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Marketing Your Web SiteSuccessfully

– By Small Business Resource

Brought to you in association withSource: Jupiter/NFO; N=2,312

Marketing Your Web Site Successfully

Online Advertising Overview

Online Advertising Projections

Changing Formats and Pricing

Emergence of E-mail

Guerilla Marketing


Online AdvertisingOverview


Internet - Fast Becoming Mass Medium

0%0%

20%20%

40%40%

60%60%

80%80%

100%100%

Radio TV Magazine Cable Press Online

74%Expected by

2005

99%99% 98%98%

81%81%

62%62% 59%59%

51%51%

23%23%


0

24

68

1012

1416

18

TV Radio News-papers

Magazines Online 2000 Online 2005

Media Consumption is Strong

Avera

ge H

ou

rs P

er

Avera

ge H

ou

rs P

er

Week

Week

15.15.66

12.12.66

4.4.00

3.3.44

8.8.00

10.10.55


Internet Usage is High56%

24%

8%4%

8%

0%

10%

20%

30%

40%

50%

60%

Almostevery day

At leastonce aweek

At leastonce amonth

Onceevery fewmonths

Only afew timesin his/her

life

“How often do you use the Internet?”


Cannibalization of TraditionalMedia Continues

Percentage of respondents who report that time Percentage of respondents who report that time with media decreasing due to Internetwith media decreasing due to Internet

40.0%

22.0%

21.0%

12.0%

0% 10% 20% 30% 40% 50% 60%

TV

Magazines

Newspapers

Radio


Consumers are Buying Online

31%40% 46% 51% 54% 57% 60%

47%40%

35% 31% 29% 27% 25%

22% 21% 19% 18% 17% 16% 15%

0%

20%

40%

60%

80%

100%

1999 2000 2001 2002 2003 2004 2005

Perc

enta

ge o

f O

nline U

sers

Buyers Browsers Non-Shoppers


Commerce Opportunities45%

33%

29%

24%

20%

16%

14%

12%

10%

14%

12%

0% 10% 20% 30% 40% 50%

Books

CDs, tapes, albums

Computer peripherals

Flowers or gifts

Hotel reservations

Clothing

Airplane tickets

Entertainment tickets

Electronics

PCs

None of these

“Which of the following

products or services have you

purchased online?”


The Internet as an Advertising Medium

Now a Mass Medium

Fundamentally Changing Consumers’ Media Consumption Habits

Opportunity to Get in Front of Consumers When They are in a “Buy” Mindset


Online Advertising Projections


Online Ad Growth Questioned by Press and Wall Street

“The growth of online advertising has been impressive to date, however that growth has been fueled by dot-coms…The tides have changed and we expect the online ad landscape to do so as well.”

• Equity Research Analyst


Despite Skepticism, Advertisers Will Increase Online Spending

17%

23%

30%

33%

37%

43%

73%

0% 20% 40% 60% 80% 100%

Newspapers

Outdoor

Radio

Network TV

Cable-TV

Magazines

Internet

For Which of the For Which of the Following Media Do Following Media Do

You Plan on Increasing You Plan on Increasing Your Budget for the Your Budget for the

Next 12 Months? Next 12 Months? (Please Check All That (Please Check All That

Apply)Apply)


Online Advertising Projected to Reach $16.5 Billion by 2005

$3.5

$5.3

$7.3

$9.5

$11.9

$14.3

$16.5

8%7%6%5%4%

3%2%

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

1999 2000 2001 2002 2003 2004 2005

0%

5%

10%

15%

20%

25%

Total Online Ad SpendingPercentage of Overall Ad Market

($ in billions)($ in billions)


The Downside: Increase in Clutter Dilutes Connection to Consumers

440520

610705

800880

950

0

100

200300

400

500

600

700800

900

1,000

1999 2000 2001 2002 2003 2004 2005

Mar

keti

ng

Im

pre

ssio

ns

per

M

arke

tin

g I

mp

ress

ion

s p

er

Use

r p

er U

sag

e D

ayU

ser

per

Usa

ge

Day


0% 20% 40% 60%

Online Advertising Most Effective Advertising Vehicle for Driving Traffic

Word-of-MouthWord-of-Mouth

Site Mentioned in Site Mentioned in Magazine/Newspaper ArticleMagazine/Newspaper Article

Online Ad for the SiteOnline Ad for the Site

Magazine/Newspaper AdMagazine/Newspaper Ad

Site Mentioned in a TVSite Mentioned in a TVNews SegmentNews Segment

TV Ad for the SiteTV Ad for the Site

What compels you to visit a Web site? (choose two)

Radio Ad for the SiteRadio Ad for the Site7%7%

12%12%

18%18%

20%20%

24%24%42%42%

57%57%

Source: Jupiter/NFO; n=1,671


Changing Ad Formats and Pricing


Expect Diversification Away from Banner Ads

Banner ads increasingly called into question

More options for advertisers – streaming audio, video, pop-ups, e-mail.

Banner will continue to be the backbone of ad buys but advertisers are looking to experiment.

Work with publishers to craft unique solutions


Spectrum of Risk Underscores Conflict Between Advertisers and Publishers

Advertiser Risk

Publisher Risk

CPMCost per

Click

Cost per

Lead

Cost per

Member

Revenue Share

HIGH LOW

CPMCost per

Click

Cost per

Lead

Cost per

Member

Costper

Customer

Costper

Customer

Revenue Share


Opportunity for Integrated Marketing

Advertisers beginning to recognize value of integrated advertising

Media consolidation creates further opportunities for cross channel packaging – Times/AOL, Viacom/CBS

Agency structure presents a hurdle


E-mail Creates Continuous Customer

Relationships


E-mail Marketing Emerging as a Powerful Force

E-mails from Commerce/Content Ventures Focused Driving Repeat Visits

Acquiring New Customers

Cross-Selling; Up-Selling

Efficiencies of E-mail:It’s Cheap – no postage, or per piece production costs

It’s Fast – quick time to market and response time

It Works – higher response rates than direct mail

• Driving LoyaltyDriving Loyalty• Promoting ProductsPromoting Products• Reinforcing the BrandReinforcing the Brand


13%

31%

34%

13%

9%

Marketers Are Not Blind to the Power of E-Mail

Percent of Marketing

Budget Spent on E-Mail Marketing

0

1-2

3-5

6-10

10+


Focus on Deepening Customer Relationships and Acquiring New Customers

11%

28%

28%

46%

61%

18%

0% 10% 20% 30% 40% 50% 60% 70%

Other

Shorten Purchase Cycle

Up Sell

Cross Sell

Acquire New Cust

Deepen Relationships

What is the Goal of Your

E-mail MarketingEfforts


0

50

100

150

200

250

1999 2000 2001 2002 2003 2004 2005

E-mail Is Growing in Leaps in Volume

3billion

268 billion

Retention-based Acquisition-based

E-m

ail

Sponsored


E-mail Spending Grows Concurrently$7.3

billion

$0.0$0.5$1.0$1.5$2.0$2.5$3.0$3.5$4.0$4.5$5.0

1999 2000 2001 2002 2003 2004 2005

$164million

($ in billions)

Sp

end

ing

on

E-m

ail

Retention-based Acquisition-basedSponsored


The Fight For Consumers’ Attention in Their Inbox is on

1,746 2,059 2,420 2,758 3,094 3,511 3,990

40 131 276 482 761 113 1,612

Email/user/year

Non-work personal

Commercial

40 Fold Increase

1999 2000 2001 2002 2003 2004 2005


Initial Sign Up Data Provide Valuable Targeting Information

How Often: Daily, Weekly

When: Morning, Evening

What: Subject/Offer Interests

Who: Gender, Age

Profile Database


Begin the Data Loop by Using All Available Targeting Information

Explicit User Provided Data

• Interests

• Demographics

ObservableUser Data

• Purchase Info

• Surfing Info

Dif

ficu

lty in

Obt

aini

ng I

nfo


• Open Rate*• Unsubscribes • Click Through

Rate• Clicked Links• Conversion Rate• Pass Along

Rate*

Close the Loop by Tracking Results and Growing Targeting Data

E-Mail Outputs

* Available only for html messages

• Level of InterestLevel of Interest

• FatigueFatigue

• Effectiveness of Effectiveness of TargetingTargeting

• Subject/Promo Subject/Promo InterestsInterests


Guerrilla Marketing Becomes Another

Cost-effective Alternative


Guerrilla Marketing - What Are We Talking About?

Man-on-the-Street Promotions

Off-line Sampling

Alternative Outdoor

Viral Marketing

Online Buzz - Seeding Chat Sites,Fan Sites, and News Groups

Utilizing alternative marketing tactics to 1) Drive traffic online 2) Build awareness of online destination


Clutter

Clutter

Guerrilla Marketing Has the Powerto Generate Word-of-Mouth

Resonates Resonates with with

ConsumersConsumers

Breaks Breaks Through Through ClutterClutter

UniqueUnique

IntrusiveIntrusive

UnexpectedUnexpected

Clutter


Pass-Along Increases Importance of Word-of-Mouth Tactics

When a friend tells you about a site how many other people are youlikely to pass the information on to?

No one:No one:8%8% 1 Person:1 Person:

12%12%

2-3 People:2-3 People:49%49%



10+ People:10+ People:7%7%

69% of Consumers 69% of Consumers Tell Between 2 and 6 Tell Between 2 and 6

PeoplePeople


As Guerrilla Marketing Tactics Become More Prevalent, Breakthrough Decreases

Viral Marketing

Alternative Outdoor

Off-line Sampling

Man-on-the-Street

Seeding Chat Sites

Other

What types of guerrilla marketing tactics are you utilizing?

0% 25% 50% 75% 100%

6%

23%

31%

40%

46%80%

Seeding News Sites

Seeding Fan Sites

23%

14%


Optimize Targeting Along Multiple Dimensions

ActivitiesActivitiesInterestsInterests OpinionsOpinionsDemographicsDemographics

• WorkWork

• HobbiesHobbies• Social EventsSocial Events

• VacationVacation

• EntertainmentEntertainment

• ClubsClubs

• CommunityCommunity

• ShoppingShopping

• SportsSports

• MediaMedia

• FashionFashion

• CultureCulture

• PoliticsPolitics

• HomeHome

• JobsJobs

• CommunityCommunity

• RecreationRecreation

• FamilyFamily

• FoodFood

• AchievementsAchievements

• ThemselvesThemselves

• Social IssuesSocial Issues

• BusinessBusiness

• EconomicsEconomics

• EducationEducation

• ProductsProducts

• FutureFuture

• AgeAge

• GeographyGeography• EducationEducation

• IncomeIncome

• OccupationOccupation

• Family SizeFamily Size

• DwellingDwelling

• City sizeCity size


Guerrilla Marketing Allocation Based on Targeting and Product/Service Category

Non-TargetedNon-Targeted HighlyHighlyTargetedTargeted

Non-YouthNon-YouthTargetedTargeted

YouthYouthTargetedTargeted

Non-Non-Entertainment- Entertainment-

FocusedFocused

Entertainment- Entertainment- FocusedFocused

No TimeNo TimeSensitivitySensitivity

TimeTimeSensitivitySensitivity

LowLowAllocationAllocation

LevelLevel

MidMidAllocationAllocation

LevelLevel

HighHighAllocationAllocation

LevelLevel


SummaryOnline is integral part of the media mix

Shift in formats and pricing continues

E-mail emerges as a powerful marketing tool to create continuous dialogue with consumers

Guerilla marketing allows advertisers to break through commercial clutter


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