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Secret of good e-advertising -- Think smart 

Namrata Singh  
The breakdown and rebirth of e-advertising is among the next five big e-things to watch out for. Consider this: The expenditure on promotions and advertising worldwide is about $1.4 trillion of which 90 per cent is in 98 countries. In Japan itself, the expenditure per person per annum is nearly $2,100, while in the US the same stands at $1,775 per person per annum.

As per Dynamic Logic, a research company specialising in online advertising, advertisers who increase their exposure levels from one to just four can lift awareness from 5.6 per cent for one exposure to 10.4 per cent for four exposures or more. And it is not just consumer advertising.

In B2B advertising, online ad impressions for B2B sites increased to 5.6 billion in the first quarter of 2000, from one billion impressions in the second quarter of 1999. Based on current growth rates, Jupiter Communications and Media Matrix estimate that the B2B market will represent 18 per cent of future online advertising spending overall. Said NCR Corporation director (eMarketing) Dr Dave Schrader at the recently concluded NCR Partners 2000 seminar in Orlando: "What if the ads were really aimed at you? The next big opportunity will be `smart objects' on the screen.

The consumer may want to stop a programme and go browsing Websites. Online "tell me more" opportunities exist either on a particular product shown on the screen, the music, etc." Elaborating on "getting smart", Dr Schrader said: "For instance, on a Monday night football game, Websites could play along on guessing as to who would carry the ball next and chat. Advertising will occur on all mobile devices too." Under pushed advertising, a consumer could be enlightened while driving ("in three exits, you will find McDonalds"; or more relevantly: "Metro has your favourite brand of pizza on sale today"). Under pulled content, advertising could plug on to consumer queries such as "tell me the location of the nearest gas station with the best price for unleaded gas?" "Maybe advertisements aren't the only way.

Viral marketing or advertising could take place by word of mouth. While the typical customer acquisition cost on the Web is about $200 per person, viral marketing campaign undertaken by Comet Systems expended zero dollars and at the same time resulted in 40 million unique users," opined Dr Schrader.

According to Dr Schrader, companies could also dramatically improve the flow of information throughout the supply chain through exchanges, thus increasing impact on savings. As per i2 estimates, exchanges offer the potential to save four per cent of the US gross domestic product by trimming the fat from the supply chain; which is a $96 billion of savings in the US.

Dr Schrader predicts the merger of customer relationship management (CRM) with supply chain management (SCM).

While CRM builds a customer base, SCM builds products quickly and cheaply. CRM creates campaigns, while SCM creates better processes. CRM builds brand loyalty through customer acquisition, and SCM brings about operational efficiency and squeezes costs. "The merger of CRM and SCM could lead to better understanding of customers throughout the food chain. It could result in less production of products not required, replacement parts and result in lower cost for manufacturers and distributors, which creates real value," said Dr Schrader. For instance: a consumer browses the Web and creates custom car. A retailer accepts the order for a goal of delivering the car within a week. An exchange puts out to bid car seats; a manufacturer accepts orders, and the exchange puts leather out to bid. Information sharing thus leads to collaborative forecasting.

Personalisation with privacy: The key to effective CRM
Get more personal; less intrusive. That is the latest mantra in customer relationship management (CRM).

Adding a powerful personalisation engine enables marketers to tailor communication according to the profile of each customer on the Net. Privacy issues will thus play a key role in eCRM. According to NCR (Teradata Solutions Group) chief technical officer Mr Stephen Brobst: "CRM characterises basic personalisation at best. Typically, profiles of each customer are tracked, to ascertain as to what searches they have done, and as to whether a customer went to a particular site and did not make any purchases. It is not just a basic profile, you are tracking an entire buying behaviour. A one-to-one relationship with customers would thus become important."

Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.

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