Mednet.com Case – Individual Homework Questions
1. Mention three of the advertisers’ objectives and what the best metrics are for measuring them (i.e., what do advertisers want to gain from their ads and how can they trace the success of the ads on those dimensions?).
Three objectives that advertisers want to gain from their online advertising as follow
1.1 Brand awareness
Brand awareness helps the brand stand out from the others competitors and play an important role in buying decision. So the advertisers want potential consumers to recognize their products.
How to measure
The number of people who see an online advertisement, called impressions, could be a way to measure brand awareness. The more consumers visit website and see advertisements, the more brand awareness consumers get. Therefore, the advertisers could trace the consumer’s brand awareness by utilizing “eyeballs” (or unique monthly website visitors) to count the amount of visitors who see the advertising each month.
1.2 Sales leads
The advertisers also want sites’ visitors to click on an advertisement to learn more about their products in order to increase opportunity to purchase. Therefore, sales leads are the identification of consumer that interests in potentially purchases a product.
How to measure
The sales leads could be measured through measuring the number of visitors who click on an advertisement. One of the popular measurement models is “click-through rate (CTR)” which measured the number of clicks divided by the number of advertisement impressions delivered. From this method, the advertisers are able to classify potential customers out of general sites’ visitors. In addition to online advertisement, the amount of telephone calls to a call center generated by newspaper and television advertisement could also be the identification of sales leads.
Lastly, the advertisers’ goal is generating a profit from their advertisements. They want consumer to purchase their advertised product.
How to measure
The advertiser could trace the sales through sale revenue. For example in the case, Windham could identify product sale from returned coupons of pharmacy. First, customers print out the coupons, which has a barcode identifying the site customer came from, in order to redeem at pharmacy. Then, when the pharmacy returns those coupons, Windham could compare which advertising site gives it the most sales. This method also apply to newspaper advertisement, which sent the barcode by postal mail by the call center to respondents. 2. What specific consumer behaviors determine if a business model will produce the results an advertiser wants?
In the case, there are three different consumer behaviors depending on the business model as follow
Consumer behaviors of MedNet are those who are actually looking for some medicines, which would cure their illness. They are likely to spend longer time on browsing through the medical information to find the best solution and click around the advertisement related to what they are searching for. In addition, they tend to buy more products from advertisers when they decide to purchase. This includes asking their physicians for prescription medication when the advertised product is not available over-the-counter. Finally, these visitors decide to return to website when they have a health problem next time. Business model
- Impression business model
- Charge by CPM
Consumers of Marvel are those who browse websites for general health-information. They might interest in some medical issue but not in urgent circumstances. They use Marvel as a starting point for information searching and may be caught by advertisement on the websites, which is possible to come back when they really need help. Business model
- Click-Throughs business model
- Charge by CTR
Consumers of Cholesterol.com are interested in cholesterol problem treatments only. They have strong...
Please join StudyMode to read the full document