Buying online

From: Marco Janeczek <info_at_webadvertising.ca>
Date: Mon 04 Mar 2002 10:33:56 -0600

We know that Online and Offline advertising, when done
correctly, using various forms of creativity and design,
slogans, tag lines, etc..., promotes and builds a brand.


When does a customer buy a product and/or service from
an online store?

a) Is it when the customer is in need of that product/
   service? OR

b) Is it becauase that product/service is a complementary
   good (example registering a domain name and applying for
   hosting). OR

c) Because the customer sees the product/service will save
   their time/money etc...and is useful.


If we consider the aspects above, Are the CTR ratio, the
CPA and CPM models, really worth considering ?

As a business (online store in this case, lets say
Perfumes.ca), I will target customers for different
occasions (Christmas, MothersDay, FathersDay, Valentines,
etc...). NO matter what I use, CPM/CPA, Google, Overture
etc... I will get different results.

But as a customer, I have different needs and different
choices to make at a different time. As a regular customer,
I do not know if the publishers hosting the ads are
CPA or CPM based.

For example, Its my Mom's Birthday. I surf the internet,
click on a 1-800-Flowers banner, but did not buy. Then
click on another FragranceNet.com banner, did not buy.
Then Click on eToys Banner, but did not buy again. And
then clicked on Perfumes.ca banner and did buy.

Will the CTR ratio be relevant in this case ?
Please note, Its a very interesting point that I would
like to make. There could be 50 Ads that I clicked on,
but I still did not buy. So, right here we can say that
we are destroying the CPM CTR ratio model. The same can
be said for CPA CTR ratio.

Lets think about the same example but offline. I enter a
Grocery Store. I see Thousands of products displaying
their label, and so brand is build. But for some reason,
price, quality, etc..., I will chose only one. At the
same time I might be looking for Coffee, BUT at the end
I take a box of Cappucino. Thousands of Impressions are
made, but only one choice has been selected. Should the
other impressions be disgarded ? SHould they be counted
as a Brand Building ?

Today, Businessess through the usage of internet, can
personalize their content and customer relation with that
specific customer, at a lower cost than offline.

Any input ?





Received on Mon Mar 04 2002 - 10:33:56 CST