CEC Theses and Dissertations

Title

Electronic Commerce and Internet Advertising

Date of Award

2001

Document Type

Dissertation

Degree Name

Doctor of Philosophy (PhD)

Department

Graduate School of Computer and Information Sciences

Advisor

Richard D. Manning

Committee Member

Marlyn Kemper Littman

Committee Member

Steven R. Terrell

Abstract

Electronic commerce (e-commerce) and online advertising have exploded on the Internet. The Internet advertising frenzy resulted in revenue that topped $1.953 billion for the first quarter of 2000 (Internet Advertising Bureau, 2000a). Revenues for the first quarter swelled almost 10% over the fourth quarter of 1999 and 182% over the first comparative quarter of 1999. The continued growth of e-commerce is reflected by the interactive nature of the Internet, which has provided abundant opportunities for companies to promote their goods and services. Given the promise of the Web as a medium for e-commerce and advertising, businesses are turning to online advertising because it has enormous communication power. Although companies are allotting more of their budgets for online advertising, advertisers are searching for the most effective online advertising models to reach their audience. This research study investigated the prevalent online ad models and developed a new online advertising model to enhance conversion events, the Enhanced Conversion Events Model (ECEM). The ECEM included four criteria: (I) emotional and rational appeals, (2) ad dynamics, (3) pull based, and (4) metrics. An online ad, VCwheels, was developed based upon the ECEM and deployed on Ventura County Star newspaper's Web site, insidevc.com. Its metrics, provided by DoubleClick's NetGravity, were compared to other online business ads' metrics deployed during the same time frame on insidevc.com. Analyses and findings of the new online ad model's effectiveness were determined by its September 200 I 's measurement results and a summative committee meeting. Based on the metrics provided by NetGravity, VCwheels elicited a higher click-through rate than the 15 other ads deployed during the same time frame (i.e., September 200 I). This research has significant implications for practitioners and academic researchers as it gleans from the ECEM's results. Findings demonstrate that the ECEM enhances conversion events. The theoretical underpinnings of the ECEM punctuated with its practical application and results offer academic researchers and industry practitioners with recommendations for expansion and exploration of effective online advertising models.

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