Page 423 -

422 Part Three Key System Applications for the Digital Age

TABLE 10.6 ONLINE MARKETING AND ADVERTISING FORMATS (BILLIONS)

MARKETING FORMAT 2012 REVENUE DESCRIPTION
Search engine $17.6 Text ads targeted at precisely what the customer is looking for
at the moment of shopping and purchasing. Sales oriented.
Display ads $8.7 Banner ads (pop-ups and leave-behinds) with interactive
features; increasingly behaviorally targeted to individual Web
activity. Brand development and sales. Includes blog display
ads.
Video $2.9 Fastest growing format, engaging and entertaining;
behaviorally targeted, interactive. Branding and sales.
Classified $2.6 Job, real estate, and services ads; interactive, rich media, and
personalized to user searches. Sales and branding.
Rich media $1.8 Animations, games, and puzzles. Interactive, targeted, and
entertaining. Branding orientation.
Lead generation $1.7 Marketing firms that gather sales and marketing leads online,
and then sell them to online marketers for a variety of
campaign types. Sales or branding orientation.
Sponsorships $1.61 Online games, puzzles, contests, and coupon sites sponsored
by firms to promote products. Sales orientation.
E-mail $.22 Effective, targeted marketing tool with interactive and rich
media potential. Sales oriented.

leads to the invasion of personal privacy without user consent. When consum-
ers lose trust in their Web experience, they tend not to purchase anything.
Behavioral targeting takes place at two levels: at individual Web sites and on
various advertising networks that track users across thousands of Web sites.
All Web sites collect data on visitor browser activity and store it in a database.
They have tools to record the site that users visited prior to coming to the
Web site, where these users go when they leave that site, the type of operat-
ing system they use, browser information, and even some location data. They
also record the specific pages visited on the particular site, the time spent
on each page of the site, the types of pages visited, and what the visitors
purchased (see Figure 10.3). Firms analyze this information about customer
interests and behavior to develop precise profiles of existing and potential
customers. In addition, most major Web sites have hundreds of tracking
programs on their home pages, which track your clickstream behavior across
the Web by following you from site to site and re-target ads to you by showing
you the same ads on different sites. The leading online advertising networks
are Google’s DoubleClick, Yahoo’s RightMedia, and AOL’s Ad Network. Ad
networks represent publishers who have space to sell, and advertisers who
want to market online. The lubricant of this trade is information on millions
of Web shoppers, which helps advertisers target their ads to precisely the
groups and individuals they desire.
This information enables firms to understand how well their Web site is
working, create unique personalized Web pages that display content or ads for
products or services of special interest to each user, improve the customer’s
experience, and create additional value through a better understanding of
the shopper (see Figure 10.4). By using personalization technology to modify
the Web pages presented to each customer, marketers achieve some of the

MIS_13_Ch_10 Global.indd 422 1/17/2013 2:29:35 PM