Internet

Advertising & Data: The Internet allows advertisers to track and understand user behavior, refining campaigns in real-time.

• Phases of Online Advertising: Two key phases—planning and tracking—generate valuable data for 

optimizing campaigns.

• Data Issues: The advertising industry faces challenges around data standardization and how to manage 

the vast amounts of user data.

Web 2.0: A new philosophy driving the web, focusing on user collaboration and sharing  (e.g., Wikipedia, Twitter, Digg, Craigslist).

• Wikipedia Example: Unlike traditional encyclopedias, Wikipedia allows anyone to create and 

edit content, relying on user contributions.

• User Collaboration: Web 2.0 emphasizes community-driven content and interaction rather than 

expert-driven information.

Advertising Implications

Faster internet and rich content (e.g., videos) make consumers more likely to use the Internet alongside other media, creating more opportunities for advertisers.

High-Speed Connections: Broadband (wired and wireless) is the primary Internet connection for 91% of  adults (as of 2009).

• Broadband Definition: Broadband allows multiple signals on one data line, offering faster browsing, 

uploads, and downloads.

• Impact on Industries: Broadband has revolutionized photography, video sharing (e.g., Flickr, YouTube), 

and social media (e.g., Instagram, Snapchat).

Internet Access Variety

People access the Internet through multiple devices, not just computers (e.g., smartphones, gaming consoles).

Smartphones & Gaming

Smartphones have boosted mobile Internet usage; online gaming is popular on devices from Microsoft, Sony, and Nintendo.

Ways to Buy Advertising Space

Internet ads can be bought in different ways, with the most common being banner ads, which are usually priced by how many times they are shown (cost-per-thousand or CPM).

Banner Ad Display

rotate on web pages, randomly showing different ads to users.

Targeted Advertising

The internet allows advertisers to target specific audiences, something traditional media can't do. Ads can be placed in specific categories like finance, news, travel, or games.

Cost by Category

Prices for ad space depend on the _______ and how many people visit that page. The more targeted the audience, the higher the price.

Keyword Advertising

Advertisers can buy keywords on search engines, so their ads show up when users search for those terms. Keywords can be bought individually or in bundles.

Keyword Bidding

In the past, people bought large numbers of keywords and resold them for a profit, but now the process is based on bidding, which has changed how keywords are sold.

Click-Through Ads

Some publishers charge advertisers when users click on the ad to visit the advertiser’s site. This is less common because publishers don’t always get paid for ad views if users don’t click.

Affiliate Marketing

For e-commerce sites, some publishers earn a commission on sales made through ads, like when a music site links to an online store and gets a percentage of any purchases.

Website Definition

A website is a collection of web pages, images, videos, or data stored on one or more web servers, accessible via the internet.

Types of Websites: Two main types of websites:

• Corporate Sites: Provide information about an organization, product, or service.

• Commerce Sites: Primarily designed to sell products or services.

Microsites

Small, focused websites created to support specific marketing campaigns or messages. They often offer exclusive content or interactive features, like EA’s microsite for the Return of the King video game.

Landing Pages

Specific web pages that advertising links to, designed to direct users to more relevant content beyond the homepage.

Purpose of _______ ______: To streamline the user experience, making it easier to find products or information quickly, as users have short attention spans online.