THM 31343

INFORMATION TECHNOLOGY
- V

Online advertising,
Associate And affiliated programs
 Online Advertising
Online advertising, also called Internet advertising, uses the Internet to deliver
promotional marketing messages to consumers.

• Online advertising frequently involves both,

 a publisher, who integrates advertisements into its online content
 an advertiser, who provides the advertisements to be displayed on the
publisher's content.

• Other potential participants include,

 advertising agencies who help generate and place the ad copy
 an ad server who technologically delivers the ad and tracks statistics
 advertising affiliates who do independent promotional work for the advertiser.
Mechanism behind displaying the ads
 Delivery methods of Online Advertising

Web banner advertising Social Media Marketing

Frame ads Mobile Advertising

Pop-ups / Pop-unders Affiliate Programs/ Marketing

Floating ads
Search Engine Marketing / or SEM

Email Marketing
Online Classified Advertising

4
 Delivery methods of Online Advertising..

 Web banner advertising
• Web banners or banner ads typically are graphical ads displayed within a web page.
Many banner ads are delivered by a central ad server.
• Banner ads can use rich media to incorporate video, audio, animations, buttons, forms,
or other interactive elements using Java applets, HTML5, Adobe Flash, and other
programs.

5
Delivery methods of Online Advertising..
Frame ad
Frame ads were the first form of web banners. The colloquial usage of “banner ads”
often refers to traditional frame ads. Website publishers incorporate frame ads by
setting aside a particular space on the web page. The Interactive Advertising Bureau’s Ad
Unit Guidelines proposes standardized pixel dimensions for ad units.
IAB - the IAB develops technical standards and best practices and fields critical research
on interactive advertising, while also educating brands, agencies, and the wider business
community on the importance of digital marketing.

Pop-ups/ pop-unders
A pop-up ad is displayed in a new web browser window that opens above a website
visitor’s initial browser window. A pop-under ad opens a new browser window under a
website visitor’s initial browser window.
6
Delivery methods of Online Advertising..
Frame ad (traditional banner)

Pop- up ad

7
Delivery methods of Online Advertising..
Online Advertising Delivery…
 Floating ad
A floating ad, or overlay ad, is a type of rich media advertisement that appears
superimposed over the requested website’s content. Floating ads may disappear or become
less obtrusive after a preset time period.

8
Mark as appropriate

• A- Frame ad/banner
• B- pop up ad
• C- floating add
 Delivery methods of Online Advertising..
Search Engine Marketing, or SEM,
is designed to increase a website’s visibility in search engine results pages
(SERPs). Search engines provide sponsored results and organic (non-sponsored) results
based on a web searcher’s query. Search engines often employ visual cues to differentiate
sponsored results from organic results. Search engine marketing includes all of an
advertiser’s actions to make a website’s listing more prominent for topical keywords.

10
Delivery methods of Online Advertising..
Delivery methods of Online Advertising..
Email marketing
Email advertising is ad copy comprising an entire email or a portion of an email
message. Email marketing may be unsolicited, in which case the sender may give the
recipient an option to opt-out of future emails, or it may be sent with the recipient’s prior
consent (opt-in).

12
Delivery methods of Online Advertising..
Online classified advertising
Classified advertising is a form of advertising which is particularly common in newspapers,
online and other periodicals which may be sold or distributed free of charge.

13
Delivery methods of Online Advertising..
 Social media marketing
Social media marketing is commercial promotion conducted through social media websites.
Many companies promote their products by posting frequent updates and providing special
offers through their social media profiles.

14
Delivery methods of Online Advertising..
 Mobile advertising
Mobile advertising is ad copy delivered through wireless mobile devices such
as smartphones, feature phones, or tablet computers. Mobile advertising may take the form
of static or rich media display ads, SMS (Short Message Service) or MMS (Multimedia
Messaging Service) ads, mobile search ads, advertising within mobile websites, or ads
within mobile applications or games (such as interstitial ads, “advergaming,” or application
sponsorship).

15
 Advantages
• Fast Delivery
One of the most important advantages is the fast availability of the information. The
clients/users can easily get information, by navigating the internet, about the products
that they wish to purchase, and besides that, they can check the information at anytime of
the day.

• Save Cost
It allows the companies to save money, an aspect that is really taken into account by the
companies since the online marketing campaigns don’t require a large amount of
investment.
• Affordability
The previous mentioned aspect, gives less importance to the differences between large
and small companies in some way, thus increasing the competition and giving that way
advantages to the customers. 16
 Advantages…

• Presence
Presence on the Internet can help the expansion of the company from a local market to
national and international markets at the same time, offering almost infinite expanding
possibilities.

• Monitoring
On the internet everything can be measured, thus it’s easier for the companies to know
almost instantly if their campaign is working or not, what company or user is interested
in their products, from what cities or countries are they, etc.

17
 Disadvantages
• User Experience
Slow internet connections can cause difficulties. If the companies build too complex or
too large websites, it will take too long for users to check them or download them and
they will get bored eventually.

• Touch and feel

The e-commerce doesn’t allow the user “to touch” the merchandise before purchasing
it. Because of this, some salesmen are starting to guarantee the possibility of returning
the product.
In Germany, where a law that regulates e-commerce and guarantees the customers
the total refund of the money exists since 2000, the electronic commerce is very popular.
18
 Disadvantages…
• Risk in Online Payments
Other factor is the payment, many users still don’t trust in the electronic methods of
paying and give up buying online because of this.

• Trust
One of the major disadvantages may be the lack of trust of the users because of the
constant virtual promotions that appear to be frauds. This is an aspect that deteriorates
the image and reputation of quality and honest companies.

• Cash on delivery
Other disadvantage is the cash on delivery system, since it doesn’t guarantee the 100%
purchase of the product. This is also the case of thousands of users that dedicate
themselves to daily mock big companies by ordering on the internet using false identities.
19
 Affiliate/Associate Programs
What is an affiliate Marketing?
Affiliate marketing (also called referral or associate marketing) is an
Internet-based marketing concept that helps merchants leverage their
sales through independent marketers called affiliates or publishers.

20
How affiliate marketing works?

21
 ‘The 4 core players’ in affiliate marketing
1) The Merchant – the business, retailer, or the brand.
2) The Affiliate – the publisher, which could either be an individual promoting the merchant’s
products, or an organization.
3) The Network: refers to the mechanism through which the whole thing works. The network acts as
an intermediary between the affiliate and the merchant, allowing affiliates to choose from and
participate in an affiliate programs. The network also determines the mode of compensation
(more on this later), and hence includes tools used to track and monitor sales and performance,
generate reports, process payments, etc.
4) The Customer: Who sees the advertisement ,then purchase the item through clicking the link
22
  Advantages
1. Merchants are able to maximize their sales for virtually no extra cost or overhead (such
as marketing costs) by offering affiliates an incentive, which is usually a small percentage of
each sale that is made through the affiliate’s marketing efforts.

Merchants gain a wider place to sell their products and services, resulting in more
customers and more sales.

2. Merchants can gain more customers without spending valuable time in searching for
them. 

3. Programs that track compile statistics from affiliate sites provide reliable and current
client behavior on trends and demands at no extra cost.
23
Advantages…
4. The affiliate marketing program provides an easy way to create additional sources of
income for website publishers and owners. Marketing banners of merchants products
generate instant sales wherein they get a commission.

5. It does not require a sizeable investment on the part of the affiliate.

6. The affiliate does not have to worry about customer support, book keeping, and e-
commerce related headaches since in affiliate marketing, the merchant handles it all; all the
affiliate needs to do is promote and resell the product.

24
Advantages…

7. An affiliate marketer enjoys the luxury of being his own boss and work on his own time.
He can work only for a few hours or more and generate income 24/7 wherever he may be
located in the world.

8. An affiliate marketer can still maintain his present work or business and have the affiliate
marketing income to supplement his financial position. With a laptop and an internet
connection, anybody can work almost anywhere even while enjoying a vacation.

25
 Disadvantages

1. There is the possibility that some merchants may incur high commission costs and costly
set up and maintenance fees due to affiliate facilitators/brokers.

2. The affiliates may engage in false and misleading advertising in order to get sales
commissions. Unscrupulous affiliates may make claims and promises regarding the product
and services, which are completely wrong or extremely exaggerated. In cases like these, the
merchant usually receives complaints and lose any potential consumer.

3. Unscrupulous and dishonest merchants may arbitrarily close down programs without
informing the affiliates and without paying commissions. 

26
Disadvantages…

4. Merchants may promise high commissions to attract new affiliates then drop
commission rates after a week or two.

5. Link hijackers can hijack affiliate links and get paid for the commissions instead.

6. There are also false advertising, unlawful use of trade names, logos, or brands.

27
28