Тексты для дополнительного чтения на английском языке для студентов направления «Экономика». Методическое пособие

UNIT 6

Advertising Information.

History of On line Advertising

Task 1. Name all main categories of on-line advertising.

3.Why is it useful to emphasize on-line advertising?

4.Translate the underlined into Russian:

On-line advertising provides a revenue stream for website owners and a promotion and marketing channel for advertisers. Built With can track on-line advertisers via there banner signatures embedded into a page. Most advertisers provide two channels, one for their advertising partners and one for their web site owning customers. There are many different web advertising companies, some very large such as Google provide text and image advertising and have huge markets, other smaller companies provide more niche advertising management. Google Ad sense is the most used advertising system found on Built With scanned sites, Double-Click, the second most tracked technology, was finally approved for purchase (by the FTC and EU) by Google in 2008 making Google control the majority of the non-search specific Internet advertising

On-line advertising, also known as on-line advertisement, Internet marketing, on-line marketing or e-marketing, is the marketing and promotion of products or services over the Internet. Examples of on-line advertising include contextual ads on search engine results pages, banner ads, blogs, rich media ads, social network advertising, interstitial ads, online classified advertising, advertising networks, dynamic banner ads, cross-platform ads and e-mail marketing, including e-mail spam. Many of these types of ads are delivered by an ad server. On-line advertising began in 1994 when Hot-Wired sold the first banner ads to several advertisers. Revenue in the United States grew to an estimated $7.1 billion in 2001 or about 3.1 percent of overall advertising spending. The dot-com bust destroyed or weakened many of the early on-line advertising industry players and reduced the demand for on-line advertising and related services. The industry regained momentum by 2004 as the business model

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for “Web 2.0” came together. A number of businesses emerged that facilitated the buying and selling of advertising space on web pages. Entities that operated web portals settled on the traditional “free-TV” model: generate traffic by giving away the content and sell that traffic to advertisers. Most web sites, with the exception of transaction ones such as eBay, generate the preponderance of their revenues from the sale of advertising inventory—the eyeballs that view space allocated for promotions—to advertisers. In the first half of 2007 alone, advertisers in the US spent more than $10 billion advertising on websites. That was about 14 percent of all advertising spending. The portion of advertising that is done on-line will increase significantly over time as more devices such as mobile telephones and televisions are connected to the Internet and people spend more time on these devices. The valuations that the capital markets are placing on businesses related to online advertising are consistent with this prediction. Google has had a seven-fold increase in its market value from August 2004 when it was valued at $29 billion to $215 billion in December 2007. During 2007 several companies in the on-line advertising market were purchased at multiples of 10-15 times annual revenues. The online advertising industry burst into the public eye in 2007. Google’s sky-rocketing stock price and its forays into industries such as word processing software, on-line payments, and mobile telephones drew significant attention. More than 500 articles on Google appeared in the New York Times, Wall St. Journal and the Financial Times during the year. The U.S. Federal Trade Commission and the European Commission launched in-depth antitrust investigations into Google’s acquisition of Double-Click, which provides software technology and services to on-line advertisers and publishers. Privacy concerns also came to the fore in 2007 as consumers, government agencies and the media started focusing on the massive amount of personal data that on-line advertising companies were storing and using. Businesses began to move their advertising efforts into areas by making wide use of social media from 2009. The social media includes social networking tools such as Facebook, Twitter, Hi-5, social news tools such as Reddit, Digg Propeller, social photo & video sharing tools such as Photobucket, Flickr, You-Tube and social bookmarking tools such as Del.icio. us, Simpy. One of the advantages of social media advertising is proper targeting of market through the use of the users’

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demographic information provided. The disadvantage is measuring effectivly of social media advertising, whether or not the number of ‘likes’, ‘friends’ or ‘follows’ could convert to actual sales.

Competitive Advantage Over Traditional Advertising

One major benefit of on-line advertising is the immediate publishing of information and content that is not limited by geography or time. To that end, the emerging area of interactive advertising presents fresh challenges for advertisers who have hitherto adopted an interruptive strategy. Another benefit is the efficiency of the advertiser’s investment. On-line advertising allows for the customization of advertisements, including content and posted websites. For example, Ad Words, Yahoo! Search Marketing and Google Ad Sense enable ads to be shown on relevant web pages or alongside search results. A clear advantage consumers have with on-line advertisement is the control they have over the product, choosing whether to check it out or not. On-line advertisements may also offer various forms of animation. In its most common use, the term “on-line advertisement” comprises all sorts of banner, e-mail, in-game, and keyword advertising, including on platforms such as Facebook, Twitter, and My Space. Web-related advertising has a variety of ways to publicize and reach a niche audience to focus its attention to a specific group. Research has proven that on-line advertising has given results and is a growing business revenue. For the year 2012, Jupiter Research predicted $34.5 billion in US on-line advertising spending.

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UNIT 7

Types of Internet Marketing

Task 1. Name the three most common ways in which on-line advertising is purchased

Internet marketing is broadly divided into the following types: Display advertising: the use of web banners or banner ads placed

on a third-party website or blog to drive traffic to a company’s own website and increase product awareness.

Search engine marketing (SEM): a form of marketing that seeks to promote websites by increasing their visibility in search engine result pages (SERPs) through the use of either paid placement, contextual advertising, and paid inclusion, or through the use of free search engine optimization techniques also known as organic result.

Search engine optimization (SEO): the process of improving the visibility of a website or a web page in search engines via the “natural” or un-paid (“organic” or “algorithmic”) search results.

Social media marketing: the process of gaining traffic or attention through social media websites such as Facebook, Twitter and LinkedIn.

Email marketing: directly marketing a commercial message to a group of people using electronic mail.

Referral marketing: a method of promoting products or services to new customers through referrals, usually word of mouth.

Affiliate marketing: a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate’s own marketing efforts.

Content marketing: the process of creating specialized content such as infographics, blog articles and e-books to attract more customers.

Inbound marketing: involves creating and freely sharing informative content as a means of converting prospects into customers and customers into repeat buyers.

Video marketing: This type of marketing specializes in creating videos that engage the viewer into a buying state by presenting information in video form and guiding them to a product or serviceOnline video is increasingly becoming more popular among Internet users and companies are seeing it as a viable method of attracting customers.

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Internet marketing is associated with several business models: E-commerce: a model whereby goods and services are sold directly

to a consumer or business.

Lead-based websites: a strategy whereby an organization generates value by acquiring sales leads from its website. Similar to walk-in customers in retail world. These prospects are often referred to as organic leads.

Affiliate marketing: a process wherein a product or service developed by one entity is sold by other active sellers for a share of profits. The entity that owns the product may provide some marketing material (e.g., sales letters, affiliate links, tracking facilities, etc.); however, the vast majority of affiliate marketing relationships come from e-commerce businesses that offer affiliate programs.

Revenue models

The three most common ways in which on line advertising is purchased are CPM, CPC, and CPA.

CPM (Cost Per Mille) or CPT (Cost Per Thousand Impressions) is when advertisers pay for exposure of their message to a specific audience. “Per mille” means per thousand impressions, or loads of an advertisement. However, some impressions may not be counted, such as a reload or internal user action.

CPV (Cost Per Visitor) is when advertisers pay for the delivery of a Targeted Visitor to the advertisers website.

CPV (Cost Per View) is when advertisers pay for each unique user view of an advertisement or website (usually used with pop-ups, popunders and interstitial ads).

CPC (Cost Per Click) or PPC (Pay per click) is when advertisers pay each time a user clicks on their listing and is redirected to their website. They do not actually pay for the listing, but only when the listing is clicked on. This system allows advertising specialists to refine searches and gain information about their market. Under the Pay per click pricing system, advertisers pay for the right to be listed under a series of target rich words that direct relevant traffic to their website, and pay only when someone clicks on their listing which links directly to their website. CPC differs from CPV in that each click is paid for regardless of whether the user makes it to the target site.

CPA (Cost Per Action or Cost Per Acquisition) or PPF (Pay Per Performance) advertising is performance based and is common in

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the affiliate marketing sector of the business. In this payment scheme, the publisher takes all the risk of running the ad, and the advertiser pays only for the number of users who complete a transaction, such as a purchase or sign-up. This model ignores any inefficiency in the seller’s web site conversion funnel. The following are common variants of CPA:

CPL (Cost Per Lead) advertising is identical to CPA advertising and is based on the user completing a form, registering for a newsletter or some other action that the merchant feels will lead to a sale.

CPS (Cost Per Sale), PPS (Pay Per Sale), or CPO (Cost Per Order) advertising is based on each time a sale is made.

eCPM: Effective CPM or eCPM calculated through other conversion events such as Cost per Clicks, Cost per Downloads, Cost per Leads etc. for example when an advertiser getting $2 per download and for 100,000 impressions you received 10 downloads worth $20, in this case your effective CPM or eCPM will be 2*20*1000/100,000= $0.4

Fixed Cost: Advertiser paying fixed cost for delivery frame by campaign flight dates without any relevance to performance

Cost per conversion Describes the cost of acquiring a customer, typically calculated by dividing the total cost of an ad campaign by the number of conversions. The definition of “Conversion” varies depending on the situation: it is sometimes considered to be a lead, a sale, or a purchase.

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UNIT 8

Online advertisement as Digital Promotions for Television

Task 1. Name all main categories of on-line advertising.

3.Why is it useful to emphasize a one-to-one approach?

4.Translate the underlined into Russian:

On-line advertisement can also be classified as Digital Promotions. Digital promotion in connection to the television industry is when networks use authentic digital resources to promote their new shows in a growing vast range of venues. Television networks development of digital off air promotional strategies allowed digital promotion to remain significant to the advertisement advancement in the television.

Examples of television on-line digital promotions: The Sci Fi network for loaded a special recap episode of Battlestar Galactica onto Microsoft’s X-box online gaming service; this gave the audience additional opportunities to sample content if they may or may not be familiar with the show. Another example of digital promotion in television is when network CBS incorporated new digital technologies of Bluetooth-enabled mobile devices that were able to download a thirty-second clip of a new show on their devices; consumers standing in range of a billboard don’t need an Internet link to download the show’s content. These non-linear viewing opportunities provided as a valuable tool for gaining audiences; and to encourage them to intersect with the linear audience.

Internet users can benefit from on-line advertisement, such as getting the on-line contents they need for free that otherwise would have to pay for a fee from the funds of the advertisers. However, the catch is that they have to share personal information to the data collectors, which raises a controversy over this topic.

One-to-one approaches

In a one-to-one approach, marketers target a user browsing the Internet alone and so that the marketers' messages reach the user personally. This approach is used in search marketing, for which the advertisements are based on search engine keywords entered by the

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users. This approach usually works under the pay per click (PPC) method.

Appeal to specific interests

When appealing to specific interests, marketers place an emphasis on appealing to a specific behavior or interest, rather than reaching out to a broadly defined demographic. These marketers typically segment their markets according to age group, gender, geography, and other general factors. Appealing to specific users can be achieved through behavioral targeting which refers to the use of behavioral patterns and putting up the relevant content suitable to the viewer’s interest obtained from the user through cookies and other tools and contextual advertising which refers to the publishing of advertisements and ads based on the context the user in. For example if the user is searching for coffee, the search engine publishes ads related to coffee.

Niche marketing

In conventional niche marketing, clusters of consumers (the niche) are identified in order to more economically and efficiently target them. Similarly, niche Internet marketing attempts to create a more direct advertising message for those who are seen as most likely to buy the product being advertised (see Target audience and Conversion rate).

Niche Internet marketing focuses on marketing products and services which are, or can appear, tailor-made for a specific subset of consumers who are expected to buy the product or service with a specific motivation. The on-line advertising message (or product web site) can then be similarly tailor-made to target that assumed motivation. In combination with search engine optimization, the niche Internet marketer can attempt to increase the likelihood that their product’s advertisement (or site) will be seen by customers in the relevant niche.

Geo-targeting

In Internet marketing, Geo-targeting is the methods of determining the Geo-location of a website visitor with geo-location software, and delivering different content to that visitor based on his or her location, such as latitude and longitude, country, region or state, city, metro code or zip code, organization, Internet Protocol (IP) address, ISP, and other criteria.

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UNIT 9

Direct Mail and Direct Response

Task 1. Translate the following into English.

Директ-маркетинг — это постоянно поддерживаемые, направленные коммуникации с отдельными потребителями или фирмами, имеющие очевидные намерения покупать определённые товары. Деятельность в этом направлении, в основном, осуществляется путём прямой почтовой рассылки (direct mail) или через узкоспециализированныесредствараспространениярекламы. Доходы от рекламной деятельности в этом направлении образуются от комиссионных вознаграждений и зависят от сумм, затраченных клиентом.

2.Translate the underlined passage.

3.Answer the following questions:

1.What should be taken into account when writing a sales letter?

2.What are the types of mail-drop service?

3.What is a mailing list and what are its uses?

Direct Mail

Shopping without shops or direct marketing has become very big business, aided by direct mail, TV commercials and teletext, off-the- page selling, the telephone, the computer, and the credit card. Mail order nowadays better known as direct or direct response marketing. In Britain, direct mail takes third place to press and television and takes up 10 per cent of the total advertising expenditure. It is also an excellent medium for international advertising when it is more economical to airmail selected prospects than to advertise in the press which may be very limited anyway.

Confusion of terms can be avoided by remembering that direct mail is an advertising medium but mail order (or direct response) is a form of distribution, that is, trading by mail whatever medium is used for advertising sales offers. Consequently, direct mail is not limited to direct marketing: a retailer can use direct mail to attract shoppers to his store.

Characteristics of direct mail

It is addressed to selected, named recipients or at least to chosen people at selected addresses whether they be householders or managing

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directors. The quantity can be controlled, the message can be varied to suit different groups of people, and the timing can be controlled or at any rate estimated within postal limits. Because of the controls mentioned above, it is economical in the sense that even the selected lists can be culled of unwanted addresses. De-duplication can be applied when a number of lists are being used in which certain names are repeated. It is also economical because in a mail shot more copy and illustrations can be used than would fill a whole page broadsheet newspaper, and at a fraction of the cost. Unlike any other medium, except possibly the telephone, it is a one-to-one personal medium, like a conversation on paper. Generally, people like receiving mail, and if the recipient is wellchosen the mail shot will be welcomed. This medium is also personal in the sense that sales letters and envelopes can be addressed by name (personalized). Using special techniques like laser printing, dramatic and colorful effects can be achieved with the recipient's name inserted at various points in the body of the letter itself. A direct mail campaign can be mounted very quickly, in a few hours if necessary given the facilities to write and reproduce a sales letter, and pack and post it with or without an enclosure. It is therefore a very flexible medium which can be used in an emergency. For those advertisers who

(a)have or can hire a reliable mailing list and

(b)need to supply considerable information, direct mail can be their first line or primary advertising medium. In fact, they may use no other, except perhaps sales literature as enclosures. Others may use press advertising to produce enquirers or initial orders which provide a mailing list for future use.

A direct mail shot is usually consists of sales letter and enclosures. A sales letter is not just a business letter. It is a special form of copywriting with its own techniques. The length of the letter will depend on the extent to which the reader's interest can be sustained The letter may present a complete selling proposition, or it can be a covering letter referring the reader to an enclosure. The latter should not laboriously repeat the contents of the enclosure but highlight special features of it. Writing a sales letter we have a pattern to follow. The main parts of a sales letter. Introductory opening paragraph needs to capture reader’s attention. The proposition is the heart of the letter. Convincing the reader. There may be a price concession if the offer is taken up quickly, or the offer may have a time limit. The final paragraph contains

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