, maruti is advertising SX4 giving a true feel of the car even before the customer visits the nearest showroom for a test drive.

2. Also the potential customer may register for a test drive on the website itself

3. These give a lot of information to the customer who is sitting at home and also feels included in the sales program.

Search Engine Optimisation

1. A basic belief that a link from one page on a website to another is a kind of recommendation to the next page. i.e. A link from page A to page B as a vote by Page A for page B. The link or the page which received the higher votes is more popular and thus more likely to get the relevant information that one is looking for.

2. SEO considers how search engines work and what people search for. Optimizing a website may involve editing its content and HTML and associated coding to both increase its relevance to specific keywords and to remove barriers to the indexing activities of search engines

3. Promoting a site to increase the number of back-links, or inbound links, is another SEO tactic. i.e. Sponsored Links

4. Example : BMW paying for Cars keyword

1. Example of cars keyword.

2. We see here that carwale.com can give some money to google to increase the relevance its website link. So that it appears first in the search results as we see it above.


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3. The other links we see are as per the relevance and the number of users which usually link to the website.

Advantages of Internet Marketing

1. Internet Marketing gives businesses of any size access to the mass market at an affordable price and, unlike TV or print advertising, it allows truly personalized marketing. Specific benefits of e-marketing include:

2. On Demand Marketing: As compared to interruptive nature of advertisement on TV and other medias, where ad is shown to even those people .who don’t want to see, Internet provides On-Demand Information. People search on net what they want and when they want.

3. Low cost and high return on investment. Hundred times cheaper than conventional marketing tools like TV or News Paper advertisement. Just compare the cost of printing a full News Paper Ad for one Day vs. the cost of e-mailing to 25,000 e-mail addresses. Internet is clearly the winner.

4. Durable: An advertisement in a newspaper is worthless the day (perhaps two days) after the paper is released. Having a booth at a business fair or conference only lasts as long as the conference – it doesn’t reach anybody once it is over. And the costs of both print ads and conferences can rack up quickly. On the other hand, apart from details such as dates and prices, much of your website content will still be valid and viewable years after you’ve done the work to launch it and the costs are much more reasonable than print.You can choose when you want to pay for people to see your ads online. Pay for every time someone sees your ad, or only when they click on it. You can even have them fill out a form that identifies them or just pay when you actually get a sale from another website. With print you pay the same, no matter how much business it generates.

5. Biggest advantage of Internet Marketing is the measurability. You can obtain detailed information about customers’ responses to your advertising. Examples are:

How many people saw the advertisement banner?

How many clicked on them?


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How many asked the information or a price quote?

How many sales resulted from the campaign?

How many people visited your website?

What keywords did they use to find it?

Calculate profit per 1000. I.e. CPM

What page of your site is most popular?

6. More efficient and effective compared to other media channels. A standard advertising cost metric is CPM or Cost per Thousand Impressions. For example, a $1 CPM equates to a cost of $1 to reach 1,000 theoretical viewers or readers (theoretical because not everyone will read or look at an advertisement). Internet CPM rates in 2006 averaged $6, much less than most traditional media (see table below).

2006 CPM Rates Courtesy wikinvest

Media Channel Internet TV Radio Magazine Newspaper

CPM $6 $18 $7 $11 $26

7. An advertiser can tell, for example, who clicked on an Internet ad and even who bought a product or service during an internet session.

Disadvantages

• From the buyer's perspective, the inability of shoppers to touch, smell, taste or "try on" tangible goods before making an online purchase can be limiting

• However, there is an industry standard for e-commerce vendors to reassure customers by having liberal return policies as well as providing in-store pick-up services

Effect on industries

• Online Banking

The number of banks offering the ability to perform banking tasks over the internet has also increased. Online banking appeals to customers because it is often faster and


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considered more convenient than visiting bank branches. Currently over 150 million U.S. adults now bank online, with increasing Internet connection speed being the primary reason for fast growth in the online banking industry.[citation needed] Of those individuals who use the Internet, 44 percent now perform banking activities over the Internet.

• Internet Auctions

• Online Advertising

Online advertising techniques have dramatically been affected by technological advancements in the telecommunications industry. Many firms are embracing a paradigm that is shifting the focus of advertising methodology from traditional text and image advertisement creatives to rich multimedia experiences such as those containing more updated technology like HTML, JavaScript, and Adobe Flash. As a result, advertisers can more effectively engage and connect their audience with their campaigns which seek to shape consumer attitudes and feelings towards specific products and services. The paradigm shift from dialup to high speed internet has fueled these changes.

• Analytics

In a national survey between November 30, 2009 and December 27, 2009, the Pew Research Center found that 74% of American adults (ages 18 and older) use the Internet. [3] The same study found that 60% of American adults use broadband connections at home. 55% of American adults connect to the Internet through a wireless network like a public/private access point, a WiMax network, or a cellular 3G/4G network through a mobile cellular device.

Scope for further growth

WORLD INTERNET USAGE AND POPULATION STATISTICS

World Regions Population (2010 Est.)

Internet Users

Dec. 31, 2000

Internet Users

Latest Data

Penetration (%

Population)

Growth 2000-2010

Users % of Table

Africa 1,013,779,050 4,514,400 110,931,700 10.9 % 2,357.3 % 5.6 %

Asia 3,834,792,852 114,304,000 825,094,396 21.5 % 621.8 % 42.0 %

Europe 813,319,511 105,096,093 475,069,448 58.4 % 352.0 % 24.2 %

Middle East 212,336,924 3,284,800 63,240,946 29.8 % 1,825.3 % 3.2 %


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North America 344,124,450 108,096,800 266,224,500 77.4 % 146.3 % 13.5 %

Latin America/Caribbean

592,556,972 18,068,919 204,689,836 34.5 % 1,032.8 % 10.4 %

Oceania / Australia 34,700,201 7,620,480 21,263,990 61.3 % 179.0 % 1.1 %

WORLD TOTAL 6,845,609,960 360,985,492 1,966,514,816 28.7 % 444.8 % 100.0 %

internet marketing report

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