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Kristen Bettencourt The Real Impact of Internet Advertising The rage of today is the Internet. Everything has to do with the Internet, and everything you could ever want to look up is on the Internet. One of the most new things to do on the Internet is shop, yes shop. Take the headache out of trying to find a parking spot in the mall and go online to shop. Don’t like to go Christmas shopping? Then go online and buy all your presents there. These are some pretty good reasons to just boot up your computer and not even go to the mall, but the fashion industry has had their shares of problems with people going online instead of to the mall. Will the Internet have as big an impact as radio and television did? Most marketing executives say no. "Interviews with marketers reveal that few believe the Internet will change their approach to advertising. Most see it as little more than a complement to traditional marketing practices; and don’t expect it to reduce expenditure on broadcast and print media or change the form, pricing, or delivery of advertisements. Their view is probably a reaction to the early hype about the Internet and the World Wide Web, which created unrealistic short-term expectations among marketers and frustration with the inadequacies of the delivery technologies among consumers." (Cartellieri, Parsons) However, as the technology improves, the impact of Internet advertising will increase and become easier to measure. Over the next few years, advertising agencies and consumer marketers will be under pressure to change their whole approach to marketing communications. "With more advertising on the Internet marketers will become more accountable for their results, and they will pay more attention to building a total customer relationship." (Cartellieri, Parsons) "For ad agencies, fees based on results will become standard. New capabilities will be required as creative production speeds up and becomes more closely integrated with marketing activity. A deep understanding of enabling technologies will become prerequisite for fresh forms of advertising." (Cartellieri, Parsons) The first and most obvious change in advertising will be in what consumers see on their screens. Ads are likely to change in terms of their content, the type of customization they employ, and their delivery to the customer. The technology will invite consumers to make a purchase directly from an ad. The best current examples let the user text out a product. Ex:) at the Gap’s site, customers can "try" on outfits and mix and match separates from the current range. "In the future, technologies such as virtual reality will make ads even more experiential: customers will feel as though they are test-driving a new car, or walking down the aisles of a grocery store. Prospective buyers who are looking for information on the product can go on the internet to find it quickly, having their research done in advance they are more ready to buy at the point when they actually come to the manufacturer or seller." (Cartellieri, Parsons) The changes now taking place in the shape, measurement, and pricing of advertising on the Internet may seem dramatic enough themselves, but beliefs are they will have a much broader impact on marketing practices in general. First, new ways of advertising on line will inspire new creative approaches elsewhere. Second, the Internet will prompt marketers to reevaluate their use of traditional media. Third, Internet advertising will help marketers to improve their understanding of consumers’ needs, preferences, and product usage. Finally, once marketers get a taste for the measurability of Internet ads and the tailored pricing it enables their expectations of the effectiveness and measurability of other media will rise." (Cartellieri, Parsons) There is one company who has had a lot of success and a lot of problems with Internet advertising. "VICTORIA’S NOT SO LITTLE SECRET, A "Model" Web Site Becomes A Publicity Bonanza". "Sex. Now that we have your attention…Sure, the fact that sex sells isn’t news, but in the annuals of old adages, few are more true. Sex sells if you dress it up right. And Victoria’s Secret knows how to dress it up right." (Cobb) The Columbus, Ohio-based lingerie company, a subsidiary of Intimate Brands, Inc., spent $5.5 million pitching their sexy lingerie for ads that debuted during Super Bowl XXXIII last Jan.30. The spots, with the usual come-hither supermodels, were touching an upcoming live Internet fashion show. (The company spent $1.5 million for one 30-second Super Bowl ad and the other $4 million on full-page newspaper ads promoting the Internet fashion show worldwide)" (Cobbs). "It was a change of pace for the company that has traditionally relied upon their guy-friendly catalogue—mailed to 350 million people annually —for marketing and public relations." (Cobbs) With the fashion shows already at a great success, putting one on the Internet only brought together the popularity of the fashion show. "We could deliver a message on three levels: watch, shop, and invest." (Cobbs) There has been an increase in sales since the fashion online show; the stock increased by 11 percent to $44.18 a share. "The Victoria’s Secret Internet event, featuring scantily clad supermodels such as Tyra Banks, Stephanie Seymour, and Laetitia Casta, was one of the most successful public relations events yet using the new technology." (Cobbs) "If the fashion show had been on cable, it wouldn’t have had the same sizzle, if you want to be a powerful fashion brand, you’ve got to dance along the edge." (Cobbs) The Victoria’s Secret company even targets men. "Fact: 90 percent of Victoria’s Secret catalogue and retail customers are women. So it surprised many industry observers that the company would risk so much money in pitching a predominantly male audience. "My husband went with a gang of guys to their buddy’s place for the Super Bowl weekend, she says, "There was a Victoria’s Secret catalogue on the coffee table and, of course, all the guys dived for it. And out popped all these messages and instructions their buddy’s wife had left behind for everyone. She knew they would look there." (Cobbs) In addition, after Christmas, Valentine’s Day is the biggest time for lingerie sales. "It’s the day when guys buy for their wives and girlfriends, so it was smart to go for the male audience and smart to go for the big splash." (Cobbs) The only flaw that Victoria’s Secrets found were actually too many people logging on to the web site. The Webcasting for Victoria’s Secret was not prepared to handle the crowd. "It was reported that Broadcast.com’s computers were configured to handle between 250,000 and 500,000 simultaneous viewers." (Cobbs) The Victoria’s Secret Internet event was hurt by the inferior quality of images available to Web site viewers. It left millions of potential viewers unable to access the website at all. There is a company that found that an Internet service just isn’t a good idea. The Wet Seal Co. has had problems with Internet shopping. The chain consists of four chains: Wet Seal. Contempo Casuals, Limbo Lounge, and Arden B. The company is based in California. They have thousands of the chains across the country. The company doesn’t advertise on television or radio. The chain does do advertisements in magazines such as: TEEN, YM, Jane, and Rolling Stone. The company does very well producing over millions of dollars from the four chains. However, recently the store started a website. It posted a catalogue online for people to shop with. The website has not generated a lot of revenue. I spoke with my district manager and asked her why she thought the website was not doing well. "There is not enough advertisement for people to know it even exists, people just know of the stores," says Kim Booth. The website is www.blueasphalt.com, and I recently visited it. It had colorful homepage, and lots of merchandise. It showed pictures of each of the four chains. I would rather shop at the stores. My district director also said that, "Shipping and handling fees are also things that people don’t want to deal with". Maybe Wet Seal should just stick to the stores for revenue.Companies have some pros and cons working for them. The fashion world on the Internet can work depending on how much effort the company puts into it. With ever growing technology, shopping online might become the number one way to buy clothes. |