Web Site Advertising and Retailing Discuss the advantages of net advertising Discuss the multifaceted approaches of advertising Discuss net advertising dos and don’ts Discuss the use of log files, DoubleClick and tags

as methods for gathering advertising statistics Discuss the use of web banners Discuss the use of the web for retailing Discuss changes in internet-based retailing

approaches Discuss affiliation programs

Security Objectives Discuss the roles encryption and certificates play Contrast symmetric and asymmetric encryption Discuss key activities in certification management Define: Cryptography, digital ID, key, digital

signature, hash coding, hash algorithm, message digest, private key, public key, CERT

Discuss protecting intranets with firewalls and corporate servers against being attacked through the Internet

Discuss the role Secure Socket Layer, Secure HTTP, and Secure Electronic Transaction protocols play in protecting e-commerce

The Net as an Advertising ResourceIt’s fast

Print ads: 4-6 weeks to create, 2-6 weeks to publication

Web ads: matter of days Changes can be made quickly

Inexpensive Direct mail: $.50-$.75/piece vs. email:$.10/piece

(no limit on length)Allows pictures and testimonialsMultifaceted

Nature of Communication: Two Methods

Personal contact model (one-to-one) Also called prospecting Firm’s employees individually search for, qualify,

and contact potential customers

Mass media model (many-to-one) Firm delivers message and broadcasts it through

billboards, newspaper, television, etc. Addressable media is sometimes distinguished from

mass media Addressable media is directed to known addresses,

and includes direct mail, telephone calls, and e-mail

Multifaceted Advertising ApproachesUsenet new groupsFree email services (17.8% WSJ 3/21/99):

FreeMark Communications,Juno Online ServicesGames: BayBank, www.riddler.comInteractive screen savers(freeloader)Framing: http://totalnews.com (formerly)AdvertorialAd Robot (push technology)“persistence:” ICQ

Web Terms Used in Advertising

CPM is a dollar amount for each thousand people in the estimated audience

A visit occurs when a visitor requests a page from a web Further page loads counted as part of the

visit for a time period chosen by the site administrator

Trial visit -First time a visitor loads a web site; A subsequent visit is a repeat visit

Page view Each time a visitor loads a page- if the

page has an ad, this is called an ad view

Web Terms Used in Advertising Impression -- each time a banner ad loads

If a visitor clicks the ad to open it, it is called a click or click-through

Advertisers use market segmentationDivides the pool of potential customers

into common demographic characteristics, such as age, gender, income level, etc. called segments

Targets specific messages to these groupsMicromarketing- targeting very small

market segments

What about Web Banners?Unique to NetUsually limited text with hot linkDifferent sizes sell for different pricesSite may rotate banner (e.g., Yahoo

and C-Net)Lots of competitionHard to assess impact

Web Banner Statistics WSJ 2/24/99

Average price per 1000 online impressions dropped 5.6% to $35.12 from $37.21 a year earlier

Web surfers click on .5% of banners, down 1% from last year and 2.5% two years ago

Lycos business, career, or computer sections: $35/1000

Lycos mortgage-rate page: $150/1000

Running Time cyberatlas 8/28/2000Over 7,000 new banner ads appear each

week, but they only run an average of less than three weeks (based on year study of top 500 websites)

Staying power depends on industry automotive banners: 7.8 weeks (avg) hardware/electronics banners: 4.1 weeks (avg)

Most ad campaigns garner less than 44,000 impressions

Choosing the Best Place to AdvertisePopular sites (C&S):

AOL Yahoo Microsoft’s Network Lycos Inc

Post in all categories that fit and on industry-appropriate forums

Give robots your URLwww.submit-it.comPut URL at bottom of your e-mail

Definition of BrandingElements of branding

Differentiation Relevance

Degree the product offers utility to the customer

Perceived value

Creating and Maintaining Brands on the WebWhat is the role of brand names?Top 100 e-commerce sites spent an average

of $8 million to create and build their online brands in 1998

In 1999, dot-coms spent $3.1 billion in traditional advertising including TV, radio and print (WSJ 4/3/2000)

Dot-com advertising spending 2% of total $87.5 of US advertising spending (WSJ 4/3/2000)

Emotional vs. Rational Branding

Emotional appeals work well in mass media because ad targets are passive Do not work well on Web, however, because

Web is active mediumRational branding

Gives people valuable service in exchange for viewing ads

Examples include free e-mail and secure shopping services

Navigators can play a role here

Advertising Considerations

Mix traditional with net advertising place e-mail address and URL on advertising,

catalogs, letterhead, business cards (resumes) pick a memorable URL Play media off one another- Victoria’s Secret

Use promotions: First on-line purchase Coupons

Identify target markets

Advertising Do’sView the competition

get ideas for your site check out other’s HTML

Spend time as a userStay abreast of trendsInclude complementary links (“Welcome to my

site, please leave!”)Check your links periodicallyPost press releases to mailing listsRelationship Marketing

Relationship Marketing (1:1 Marketing)Market via more personal touch

Get personal testimonials of people in the trenches who have used product

Personalized web pages Contribute to discussion groups Company exec may answer e-mail

Focus on maintaining and enhancing relationships costs 5 times as much to acquire new customer than

to retain current oneUse in addition to other advertising

Net agents

“intelligent agents”, “software agents”Software, often applying artificial

intelligence, to support buyers locating information or products receiving personalized information on the basis

of a predetermined profile return comparative information based on user

Can make decisions or initiate requests“Cholesterol” of Internet

Getting Statistics about Advertising ImpactDoubleClick, MatchLogic, RealMedia, Inc.

buy ad space on Web and keep their own tally of ads on a page

some customers ban these advertisers from using any data from their web siteP&G, GM and MatchLogicIBM bars websites where it advertises (>800 web sites)

from collect its ad-campaign data

HTTPD logsTagsCookies

DoubleClick, Inc

Sells advertising space on network of 1400 websites

Information to better customize adsPredicts what you will buy on Web based

on what you have purchased online and offline

Pay $1 billion to buy Abacus Direct may need to revise privacy statement

Plan requires help of online retailer

Getting Statistics about Advertising Impact

Use HTTPD log filesLog counts every access

includes access to each image may be hard to determine unique independent

entriesLogs contain domain names, not user names, of

visitorsLogs also include time, date and accessed URL Get logs from ISPLogs themselves may be large

Use of Log FilesTo count visitors

count users accessing home page but, users may skip home page by accessing inside

page directlyTo improve pages

access patterns by time (may help determine best time for updates)

pages being accessed audio, movies or popup images that may be omitted Software available (Refer-it’s Analog)

New Standard to Count Visits: Tags

Fast Steering CommitteeProgrammer adds simple software

codes to Web ad no one owns codes can be freely inserted

Advertisers don’t trust numbers Cache ads aren’t counted

Meeting Key Customer Needs

Efficient information access intelligent agents interactive personalized “smart

catalogs”Seller-driven/ Web-centric Buyer-driven/ Customer-centricCasting technologies

Reasons for Going Online (PcData 2/23/99)

63% of respondents listed convenience as the most important reason why they shopped on-line.

25 % mentioned pricing For all the fuss about the

Only 10% of the respondents listed selection as the primary motivator to go on line.

Internet Retailing (e-tailing) (WSJ 4/5/2000)

Last year doubled to $15 billion Expected to rise 53% to 23 billion in 2000 Costs rising faster than sales

advertisingwarehousesonline assistance (Land’s End, eToys)

Building a high quality e-tailing website costs $30 million

Building a brand costs$100 million

Internet Retail Establishments

Brochure tells company’s story in text and pictures

Company mailbox automated mail response to e-mail requests

Specialty store storefronts with product catalogs http://www.virtualvin.com/; http://www.fridgedoor.com/

CybermallSubscription

Storefronts and Cityscapes

There are “no bad parts of town”Don’t pay premium for name alone.Reasonably priced storefronts offer

some advantages.Belong to multiple communities

put host page in one location place links to your pages in other malls

Push products (insurance)may do better face-to-face

CybermallsRetail complex that houses dozens of

specialty stores http://malls.com/awesome

$25 mo/ 5 pages - $850 mo/maintained

CUC NetMarket: www.netmarket.com ZD Net’s Computershopper: www.zdnet

.com/computershopperMalls with traffic and big business

tenants (i.e., IBM) cost more

Subscription/Fee-Based Marketing

Marketing-subscription mixed model Revenue derived from fee and it also accepts

some level of advertising Used by newspapers and magazines Successful web models include New York Times,

the Wall Street Journal, ESPN, Reuters, and Northern Light

Fee for transaction Model Online travel agents and car-buying services

can remove an intermediary from a value chain

Affiliation Programs

Description of AMAZON.COM’s affiliate program (started in 1996): We pay 15% on individually linked books and 5% on all other items. You build a custom bookstore, music store, and video store on your site or simply put up a link to Amazon.com and get paid on all sales. We do the customer service, shipping and tracking of sales. With our program there are no hidden sales quotas or performance tiers. Put up a link and start earning today.

www.referit.com

Security on the Internet

CERTEncryptionDigital Signatures/Certificate

AuthoritiesProtocolsFirewalls

Computer Emergency Response Team (CERT)

Housed at Carnegie Mellon UniversityResponds to security events and

incidents within the U.S. government and private sector

Posts CERT alerts to inform Internet users about recent security events

Posts CERT DNS attack advisory about domain name service attacks

Providing Transaction Privacy

Encryption The coding of information by using a

mathematically based program and secret key to produce unintelligible characters

SteganographyMakes text invisible to the naked eye

CryptographyConverts text to strings that appear to have no

meaningScience that studies encryption

Encryption

Mutation of information in any formplain text cipher text plain textBased on algorithm and key

Key - very large string of zeros and ones:the larger the better! Algorithm - mathematical function 40-bit keys are considered minimal,128-bit

keys provide much more secure encryption

Encryption Functions

Hash Coding Calculates a number from any length string

Asymmetric (Public-key) Encryption Encodes by using two mathematically related

keys

Symmetric (Secret or Private-key) Encryption Encodes by using one key, both sender and

receiver must know

CryptographyPrivate (Secret) key cryptography - Symmetric

shared key (both parties agree) does not scale nonrepudiation is impossible Date Encryption Standard (DES);Triple DES

Public key cryptography - Asymmetric public and private keys digital signatures suited for multiple users slow RSA

Nonrepudiation

verification that a particular transaction actually occurred

prevents parties from denying a transaction’s validity or its existence

Digital SignatureMathematical algorithms for encryptingA puts private key and document togetherA generates unique number called digital

signature (fingerprint or message digest)Fingerprint attached to original message and

further encrypted with private keyMessage sent to BB decrypts using A’s public keyChecks for modification with calculations to get

matching fingerprint

Certificate Authority (CA)Alternative to secure transmissionUses trusted third party to authenticate public

keyCertificate is digitally signed by CA to verify

identity and credentialsIdentification requirements vary by CAEvery digital certificate is uniqueDigital certificate is sent along with digital

messageHave expiration date

Certification ManagementDigital certificates

issue register generate manage revoke

To insure users authorized transaction transaction hasn’t been tampered digital receipt and time stamping

Hierarchy for CA

Root central facility/Policy approvalCertification Authorities/Cybernotaries

Local Registration AuthoritiesEncryption Entities

Digital Signature EntitiesUser Certificates/Digital Signatures

End Entities

Local Registration Authorities (LRAs)

END ENTITY LRA CACert. EnrollmentRequest

Authentication

Cert. Pick-up Key Pair Support(generate,archive, recover)

Key ManagementCert. IssuanceCert. RevocationCert. SuspensionCert. Renewal

Cert. RevocationRequest

Hardware TokenSupport

Cert. RenewalRequest

Misc

Cert. DistribtutionForwarding cert toend users, LRAStoring certs

CA Tutorial

http://www.kpmgca.com/download.htm

VeriSign OEM

CA software: cross-platform, shrink-wrapped product

PKI and digital certificate solutionsSupports LRA

Query manager (SQL) Transaction Manager (integrity of

certificates) Signing server Middleware Framework

Secure Sockets Layer (SSL) Protocol

Secures many types of connections between two computers on Internet

Developed by NetscapeHad backing of AppleSoft, DEC,

MasterCard InternationalProvides a security handshake in

which the client and server computers exchange the level of security to be used, certificates, among other things

Secure Sockets Layer (SSL) Protocol

Provides either 40-bit or 128-bit encryptionSecures data packets at network layerSecures connections between two

computers; checks certificatesSession keys are used to create the cipher

text from plain text during the sessionCan secure communications in addition to

HTTP (i.e., FTP)Uses public and private key encryption

Secure HTTP (S-HTTP) ProtocolExtension to HTTP that provides numerous

security features Client and server authentication Spontaneous encryption Request/response nonrepudiation

Provides symmetric and public-key encryption, and message digests (summaries of messages as integers)

Open protocol designed to secure web transactions using special packet headers

Secure Electronic TransactionBacked by MasterCard, Visa, IBM, Netscape and

MicrosoftSecures credit card transactionsUses digital certificate

consumer’s name few digits of consumer’s credit card name of bank that issued card

Merchant uses public key cryptography to verify consumer’s identity

Provides confidentiality of payment infoProvides merchant authentication

Firewalls

Control damage to your data and computer systems

Protect against spoofingImplement access controls based on

contents of the packets of data transmitted between two parties or devices on a network

Single point of control for security on network

Firewalls

Should be stripped of any unnecessary software

Categories of firewalls include Packet filters

Examine all packets flowing through the firewall

Gateway serversFilter traffic based on the requested

application Proxy servers

Communicate on behalf of the private networkServe as a huge cache for Web pages