principles of internet marketing chapter 1 an overview of the web
TRANSCRIPT
Principles of Internet Marketing
Chapter 1An Overview of the Web
Objectives
In this chapter you will learn about:
•The rise of the Web from obscurity to commercial revolution
•The evolution of the Web after the Web bubble burst
•Social networking on the Web and its effect on social relationships and marketing
Principles of Internet Marketing: New Tools and Methods for Web Developers 2
Objectives (continued)
• Important trends and demographic differences in Internet usage
• Predictions for the future of the Web and how these developments might further impact society
Principles of Internet Marketing: New Tools and Methods for Web Developers 3
Principles of Internet Marketing: New Tools and Methods for Web Developers 4
A Brief History of the Web Through 2001
• Commercialization of the Web (1990’s) – Commercialization began when Tim Berners-Lee’s
introduced the ability for links to be made between various pieces of information
– Continued in 1993 with release of HTML– Early browser wars between Netscape and Internet
Explorer put IE in dominant position
Principles of Internet Marketing 5
A Brief History of the Web Through 2001 (continued)
• Commercialization of the Web (1990’s) (continued)– Web growth propelled by increase in computer
ownership, falling tech prices and low interest rates– Only 19,000 sites in mid-1990’s, compared to 176M
in 2008
5Principles of Internet Marketing: New Tools and Methods for Web Developers
Principles of Internet Marketing: New Tools and Methods for Web Developers 6
A Brief History of the Web Through 2001 (continued)
• Importance of venture capitalists – Invested over $10 billion in 1996, mostly to tech
companies
• Massive economic growth – Web investments fueled the stock market to new
peaks in 2000– Tech-related growth helped drive unemployment rate
to 40 year low of 3.8%
• Massive Web growth of the 1990’s known as the “Web bubble”
Principles of Internet Marketing 7
A Brief History of the Web Through 2001 (continued)
Figure 1-1: Graph of NASDAQ exchange between 1994 - 2003
7Principles of Internet Marketing: New Tools and Methods for Web Developers
Principles of Internet Marketing: New Tools and Methods for Web Developers 8
A Brief History of the Web Through 2001 (continued)
• The bursting of the bubble – Around 2000, investors became anxious for profits
from Web companies– High profile bankruptcies of eToys and Webvan
caused investors to sell, causing stock market to plummet ending many Web companies
– Other key failures included:• Pets.com
• Kozmo.com (order absolutely anything for free delivery)
• Flooz.com (new, online currency)
Principles of Internet Marketing 9
A Brief History of the Web Through 2001 (continued)
• Key points in Web history, between 1991 - 2001:– 1993: CERN decides to make Web technology and
codes free for all to use– 1995: Amazon.com is launched– 1995: Internet Explorer introduced– 1998: Google launched– 2000: Dow Jones and NASDAQ markets reach their
peak
9Principles of Internet Marketing: New Tools and Methods for Web Developers
Principles of Internet Marketing: New Tools and Methods for Web Developers 10
A Brief History of the Web Through 2001 (continued)
• Key points in Web history, between 1991 - 2001 (continued):– 2001: Wikipedia is launched– 2001: eToys and Webvan bankruptcies spark the
end of the Web bubble
Principles of Internet Marketing: New Tools and Methods for Web Developers 11
A Brief History of the Web From 2002 Forward
• Changes in technology helped usher in next generation sites– Faster connection speeds– More powerful computers– Broader color range for monitors
• Better understanding of Web and better communication between designers and programmers led to improved site designs that were more attractive and easier to use
Principles of Internet Marketing 12
A Brief History of the Web From 2002 Forward (continued)
Figure 1-3: McDonald’s Web site, before 2002 and after
12Principles of Internet Marketing: New Tools and Methods for Web Developers
Principles of Internet Marketing 13
A Brief History of the Web From 2002 Forward (continued)
Figure 1-5: NBC’s Web site, before 2002 and after
13Principles of Internet Marketing: New Tools and Methods for Web Developers
Principles of Internet Marketing 14
A Brief History of the Web From 2002 Forward (continued)
Figure 1-7: New York Post’s Web site, before 2002 and after
14Principles of Internet Marketing: New Tools and Methods for Web Developers
Principles of Internet Marketing 15
A Brief History of the Web From 2002 Forward (continued)
Figure 1-9: Brookstone’s Web site, before 2002 and after
15Principles of Internet Marketing: New Tools and Methods for Web Developers
Principles of Internet Marketing 16
A Brief History of the Web From 2002 Forward (continued)
• Web growth despite bubble bursting– Market crashed did not diminish Web’s importance; it
simply weeded out bad ideas– E-commerce grew from $27M in 2000 to $139M in
2008
16Principles of Internet Marketing: New Tools and Methods for Web Developers
Principles of Internet Marketing 17
A Brief History of the Web From 2002 Forward (continued)
Figure 1-10: E-commerce retail sales growth 2000-2008
17Principles of Internet Marketing: New Tools and Methods for Web Developers
Principles of Internet Marketing: New Tools and Methods for Web Developers 18
A Brief History of the Web From 2002 Forward (continued)
• Web transformed into social platform and entertainment outlet (as well as commercial outlet)– YouTube viewership rose while network TV
viewership declined
• Key points in Web history, from 2002 forward:– 2002: Release of Flash Player 6 (the first version to
support video files, setting the stage for the later explosion of online video)
– 2003: Launch of MySpace social network
Principles of Internet Marketing 19
A Brief History of the Web From 2002 Forward (continued)
• Key points in Web history, from 2002 forward (continued):– 2004: Amazon.com proves Web-based companies
can generate positive income with first annual profit– 2004: Launch of Facebook social network– 2005: Launch of YouTube video sharing site– 2005: More new users (17M) go online in 2005 than
in all of the 1990’s
19Principles of Internet Marketing: New Tools and Methods for Web Developers
Principles of Internet Marketing: New Tools and Methods for Web Developers 20
Social Networking on the Web: Its Impact on Relationships and
Marketing• Social networks aren’t exclusive to Web
– Social networks exist in physical world– Defined as a structure of nodes (people and /or
organizations) tied together by one or more specific types of interdependency such as values, friends, ideas, etc.
– Social networks operate among nations, families, friends, and play a role in problem solving and achieving goals
Principles of Internet Marketing 21
Social Networking on the Web: Its Impact on Relationships and
Marketing (continued)
Figure 1-12: Graphical representation of a social network
21Principles of Internet Marketing: New Tools and Methods for Web Developers
Principles of Internet Marketing 22
Trends and Demographic Breakdowns
• Understanding trends and demographics help marketers reach their target audiences
• Overall Internet usage ballooned from 14% of population in 1995 to 70% in 2007
22Principles of Internet Marketing: New Tools and Methods for Web Developers
Principles of Internet Marketing 23
Trends and Demographic Breakdowns (continued)
Figure 1-13: Growth rates of Internet usage 1995 - 2007
23Principles of Internet Marketing: New Tools and Methods for Web Developers
Principles of Internet Marketing 24
Trends and Demographic Breakdowns (continued)
• Various demographic breakdowns use Web differently:– Men log on more often than women and spend more
time online– Younger users more likely to create blogs, watch
videos
24Principles of Internet Marketing: New Tools and Methods for Web Developers
Principles of Internet Marketing: New Tools and Methods for Web Developers 25
Trends and Demographic Breakdowns (continued)
• Marketers have significantly increased their use of the Web to reach audiences– Over 71% of companies planning new Web sites– 50% planning to take advantage of online consumer
feedback– 25% plan to create their own marketing-related blog
Principles of Internet Marketing 26
Trends and Demographic Breakdowns (continued)
Figure 1-14: How marketers are adopting various Web tools26Principles of Internet Marketing: New Tools and Methods for Web Developers
Principles of Internet Marketing: New Tools and Methods for Web Developers 27
Where Do We Go From Here?
• Many experts see increased global use of Web helping turn English into a global language
• Web users may increasingly fragment their personalities, creating separate but equal online personas due to ability to remain anonymous.
• Entertainment will continue to shift from off-line outlets to online outlets
Principles of Internet Marketing 28
Where Do We Go From Here? (continued)
• Increased standardization of online advertising will improve Web landscape for marketers – Banner ad size– Video length – File size – Cost calculations
28Principles of Internet Marketing: New Tools and Methods for Web Developers
Principles of Internet Marketing: New Tools and Methods for Web Developers 29
Summary
• Since 1991 introduction of links, Web growth has been on a fast track
• 1990’s saw the introduction of Web commercialization, fueled by cheaper tech prices, low interest rates, and increased computer purchases
• Potential profits attracted venture capitalists, who poured money into new Web companies, driving up the stock market, which later burst after key Web failures
Principles of Internet Marketing: New Tools and Methods for Web Developers 30
Summary (continued)
• After Web bubble burst, Web evolved into a more serious marketing tool, thanks to smarter investments, better design, and improved technology
• More people logged on as the Web further became a place for entertainment and socializing
• Marketers increasingly looked to the Web for opportunities to reach their audiences
Principles of Internet Marketing: New Tools and Methods for Web Developers 31
Summary (continued)
• Various demographic groups use the Web differently, which helps marketers more easily find the people they want to reach
• In the future, many experts believe that the global use of the Web will effect language, and that the anonymity afforded social networking could effect offline relationships– Online advertising will become standardized,
improving the Web for marketers