328 CHAPTER17 MANAGINGDIRECT ANDON-LINEMARKETING
Despite the ubiquity of banner ads, the “click-through rate” (the number of
users who click on an ad to get more information) has plummeted below 1 percent.
However, users who don’t click may still see and absorb the banner ad message, notes
Christopher Escher of Talk City (www.talkcity.com), an on-line community site: “Our
focus groups tell us that people see our banner ads. Sometimes they click. Sometimes
they don’t. But the banner ads make them more likely to visit at another time.”^23
Accustomed to measurement techniques for traditional media, advertisers want better
measures of on-line advertising impact. For now, Web advertising is playing a support-
ing role in the promotion mixes of most advertisers.^24Forums, Newsgroups, Bulletin Boards, and Web Communities
On-line buyers increasingly create product information, not just consume it. They par-
ticipate in Internet interest groups to share product-related information, with the
result that “word of Web” is joining “word of mouth” as an important buying influence.
To benefit from this trend, companies may participate in or sponsor Internet forums,
newsgroups, and bulletin boards that appeal to special interest groups.
Forumsare discussion groups that are usually located on commercial on-line ser-
vices. A forum may operate a library, a “chat room” for real-time message exchanges,
and even a classified ad directory. Some firms are adding proprietary chat rooms
where visitors can go to discuss that company’s offerings or interact with customer ser-
vice reps. IGoGolf.com (www.igogolf.com), for example, made a $12,000 sale after a
customer (who logged onto the U.S. site from Egypt) chatted with a customer service
rep who recommended the right golf equipment.^25
Newsgroups,the Internet version of forums, are limited to people who post and
read messages on a specified topic. Thousands of newsgroups deal with every imagin-
able topic: healthy eating, caring for Bonsai trees, exchanging views about the latest
soap opera happenings.
Bulletin board systems(BBSs) are specialized on-line services that center on a spe-
cific topic or group. Over 60,000 BBSs deal with numerous topics, such as vacations
and hobbies. Marketers that participate in newsgroups and BBSs must take care to
avoid a commercial tone in their messages.
Web communitiesare commercially sponsored Web sites where members congre-
gate on-line and exchange views on issues of common interest. One such community
is Agriculture Online (www.agriculture.com), where farmers and others can find com-
modity prices, recent farm news, and chat rooms of all types.E-mail
The most targeted method a company can use to communicate directly with prospects
and customers is via e-mail. Using inbound e-mail, the firm can invite people to e-mail
the firm with questions, suggestions, and even complaints so customer service reps can
respond and cultivate the relationship. E-savvy companies also develop Internet-based
electronic mailing lists for outbound e-mail, sending out customer newsletters, special
product or promotion offers based on purchasing histories, reminders of service
requirements or warranty renewals, and announcements of special events.
However, in using e-mail as a direct-marketing vehicle, companies must be extra
careful not to develop a reputation as a “spammer.”Spamis the term for unsolicited e-
mail. Consumers who are accustomed to receiving junk mail in their real mailboxes
are often enraged to find unsolicited marketing pitches in their e-mail boxes. In fact,
several states, as well as the federal government, have proposed legislation to limit or
prohibit spam broadcasting.