Chapter 6 Internet Marketing News Analysis and Reflections

Internet Marketing News Analysis


Source http://www.internetretailer.com/dailyNews.asp?id=25640




What I learned

This article talks about the fact that marketers feel as though they don't know their customers. In a recent survey taken,nearly half of marketers said they rate their customer as fair or poor. Despite the fact that 56 % of marketers agree that personalized marketing messages are much more effective then undifferentiated mass marketing, 43.5% of those companies reported a low level of personalized communication with customers. Because of this information,many marketers are planning on increasing their spending on personalization by 10% or more. To us as consumers, I think this means we will be seeing a lot more surveys, Behavioral and contextual advertising, along with new ways for companies to stand out from what the article calls a sea or unrelated marketing campaigns.













Reflections:
Chapter six talks about how the Internet has become a consumer controlled media. Blogs and web page creations are not just for teenagers looking to socialize and pass time any longer,but also have become a staple of communication among adults as well as business'. One Blog service reported more then 23 million blogs in 2005 with more being created daily. Because of all this time and energy being spent on line, marketers are having to find new and creative ways to get their messages across. More and more they are advertising on blogs,which not only stands out from the traditional methods of advertising, but is also able to be a very highly segmented and targeted task. It is now becoming more and more easy to reach not only adult consumers,but also teenagers in this complex communication environment.
With the interactivity and track ability of the web,media planners have been able to fine tune their marketing skills. They are able to market to the smallest groups of consumers using the information they have obtained from the users previous Internet use. This allows marketers to communicate individualized offers and messages to certain consumers. This presents many opportunity's to get a message across and while some don't agree with it,it has become so popular many companies are spending time and dollars to figure out exactly how to reach the Internet consumer.
One way of targeting consumers is called contextual advertising. This is where ads are delivered based on the content of a web site a consumer is viewing. This is done by examining content and keywords a viewer is looking at. From there companies are able to place ads, or pop ups onto the screen and is based on the nature of the content that is being viewed at that exact moment. It varies from Behavioral advertising in the fact that it is just kind of thrown out there at consumers randomly and is mainly sold on the basis of keywords, to which viewers are more then likely to just be browsing.
Behavioral Advertising is based on the consumers Internet behavior,past and present. It has more to do with a combination of what the viewer has been looking at opposed to what they have just browsed through. Many companies have reported success stories in the use of behavioral marketing. Some,such as American Airlines have boasted a viewership of ads to be 115% higher when targeted to specific consumers. It is also said to be 25% cheaper to reach target markets opposed to just throwing ads in any ones direction. The possibility's with this are endless, and while some may argue it is an invasion of privacy I think it is defiantly here to stay.