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A MARKETERS GUIDE
TO THE INTERNET

Jack Powers

Director, Graphics Research Laboratory
Publisher, www.electric-pages.com

 

 

 

 

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GOALS OF THE COURSE

  • Fully comprehend the Internet
    and the World Wide Web
  • Understand the marketing
    and advertising opportunities
  • Use the principal features
    and visit the important sites

 

 

 

 

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RESOURCES

  • Jack Powers, instructor
  • Ian Butler, Hollis Wagenstein, GRLab associates
  • Course book and slides
  • Web page with examples
  • DX.COM Macs and Windows PCs

 

 

 

 

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INTERNET GEOGRAPHY

Original University Backbone


 

 

 

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INTERNET GEOGRAPHY

Today's Commercial Internet


 

 

 

 

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TELECOM BANDWIDTH

 

 

 

 

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DOMAIN NAMING

  • lawnet.law.columbia.edu
  • locis.loc.gov
  • www.mgdtaproom.com
  • www.met.fu-berlin.de
  • www.nabisco.us

 

 

 

 

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PEOPLE@DOMAINS

  • president@whitehouse.gov
  • KellyPowrs@aol.com
  • ir000655@interramp.com

 

 

 

 

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VOLUNTEER CULTURE

  • RFCs
  • STDs
  • FAQs
  • RTFM

 

 

 

 

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INTERNET STATISTICS

  • >646,162 domains in Jan 97
    • 71,000 in Jan 95
  • 74 fully-connected
    77 partly connected
    countries

 

 

 

 

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INTERNET STATISTICS

  • >10,000 newsgroups posting
    >100 megabytes per day
  • >12.8 million hosts in Jan 96
    • 3.2 million in Jul 95
  • > 18 million North American WWW users (Nielsen)
  • > 2.5 million purchasers (Nielsen)

 

 

 

 

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INTERNET STATISTICS

  • 500,000 hits/day to the
    Playboy Home Page per day
  • 80 million hits/day to Netscape Home Page
  • 10 million page views/week to TimeWarner Pathfinder
  • 500,000 registered users (subscribers) to Wall Street Journal
  • 50,000 paying subscribers

 

 

 

 

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THREE USES OF THE NET

  • COMMUNICATION
  • PUBLICATION
  • TRANSACTION

 

 

 

 

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THREE USES OF THE NET

  • COMMUNICATION
    • Electronic Mail
    • Listserv mailing lists
    • Newsgroups
    • Internet Relay Chat

 

 

 

 

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THREE USES OF THE NET

  • PUBLICATION
    • World Wide Web Multimedia Pages
    • Sharing Files
    • "Push" systems

 

 

 

 

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THREE USES OF THE NET

  • TRANSACTION
    • World Wide Web standardization
    • Interactive publications, games, commerce and telecomputing

 

 

 

 

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HOW TO CONNECT

  • THE SERVICE
  • THE WIRE
  • THE SOFTWARE

 

 

 

 

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THE SERVICE

  • Commercial on-line services
    • Mediated Access, Part Time
  • Internet Service Provider
    • Full Access, Part Time
  • Direct Internet Link
    • Full Access, Full Time

 

 

 

 

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THE WIRE

  • P.O.T.S:
    Plain Old Telephone Service
    • 14.4 to 28.8 kbps
  • Digital Phone Service
    • 64 kbps, 1.5 Mbps, 45 Mbps

 

 

 

 

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THE ACCESS SOFTWARE

  • Commercial on-line service
  • World Wide Web browsers
    • Netscape 4.0
    • Microsoft Internet Explorer 3.1

 

 

 

 

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ACCESS EXAMPLES

  • America On-Line
    • $19.95 per month plus local phone call
  • Mindspring ISDN Link
    • $27/mo service + $30/mo ISDN line
  • PSI InterMAN Corporate connection
    • $1,200 per month and up

 

 

 

 

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DISCLAIMER

The network you are about to experience is live. Some of the features may seem arcane and esoteric, others may seem frivolous, some may not even work when we try to use them. But this is the real thing, the Internet in the Winter of 1997.

 

 

 

 

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HANDS-ON THE INTERNET  

 

 

 

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THREE USES OF THE NET

  • COMMUNICATION
  • PUBLICATION
  • TRANSACTION

 

 

 

 

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THREE USES OF THE NET

  • COMMUNICATION
    • Electronic Mail
    • Listserv mailing lists
    • Newsgroups
    • Internet Relay Chat

 

 

 

 

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THREE USES OF THE NET

  • PUBLICATION
    • World Wide Web Multimedia Pages
    • Sharing Files
      • Sound
      • Animation
      • Video
      • Virtual Reality

 

 

 

 

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THREE USES OF THE NET

  • TRANSACTION
    • World Wide Web standardization
    • Games, commerce and telecomputing

 

 

 

 

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ANCILLARY BUSINESS

  • RESEARCH
    • Market intelligence
    • Trends Analysis
    • Directories and databases
    • Lurking on the net

 

 

 

 

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ANCILLARY BUSINESS

  • INTERNET BUSINESSES
    • Publishing and consulting
    • Access and presence
    • Malls and Main Street
    • Production & fulfillment

 

 

 

 

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INTERNET MARKETING

  • Internet Demographics
  • Internet Culture
  • Global Presence
  • Reaching Your Audience
    via Digital Direct Response

 

 

 

 

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ON-LINE ADVERTISING

  • ADVERTISER WEB SITES
  • DISPLAY ADVERTISING
  • DIRECT EMAIL

 

 

 

 

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ADVERTISER WEB SITES

  • CORPORATE/INSTITUTIONAL
    • On-line annual reports
    • Contact lists and email

 

 

 

 

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ADVERTISER WEB SITES

  • PRODUCT MARKETING
    • Marketing communications
    • Update and product briefs
    • Newsgroups
    • Demos, samples

 

 

 

 

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ADVERTISER WEB SITES

  • ON-LINE ORDERING
    • Catalogs with 800 numbers
    • Inventory system links
    • On-line transactions
    • On-line delivery of
      digital products

 

 

 

 

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CATALOG WEB SITES

  • VENDOR CATALOGS
    • Inventory system links
  • ON-LINE MALLS
    • Catalog aggregators
    • Subject-specific catalogs

 

 

 

 

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APPROPRIATE ITEMS

  • Can be delivered on-line
  • Has strong brand image
  • Can be bought sight unseen
  • Makes a nice on-line demo
  • Is hard to find or order
  • Can be bought on an AmEx card

 

 

 

 

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DISPLAY ADVERTISING

  • DEMOGRAPHICS
    • 66% male, 25% > $80K hh income, 64% college degrees
    • 66% work, 44% home, 8% school
    • Average 5.5 hours per week

 

 

 

 

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MAGAZINES & MEDIA

  • Hot Wired, Pathfinder, Where,
    The Atlantic Monthly
  • Wall Street Journal,
    The New York Times
  • ESPN, Discovery Channel

 

 

 

 

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SERVICE SITES

  • Netscape
  • Yahoo
  • Lycos, Excite, Altavista

 

 

 

 

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MAIN STREETS

  • Global Shopping Network's
    MarineNet and FishNet
  • Bristol-Myers Squibb
    Women's Link
  • Zima Z-Spots

 

 

 

 

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WWW AD RATES

  • TimeWarner Pathfinder:
    2 million views for $38,000 ($19 CPM)
  • Hot-Wired: $30,000/qtr, 250,000 subs
  • ZDNet: $10-25,000/qtr, 2.5 mil hits/wk
  • Playboy: $10,000/mo, 200,000 hits/day
  • Wall Street Journal: $50,000/6 mos
  • World News: $1-5,000/mo depending
    on placement, 16,000 visits/mo

 

 

 

 

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DIRECT EMAIL

  • DEVELOPING LISTS
    • Incenting addresses
    • Signing up new members
  • BUYING LISTS
    • Un-subscribe routines and
      software screening

 

 

 

 

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DIRECT EMAIL

  • Web site promotion
    • Monthly mailings
    • URL Minder update notification
    • Subscriber services ("push")

 

 

 

 

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DIRECT EMAIL

  • Free Email
    • Ad-supported
    • Coupons and promotions
  • Email contests

 

 

 

 

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THE ON-LINE AD

  • Perfectly Zappable
  • Perfectly Measurable

 

 

 

 

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TEMPTING THE CLICK

  • Creating prospect incentives
    • Product-related info and demos
    • Discounts and coupons
    • Compelling editorial/game environment
  • Direct response techniques
  • Video game design skills

 

 

 

 

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NEW MEDIA BENEFITS

  • Customization
  • Timeliness
  • Comprehensiveness
  • Searchability
  • Economy
  • Transaction

 

 

 

 

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MULTIMEDIA ELEMENTS

  • Typography, Illustration, Photography
  • Sound, Animation, Video
  • Virtual Reality
  • Transactions (Games, Contests, Telepresence)

 

 

 

 

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INTERACTIVE DESIGN

  • Strong editorial content
  • Content, community and commerce
  • Continuous updates
  • Tempting the return click

 

 

 

 

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CLICKSTREAMS

  • Who, what, when, where, how and how long...
    page by page
  • The Web server log
  • I/Pro, IAudit, NetCount, Nielsen...

 

 

 

 

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AD PRICING OPTIONS

  • Standard space ad deal
    • Should have rate card and audit
    • Bottom-up TFN CPMs
  • Basic rate plus per inquiry
  • Per inquiry only
  • Percentage of transactions
  • Confusing combinations

 

 

 

 

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SECURITY/ENCRYPTION

  • OFF-WEB AUTHORIZATION
    • 800 fulfillment house
    • Email
    • Audiotext
  • BROWSER ENCRYPTION
    • Netscape, VISA/MC, AmEx and
      Internet standards

 

 

 

 

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PAYMENT METHODS

  • On-line credit card
  • ECash and Internet Checking
  • First Virtual VISA/MC service
  • Spend AND collect

 

 

 

 

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OFF-WEB LINKS

  • DVD-ROM/Web hybrids
    • Disk catalog + web ordering
    • Integrated DVD/Web browser
  • Web faxing and beeping
  • Web "document delivery"
  • Real-world sensor data

 

 

 

 

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WEB MARKETING

  • Compels with media-rich features
  • Targets niche markets
  • Supports and extends integrated marketing initiatives
  • Facilitates self-selling
  • Pitches (and delivers) globally

 

 

 

 

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WEB MANAGEMENT

  • IN-HOUSE or AGENCY
    • Creation
      • Editorial, Art, Multimedia
    • Computing
      • Searches, transactions, games
    • Production
      • Keying, scanning, updating

 

 

 

 

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WEB MANAGEMENT

  • Who can sell (who can see)
    the possibilities?
  • Digital direct response culture
    • Integrated marketing
      • Pitch the sale
      • Take the order
      • Fulfill it on-line

 

 

 

 

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THE FUTURE AT WORK

  • Constant connectivity
  • Integrated Internet
  • Personal and corporate Information Robots
  • Global market culture
  • Constant commerce

 

 

 

 

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THE FUTURE AT HOME

  • Cable connectivity
  • Broad bandwidth sub-Web
  • Games, contests, coupons
  • Web supplements to conventional media
  • DVD-ROM/Web hybrids

 

 

 

 

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INTERNET STRATEGIES

  • Develop a net presence
    • COMMUNICATION
      • Email
    • PUBLICATION
      • Web Site
    • TRANSACTION
      • One-to-One Marketing...and Selling

 

 

 

 

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INTERNET STRATEGIES

  • Think globally
  • Market One-to-One
  • Monitor...
    • the market
    • the technology
    • the competition

 

 

 

 

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THE FUTURE
OF THE INTERNET

  • GROWTH
    • Web multimedia broadens access
    • Telecom costs, esp ISDN
    • Commercial sites draw large blocks
      of serious business users
    • Estimates of 100 million
      worldwide users in 2010

 

 

 

 

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THE FUTURE
OF THE INTERNET

  • COMMERCIALIZATION
    • Business to business environment
    • High-end consumer applications
    • Cable & satellite paths to the home
    • Secure payment techniques
    • On-line catalogs

 

 

 

 

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THE FUTURE
OF THE INTERNET

  • TECHNOLOGY
    • Increasing bandwidth
    • Animation, audio and video
    • Telepresence and videoconferencing
    • Encryption and privacy schemes
    • Sun Hot Java and other helpers
    • Cable modems

 

 

 

 

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THE FUTURE
OF THE INTERNET

  • GLOBALIZATION
    • English (or at least Unix code and HTML) as the world language
    • Transborder communication,
      publication, transaction
    • Translating web sites