Advertising on the Internet

AdvertisingontheInternetbyMargretheDalThomsenDissertationsubmittedtoTheUniversityofWestministerFortheMastersDegreeinMarketing,September1996-Preface-ManycompaniesbelievetheyknowhowtheInternetworksafterreadinganInternetbook.Thisisnotpossible.TheInternetrequireslearningbydoing.Thebestadviceis,geton-lineandgetafeelingofwhatishappeningontheInternet.ThatisthefirststeptobecomingasuccessfuladvertiserontheInternet.Thisdissertationiswrittenforadvertisers,advertisingexecutivesandmarketerswiththeaimofhelpingthemtounderstandtheInternet’spotentialasanadvertisingmedium.AfterexperimentingtheInternetandreadingthisdissertationthereadershouldhaveageneralknowledgeofinteractiveadvertisingstrategiesandbeabletomakeeffectivepersuasiveandprofitableInternetadvertising.-Acknowledgement-Iwouldliketothankthefollowingpeoplewhowereinstrumentaltothesuccessofthisdissertation.•Mysupervisor,PeterCroissantforhistime,contributiontoandhelpwiththedissertation.•MypreviousbossfromLintasWerbeagenturGmbHinHamburg,SvenKuhlbrodt,nowMarketingDirectorContinentalEuropeforFidelityInvestments.HeencouragedmetowriteaboutInternetadvertising.Hehasbeenagreatsupportthroughoutthedissertation•MyfriendTamsinEdwards,previousTradeMarkAttorneyinAustralia,whothroughouttheMastershasbeenagreatteammate.Shehelpedmeinmydissertationresearch,especiallybyintroducingmetopeople,whoworkedinthefieldsofmultimedia.•MyMBAteammate,YorikoMatsuda,previousAccountExecutiveinDentsuAdvertisingAgencyinJapan,withwhomIsharedandpartlygatheredmymultimediaresearchwith.Ourdiscussionsenabledmetogetabetterperspectiveofthetechnologicalworld.•MyworkingcollegesLeeWills,ArtDirectoratPowerhouseCreativeServicesfortheartanddesignworkofthefrontpage.•MyfriendJeanPhilippeRoux,MBA,whonotonlysharedhiscomputerknowledgewithme,butalsomanagedtodotheimpossible-cuttingdownseveralthosandswordstometthewordlimit.•MyfriendPeterGronne,whomImetthroughtheInternetwhileconductingthisdissertation.Hehasbeenagreathelpinallaspects.•The9privateDanishcompaniesandfunds,whofinanciallysupportedpartofmyMastersinMarketing.Allthepeoplewhoparticipatedinmyinterviews.-TableofContents-PrefaceAcknowledgementTableofContentExecutiveSummaryCHAPTERONE:INTRODUCTION....................................11.1.Introduction....................................................11.2.Problemdefinition................................................31.3.Dissertationplan...............................................41.4.Limitations......................................................4CHAPTERTWO:RESEARCHMETHODOLOGY.......................52.1.SecondaryResearch...............................................52.2.PrimaryResearch.................................................52.3.Construction.....................................................6CHAPTERTHREE:THEINTERNET.................................93.1.ThehistoryoftheInternet...........................................93.2.ThedevelopmentoftheWorldWideWeb().......................93.3.Internettechnologyanditslimitations..............................10BasicInternetEquipment.........................................10Bandwidth....................................................11Securityissues.................................................11Control.......................................................12Propertyrights.................................................12Trademarkprotection..........................................133.4.TheInternetusers................................................14InternetDemographics...........................................14InternetUsage.................................................163.5.Netiquette:RulesandrestrictionsforInternetadvertising.................193.6.FuturetrendsanditsimpactontheInternet..............................19Consumertrends................................................19On-lineshopping...............................................20Advertisingforecast.........................................20CHAPTERFOUR:COMMUNICATIONSTRATEGIES...................234.1.Onewaycommunicationstrategy.....................................23Masscommunication.............................................234.2.TwoWaycommunication...........................................24DirectMarketing............................................24Interpersonalcommunication.....................................24Computermediatedcommunication.................................254.3.InteractiveMarketing...........................................27Targeting&Relationshipbuilding...................................274.4.Internetandthepromotionmix.......................................29Promotionalobjectives...........................................29Promotionmix.................................................29TheRelationshipbetweenthepromotionmixandInternetpromotion........304.5.Internetadvertisingandtraditionalmedia..............................32Reach........................................................33Selectivity.....................................................35Feedback.............