Advertising on the Web - Academic Research


On this page I present my thesis "An Organizations Five Reasons to take to the Internet". If you would like to share any information with me about this subject, do not hesitate to contact me Stefan Benzon

An Organizations Five Reasons to take to the Net

    Only in Danish
book cover - bog forsideThe research done by Stefan Benzon has now been finished. It has resulted in a masters thesis which gives the "Organization five reasons to take to the Net". The full report is at the present time only available in Danish, since it is tailored to match the interest of Danish small and medium size organizations. Further more the report will not be made available in full,since it is at the present time being made into a book (a non-digital product) and it is set to be published in the month of June 1998 by Copenhagen Business School Press.

In Brief

In brief the report is divided into four parts. The first part gives the reader an introduction and an explanation of the composition of the Internet and the World Wide Web. The second part analyses the North American market which is defined in the report as being the lead user market on the WWW. This market is then compared to the national market ie. the Danish market to give the reader an insight into the development level of the local market.

The third part of the report focuses on the World Wide Web compared to other medias. Their differences and their similitude.

Finally the fourth part of the report gives the reader an insight into who to attract visitors to a site and generate traffic. The different informations and opportunities highlighted in this report then result in five different reasons why an organization should jump on the Net.

Part 1

The first part of the report only serves as an introduction to the Internet and the WWW. Useful chapters if the reader is not fully acquainted with the media. These chapters have been included as an introduction but also based on the assumption that all organizations which are not at the present time present on the WWW, are fully at home with the WWW structure and organization.

Part 2

The second part of the report takes its outset in the assumption that the North American market is at the present time the lead user market for the WWW. To be able to change this from being an assumption to being a fact the North American market is analyzed and compared to other major markets on the WWW.

This process includes having to take a closer look at the different organizations and surveys which crowed the WWW. Which surveys are reliable and which are over inflated, and why are these surveys (un)reliable. After having evaluated the different surveys and their authors a number of report and surveys are short listed to be able to base the rest of the rest of the report on a chosen few.

After having achieved a satisfactory group of surveys and reports the size of the market and its demography are presented, as are the geographic structure of the WWW.

There after the users and their behavior are evaluated. Which medias are touched by the growing use of the WWW, which are the users access methods, which are the primary reasons for making use of the WWW, how often do the different user groups (occasional users to heavy users) make use of their browsers etc.

Having given the reader an estimate of the number of users on the WWW, the users behavior etc the economy of the media is then analyzed based on the two major factors of the economy of the WWW: advertising and e-commerce.

By far the most important economic factor on the WWW today and in the years to come is advertising. The economy behind advertising on the WWW is therefor taken into account and evaluated. As is the growth rate and the effectiveness of advertising on the WWW. Aspects related specificly to advertising on the WWW such as CPM, cost-per-lead, click-through are also identified and evaluated.

The second important factor in the economy of the WWW is e-commerce. The level of e commerce at the present time is not very impressive, but with time it will grow to a market of more than $ 6 billion by the year 2000 according to some estimates. The market is at the present time dominated by sales of software, hardware, music/CD's, travel, books and flowers, but with time many other form of e-commerce will change the pattern of sales on the WWW.

A number of sites on the WWW are at the present time generating profits. A few of these sites are introduced and evaluated in this last part of the lead user market evaluation.

Having established that the North American market is indeed the lead user market and having analyzed its structure thoroughly, the findings from these evaluations are then compared to local market so as to be able to give the reader an insight into the strength and weaknesses of the Danish WWW market as well as giving an evaluation as to which direction the evolution of the WWW is taking and what the local market should pay attention to.

Part 3

The third part of this report focuses on the differences between the WWW and other medias seen from a communication aspect. The first chapters introduce and explain different communication models and communication processes which are suited for the WWW. Further more a focus is brought on the different nature of the communication aspect between the WWW media and traditional masse medias, with a focus on the personal or un personal communication and dynamic and static communication.

The following chapters focuses on the users seen from a navigation aspect. An evaluation based on whether the user is engaged in a search or a surf supported navigation. The focus also centers on differences between the WWW and other medias on a more operational level. What are the strength and weaknesses of the WWW compared to other medias.

The last part of this third part of the report focuses on marketing on the WWW. How should the highlighted strength and weaknesses best be used in a marketing effort. How should a marketing mix be tailored to take full advantage of this media.

Part 4

The fourth and last part of this report gives the reader an introduction into how to generate traffic to a site on the WWW. This first chapter is a further development of the model developed by Barker & Groenne in their research. The four possibilities presented in their research is supplemented by a fifth aspect: Top 10 or Hot list/ link of the day aspect. The four other possibilities are: Banner ad, electronic word-of-mouth, search engines and support in traditional medias.

Having established traffic to the site the reader is now introduced to the five reasons which should make an organization join the WWW. The five reasons are:

  • Direct sale - if the organization is geared and able to establish a sales point on the WWW.

  • Public Relation - the organization is interested in entering into a dialogue with its publics and wants to inform about its activities and organization.

  • Branding - the organization wants to create/ support a brand name and could very well do so on the WWW (also). Or the organization wants to establish a brand name on the WWW so as to be able use the site as a reference.

  • Dialogue to achieve market adjustment - an organization could via the WWW enter into a dialogue with potential customers to achieve a better product adjustment by listening to the complaints or simply the propositions of potential customers. Also offers the opportunity of engaging in beta testing with a vast test panel, by allowing free download of a beta version of a forth coming product (with a time lock for example).

  • Customer service - an organization could achieve better pre or post sales service by setting up a site on the WWW. The most usual questions or misunderstanding could be presented to offer a customer the possibility of self help. Should further help be needed the site could offer support from the site via e-mail. The organization could, depending on size, set up customer service around the clock by setting up support centers on different continents.


    The scope of this report was to give organization of smaller or medium size in Denmark an introduction and an explanation of the workings of the WWW. Further the organizations should have achieved a level of knowledge about the subject which should make it possible for them to evaluate whether a presence on the WWW is a viable alternative for them, based on the analyses and the recommendations presented in this report.

    If you would like to share any information with me on this subject or have comments, pleasecontact me.

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    Copyright © 1998 Stefan Benzon