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Learning Outcomes:
Understand the key features of the Internet audience, the basic concepts of consumer behaviour and purchasing, and how consumers behave online.
Identify and describe the basic digital commerce marketing and advertising strategies and tools.
Identify and describe the main technologies that support online marketing.
Understand the costs and benefits of online marketing communications.
Readings
Chapter 6: E-commerce Marketing and Advertising
Recommended
Everything You Need to Know About Ecommerce Marketing:
https://blog.hubspot.com/marketing/ecommerce-marketing
Video Case Study
To AdBlock or Not to AdBlock
watch the video:
Think & Discuss
The rise of ad blockers has begun to make a dent in the advertising revenue earned by content creators and providers. Ad blockers identify and eliminate content based on its IP address, functioning much like a firewall. The most common ad blocker, AdBlock Plus, is offered as an extension to all major web browsers, and about 30% of Internet users currently use an ad blocker. AdBlock is free to use in its basic iteration, extremely simple, and highly effective, making it an online advertiser’s worst nightmare. Ad blockers often make websites look nicer and more streamlined while reducing battery usage and data consumption. They also stop the tracking cookies that many Internet users find distasteful advertisers use these to keep comprehensive information on you and your activities online. These are the benefits to web users. The drawbacks? If too many people use ad blockers, your favourite sites on the Internet won’t be able to provide the free content you enjoy most.
Many websites have begun making direct appeals to visitors to turn off their ad blockers, including Wired, The Guardian, and OKCupid. Others have dramatically altered the types of advertising they are willing to accept. However, the perception of advertising as an unwanted and unnecessary intrusion does not help these sites to change the way their visitors view ads. Content consumers often forget that the free content they enjoy is actually paid for by advertising dollars. However, we haven’t explicitly agreed to this arrangement, or even been asked about it. Viewing advertising that doesn’t pertain to your interests feels like work during moments that are supposed to be leisure time, and most people bristle at the imposition. As the video describes, advertisers hope that the ads you view will be about things you’d like to know more about, but it more often feels like ads are about things you aren’t interested in and that the advertisers want you to like against your will.
Video Case Questions:
1. What is the “ethical ad blocker” described in the video?
2. Why are algorithmic advertising technologies increasingly important to advertisers?
3. Where do you stand on the use of ad blockers?
Test your knowledge
Q1: Second stage in consumer decision process is:
Post-purchase contact with firm
Search of alternatives
Search of alternatives
Evaluation of alternatives
Q2: “refers to the transaction log that consumers establish as they move about the Web, from search engine to a variety of sites, then to a single site, then to a single page, and then, finally, to a decision to purchase.” This defines …
A: Adblock
B: Display advertising
D: landing page
C: Clickstream behaviour
Q3: Sales on products or services with little demand is called:
A: Long tail marketing
B: Flash marketing
C: Surge pricing
D: Bundling
References
Laudon, K., & Traver, C. (2018). E-commerce: Business, technology, society. 2018. (14th). Upper Saddle River, NJ: Pearson Prentice Hall. ISBN: 978-1-292-25170-7