An exploration of online advertising: U.S. versus international portals.ABSTRACT An exploratory study was conducted, examining U.S. and international online advertising. The study investigated standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. sizes, animation and special effects special effects, in motion pictures, cinematographic techniques that create illusions in the audience's minds as well as the illusions created using these techniques. of ads employed on five portal sites Noun 1. portal site - a site that the owner positions as an entrance to other sites on the internet; "a portal typically has search engines and free email and chat rooms etc. . While there were some similarities, results indicated differences within and between sites, as well as global regional differences. 1. INTRODUCTION Despite online advertising's poor performance in the last half of 2002, many in the advertising industry are forecasting growth for 2003. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. eMarketer, the industry is expected to grow by 6.3 percent (Morrissey, 2003), and Jupiter Research is predicting, a growth of 10%, "the industry will start to rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective and increase to $14 billion by 2007" (Boland, 2002). The slow growth over the past two years has been attributed to declining U.S. economic conditions. Therefore the predicted growth will likely depend on the U. S. economy. Jupiter Research has made the following forecasts regarding online advertising: * Local online ad spending will grow to $2.5 billion by 2007 * Marketers must sell true value proposition of online advertising * Online usage at home will approach that of pay TV by 2007, as 78% of households log on to the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the * Effective CPM's will see modest gains over the next few years due to better supply and demand equilibrium equilibrium, state of balance. When a body or a system is in equilibrium, there is no net tendency to change. In mechanics, equilibrium has to do with the forces acting on a body. . (Morrissey, 2003) Spending in the international market for online advertising is expected to follow similar trends. In a report by Forester Research Group (2001), spending for online advertising in four major geographic regions is predicted to increase from 2000 to 2005. In North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. spending is predicted to increase by 77 percent, Europe increase of 89 percent, Asia Pacific by 88 percent and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. by 91 percent. Overall, spending is predicted to grow by approximately 80 percent over the six-year period. 2. BACKGROUND Although the traditional banner has been the workhorse work·horse n. 1. Something, such as a machine, that performs dependably under heavy or prolonged use: "the 50-year-old DC-3 ... for online advertising, the newer larger formats are expected to dominate. Today's online advertisers and consumers are demanding more creative and integrative formats. The use of rich media, including music, voice, video, and motion along with the use of color not of the white race; - commonly meaning, esp. in the United States, of negro blood, pure or mixed. See also: Color and graphics has generated increased usage because of greater click-through. Marketers are recognizing the value of Internet advertising Delivering ads to Internet users via Web sites, e-mail, ad-supported software and Internet-enabled cellphones. Also called an "ad network," Internet advertising organizations act as a middleman between the advertiser and the Web sites and software publishers that display the ads. and are now focused on developing the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. benefits from this form of media. Internet use in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. has shifted from routine to essential for most Americans. According to a report from Ipsos-Reid (Greenspan, 2002b), there is an increasing reliance on the Internet worldwide. "Interviews with more than 6,600 adults in over 12 countries indicated that the U. S. has the highest incidence of Internet usage with 72 percent of the population going online once within the previous 30 days." The report shows Canada to have the second highest Internet penetration rate with 62 percent of adults reporting they have been online at least once in the 30 days prior to the survey. South Korea was third with 53% penetration, the United Kingdom with 50 percent, Japan posted an increase to 47 percent and Germany up to 43 percent in the past two years. Other countries included in the study were: Urban Mexico 37 percent, France 37 percent, Urban China 30 percent, Urban Brazil 24 percent, Urban India 19 percent, and Urban Russia 8 percent. Jupiter Research reports that Australia has a 42 percent penetration rate with growth predicted to be 55 percent by 2005 (Greenspan, 2002b). Ipsos-Reid reports that of the 72 percent of Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. adults with Internet access See how to access the Internet. , 43 percent have made at least one online purchase, compared to the 62 percent of American Internet users Internet user n → internauta m/f Internet user Internet n → internaute m/f who have shopped online (Greenspan, 2002a; Greenspan, 2002b). Although Internet shopping is expected to increase in the Canadian market, about 40 percent of shoppers abandon at least one virtual shopping Virtual shopping is a form of e-commerce giving the ability for individuals to shop remotely via a computer network connection, normally on the Internet using the World Wide Web. cart on a Canadian retail Web site. The NFO NFO Info File (file type extension) NFO New Fund Offer NFO National Farmers Organization NFO Naval Flight Officer (US Navy) NFO National Family Opinion Cfgroup reports this to be a result of shipping fees. Most Canadians report that these fees are inflated and are seen as an irritant ir·ri·tant adj. Causing irritation, especially physical irritation. n. A source of irritation. irritant, n 1. an agent that causes an irritation or stimulation. 2. . Jupiter Research (2002) has reported an increase of 55 percent for online spending in Europe during the last two months of 2002. Online spending was reported to be highest in the U.K. The increasing number of online shoppers is fueling this growth. The online buying population has increased from 36 million in 2001 to 52 million at the end of 2002. According to a 2002 Taylor Nelson Sofres Taylor Nelson Sofres (TNS) is a global market research group, active in over 70 countries and employing 14,000 people. TNS conducts custom research business in key industry sectors, including Healthcare, Automotive, Technology, Finance, Consumer as well as Polling and Social. report, 73 percent of German consumers were hesitant hes·i·tant adj. Inclined or tending to hesitate. hes  i·tant·ly adv. to part with their money, yet more than
64 percent of the estimated 28.64 million German Internet users are
online shoppers (Greenspan, 2003). Forrester Research Forrester Research is an independent technology and market research company that provides its clients with advice about technology's impact on business and consumers. Corporate facts
emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. Net-influenced sales. This was found to be the case since many Germans prefer to use the Internet to research products rather than buy. A German market research firm, Gfk Group categorized cat·e·go·rize tr.v. cat·e·go·rized, cat·e·go·riz·ing, cat·e·go·riz·es To put into a category or categories; classify. cat most online shoppers to be male, and in the 30-39-age range, with buying habits that mimic American purchases (books, CD's, videos, and clothing). Differences in online advertising between the international sites compared to the U. S. site may be influenced by cultural differences. Many international consumers are influenced by different factors. For many, buying through the mail or online may not be as common as it is for U.S. consumers; further the use of credit cards for online shopping may be used less. For example, Greenspan (2003) reported that only 36 percent of Germans carry a credit card, compared with 67 percent in the U.K. 3. PURPOSE OF STUDY The purpose of this study was to examine the usage rate and format of banner advertising Banner Advertising A common form of advertising on the internet. The banner is an advertisement of 460x68 pixels, usually placed at the top of the page Notes: For an example, just look at the top of a page on almost any popular web site. on international web sites compared to the same sites in the United States. Specifically, we examined U. S. and international sites relative to static versus animation, use of rich media, differences in geographic location, and variation in portals for standard versus nonstandard non·stan·dard adj. 1. Varying from or not adhering to the standard: nonstandard lengths of board. 2. size. For this study we chose to use five major search engines and make comparisons based on the IAB's (Interactive Advertising Bureau) most recent standardized banner size and formats. These formats included skyscrapers, squares and rectangles. As reported in studies conducted by Osborne and Kunz, [Osborne, 2002 #3; Osborne, 2002 #8; Osborne, 2002 #9], the new larger sizes and formats have been adopted and are often replacing the traditional banner format. In a recent article (Morrissey, 2003), Jupiter Research predicts rich media to play an even larger role in the online mix, these ads are expected to account for 8 percent of ad spending in 2003, as the traditional ad forms begin to lose market share. The questions this study will attempt to answer are: 1. Does online advertising in the international market space have similar characteristics? 2. What is the dominant form of online advertising? 3. Are the larger formats replacing the more traditional banners? 4. What sizes and types of online advertising are found on international sites compared to their domestic counterparts? 5. Are there regional or geographic differences in the types of online advertising? 4. METHODOLOGY In order to examine the usage rate and format of online advertising on international Web sites compared to the same sites in the United States, five major portal sites were selected, and comparisons made based on the IAB's (Interactive Advertising Bureau) most recent standardized banner size and formats. These formats included skyscrapers, squares and rectangles banners and buttons as defined by IAB (1) See Internet Architecture Board. (2) (Interactive Advertising Bureau, New York, www.iab.net) An industry association founded in 1996 to set standards and guidelines for interactive advertising and marketing. . 4.1 Data Collection Data collectors were trained to identify and classify clas·si·fy tr.v. clas·si·fied, clas·si·fy·ing, clas·si·fies 1. To arrange or organize according to class or category. 2. To designate (a document, for example) as confidential, secret, or top secret. ads on each of the five identified portal sites and respective international sites linked from the U.S. main page. Ads were classified by size--each of the 14 IAB standardized interactive marketing units sizes by identified category (1-14) or specific size if nonstandard. In addition, ads were identified as static or animated. Furthermore, special effects such popover pop·o·ver n. A very light, hollow muffin made with eggs, milk, and flour. Noun 1. popover - light hollow muffin made of a puff batter (individual Yorkshire pudding) baked in a deep muffin cup , pop-under, or flash/rich media were identified. The sites investigated were: AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. , Lycos, MSN (1) (MicroSoft Network) A family of Internet-based services from Microsoft, which includes a search engine, e-mail (Hotmail), instant messaging (Windows Live Messaging) and a general-purpose portal with news, information and shopping (MSN Directory). , Netscape, and Yahoo. 4.2 Analysis A total of 950 ads were identified across all sites, U.S. and international. More than half of the ads identified were non-standard sizes (56%). The next most common size was the original 468x60 pixel banner. More than one-third of the ads (37%) were small size ads, in the banner and button category of the IAB's IMU Noun 1. IMU - a terrorist group of Islamic militants formed in 1996; opposes Uzbekistan's secular regime and wants to establish an Islamic state in central Asia; is a conduit for drugs from Afghanistan to central Asian countries standards. Skyscrapers accounted for slightly less than 4% of the ads noted. Animated and static ads were predominant pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. , 45% and 48% respectively. Approximately 10% of the ads employed rich media, but very few sites used pop-over, 5.2% or pop-under 2.7% ads. Fifty-seven different countries were identified with online advertising content. 4.3 Data Analysis The data were analyzed an·a·lyze tr.v. an·a·lyzed, an·a·lyz·ing, an·a·lyz·es 1. To examine methodically by separating into parts and studying their interrelations. 2. Chemistry To make a chemical analysis of. 3. for differences in the presence of 1) standard and non-standard sized ads, 2) static and animated, and 3) special effects of pop-overs, pop-unders, and rich media. Comparisons were made between U.S. and international sites, regional variances, and specific portal sites. Furthermore, individual portals were examined for differences in the U.S. and international version of each site. Chi-square tests chi-square test: see statistics. of independence were calculated comparing the frequencies for each of the three categories of online ads being investigated: size, animation, and special media. These categories were analyzed in four ways: contrasts between U.S. and international sites, global regions, portal sites, and finally portal sites contrasting U.S. and international classes of each portal. 4.4 Results 4.4.a U.S. versus International Comparisons A chi-square test of independence was calculated comparing the frequency of ad size between U.S. and international sites. No significant relationship was found. Chi-square tests of independence calculated comparing U.S. and international sites for the frequency of ads based on animation and special effects were significant. See table below for specific results. CHI-SQUARE RESULTS U.S. VS INTERNATIONAL Test Variables chi-square df P Standard/nonstand 1.379 1 .240 Static / Animated 29.733 2 .000 PO/PU/RM 48.242 3 .000 More information can be gleaned from the frequency tables for each of the three previous analyses. Specifically, in examining the frequencies of static and animated online ads, results show the there were more animated ads on the international site and more static ads on U.S. sites. Examination of the frequencies of special effect ads showed that international sites use fewer pop-over ads and more rich media ads, while U.S. sites employed more pop-over and fewer rich media ads. 4.4.b Global Regional Analysis Chi-square tests of independence were calculated comparing the frequency of ad size, type of animation, and special effects for four geographic regions: Asia Pacific, Europe, Latin America, and North America. All three analyses were statistically significant, indicating differences in the occurrence of online ad categories between all four regions. See table below for specific results. CHI-SQUARE RESULTS REGIONAL COMPARISONS Test Variables chi-square df p Standard/nonstand 22.120 4 .000 Static / Animated 69.505 8 .000 PO/PU/RM 83.207 12 .000 Additional information gained from examination of the frequencies of the analyses provides insight in the differences. Europe and North America had more standard-sized ads on the sites, while Asia Pacific and Latin American sites had more non-standard size ads. Examination of the frequency of animated and static ads showed Latin America had more animated ads, while North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. sites had more static ads. Finally, examination of the frequency of special effect ads showed that Asia Pacific and European sites had fewer pop-over ads, and Latin American and North American had few rich media ads. Only North American sites had more pop-over ads. 4.4.c Site Portal Analysis Independent chi-square chi-square (ki´skwar) see under distribution and test. chi-square n. analysis of the frequencies of ad categories on the five portal sites examined again found statistically significant differences on all three categories: size, animation, and special effects. See table below for specific results. CHI-SQUARE RESULTS PORTAL SITE COMPARISONS Test Variables chi-square df P Standard/nonstand 111.061 4 .000 Static / Animated 61.966 8 .000 PO/PU/RM 69.620 12 .000 Examination of the frequency of standard and non-standard size ads determined that AOL did not exhibit any difference in use of standard or non-standard size. Lycos and Netscape sites exhibited more standard size ads than expected, while MSN and Yahoo used more non-standard size ads then expected. Examination of the five portal site regarding the use of animated or static ads showed MSN was the only site employing more animated ads, while AOL and Netscape had more static ads than expected. Lycos and Yahoo did not differ in the use of animated and static ads. Analysis of the use of pop-over ads determined that AOL and Netscape used more pop-over ads, while MSN and Yahoo used fewer pop-overs. AOL employed more pop-under ads as well, while MSN had fewer, and Yahoo had no pop-under ads. Finally, AOL and Netscape had fewer rich media ads, while Lycos and MSN had more rich media ads than expected. 4.4.d Individual Portal Sites, U.S. versus International Chi-square independent t-test t-test, n an inferential statistic used to test for differences between two means (groups) only. This statistic is used for small samples (e.g., N < 30). Also called t-ratio, stu-dent's t. analysis of the frequencies of the ad categories on the five portal sites was also examined, controlling for U.S. and international portals. Again, all three results were statistically significant. However, the examination of static versus animated ads resulted in 7 cells that had counts less and five for the U.S. sites, and the analysis for special effects, had 6 cells in the international sites and 13 cells in the U.S. sites with less than five. Thus, these last two statistics must be seen as significant with caution. See table below for specific results. Analyzing specific differences between the international sites found that Lycos and Netscape had more than expected standard-size ads. MSN and Yahoo had more non-standard size ads on their international portals. On the U.S. portal sites, Netscape again had more standard-size ads, along with Lycos. MSN and Yahoo again had more non-standard size ads on their respective U.S. portals. Investigation into the frequency of animated ads found that MSN had more animated ads on the international sites, while AOL and Netscape had more static ads. On the U.S. sites, Lycos had more animated ads, and MSN had more static ads on the portals. Examination of the special effect ads on the individual portal sites while statistically significant found many instances of very few ads in the respective categories. Thus the inferences taken here are questionable. However, examination of pop-over ads found more pop-over ads on AOL international sites, and the Netscape U.S. site. MSN had fewer than expected pop-over ads on both the international and U.S. portal sites. More pop-under ads were present on the AOL international site. MSN had more rich media ads on the international sites, while AOL and Netscape had fewer rich media ads on the international sites. Only Netscape and Yahoo had any rich media ads on the U.S. portal sites, and these were three and two ads present, respectively. 5. Summary This exploratory study examined the frequency of size, animation and special effects of five major portals, on both U.S. and international sites. The results indicate that there appear to be significant differences between U.S. and international sites with regard to the use of animation and special effects, while there is not difference in the application of standard size ads, and defined by the IAB. While there was no significant difference between U.S. and international sites in the use of standard and non-standard size ads, the international sites used more animated and rich media ads. U.S. sites had more pop-over ads. Regional analysis determined that Europe and North America had more standard-sized ads, Latin American sites employed more animated ads, and North American sites used more pop-overs. These specific results could be a result of the development of and adoption of Internet technology in these regions. Results of this analysis provided answers to the research questions posed earlier: 1. Although there are some similarities between online advertising in the international market and the U.S., there are more differences. Specifically, there were no significant differences between U.S. and International sites in the use of the IAB standard size formats. However, U.S. sites employed less animation, and international employed pop-over, pop-under, and rich media more frequently. 2. The dominant size of online advertising was the traditional 468 x 60 pixel banner. However, this study determined that more than half of all online advertising was non-standard size. 3. Although many have predicted the larger size ads would replace the traditional banner, this study found slightly less than 4% of the online ads were skyscrapers. This indicates that the larger ads have not yet been embraced by the advertisers. 4. Comparisons between U.S. and International versions of individual portals found differences in the use of animation, special effects, and non-standard size. However, there was no consistency across individual portals or U.S. versus international versions. These results indicate no standardized format for individual portals. 5. There were global regional differences identified. Specific differences were identified in the use of standardized format, special effects and animation. This exploratory study provided insight into the international perspective of online advertising and the adoption of the standardized formats developed by the Interactive Advertising Bureau. Because of the differences identified in this study, implications for advertisers are noteworthy. More innovative and integrative strategies will have to be employed if the Internet is to become a effective medium, in both the U.S. and international markets. While not yet a mature medium, online advertising appears to have been integrated into the marketing mix. Advertisers now face the age-old question of globalization globalization Process by which the experience of everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world. Factors that have contributed to globalization include increasingly sophisticated communications and transportation versus localization Customizing software and documentation for a particular country. It includes the translation of menus and messages into the native spoken language as well as changes in the user interface to accommodate different alphabets and culture. See internationalization and l10n. . CHI-SQUARE RESULTS PORTAL SITE U.S. VS INTERNATIONAL Test Variables chi-square df P Standard/nonstand U.S. 38.515 4 .000 Intl 78.664 4 .000 Static / Animated U.S. 32.980 8 .000 Intl 57.033 8 .000 PO/PU/RM U.S. *13 cells 22.570 12 .032 Intl *6 cells 62.511 12 .000 REFERENCES Boland, M. A., Jupiter Research Reports that Classified Growth and Increased Spending by Traditional Advertisers Will Drive Online Ad Growth in 2003, October 22, 2002; Jupitermedia Corporation.,www.internet.com/corporate/releases /02.10.22-jupadspending.html. Forrester Research, "Internet," Marketing News, 2001. Vol III (5), 2. Greenspan, R., Canada Creates E-Commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. Climate, November 27, 2002a; Jupitermedia Corporation., http://cyberatlas.internet.com/big_picture/geographics /print/0,,5911_1549541,00.html. Greenspan, R., The Web Continues to Spread, December 17, 2002b; Jupitermedia Corporation., http://cyberatlas.internet.com/big_picture/geographics /print/0,,5911_1556641,00.html. Greenspan, R., Gains Posted in German E-Shopping, January 17, 2003; Jupitermedia Corporation. http://ecommerce.internet.com/news/insights/trends /print/0,,10417_1571701,00.html. Jupiter Research Estimates that Europeans will Spend 4.5 Billion Euros Online in the Run up to Christmas this Year--an Increase of 55% on Last Year, 2002; Jupiter Research., www.internet.com/corporate/re/e ases/02.11.12-xmasshopping.html. Morrissey, B., 2003: Interactive Marketing Gets in the Mix, January 3, 2003; Jupitermedia Corporation., www.internetnews.com/IAR/article.php/156371. Osborne, P., & Kunz, M. B., "Adoption of IAB's New Interactive Marketing Units: A 1-Year Perspective," in Art to Technology: Opportunities in Marketing Research and Education, Jerry W. Wilson, Ed., Statesboro, GA: Atlantic Marketing Association, pp. 458-461. Osborne, P., & Kunz, M. B., "Online Advertising: A Snapshot (1) A saved copy of memory including the contents of all memory bytes, hardware registers and status indicators. It is periodically taken in order to restore the system in the event of failure. (2) A saved copy of a file before it is updated. Look at IMUs", E-Business Review, Vol. II, 2002, 43-45. Osborne, P., & Kunz, M. B., "Online Advertising: IMUs in Brief". in Finding Your Place in the Market Niche by Niche, Robert D. Green, Michelle B. Kunz, and Robert Erffmeyer, ed. Marketing and Management Association, Chicago, IL, pp. 89-94. Peggy Peggy may refer to:
abbr. Master of Business Administration Noun 1. MBA - a master's degree in business Master in Business, Master in Business Administration at Morehead State University History Morehead State University was originally founded as a private teacher's college in 1887, The Morehead Normal School. It is said to have been comprised of 13 buildings with a layout in the shape of a crescent moon for some period prior to 1922. in 1979. Currently she is an associate professor of marketing at Morehead State University. Dr. Michelle B. Kunz earned her Ph.D. at the University of Tennessee The University of Tennessee (UT), sometimes called the University of Tennessee at Knoxville (UT Knoxville or UTK), is the flagship institution of the statewide land-grant University of Tennessee public university system in the American state of Tennessee. , Knoxville in 1997. Currently she is an associate professor of marketing at Morehead State University. |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion