Friday, August 29, 2008

Disadvantages Of E-mail Marketing

Many companies use e-mail marketing to communicate with existing customers, but many other companies send unsolicited bulk e-mail, also known as spam.

Internet system administrators have always considered themselves responsible for dealing with "abuse of the net", but not "abuse on the net". That is, they will act quite vigorously against spam, but will leave issues such as libel or trademark infringement to the legal system. Most administrators possess a passionate dislike for spam, which they define as any unsolicited e-mail. Draconian measures—such as taking down a corporate website, with or without warning—are entirely normal responses to spamming. Typically, the terms of service in Internet companies' contracts permit such actions; therefore, the spammer often has no recourse.

Illicit e-mail marketing predates legitimate e-mail marketing. On the early Internet (i.e., Arpanet), it was not permitted to use the medium for commercial purposes. As a result, marketers attempting to establish themselves as legitimate businesses in e-mail marketing have had an uphill battle, hampered also by criminal spam operations billing themselves as legitimate ones.

It is frequently difficult for observers to distinguish between legitimate and spam e-mail marketing. First, spammers attempt to represent themselves as legitimate operators. Second, direct-marketing political groups such as the United States Direct Marketing Association (DMA) have pressured legislatures to legalize activities that some Internet operators consider to be spamming, such as the sending of "opt-out" unsolicited commercial e-mail. Third, the sheer volume of spam has led some users to mistake legitimate commercial e-mail for spam. This situation arises when a user receives e-mail from a mailing list to which he/she subscribes. Additional confusion arises when both legitimate and spam messages have a similar appearance, as when messages include HTML and graphics.

One effective technique used by established email marketing companies is to require what is known as the "double opt-in" method of requiring a potential recipient to manually confirm their request for information by clicking a unique link and entering a unique code identifier to confirm that the owner of the recipient email address has indeed requested the information. Responsible e-mail marketing and autoresponder companies use this double opt-in method to confirm each request before any information is sent out.

A report issued by the e-mail services company Return Path, as of mid-2008 e-mail deliverability is still an issue for legitimate marketers. According to the report, legitimate e-mail servers averaged a delivery rate of 56%; twenty percent of the messages were rejected, and eight percent were filtered.

Due to the volume of spam e-mail on the Internet, spam filters are essential to most users. Some marketers report that legitimate commercial e-mail messages frequently get caught and hidden by filters; however, it is somewhat less common for e-mail users to complain that spam filters block legitimate mail.

Companies considering the use of an e-mail marketing program must make sure that their program does not violate spam laws such as the United States' Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM),[5] the European Privacy and Electronic Communications Regulations 2003, or their Internet service provider's acceptable use policy. Even if a company adheres to the applicable laws, it can be blacklisted (e.g., on SPEWS) if Internet e-mail administrators determine that the company is sending spam.

Advantages Of E-mail Marketing

E-mail marketing (on the Internet) is popular with companies for several reasons:

* A mailing list provides the ability to distribute information to a wide range of specific, potential customers at a relatively low cost.
* Compared to other media investments such as direct mail or printed newsletters, e-mail is less expensive.
* An exact return on investment can be tracked ("track to basket") and has proven to be high when done properly. E-mail marketing is often reported as second only to search marketing as the most effective online marketing tactic.
* The delivery time for an e-mail message is short (i.e., seconds or minutes) as compared to a mailed advertisement (i.e., one or more days).
* An advertiser is able to "push" the message to its audience, as opposed to website-based advertising, which relies on a customer to visit that website.
* E-mail messages are easy to track. An advertiser can track users via autoresponders, web bugs, bounce messages, unsubscribe requests, read receipts, click-throughs, etc. These mechanisms can be used to measure open rates, positive or negative responses, and to correlate sales with marketing.
* Advertisers can generate repeat business affordably and automatically.
* Advertisers can reach substantial numbers of e-mail subscribers who have opted in (i.e., consented) to receive e-mail communications on subjects of interest to them.
* Over half of Internet users check or send e-mail on a typical day.
* Specific types of interaction with messages can trigger (1) other messages to be delivered automatically, or (2) other events, such as updating the profile of the recipient to indicate a specific interest category.
* E-mail marketing is paper-free (i.e., "green").

E-mail marketing

E-mail marketing is a form of direct marketing which uses electronic mail as a means of communicating commercial or fundraising messages to an audience. In its broadest sense, every e-mail sent to a potential or current customer could be considered e-mail marketing. However, the term is usually used to refer to:

* sending e-mails with the purpose of enhancing the relationship of a merchant with its current or previous customers and to encourage customer loyalty and repeat business,
* sending e-mails with the purpose of acquiring new customers or convincing current customers to purchase something immediately,
* adding advertisements to e-mails sent by other companies to their customers, and
* sending e-mails over the Internet, as e-mail did and does exist outside the Internet (e.g., network e-mail and FIDO).

Researchers estimate that United States firms alone spent US$400 million on e-mail marketing in 2006.

Thursday, August 28, 2008

History of Web banner

The first clickable web ad (which later came to be known by the term "banner ad") was sold by Global Network Navigator (GNN) in 1993 to a law firm.[citation needed] GNN was the first commercially supported web publication and one of the very first web sites ever.[citation needed]

HotWired was the first web site to sell banner ads in large quantities to a wide range of major corporate advertisers. Andrew Anker was HotWired's first CEO. Rick Boyce, a former media buyer with San Francisco advertising agency Hal Riney & Partners, spearheaded the sales effort for the company. HotWired coined the term "banner ad" and was the first company to provide click through rate reports to its customers. The first web banner sold by HotWired was paid for by AT&T, and was put online on October 25, 1994.[citation needed] Another source also credits Hotwired and October 1994, but has Coors' "Zima" campaign as the first web banner. The hotwired AT&T banner ad and credits can be viewed here.Banner ads tenth birthday

In May of 1994, an early Internet commercialization pioneer, who mentored Boyce in his transition from traditional to online advertising, first introduced the concept of a clickable/trackable ad. He stated that he believed that only a direct response model—in which the return on investment of individual ads was measured—would prove sustainable over the long run for online advertising.

In spite of this prediction, banner ads were valued and sold based on the number of impressions they generated. This approach to banner ad sales proved successful and provided the economic foundation for the web industry from the period of 1994 to 2000 until the market for banner ads "crashed" and there was a radical revaluation of their value.

The new online advertising model that emerged in the early years of the 21st century, introduced by GoTo.com (later Overture, then Yahoo and mass marketed by Google's AdWords program), closely resembled the pioneer's 1994 projection.

Web banner

A web banner or banner ad is a form of advertising on the World Wide Web. This form of online advertising entails embedding an advertisement into a web page. It is intended to attract traffic to a website by linking to the website of the advertiser. The advertisement is constructed from an image (GIF, JPEG, PNG), JavaScript program or multimedia object employing technologies such as Silverlight, Java, Shockwave or Flash, often employing animation or sound to maximize presence. Images are usually in a high-aspect ratio shape (i.e. either wide and short, or tall and narrow) hence the reference to banners. These images are usually placed on web pages that have interesting content, such as a newspaper article or an opinion piece.

The web banner is displayed when a web page that references the banner is loaded into a web browser. This event is known as an "impression". When the viewer clicks on the banner, the viewer is directed to the website advertised in the banner. This event is known as a "click through". In many cases, banners are delivered by a central ad server.

When the advertiser scans their logfiles and detects that a web user has visited the advertiser's site from the content site by clicking on the banner ad, the advertiser sends the content provider some small amount of money (usually around five to ten US cents). This payback system is often how the content provider is able to pay for the Internet access to supply the content in the first place.

Web banners function the same way as traditional advertisements are intended to function: notifying consumers of the product or service and presenting reasons why the consumer should choose the product in question, although web banners differ in that the results for advertisement campaigns may be monitored real-time and may be targeted to the viewer's interests.

Many web surfers regard these advertisements as highly annoying because they distract from a web page's actual content or waste bandwidth. (Of course, the purpose of the banner ad is to attract attention and many advertisers try to get attention to the advert by making them annoying. Without attracting attention it would provide no revenue for the advertiser or for the content provider.) Newer web browsers often include options to disable pop-ups or block images from selected websites. Another way of avoiding banners is to use a proxy server that blocks them, such as Privoxy.

Digital Marketing – Pull vs. Push

There are 2 different forms of digital marketing, each of which has its pros and cons.

Pull

Pull digital marketing technologies involve the user having to seek out and directly grab (or pull) the content. Web site/blogs and streaming media (audio and video) are good examples of this. In each of these examples, users have a specific link (URL) to view the content.

Pros:

No restrictions in terms of type of content or size as the user determines what they want.

* No technology required to send the content, only to store/display it.
* No regulations or opt-in process required.

Cons:

* Considerable marketing effort required for users to find the message/content.
* Limited tracking capabilities – only total downloads, page views, etc.
* No personalization – content is received and viewed the same across all audiences

Push

Push digital marketing technologies involve both the marketer (creator of the message) as well as the recipients (the user). Email, SMS, RSS are examples of push digital marketing. In each of these examples, the marketer has to send (push) the messages to the users (subscribers) in order for the message to be received.

Pros:

* Can be personalized -- messages received can be highly targeted and specific to selected criteria – like a special offer for females, 21 years old or over and living in California.
* Detailed tracking and reporting – marketers can see not only how many people saw their message but also specific information about each user such as their name as well as demographic and psychographic data.
* High Return on Investment (ROI) possible – if executed the right way, push messaging can help drive new revenue as well as brand reinforcement.

Cons:

* Compliance issue – each push messaging technology has its own set of regulations, from minor (RSS) to heavily controlled (email and text messaging)
* Requires mechanism to deliver content – the marketer has to use an application to send the message, from an email marketing system to RSS feeders.
* Delivery can be blocked – if the marketer does not follow the regulations set forth by each push message type, the content can be refused or rejected before getting to the intended recipient.

Digital marketing

Digital Marketing is the practice of promoting products and services using digital distribution channels to reach consumers in a timely, relevant, personal and cost-effective manner.

Whilst digital marketing does include many of the techniques and practices contained within the category of Internet Marketing, it extends beyond this by including other channels with which to reach people that do not require the use of The Internet. As a result of this non-reliance on the Internet, the field of digital marketing includes a whole host of elements such as mobile phones, sms/mms, display / banner ads and digital outdoor.

Previously seen as a stand-alone service in its own right, it is frequently being seen as a domain that can and does cover most, if not all, of the more traditional marketing areas such as Direct Marketing by providing the same method of communicating with an audience but in a digital fashion.