Cyberbranding

Brand Building
in the Digital Economy

Deirdre Breakenridge

An imprint of PEARSON EDUCATION

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 Library of Congress Cataloging-in-Publication Data

Breakenridge, Deirdre.
Cyberbranding : brand building in the digital economy / Deirdre Breakenridge.
p. cm.
Includes bibliographical references and index.
ISBN 0-13-089710-8
1. Brand choice. 2. Electronic commerce. I. Title

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FINANCIAL TIMES PRENTICE HALL BOOKS

James W. Cortada
21st Century Business: Managing and Working
in the New Digital Economy

Aswath Damodaran
The Dark Side of Valuation: Valuing Old Tech, New Tech,
and New Economy Companies

Deirdre Breakenridge
Cyberbranding: Brand Building in the Digital Economy

Dale Neef
E-procurement: From Strategy to Implementation

John R. Nofsinger
Investment Madness: How Psychology Affects Your Investing…
And What to Do About It
To Jeff, Megan, Mom and Dad whose love
and support made this book possible.
TABLE OF CONTENTS

1 WHAT THE MARKETER NEEDS TO KNOW 1

Chapter 1 The Power of Branding 2

A Quick Branding Story—Yahoo! 4

Another Speedy Brand—Amazon.com 4
The Historical Brand Promise 6
Brands That Evolve to Stand the Test of Time 9
Brands Influence Our Behavior 10
Brands with No Boundaries 11
Global Brands and Cultural Issues 12
Summing Up the Ingredients for the Global Brand 14
Wall Street Endorses Branding 15
Brands and Technology Evolve Together 15

Chapter 2 Making the Transition to the Internet 18

A Transition to Support the Brand 19

The Ongoing Battle Over Internet Commitment 23
Growing Statistics Reinforce the Commitment 24
Devoting Dollars to the Internet 26
The Internet Is a Powerful Piece of the Branding
Campaign 27
Industries Taking the Plunge 28
Internet Issues Turn into Internet Opportunities 29
The Smooth Transition of the Brand 32

Chapter 3 The Impact of the Internet on the Brand 36

The Components of the Cyberbrand 37

New Levels to Which Cyberbranding Takes a Brand 38
More Ways to “Think” Internet in Support
of the Brand 41
Internal and External Dimensions of the Brand 46
Cyberbranding Theories 47
The Cyberbrander’s Checklist 51

Chapter 4 The Emergence of the Cyberbrand 54

Consumer Trust and cyberbranding Go Hand

in Hand 55
The Differentiating Factors of the Cyberbrand 57
The Benefits of Having a Well-Known
Traditional Brand 59
Consumers Care about Brands Online 62

Table of Contents vii

 Tricks from the New Kids on the Block 63
Convergence of the Traditional Brand and the
Cyberbrand 65

Chapter 5 Using Technology Properly to Cyberbrand 70

Cyberbranding Trial and Error of the 1990s 71

Misconception Number 1: With the Internet,
There’s a Worldwide Audience. 73
Misconception Number 2: Having a 24/7 Web
Site Allows a Company to Pay Less Attention
to Consumer Needs. 74
Misconception Number 3: Launching a Site Means
Web Surfers Will Find It. 77
Misconception Number 4: The Web Creates an
Equal Opportunity for the Little Guy to Compete
with the Giants of the Industry. 79
Misconception Number 5: Powerful Graphics
Are the Key to a “Killer” Web Site. 81
The Simple Cyberlessons Learned 82

Chapter 6 Web Site Design to Enhance the Cyberbrand 86

A Web Site Is Not about a Company 87

Number 1: Ease-of-Use Principle 88
Number 2: Provide Up-to-Date Information 91
Number 3: Faster Than a Speeding Bullet . . .
The Importance of a Fast Download 92
Number 4: Using Attractive Design Consistent
with Company Image and Audience Appeal 93
Number 5: Providing the Right Content 94
Cyber Do’s 95

2 IMPACTING AUDIENCES WITH THE CYBERVISION 107

Chapter 7 Start with the Organization and the

Cyberbrand Vision 108

Vision beyond the Entrepreneurial Idea 109

Avoiding the “Rushed” Vision 110
Developing the Vision through Offline versus
Online Comparison 113
Call in the Coalition to Guide the Vision 115
Cyberbrand Visions That Exist Postlaunch 116

Chapter 8 Empowered Online Audiences 122

The Makings of an Empowered Audience 123

viii Table of Contents

 Offering Additional Information to Build
Relationships 125
Personalization to Build Relationships 126
Customization to Build Relationships 127
Building Relationships through Incentive Programs 129

Chapter 9 Cyberstrategies to Optimize Audience Response 136

Move beyond the Search Engine 137

Institute Contagious Viral Marketing Campaigns 138
Get Serious about E-mail with Opt-In Programs 141
Be Sensitive to Online Audiences and Privacy Issues 143

Chapter 10 Persuasion in Cyberspace 148

Powerful Persuasive Tactics 149

Persuasion in Its Infancy Stage 150
Beyond the Traditional Endorsement 152
Technology Intensifies Persuasion 154
The Fine Line between Persuasion and Invasion 155
Varying Levels of Acceptance of Persuasion 156

3 MARKET RESEARCH FOR EFFECTIVE

CYBERBRANDING 167

Chapter 11 Traditional Research Aids in Cyberspace 168

The Value of Market Research 169

Traditional Research and the Cyberbrand 171
Transformation of the Traditional Method—
Questionnaires 174
Transformation of the Traditional Method—
Focus Groups 176

Chapter 12 Online Research—Leave It Up

to the Technology Experts 180

When to Turn to Online Methods 181

Tradition and the Internet—The Best of Both Worlds 183
Benefiting the Brand and the Consumer 185
Extending Beyond Offline Limits 186
Research —Finding the Middle Ground 188

Chapter 13 The System of Web Tracking Analysis 192

The Phases of Surveillance and “The System” 193

When Too Much Data Leads to Paralysis 195
How Research Guides the Branding Campaign 196
Understanding Tracking Measurements 197

Table of Contents ix
 Issues and Opportunities with Professional
Tracking Software 199
Turning the Tables on the Trackers 200

Chapter 14 Ethics on the Internet 206

Broadcast Ethics of the Past 207

Ethical Beginnings on the Internet 208
Privacy, Fraud, and Other Internet Issues 210
Industries Developing Ethics 213
A Cyberbrand’s Road to Ethics 215

4 CYBERMARKETING TO ENHANCE THE BRAND 221

Chapter 15 Changing Market Landscapes 222

Five Seconds of Stability and Fifty-Five Seconds

of Change 223
Lessons from the Heavy Hitters 224
How Cyberbrands Are Gaining Customer Share 226
Standing Apart from the Dot-Com Crowd 230

Chapter 16 Banner Ad Sustenance

in Cyberspace 232

Banner Ad Survival 233

Banner Ads Serve a Purpose 235
Banner Ad Basics 236
Elements of Design 237
Questions to Ask in Banner Ad Placement 238
Banner Ad Campaign Results 240

Chapter 17 Affiliate Marketing

for the Future 244

Moving Beyond the Traditional Model 245

Setting Up a Winning Program 246
Implementing a Program That Attracts Affiliates 248
Working with Affiliates to Maximize Results 250
Jazzing Up Programs for the Future 252

Chapter 18 Driving Traffic on

the Cyberhighway 254

Communicating to Suit the New-Economy Lifestyle 255

Using More Vehicles for More Reach and
Greater Impact 257
Getting Cyberattention the “Traditional” Way 260
Moving Out of the Box 261

x Table of Contents
5 CYBER PUBLIC RELATIONS—THE CREDIBLE
ONLINE ENDORSEMENT 269

Chapter 19 Public Relations—Is There Room for Tradition

in Cyberspace? 270

PR of the Past Updates in the Twenty-First Century 271

Proven PR Techniques Are Still Apparent 273
From Static to Interactive 274
Know the Media in Cyberspace 275
PR Comes Full Circle 277

Chapter 20 PR Cybertools for Cyberspeed 282

Retiring Outdated PR Resources 283

Updating PR Tools Cyberstyle 284
Using Basic Cybertools—Media Guides Move Online 285
More Cyber Tools—Editorial Calendars;
Clipping and Monitoring Services 286

Chapter 21 Relationship-Building Tactics with the Media 292

A Quick PR Relationship-Building Test 293

First Things First—Nail Down the Relationship-
Building Basics 297

Chapter 22 Best PR Practices 304

Telltale Signs of PR Fluff 305

PR Accountability Demonstrated by Professionals 307
Best-Case Scenarios to Generate Interest 308
Helpful PR Hints for Successful Campaigns 312

Chapter 23 Cyberbranding—Beyond Trial and Tribulation 318

APPENDIX A 327

APPENDIX B 328

NOTES 330

INDEX 343

Table of Contents xi
FOREWORD

I t has become fashionable in recent months to beat up on the Internet evan-

gelists who told us how brands like eToys.com and Furniture.com were
going to make the world forget about Toys “ R ” Us and Ethan Allen. The no-
tion that young, aggressive entrepreneurs were going to change the rules of
business and steal the bread off the tables of traditional companies was too
good a story to ignore. Netscape’s Marc Andreessen and Yahoo’s Jerry Yang
and David Filo were poster children for the new era. Stock options promised to
turn even low-level programmers into millionaires.
During my four years as an editor of Internet World magazine, our publica-
tion was one of several voices to warn that the Wall Street rollercoaster ride
would ultimately hit a big descent. We saw fundamental challenges related to
customer acquisition costs, low-margin merchandise, poor customer service,
and the logistical nightmares of shipping dining room sets and other products
across the country. But still the IPOs kept coming and every wild success drove
more half-baked business plans into the public markets.
Nearly a year after the April, 2000 NASDAQ correction, almost as much
ink and as many screen pixels have been devoted to chronicling the collapses as
were spent on feeding the hype. But many of those who’ve joined the Internet
backlash overlook the fact that the network has changed the business world sig-
nificantly since the Mosaic Web browser emerged from the University of Illi-
nois supercomputer center in 1993.
As Deirdre Breakenridge so aptly chronicles in the pages that follow, every
business needs to have an Internet strategy. The Net may no longer be the
province of instant millionaires, but it is definitely a channel through which
tens of millions—possibly hundreds of millions—of people will be exposed to
your company and its brands.
Brand managers who once concerned themselves with finding a jingle to
imprint on the American consciousness through 30-second radio and TV spots
now have the opportunity to hold the attention of potential consumers much
longer and to vastly improve their impressions of a brand. The new challenge is
to come up with the tools, contests, or other Internet content that leaves the
potential consumer satisfied and coming back for more. The many examples of
smart cyberbranding that Breakenridge cites range from Benjamin Moore’s
paint calculator to Pampers’ parenting institute to Nabisco’s arcade, and they
deserve the close attention of anyone trying to use the Internet to raise brand
awareness.

Foreword xiii
 Each illustrates the Net’s ability to grab the attention of interested con-
sumers—those leaning into their computer screens with mouse in hand rather
than those leaning back on their sofas in front of the television. While some
just want to be entertained, others are in search of information to guide them
in purchasing decisions or bigger lifetime decisions. The brands they associate
with helping them achieve their goals are likely to benefit.
Determining just what you need to do to carry your brand into cyberspace
is the hard part, of course. As Breakenridge points out, you still need to know
your audience and the best approach for reaching it. Successful Internet brands
like Yahoo! and Amazon have demonstrated the power of personalization—
knowing enough about their customers to offer them the information and
products most likely to fit with their interests. Both companies have also
demonstrated the importance of having solid plans for building out your Web
activities to ensure that customer demands do not get beyond the levels of ser-
vice that your technology or your people can provide.
In the end, however, smart cyberbranding is not about building the next
Amazon or Yahoo! or eBay. Current market conditions all but guarantee that
no pure-play Internet start-up will achieve their phenomenal levels of brand
awareness anytime soon. The new phase of the Internet revolution is about
how businesses—often derisively referred to as “old economy” companies—
take advantage of the new medium to vastly improve their bottom lines. And
Breakenridge has done her part to point them in the right direction.

Thomas J. DeLoughry
Westwood, New Jersey
January 2001

xiv Foreword
PART

1
What the Marketer
Needs to Know
 CHAPTER

1 The Power of Branding

Objective

For marketers to harness the power of branding. From

the nineteenth century through today’s technological
advances, brands maintain their power by:

■ Keeping a historical promise

■ Evolving over time
■ Influencing our choices
■ Having no boundaries
■ Surpassing cultural issues
■ Growing stronger with technology

2
I t’s the twenty-first century, and we all want to know the secrets of
brand building. With companies like Yahoo! and Amazon com-
ing to market and branding in record time, what should marketers
learn from these field leaders who capture our attention? First and
foremost, we recognize
Consider two factors. Marketers are
and applaud the power
long past questioning the notion that
of the brand. The ques-
branding works. And the Internet is
tion is not, and will proving to be a powerful communica-
never be, “To brand or tion channel to find brand success.
not to brand.” Consider Combine the two factors and there’s
two factors. Marketers synergy.
are long past questioning
the notion that branding works. And the Internet is proving to be a
powerful communication channel to find brand success. Combine
the two factors and there’s synergy.
Let’s start with the field leaders. Hats off to these new brand
builders who have accomplished monumental branding strategies in
lighting speed.

3
 A QUICK BRANDING STORY—YAHOO!
Yahoo! (www.yahoo.com) continuously tops the charts with its
number one rating as the Web’s hottest property. It is continually
praised for simplicity of design and accessibility. Yahoo! just might
be the Web’s “quickest and most logical, never failing to give what
people need, when they need it” type of site.1 Yahoo! was quick to
brand its name and become an online and offline marketing ma-
chine. It is known as “a classic example of brand building, Silicon
Valley style.”2 The search engine came to life targeting three distinct
groups, capturing the needs of each one separately. Consumers
enjoy Yahoo! for fast and easy access to information on any subject.
The brand also evokes fun, with a bit of wackiness in its name alone.
For the more serious audience, financial analysts and the media,
Yahoo! is professional and operated efficiently. Last, for advertisers
and media buyers, Yahoo! is the plan that provides the most visibil-
ity and online exposure to large audiences. Yahoo! has done a phe-
nomenal job at branding itself through a variety of cobranding
efforts, partnerships, and alliances such as Ziff Davis’s Yahoo! Inter-
net Life magazine, and through sponsorships and contests with a
host of well-known companies including Visa (the Yahoo! platinum
Visa card that helps to make the shopping season easier in Decem-
ber 1998), MCI (Yahoo! and MCI unveiled a new Internet online
service in January 1998), and Ben & Jerry’s (Yahoo! teamed up with
Ben & Jerry’s to connect schools to the Internet in September 1997). 3
And what has Yahoo! been up to lately? It has teamed up with Pepsi
for a five-month online/offline marketing campaign to reach con-
sumers. “Combining two of the world’s biggest brands . . .” is only
just the beginning.4 Pepsi is giving Yahoo! 1.5 billion bottles for its
name to appear under the cap and Yahoo! is lending Pepsi its online
expertise and Internet reach to wired teens and young adults. The
branding possibilities are tremendous.

ANOTHER SPEEDY BRAND—AMAZON.COM

Amazon.com (www.amazon.com) opened its “virtual doors” in
1995 and from that point forward has developed its brand through
the company’s mission: to use the Internet to transform book buy-
ing into the fastest, easiest, and most enjoyable shopping experience

4 CYBERBRANDING chapter 1
possible.5 Moving from books and toys to music and videos, Ama-
zon continues to maintain its branding promise simultaneously
with the growth of its customer base, product offerings, and prod-
uct categories. Amazon branding strategies include personaliza-
tion with every service offered to its customers (with a friendly
greeting by name and knowing the user’s preferences). Branding
also extends to an Amazon family of Web sites including The
Internet Movie Database (www.imdb.com), an authoritative source
on movies and entertainment dating back to the nineteenth
century; Livebid.com, a host of live-event auctions on the Web;
and Planetall.com, which offers users a calendar, address book,
and reminder service all in one. Amazon also has one of the most
well known affiliate programs, with kiosks on search engines
and popular Web sites, utilizing the broad reach of the Internet to
brand its name and logo (and sell products too). In addition, Ama-
zon has invested in leading retailers including Drugstore.com and
Gear.com to provide these sites and their audiences with the same
types of services afforded to Amazon audiences: the ability to find
vast selection and incredible customer experience all tied to a re-
markable brand.6
Amazon was proud to announce its first-quarter 2000 earning,
up 95% from the same quarter in 1999. Sales increased to $574 mil-
lion from $294 million. Where to next? With its original vision in-
tact, Amazon continues to build its image as an e-brand that allows
customers to find everything they need online.7 Amazon continues
to strive for a powerful global presence, with growth in more prod-
uct categories, service expansion, and the sense of an Amazon com-
munity providing total personalization for the user. The power of
branding has found itself in this Internet brand.
Now, for a slight dose of Internet reality. Not many profession-
als find themselves with a Yahoo! or even the likes of an Amazon.
Sure, there are plenty of heavy Internet hitters out there in cyber-
space: eBay.com, CNET.com, MSN.com, AOL.com, and a slew of
others that deserve recognition. With the rise and fall of dot-coms,
the challenges of brick-and-mortar brands moving their business
online, and a host of issues that surround the Internet, these field
leaders and heavy hitters are the exception to the rule. Now, for the
good news—the power of the brand coupled with Internet technol-
ogy gives the marketer the tools for brand success. It is up to the

CYBERBRANDING The Power of Branding 5

 marketer to understand the power of the brand (by trade we know
this) and the issues the brand faces on the Internet (everything from
the basic fundamentals of Web site design to the complex issues of
global Internet brands).
Technology works for us. We know it is our future. We see how
society is rapidly evolving with technological advances—sometimes
quicker than we can manage the change and digest the technology.
Ten to fifteen years ago we rented and watched videotapes, listened
to cassettes, and used the computer as a word processor. Life is so
different now. Our youth population is growing up with many
We see how society is rapidly evolving with technolog- more technological
ical advances—sometimes quicker than we can man- options than we
age the change and digest the technology. thought might ever
be possible. Talk
about rapid advancement—it’s no longer a novelty to listen to CD-
ROMs and watch DVD movies. Computers allow us to access the
World Wide Web for both information and entertainment in vari-
ous forms (audio, video, and Web casts). Information is at our fin-
gertips 24 hours a day, 7 days a week. And just as we get used to
logging on and surfing the Web, we see technology change again
with a shift toward wireless Internet communication on
cellular/PCS handsets. However, throughout this evolution of tech-
nology (dating all the way back to the days of the first printing
presses), one concept has remained constant—the power of the
brand and its effect on consumer behavior. And although techno-
logical change is thrust upon us, brands survive disruptive change as
long as their historical promises stay intact. Looking back to the
nineteenth century, the seeds of branding have more than just
sprouted. They have grown strong roots over time.

THE HISTORICAL BRAND PROMISE

After the Civil War, the once–buffalo-covered west all the way to
California was teeming with wild cattle. Herds were driven to wait-
ing markets. Cattle drives brought much needed cash to a nation
that was suffering from the afteraffects of civil war and also served to
feed the new settlers and those caught up in the gold rush to Califor-
nia and the silver rush in Nevada. Common to both the rancher and
the cowboy was the practice of cattle branding—a means to identify

6 CYBERBRANDING chapter 1
key ownership of cattle on the open western frontier. In fact, cattle-
men were naming their ranches after their brands, holding these
symbols of ownership in the highest esteem. In the frontier spirit of
the era, a Bavarian immigrant named Levi Strauss arrived in San
Francisco in 1853, at the tail end of the ’49er gold rush, and in 1873
he and a Nevada tailor, Jacob Davis, patented the process of putting
rivets in jeans to make them stronger.8 One of the distinctive trade-
marks of the company to this day is the leather patch with simulated
“brand” meant to tell consumers of then and now that they are buy-
ing the real thing.
Also in the late 1800s, John Styth Pemberton, an Atlanta phar-
macist, made a concoction of coca leaves, cola nuts, and caffeine.
When he mixed them together in an iron tub, who would have
thought we would end up with a famous brand that has stood the
test of time?9
Brands date back over a hundred years, and consumers
Today, Pember-
have been supporting brand power every step of the way.
ton’s concoc-
tion, Coca-Cola, is one of the most well known and valued brands.
According to the financial world, the value is estimated at $39 bil-
lion.10 Let’s face it: there are numerous companies that can manu-
facture cola syrup and serve up a similar drink. Scores of suppliers
around the globe could develop this syrup and put a cola on the
market. However, not one of these new products could ever replace
Coca-Cola, as it is known today. The brands that date back to the
nineteenth century, like Coca-Cola, Quaker oats, Heinz, and Ivory

CYBERBRANDING The Power of Branding 7

 soap, all maintained their historical brand promises. Advertising has
played a major role in their evolution. In fact, as early as 1890, ad-
vertising was a popular phenomenon. Companies were placing ads
in magazines and newspapers, on streetcars and matchbooks, and
even on billboards. History reveals that companies were aware of the
power of branding, when they were placing more dollars into the
development and branding of products as consumers with consider-
ably more disposable income continued to be influenced by brands.
Brands date back over a hundred years, and consumers have been
supporting brand power every step of the way.
Why do consumers support brands? Is it the emotional bond
they form with the brand or the expectation of its performance? It’s
both—consumers rely on the bond along with the expectation that
the brand fulfills a need. But even more, it’s the historical promise
(whatever is expected of the brand at the time of its birth) that must
remain intact in order for the brand to evolve successfully with the
technology that communicates its message. That’s why the brands of
the past are still recognized today and even though some have al-
tered over the years, their earlier meanings are embedded in product
messages. For instance, Coca-Cola started with the slogan “the drink
that makes the pause effective” and in 1929 discovered a more con-
cise statement that added to the product’s success—“the pause that
refreshes.” Over time, Coca-Cola coined the phrase “it’s the real
thing,” but we still know the drink is refreshing as well. Take the
classic example of Jaguar, a vehicle that was introduced around 1935
by an English company, Lyons Swallow Sidecar Company.
Throughout the history of the Jaguar brand were mergers and ac-
quisitions, including the one that created the British Motor Corpo-
ration and most recently Jaguar’s purchase by Ford Motor
Company. It did not matter what happened to corporate ownership
of the vehicle: the Jaguar brand still remains an image of “feline
grace, elegance and power.”11 And in the case of the Heinz brand
and its “57 varieties,” would you believe that those 57 varieties never
actually existed? Perhaps the strategy was not so much for product
accuracy but more for consumer branding and awareness. In
essence, the company’s founder, H. J. Heinz, just liked the number
57. His historical branding strategy succeeded. To this day, the
number 57 still appears on all the Heinz ketchup bottles and the
“57” is equated with Heinz products.12

8 CYBERBRANDING chapter 1
BRANDS THAT EVOLVE
TO STAND THE TEST OF TIME
An interesting statement that appeared in an article entitled “Assess-
ing Brand Equity” emphasized how a product can be quickly out-
dated but a successful brand is timeless.13 There are quite a few
timeless brands that have managed to survive drastic changes, every-
thing from technological advances to world wars. Although a good
slogan is only one component in the branding mix, the brand iden-
tity quiz shown in
. . . a product can be quickly outdated but a success-
Figure 1.1 illustrates
ful brand is timeless.
slogans for 20 brands
that have stood the test of time. The quiz is representative of how
timeless brands have evolved with power in both name and meaning
and to this day are recognized by their slogans.14
These brands have several characteristics in common. Indeed,
they evolved over the years proving their strength in name, mean-
ing, and symbolic representation. They have all demonstrated the
test of time, and each one has maintained, for the most part, a his-
torical promise (with an embedded meaning that started at incep-
tion). These timeless brands have survived long after products were

TEST YOUR BRAND KNOWLEDGE.

1. Good to the last drop 11. Put a tiger in your tank Figure
1.1
2. We bring good things to life 12. The skin you love to touch
3. That heavenly coffee that only 13. Even your best friend
a millionaire can buy won’t tell you
4. Smooth sippin’ Tennessee 14. 57 varieties
whiskey 15. This Bud’s for you
5. When it rains, it pours 16. Breakfast of champions
6. Say it with flowers 17. Don’t leave home without
7. The quicker picker-upper it
8. Mmmm mmmm good 18. The beer that made
9. 99 ⁴⁴⁄₁₀₀ % pure Milwaukee famous
10. The pause that refreshes 19. Snap crackle pop
20. The foot doctor
Note: Answers in Appendix A

CYBERBRANDING The Power of Branding 9

 outdated. As a result, they are distinguished among competitors and
remain well-known choices for consumers.

BRANDS INFLUENCE OUR BEHAVIOR

How is it that branding efforts over the years have influenced our
choices? Let’s take a look at the many ways that brands are viewed
and the different thoughts behind a successful brand:

■ Brands create clear ownership of a particular benefit.

■ Brands are unique and differentiated.
■ Brands maintain a personal connection in the sales process.
■ Brands are associated with a clear set of values.
■ Brands fulfill a need or expectation.

Addressing the initial question, brands influence our choices by

being:

. . . more than logos. Many elements combine in a brand to

generate an emotional bond with a customer. Brands are
about personality . . . you’re buying the personality, the
experience.15

Further,

Designers develop distinctive uses of color, form, materials,

and letter forms, as well as attitudes toward function and
content that bring a brand to life.16

Keeping these brand characteristics in mind, is it any wonder

that we make certain associations and have definite feelings when we
come in contact with a brand? For example, the Tiffany’s gift box—
an unmistakable shade of blue with a pristine white bow—signifies
class, style, and elegance. Take this box to a party and you will hear
more “oohs” and “aahs” than any reaction a J. C. Penney box would
elicit. The Tiffany box is only one example of many. What do you
think of when you see the Rolex crown, McDonald’s golden arches,
or 501 jeans? Well, if you are like most, you see the Rolex crown as a
symbol of wealth and prestige, McDonald’s arches automatically
make you think of fast food, and 501 jeans epitomize the classic all-
American look.
10 CYBERBRANDING chapter 1
 Here’s another little branding challenge. The objective of the
test is to read a word and note which company pops into your mind
first. Try it.
■ Jeans: ?
■ Overnight [delivery]: ?
■ Clothes: ?
■ Software: ?
According to ZDNet.com, the most popular responses are most
likely Levi’s, Federal Express, The Gap, and Microsoft. The explana-
tion is simple, but the concept of branding is complex. These com-
panies have succeeded
It’s the emotional bond, the personality of the brand,
by embedding their
and the experience we look forward to each time all
names into our minds
mixed together that influence our behavior.
and our lives.17 It’s
the emotional bond, the personality of the brand, and the experience
we look forward to each time all mixed together that influence our
behavior. Brands are in our minds and have captured our hearts.
Brands are the only things to grasp, hold on to, and count on when
the rest of our world changes rapidly before our eyes.

BRANDS WITH NO BOUNDARIES

The concept of branding is universally known. Only countries have
borders; brands do not, as long as they are respectful of global is-
sues. Brands travel across global boundaries and impact different
nations in various ways. Global marketers strive to achieve a balance
between art and science. The art of branding is its creative meaning
that is universally accepted by all. Global brands are capable of en-
lightening scores of populations, bringing experience and fulfill-
ment of expectations.
Only countries have borders; brands do not, as long as
The science is the
they are respectful of global issues.
careful research and
development of the global brand, the precise method of communi-
cation, and the calculated timing of its message. When the balance
of art and science is achieved, it doesn’t matter if Coke is bought in a
store in the United States or on the roadside in Mongolia. Either
way, the Coke brand evokes a refreshing experience and a “good
time” feeling.18 When it comes to the actual cultural translation,

CYBERBRANDING The Power of Branding 11

 there’s a commonly known story about Coca-Cola and its original
branding efforts in China. When researching suitable characters that
sounded remotely like Coca-Cola in Chinese, the characters trans-
lated into a couple of different meanings including “female horse
fastened with wax” and “bite the wax tadpole.”19 Even so, it’s the ex-
perience of the brand that is universal.

GLOBAL BRANDS AND CULTURAL ISSUES

It’s amazing to realize how brands fulfill the needs of various cul-
tures. However, it’s an ongoing challenge for marketers to realize
that worldwide brands carry the burden of cultural intricacies. As a
matter of fact, in Asia-Pacific regions, “a common Chinese idiom
describes Asia as an area of great treasures but a place filled with
hidden dragons and tigers.”20 The explanation is straightforward,
but nonetheless an issue for marketers and companies to face when
promoting global products. With linguistic and cultural pitfalls,
western civilization
it’s an ongoing challenge for marketers to realize that
needs to understand
worldwide brands carry the burden of cultural
a region completely
intricacies.
and thoroughly be-
fore launching a brand in that region. There are far more issues to
address in global branding. Research is always imperative in a global
effort. Common mistakes include lack of research in the translation
of names and spelling. Specifically, not verifying translation in the
Asia-Pacific region can be the downfall of a brand. Do you think it’s
a coincidence that Pepsi-Cola has a meaning in Chinese of “a hun-
dred happy things” and is considered a lucky name?21
Here’s another example of how cultural differences posed a
problem for a global advertising manager in his efforts to promote a
brand of children’s toothpaste. His initial efforts were not pleasing
to his Bangkok office, yet the same measurements were increasing
sales in Australia, Canada, Europe, and the United States. No matter
which version of the commercial he used (all versions had a parent
patting a child’s head), there was a sense of uneasiness. The re-
sponses from the Bangkok office varied, but mostly were “too
American.” Finally, after much effort (and wasted time), the cultural
mystery was solved when the Bangkok office told the global adver-
tising manager that the commercial with the “pat on the head” from

12 CYBERBRANDING chapter 1
parent to child was an action that was unacceptable for their culture.
Touching another person’s head is frowned upon in many Asian re-
gions. However, in most parts of the world the message conveyed
the parent’s appreciation for the child’s brushing and using the
toothpaste. Because it is imperative that the global brand be per-
ceived to have the same values, the same message needs to be com-
municated in an acceptable manner for Asian-Pacific regions.22
Other issues are faced in the international naming process. Dun-
lop, a well-known manufacturer of tires, faced a branding obstacle
when trying to research a name for a new product. The process took
over two years with little success. The European Economic Commu-
nity has over 5 million registered trademarks, and as a result, interna-
tional naming is a long-drawn-out procedure. Dunlop actually
instituted an international competition among its employees. The
competition elicited 10,000 responses, and finally, 30 names were se-
lected. Unfortunately, none of these names were available in more
than a few countries. This is an ongoing problem in the international
naming process, and Dunlop went back to the drawing board.23
Beyond the challenges are the global branding opportunities. The
Law of Borders states, “There are no boundaries to global branding. A
brand should know no borders.”24 Companies around the world know
they have succeeded with global branding strategies when the magic
word for most of us is imported. There’s something special about open-
ing a new bottle of
Montrachet imported Companies around the world know they have suc-
from France and carry- ceeded with global branding strategies when the
ing around a Gucci magic word for most of us is imported.
pocketbook from Italy.
Americans are caught up in the “imported” label, just as Levi’s jeans are
the rave in Russia. This is apparent when the product crosses a border
and we are automatically willing to pay top dollar for the imported
brand. There are definite perceptions involved with our choice of global
brands. Countries are recognized for what they produce successfully.
We would not get as excited about wine from Greenland and clothing
from Iceland. If the perception of the country is different, then this al-
ters our expectations and willingness to pay a higher price. As long as
consumers’ perceptions are fulfilled and expectations met for each cul-
ture, branding continues to be accepted and is a powerful force around
the globe.

CYBERBRANDING The Power of Branding 13

 SUMMING UP THE INGREDIENTS
FOR THE GLOBAL BRAND
The Sterling Group conducted a survey in the United States, Japan,
Germany, the United Kingdom, and Brazil of 250 nationals in an at-
tempt to reveal the prime ingredients for creating a successful global
brand. The results of the survey indicated several top ingredients of a
global brand. For instance, brand essence occurs when the brand’s
composition is harmonious with consumers globally and the brand is
able to “transcend cultures.” Brand culture is born from the inside out.
Great global brands are products of unique corporate culture. Brand
style is the unique style with which the consumer can easily identify
and form an exclusive bond. Brand experience defines the brands that
are winners and are not a means to an end but a means to an experi-
ence. Brand difference is the quality of having an edge over the compe-
tition, creating uniqueness and competitive difference. The brands
that are communicated the most get the best coverage and are the
most well known. These brands have achieved brand exposure. When
a brand speaks to the heart (as well as to the head) of a consumer, it
forms a powerful emotional bond referred to as brand heart. The lead-
ers behind the brands who have opinions and are closely connected to
the brand product are the brand champions.25
All of the key ingredients form a powerful mixture and when
combined will add brand value to the benefit of consumers and
companies who produce the products. From the consumer’s per-
spective, brand value means knowing that a product has a stamp
of authenticity, and
From the consumer’s perspective, brand value means
that repeat use or
knowing that a product has a stamp of authenticity,
purchase will pro-
and that repeat use or purchase will provide the same
vide the same plea-
pleasurable experience as the time before.
surable experience as
the time before. It’s a type of reassurance that you know you can
count on every time. Is that the reason why we see so many tourists
at McDonald’s all over the world? Even in a foreign country, con-
sumers gain reassurance from a trusted brand. From a company’s
standpoint, the bond between the consumer and the brand trans-
lates into increased usage over time. Brands influence purchasing
behavior and “secure a future stream of profits.”26 Consumers will
pay more for something they want and that which has an intrinsic
value to them. For a company, this could mean continuous pur-

14 CYBERBRANDING chapter 1
chase of a particular brand product over time, or consumers’ pur-
chasing extensions of that product (for example, Coke’s extending
its market to Diet Coke drinkers). Disney is another perfect exam-
ple. Because consumers believe in the quality of Disney’s movies,
they do not think twice about purchasing Disney clothing and Dis-
ney toys, paying higher prices for these brand products.

WALL STREET ENDORSES BRANDING

Even Wall Street believes in the power of the brand. There have been
several articles that demonstrate the value from a financial perspec-
tive. One such article, “Successful Branding from Main Street to
Wall Street,” touches upon the pressures to cater to Wall Street. So,
how is a CEO expected to keep a company growing and maintain
interest from the investment community? What has become an ob-
vious answer is to grow the brand in order to build confidence
among investors and audiences alike. There must be a constant
communication effort to maintain brand value and have it in the
forefront of the audiences’ minds. One means to accomplish this
task is consistent advertising. But there is still a pressing question
that nags at executives with respect to advertising dollars: Will the
dollars convert into ROI? One study by James Gregory, CEO of Cor-
porate Branding Partnership, illustrates a direct correlation between
ad dollars and a company’s ability to turn a profit. By studying For-
tune 100 companies for a period of seven years, Gregory saw a clear
pattern developing between advertising and an increase in stock
prices as well as bottom-line returns. Those companies that exhib-
ited “erratic behavior” were the companies that did not show a seri-
ous dedication to branding, instead going through periods of
advertising and then cutbacks on ad dollars.27 The moral of the
story, according to Gregory, is that in order to build a reputation,
companies must engage in long-term brand building. This, in turn,
results in better financial performance.28

BRANDS AND TECHNOLOGY EVOLVE TOGETHER

The power of branding is a long-time tradition that is here to stay.
From the wranglers and the days of cattle branding on the western
frontier, to the Internet and the new “free open range,” companies

CYBERBRANDING The Power of Branding 15

 have developed their creative messages to appeal to audiences
around the globe. We are, in fact, affected by branding every minute
of our lives. How has branding come so far? The ability to brand ef-
fectively is due to the progression of technology and the way com-
munication channels are advancing at a rapid pace. Our world
changed from total reliance on print presses in the past, to broadcast
television and radio. Even with these channels, marketers have
Along comes the World Wide Web, and with the ubiqui- always faced their
tous Internet, guess what? We are now expected to share of issues and
brand at warp speed! opportunities.
What’s a marketer’s
latest challenge? Along comes the World Wide Web, and with the
ubiquitous Internet, guess what? We are now expected to brand at
warp speed! Not only are the branding issues of the past still with
us today, but also
We have established the power of branding. Now we
there’s a whole new
need to harness that power in cyberspace.
set of rules in cyber-
space. Timing has changed, thinking has to be revisited, and meth-
ods need to be redeveloped. Is it impossible to take a solid branding
foundation that a marketer has developed over the years and work
successfully with this new medium? Yes, of course. Is it easy? Well,
not exactly. But, if we can set the ground rules, keep an open mind,
and always rely on what we know about branding from our past ex-
periences, it’s a good start to understanding the depth and complex-
ity of branding on the Internet. We have established the power of
branding. Now we need to harness that power in cyberspace.

Expert Viewpoint

The Power Is In The Branding nierzak, branding is a promise—

it’s not a logo or a name, but it
Dennis Zolnierzak is president of
says to a consumer, “If you pur-
Brushfire, a New Jersey advertis-
chase this product or service, you
ing and integrated marketing
will get this added value.” The
firm, with over 25 years of
key words are promise and
branding experience. An inter-
added value. The promise is to
view with Zolnierzak emphasizes
deliver what is expected, and
the power and true meaning of
the added value is that extra
branding. According to Zol-

16 CYBERBRANDING chapter 1
something that forms an emo- opportunities to interact with a
tional bond between the con- product or service until an actual
sumer and the product. For the purchase occurred—and even
company, the promise and the then the interaction might have
added value are the differentiat- been limited. For example, when
ing factors. As a matter of fact, consumers purchased motor oil
when branding is done well, the for their cars, they never experi-
process makes a product unique enced the product. You can’t
and distinguishes it from a com- smell, taste, or feel the motor oil
petitor’s. Zolnierzak states, you’re using. You can’t watch it
“Sure, there are many insurance work; you can’t see the results.
companies but there’s only one Motor oil operated totally on
Rock. You can probably name a faith. You poured it in and
handful of brokerages, but trusted that it would work. This is
there’s only one Bull, and when just one example of how brands
it comes to the many companies relied on communication rather
that can manufacture stain in a than experience to drive the de-
can, it’s only Minwax that turns a livery of the promise. The Inter-
house into a beautiful home.” net has fostered a dramatic
Zolnierzak states that brand change. A consumer can now ex-
managers have realized for perience and interact online be-
years that brands need to be fore an actual transaction. Take
developed and nurtured. It’s no the Campbell’s soup Web site.
secret that branding takes time Pre-Internet, you couldn’t enjoy
and money. There must be a the product until you bought the
clear articulation and decision soup and brought it home. But
that the brand promise be com- today, the Campbell’s soup Web
municated in every way (via site invites consumers to partici-
every medium). So with the de- pate in contests, search for their
velopment and maturation of favorite recipes, and put to-
the Internet, the days of relying gether shopping lists including
on advertising on network tele- the ingredients to their favorite
vision and national print publi- Campbell’s soup dish. Although
cations to deliver the brand’s there is a new level of opportu-
promise are over. nity available via the Internet,
But we as marketers must re- the branding will always remain
alize that the Internet gives us a of utmost importance. The basics
whole new dynamic. Zolnierzak of branding have not changed.
states that “It isn’t just a medium, Marketers must always evaluate
it’s an experience.” And for mar- and leverage brand power and,
keters who realize the differ- most of all, take advantage of a
ence, it’s a great opportunity. In new powerful tool—the Internet.
the past, a consumer had limited

CYBERBRANDING The Power of Branding 17

 CHAPTER

2 Making the Transition

to the Internet

Objective

A quick tour for marketers to consider a few key

complexities of making the transition to the Internet,
including:

■ A transition that supports the brand

■ Ongoing battles over Internet commitment
■ Growing statistics that reinforce the commitment
■ Devoting dollars to the Internet
■ Industries taking the plunge
■ Internet issues that turn into opportunities
■ The smooth transition of the brand

18
A TRANSITION TO SUPPORT THE BRAND

T iming is a key consideration for every marketer. Amazon had

impeccable timing. The site launched when the idea of a virtual
bookstore intrigued and thrilled audiences who flocked to the site,
first for curiosity, and then for sheer convenience. Amazon was also
quick to consider the benefits of selling through personalization
(without ever infringing upon the rights of the user to the extent of
feeling pestered). Like the very best bookstores, it swiftly learned
shoppers’ preferences and made relational sale recommendations.
As a result, the visitor instantly felt “involved” with the site. Amazon
asks every visitor his or her opinion with respect to product reviews,
and always has something new and fresh to stimulate its audiences.
The rate of change on
the Amazon site excels at Amazon was also quick to consider the
a pace that would crush
benefits of selling through personalization
(without ever infringing upon the rights of
the brick-and-mortar es-
the user to the extent of feeling pestered).
tablishment. And to ad-
dress the privacy and credit card issues that concern so many
Internet users, Amazon’s emphasis on safety parallels Volvo’s efforts
to make a vehicle that is safe for highway driving. The list of consid-
erations continued, with Amazon immediately taking heed of stud-
ies of how many words the normal attention span of readers can
bear. With text that is minimal (a body of words never over 150)
and visual face-out covers, the site is appealing to the everyday user.
In terms of marketing, not a stone left unturned. It’s a challenge to
get a consumer to break away from an existing brand preference to
try a product from a newly created company. Amazon’s clever mar-
keting strategies proved to be a key component in driving traffic to
the site, retaining an audience and enticing them to make purchases.

19
 In 1999, during the holiday season, Amazon used something as sim-
ple as a minipostcard (gift certificate) in the form of a direct mail
piece to online consumers. The card was so appealing it was enough
to make a one-time purchaser into a frequent buyer. This $10.00-off
gift certificate was delivered via snail mail to Amazon customers in
memorable, sheer holiday red-and-green envelopes. The card,
which immediately caught your eye with its unique use of color
(very bright blue and yellow), had an easy-to-read saying: “All
aboard Amazon.com Toys.” An interesting piece, it was “eye
candy,” on the one hand, and true to its word, on the other, with a
fabulous discount (not requiring the online consumer to make any
minimum purchase, such as spend $50.00 and get $10.00 off). With
this type of bargain, online shoppers were searching for the Amazon
toy gift cards. It was considerations such as this that put Amazon on
the cybermap. However, the million-dollar question still remains.
Despite all of the branding success, the company has yet to make a
profit. Nonetheless, Amazon continues to motivate other companies
to develop their Internet presences and to brand online.
Then there’s Barnes & Noble at the other end of the spectrum.
What a great place to read your favorite book, enjoy a cup of coffee,
and attend an author’s book signing and discussion. Barnes & Noble
did not pay careful attention to the needs of its consumers and lost
out on a wonderful opportunity to be the first brick-and-mortar
with a virtual bookstore. Out of nowhere came Amazon and cap-
tured a sizable Internet market. When Barnes & Noble tried to play
catchup, the damage was done. Visitors on the Barnes & Noble site
who had previously visited Amazon.com felt that many book entries
were similar, and the impression, real or imagined, was that the in-
formation may have been borrowed. At the least, the content was,
for a while, not substantially different enough from Amazon.com,
although prices were often lower. The Internet traveling public was
savvy to the situation and felt disrespect for the Barnes & Noble
brand. Although Barnes & Noble is making Internet headway, in
most cases, damage to the brand is irreversible.
Opinion Research Corporation International includes Ama-
zon.com among the top five net names. In addition, when In-
telliquest in a survey asked approximately 10,000 Web surfers to
name brands in association with a product, for books Amazon was
chosen 56% of the time. Not bad at all for the new kid on the block.1

20 CYBERBRANDING chapter 2
Amazon makes the complexities of Internet branding look easy. But
the truth is that marketers are struggling over how to handle cyber-
brands. New dot-com companies can look forward to a laundry list
of considerations with respect to site functionality, content, design,
ease of navigation, customer service, or privacy, and the list goes on.
But even before any of these issues are taken into consideration, you
would think the first obvious question would be whether or not the
brand has permission from its audience to be in cyberspace. For ex-
ample, will consumers stop going to auctions and go to eBay in-
stead? The same consideration holds true for the brick-and-mortar.
Take the case of a well-known not-for-profit organization, Light-
house International (an organization for the vision-impaired): has
a visually im- . . . the truth is that marketers are struggling over how to
paired audience handle cyberbrands.
that may not
choose the Internet as its medium of choice given this organization
permission to be online? The only way to find out whether con-
sumers will go to online auctions and bid for items and whether the
vision-impaired will log on to a Web site that would enable them to
be a part of an Internet community (one designed for specialized
needs) is to conduct market research. Without a research campaign
prior to launch and subsequent postlaunch research to guide a
serious effort, companies take an incredible risk. It’s a myth that
even the marketer of a traditional brand can throw the brand
online and keep loyal followers happy with just a presence. On
the contrary, having an established offline brand means there’s
more at risk in taking that brand to a new level. After the permission
rule is satisfied, considerations filter all the way down to putting the
best foot forward to execute the same efficient customer service and
providing an online experience that is just as pleasurable as the off-
line encounter (if not more so). That’s why there was no excuse for
what Toys “ R ” Us went through in the 1999 holiday season. Brand
followers were not forgiving when Toys “ R ” Us had significant
problems fulfilling orders for catalog items and shipping those
items. These are again considerations that cannot be taken for
granted.
It’s a difficult plunge to take that giant Internet step, and it bears
close consideration. Once permission to be in cyberspace is granted,
then companies will get there quicker by addressing organizational

CYBERBRANDING Making the Transition to the Internet 21

 challenges first: human resource availability, or finding the right
people with the right skill set; cost and budget issues; evaluation of
relationships with third-party suppliers; defining roles and responsi-
bilities of employees;
It’s a difficult plunge to take that giant Internet step,
defining an online
and it bears close consideration. Once permission to
and offline market-
be in cyberspace is granted, then companies will get
ing effort; providing
there quicker by addressing organizational challenges
customer service for
first:
online retail; and—
most of all—upper management support every step of the way!2
Some companies, however, try to slowly get their feet wet—as evi-
denced in a certain brochurelike presence—in implementing their

22 CYBERBRANDING chapter 2
conversion from traditional marketer to cyberbrander and do not
carefully plan the transition between the existing business model
and the e-business model. One possible explanation for the slow
start is that the Internet does not have enough history under its belt
to allow companies to analyze historical benefits. In most cases, the
past dictates the future: People are driven by their successes and
avoid repeating past mistakes at all costs. Without not enough his-
tory behind the Internet, and stock prices that reflect a lot of price
and no earnings, some companies are leery of diving into Internet
waters headfirst. But that is not to say that traditional marketers
haven’t come a long way. In May 2000, an article appeared in the
New York Times
. . . marketers have lagged behind in the transition to the
on the Web enti-
Internet but are now making up for lost time.
tled “Many Tra-
ditional Marketers Are Becoming Devotees of Cyberspace.” The
article stresses how traditional marketers have lagged behind in
the transition to the Internet but are now making up for lost time.
A new study, “Web Site Management and Internet Advertising
Trends,” published by the Association of National Advertisers, sup-
ports the traditional marketers’ Internet leap. The study concludes
that advertisers are turning to the Internet for its ability to reach
consumers, the benefits of two-way communication, and the high
potential of Internet branding.

THE ONGOING BATTLE

OVER INTERNET COMMITMENT
Top management of brick-and-mortar businesses knows the value of
online branding and how the reach of the Internet is beneficial to the
brand. To date, To date, companies have been making the transition, but
companies have their commitment is weaker than it should be.
been making the
transition, but their commitment is weaker than it should be. Maybe
a motivation to reach a stronger commitment would be to consider
the Barnes & Noble scenario, a slow start and then a fight to regain
brand allegiance. Whether small or large, a company needs to make a
firm commitment as quickly as possible with respect to the Internet.
The Internet, like any other communication channel, will be a suc-
cessful and profitable medium if researched, understood, and used
correctly to communicate a brand message. If a firm commitment is

CYBERBRANDING Making the Transition to the Internet 23

 made, then it
The Internet, like any other communication channel, will be
should be under-
a successful and profitable medium if researched, under-
stood that the
stood, and used correctly to communicate a brand
proper amount
message.
of thought, ef-
fort, and resources must be allocated toward Internet branding strate-
gies. The Internet is here to stay, and unfortunately, too many
companies are missing out on a tremendous communication tool.
From the brick-and-mortar companies that utilize regional portals,
i.e., NJ.com, with
Internet branding is quickly catching on and providing
directory listings
fruitful new opportunities to companies in cyberspace.
to drive traffic, to
the giants on the Internet—Yahoo!, MSN, NBC Internet, and Time
Warner Online, with the millions of dollars they have spent to estab-
lish a well-known presence—Internet branding is quickly catching on
and providing fruitful new opportunities to companies in cyberspace.

GROWING STATISTICS REINFORCE

THE COMMITMENT
At a San Francisco conference held by the International Quality and
Productivity Center in December 1999, the president of the Brand
Consultancy presented a workshop entitled “Turning Your Brand
into a Cyber Brand.” Back in 1999, companies were only just turn-
ing their brands into cyberbrands. The discussion focused on how in
1999 there were 92 million adult Internet users (that’s approxi-
mately 40% of the U.S. population). Further statistics project that
Web growth will continue at a torrid pace with 60+ percent of U.S.
households online by the year 2003. The number of women Web
surfers continues to increase steadily, and senior citizens, proving to
be more active and vibrant than ever, are taking advantage of the
Internet.3
The steady growth of online consumer purchasing in most
product categories is a driving force that convinces businesses they
should make a firm commitment to Internet branding. Consumers
are online doing everything from checking e-mails and bookmark-
ing Web sites, to buying homes and making bank transactions. Even
vacations can be planned online with e-tickets and an agenda to
boot. And it does not stop here: Consumers are chatting more, get-
ting financial information, and satisfying entertainment needs with

24 CYBERBRANDING chapter 2
audio and video clips.4 It is interesting to note the most commonly
purchased items and requests for information relate to travel, PC
hardware, books, There is a direct correlation between the amount of in-
apparel and acces- formation that is available online and the amount of
sories, and PC soft- time people are spending online.
ware. E-commerce
retail sales have skyrocketed, with over $30 billion in the year 2000.5
This figure alone gives us every indication that the Internet is at-
tracting consumers who are becoming Web-savvy, spending more
time online and ultimately sinking larger dollar amounts into prod-
uct purchases that at one time would never have been considered an
“Internet purchase.” We see the change in the last five years of con-
sumer behavior online as people have put more trust into the Inter-
net to satisfy their needs for shopping, banking, stock trading, and
entertainment. There is a direct correlation between the amount of
information that is available online and the amount of time people
are spending online. The global Internet numbers are growing too.
According to an article entitled “Now for the Really Worldwide
Web…” in Silicon
The Internet will open doors to new markets, and,
Alley Report, because
therefore, must focus on global needs.
of the adoption of
the Internet in other countries around the globe, a dot-com must
think globally as well.6 The Internet is not sleeping in other coun-
tries. In fact, it is emerging in more places every year. Although the
United States is approximately two years ahead of foreign nations,
the numbers are steadily increasing. For instance, there were ap-
proximately 5.4 million Internet users in Russia in January 2000, a
dramatic increase over an estimated 1.2 million at the end of 1998.
In addition, the expansion of the Internet into Latin America is dri-
ven by the rapid increase of users in this region. The numbers in
Latin America are projected to grow from 9 million in 1999 to ap-
proximately 38 million by 2003.7 Japan is also considered among the
regions with high Internet penetration, with approximately 15
million Internet users.8 This is a wake-up call for global brands on
the Internet. The Internet will open doors to new markets, and,
therefore, must focus on global needs. As a matter of fact, the most
frequently visited Web sites, according to Nielsen Net Ratings Japan,
are Yahoo!, NEC, MSN, Sony Online, and GeoCities.9 Currently,
U.S. retailers expanding into these foreign markets are addressing
multiple currency and multiple language issues on their sites.

CYBERBRANDING Making the Transition to the Internet 25

 DEVOTING DOLLARS TO THE INTERNET

With all of the statistics on consumer behavior on the Internet, a siz-

able increase of e-commerce, and overall growth in Web usage
among varying
. . . making the transition does not mean diving into the In-
audiences, a nag-
ternet and abandoning mainstream media.
ging question
still remains for business owners: How much of the advertising bud-
get should be devoted to online branding? It certainly seems to
prove that the Internet is a powerful tool. However, making the
transition does not mean diving into the Internet and abandoning
mainstream media. That’s been done too many times with little suc-
cess. The advertising market, with Internet advertising to reach ap-
proximately $7.36 billion by 2005 (with room to grow), is still
dominated by other communication channels that are receiving
larger ad dollar amounts. In 1999, the total advertising market was
approximately $117 billion in the United States. Of that $117 bil-
lion, close to $45 billion was spent on television commercials, about
$41 billion went into newspaper ads, and another $26 billion was
split between radio and magazine ads. Internet advertising is a much
smaller portion of the total advertising market. Although Internet
advertising will have a bright future, it should never be considered a
“be all and end all” strategy when it comes to branding. Effective
branding results from finding a happy medium between online and
offline marketing strategies.
Then there’s the extreme opposite case, the business that has all
of the offline advertising (direct mail, billboards, bus advertising,
newspaper ads, etc.) and makes no attempt at cyberbranding. Take
a hypothetical example of a Pontiac/GMC car dealer who puts up a
Web site and wants to sell cars by driving traffic to his brick-
and-mortar dealership. Thousands of dollars will have been spent
within the first six months to develop a Web site and the owner
of the dealership will not have seen any results or profits. He
wonders why his peers down the highway have sold more cars
within the previous few months than he has sold in a year. By mak-
ing the Internet transition and not allocating the proper resources
to cyberbranding, with a plan that drives traffic to the Web site, the
dealer allows an investment to go down the drain. You have heard
this before: The Internet is more than just developing an aesthetic
site; it’s all about driving traffic to that site and utilizing offline and

26 CYBERBRANDING chapter 2
online efforts in conjunction with the brand. It’s imperative to
utilize the Internet effectively by integrating online and offline
branding. Aside from placing the car dealer’s URL on every piece
of collateral material and traditional ad, the dealer should have
become familiar with what the regional portals (a site that provides
specific regional information) had to offer with respect to directory
listings and banner advertisements. Or, perhaps, as a first cyber-
branding effort, enlisting in the regional search engine would have
been helpful, or sponsoring an e-mail program to the subscribers of
a regional online publication for increased exposure. With more
consumers making major purchases online, being found on the In-
ternet is a priority. In this extreme case, cyberbranding would have
made a difference. On a national scope, when Half.com launched its
branding campaign, it included advertising online as well as cable,
radio, and print (and don’t forget the guerilla marketing promo-
tional stunt to have a town named on its behalf). The company tar-
geted print ads to appear in the New Yorker and the New York
Times, not to mention a host of commercials on cable channels in-
cluding MSNBC and ESPN. Then, for a well-rounded campaign,
Half.com aired radio spots on national live talk radio.10 If you think
about it, how many dot-com ads do you hear on the radio in the
morning or driving home from work? How many dot-com televi-
sion commercials appeared during the Super Bowl? The market es-
timate is that only 1 out of every 12 companies advertising during
the Super Bowl will survive post-commercial. There’s a great deal to
consider when it comes to advertising dollars. With noisy markets,
companies need to employ online and offline strategies to reach
fragmented audiences and drive traffic to a cyberbrand.

THE INTERNET IS A POWERFUL PIECE

OF THE BRANDING CAMPAIGN
The Internet, like any other communication channel, is not a total
and complete branding strategy. First, think of your audiences. How
do they break down on the Web? Sure, there are the audiences that
spend more time on the Internet choosing online media and inter-
action rather than the traditional media. But there will always be au-
diences that split Internet time with traditional media. And let’s not
forget the Internet disbelievers who don’t spend any time surfing the
CYBERBRANDING Making the Transition to the Internet 27
 Web—are there any that still exist? In an interview with Eric Straus,
president of Straus Media Group of Poughkeepsie, New York, the
issue of offline and online branding surfaced (see the Straus Media
Group mini-case study at the conclusion of Chapter 2). Straus
bought his first radio station from his father in 1989 and since then
has acquired nine more stations to assemble the largest media net-
work in the Hudson Valley. When discussing brands and cyber-
brands, Straus stated, “Mainstream media will always be a key to
branding success. Banner ads will only get you so far. Take radio, for
example. It did well in 1999 because of the dot-com business.”
However, an article on branding appearing in CEO Conference mag-
azine in February 2000 mentioned how many of the dot-com start-
ups were not making savvy decisions on television advertising and
were spending money foolishly. The article, entitled, “Branding on
the Internet,” goes
Sure, there are the audiences that spend more time on the
as far as saying, “Re-
Internet choosing online media and interaction rather than
serving dollars to
the traditional media. But there will always be audiences
improve site func-
that split Internet time with traditional media.
tionality may be
more important in the long run than pouring money into advertis-
ing.” This statement touches upon issues and certainly raises signifi-
cant questions. However, both achieving the balance between offline
and online advertising and site functionality are key factors to the
success of the online effort.

INDUSTRIES TAKING THE PLUNGE

As traditional companies continue to make the transition, redevelop-
ing their business models as e-business models, we still see our share
of industries proceeding at a pace we’d have to call much less than
warp speed. An interview with Sheila Cohen, vice president of mar-
keting, Lawyers Homepage Network, details the progress of various
industries in their attempts to move online (See “Industries Moving
Online” interview).
Traditional companies are facing their fair share of challenges
It’s a matter of stepping up to a challenge the Internet when journeying
poses. Larger challenges mean larger rewards. The bigger into cyberterri-
the obstacle, the larger are the profits if it is tackled suc- tory. They have
cessfully. existing cus-

28 CYBERBRANDING chapter 2
tomer relationships and business paradigms to suit traditional
needs. It’s a matter of stepping up to a challenge the Internet poses.
Larger challenges mean larger rewards. The bigger the obstacle, the
larger are the profits if it is tackled successfully.

INTERNET ISSUES TURN INTO INTERNET

OPPORTUNITIES
What are marketers finding to be the most common issues when
making the transition to the Internet?
1. Understanding new audiences and meeting their needs
2. Making the transition from communicating as a mass-
market company to the individual online consumer (and in-
stant two-way communication)
3. Acknowledging new competition that was not a considera-
tion pre-Internet
Opportunity number 1: New relationships are formed with new audi-
ences as traditional businesses go online. So, for example, in the case
of the Arts & Entertainment Network (A&E), its Biography.com
Web site invites younger groups to partake in the site with a search-
able database of 25,000 interesting biographies. Because of younger
audiences, A&E must gear its site to this group in a manner that young
audiences will find attractive, interactive, and appealing.

CYBERBRANDING Making the Transition to the Internet 29

 INDUSTRIES MOVING ONLINE
Sheila Cohen is vice president of the Internet supermarket, where an
Interview

marketing for Lawyers Homepage online consumer buys and pays for
Network, a virtual law office for at- groceries and then physically goes
torneys. Cohen has been marketing to the supermarket to pick up their
and branding products for over 22 prepaid items, or a full service mar-
years. In a discussion of how vari- ket where groceries will be deliv-
ous industries are making the on- ered to you at work or at home? It
line transition, she gave her all depends on which way the
viewpoint on three industries and market swings. This is another in-
what seems to be a rocky road for dustry slow out of the gate—and
them. the race continues.

Supermarket Industry Retail Industry

Although many supermarkets have About a year ago, it was obvious
built their Web sites, few are mak- that many retail chains were sadly
ing the transition to e-business behind the technology revolution,
smoothly. Then along comes Price- including household names like
line.com, spending enormous Barnes & Noble and Macy’s that
amounts of money on star power have spent years and billions
endorsement (William Shatner branding offline. However, they did
singing its praises), and tries to not seem to fully understand
“raise the bar.” Through e-commerce and the needs of a
Priceline.com, supermarkets and Web-based shopper. And, in terms
consumers were able to get a good of fulfillment, they must have for-
taste of how to buy groceries on- gotten that delivering a promise is
line. Priceline in all of its efforts at- a key to customer satisfaction and
tempted to pave the way for retention. The retail industry has
grocery stores. In addition, you also been slow to embrace brand equity
have companies like Peapod and and transfer it online. Frankly, a
Net Grocer that create a network of web shopper’s expectation is the
Web-based shopping using the su- same as what he or she would ex-
permarket as a distribution chan- pect from a brick-and-mortar loca-
nel. Who is going to win? Will it be tion. Consumers want the same

30 CYBERBRANDING chapter 2
 selection and variety that they are not tech savvy, making the
would see in a physical store set- transition even more sluggish. But,
ting. But when Macy’s Web site did finally we are seeing lawyers who
not live up to its catalog selection a are in fact catching on—a good
couple of years ago, consumers example is Lawyers Home Page
were disappointed with slim online Network (www.lawyershomepa-
pickings. So, what happens? Con- genetwork.com), and its consumer
sumers go to shop at e-toys or site CaseMatch (www.casematch.
Amazon.com if they can’t find that com), founded by David Rizzo, an
“cute something special” from the attorney himself. On this Web site
Macy’s online catalog. Macy’s then we see lawyers utilizing the power
has to scramble to get the customer of the Internet and conducting
back. many functions of their daily busi-
ness online. The LHN site allows
The Legal Industry
member lawyers to take advantage
The legal industry is long known of this virtual law office with every-
for its paperwork court filings and thing from research tools to case
long briefs. It’s ironic that an indus- management to marketing their
try bogged down with paper is so firm and finding new clients. It took
slow to make the transition to the some time, but the legal industry is
Internet. Lawyers, for the most part, definitely catching on!

Opportunity number 2: Web sites provide one-on-one interac-

tion and two-way communication. Companies that have tradition-
ally engaged in mass marketing are used to reaching groups of
people and must alter their methods. Mass marketers will quickly
find that a Web site is all about the individual consumer and sat-
isfying individ-ual needs. This is a new bond that has to be devel-
oped through interaction and strategies to keep a visitor coming
back to a site for more information and activity. The Internet pro-
vides this opportunity (as well as this challenge) of being able to per-
sonalize and sensitize communication. Better yet, the Internet also

CYBERBRANDING Making the Transition to the Internet 31

 allows immediate two-way communication. So, if you continue to
“mass-market” to individual consumers, they will let you know ex-
actly how they feel or they will not be back to your site. The brand
will benefit from the ability to have two-way communication and
implement feedback for further customer satisfaction. Otherwise,
with so many choices on the Net, a consumer is just a click away
from the next best thing!
Opportunity number 3: On the Internet, the whole scope of
competition changes. So, for example, if A&E’s major offline com-
petitor is the
The Internet evokes creative thinking that is “out of the
Discovery Chan-
box.”
nel, that does
not mean that in cyberspace Discovery Online poses the same kind
of threat. As a matter of fact, A&E has more to worry about with
Amazon when it comes to biographies. This forces A&E to think dif-
ferently and evaluate competition in a whole new light. The Internet
evokes creative thinking that is “out of the box,” because audiences
and competitors don’t necessarily follow those traditional business
plans we are all so used to.11

THE SMOOTH TRANSITION OF THE BRAND

The nature and scope of the Internet is so vast that a traditional
company no longer can simply satisfy a traditional business model
and expect the
The nature and scope of the Internet is so vast that a tradi-
brand to flour-
tional company no longer can simply satisfy a traditional
ish. There are
business model and expect the brand to flourish.
new considera-
tions for the online company. That means that not only are audi-
ences changing, but their expectations are increasing as well.
Companies must develop sites that are delightful and engaging or
face the threat of losing customers to the closest competitor. And
when it comes to competition, that has all changed too. Just when
you think you have figured out exactly who the brick-and-mortar
competitors are, in come the new dot-com start-ups and a bunch of
online giants that keep merging to add more products and services
to their sites.

32 CYBERBRANDING chapter 2
 To recap, here’s an abridged list of considerations to keep in
mind when it comes to transition and commitment in cyberspace:
■ How much do you know about the Internet and whether or
not your audience will accept your brand’s presence online?
Permission, permission, permission! Ask and you shall
receive.
■ Is the online audience the same as the offline audience?
What other groups should be included in your research? The
wide reach of the Internet allows new audiences to become
involved with online brands. Don’t overlook these secondary
groups, as the Internet has incredible growth statistics.
■ How can we integrate all of our offline efforts to drive traffic
to the online site and vice versa? By devoting time and
advertising dollars to a well-thought-out marketing plan.
The plan should integrate all the branding efforts (using
consistent brand communication) and be written
simultaneously to fit into the e-business plan.
■ Do the competitors extend beyond brick-and-mortar
competitors? Yes, you will see competitors triple in numbers
based upon the scope and variety the Internet has to offer.
■ What are the competitors doing with their Web sites? Make
sure you know how competitors are impressing online
visitors. Warning—Don’t just borrow content; your
audience will know it and lose respect for the brand.
■ How do we develop a site that is gripping and engaging, far
more than just a brochure online? Interactivity and
immediate and rewarding two-way communication is more
than the brick-and-mortar will ever be able to offer prior to
the purchase of the brand.
■ What types of interaction will add a new level to the brand’s
promise? Audio, video, Webcasts, and the aspect of
communities converging online with chat sessions, to name
a few.
■ How do you meet and exceed audiences’ expectations of the
brand online? By providing a site that allows visitors to
interact with the brand online and by allowing users to find
appropriate, interesting, and updated content that enhances
the value of the brand.
CYBERBRANDING Making the Transition to the Internet 33
Mini-Case Study
RADIO GOING ONLINE: REGIONALHELPWANTED.COM
Eric Straus is president of Straus able to find good help—their dollars
Media Group in Poughkeepsie, New were constantly eaten up by news-
York. For the past 10 years, he has paper classified advertising, with
grown his business 20-fold. Straus little or no luck with new hires. In
Media Group is the largest media turn, Straus saw an opportunity to
network in the Hudson Valley—a $5 solve his clients’ problems while at
billion market. Straus has radio sta- the same time gearing radio toward
tions in Poughkeepsie, Ellenville, the Internet. With an idea in mind
Kingston, Catskill, and Hudson, as he made a deal with a computer
well as offices in various cities. His guy (as he puts it), a deal that has
radio stations include program for- the computer expert building Web
mats from adult contemporary to sites and the two of them splitting
nostalgia to news talk radio. the revenues. So, where does radio
Straus has been conducting the fit in? Straus joins together radio
operations of his radio network in a groups who are competitive in the
“traditional” manner. His main ob- same markets to sponsor help-
jective is always to run the best wanted dot-com sites across the
programming possible while trying country. These regional help-
to cut costs. By hiring top-notch wanted sites provide a valuable
sales experts to increase sales, he and resourceful service for individ-
is able to sell long-term business uals in regional areas seeking em-
on his radio stations. Straus’s suc- ployment as well as for area
cess is built upon improving his ad- business owners who need to post
vertisers’ businesses, and Straus available employment opportuni-
works to find the long-term mar- ties. Straus’s regional help-wanted
keting answers for long-term cus- dot-com service is a completely
tomers. separate venture from his tradi-
Even with all of the Internet tional radio network. It is represen-
hype, Straus never put much tative of how the Internet allows a
thought into the World Wide Web. vast array of opportunity for differ-
Recently, as he listened to his ad- ent industries. Straus was able to
vertisers, he found that they were go beyond the conventional transi-
always frustrated with not being tion (putting his station and

34 CYBERBRANDING chapter 2
programming online) and foster a newspaper help-wanted classi-
business that breaks a traditional fieds. Straus convinces GMs that in
mold. order to compete with the big boys,
radio groups must work together in
Challenges
order to reach enough people.
■ How does Straus convince Straus tested his concept online
general managers (GMs) to with his first site, HudsonValley-
work together with competitors HelpWanted.com. With much suc-
in their markets? cess from this site, he took his idea
■ How do the regional help- on the road to a conference in Col-
wanted sites reach 70% of the orado that was hosted by the Radio
adults in the market when 5 Advertising Bureau (RAB). Straus’
out of 10 read the newspaper? presentation at the conference
■ How does a regional help- evoked interest among GMs across
wanted site compete with daily the county. As of March 2000, Re-
newspapers? gional Help Wanted was in four
markets, with four markets ex-
pected mid-March, and another
Outcome
four markets by April 1, 2000. With
Before RegionalHelpWanted.com,
this steady rate of growth, it was
no competitive radio groups in the
expected that Regional Help
same market attempted to work to-
Wanted would be in 150 markets
gether. And although the common
within 18 months. Is it any wonder
response from GMs was that they
that Smith Barney analysts predict
preferred to work alone, it’s not
that 70% of classified advertising
enough to beat out the big boys.
will move online? It’s a whole new
This is a business where those big
revenue stream. Now it’s working
boys, the daily newspapers with
for radio as well.
circulations over 50,000, are mak-
ing at least $5 million a year in

CYBERBRANDING Making the Transition to the Internet 35

 CHAPTER

3 The Impact of the Internet

on the Brand

Objective

For marketers to understand how the Internet has

tremendous impact on a brand. Marketers need to
“think” Internet and develop cyberstrategies by
considering the following:

■ The components of the cyberbrand

■ New levels to which cyberbranding takes the
brand
■ More ways to “think” Internet in support of the
brand
■ Internal and external dimensions of the brand
■ Cyberbranding theories
■ The cyberbrander’s checklist

36
THE COMPONENTS OF THE CYBERBRAND

T ake a name, a logo, a company, a promise, and a full set of val-

ues and expectations and mix them all together. What do you
get? The traditional meaning of a brand. If you take the same mix-
ture of elements and put them on the Internet, does this make a cy-
berbrand? Just moving the brand online does not make up the all of
the components of the cyberbrand. The Internet allows the brand to
move into a new realm and affords consumers the opportunity to
experience the brand on an interactive level. It’s the “cyber” part
that provides hands-on
experience and immedi-
It’s the “cyber” part that provides
hands-on experience and immediate
ate involvement with the
involvement with the brand prior to the
brand prior to the pur-
purchase of a product or service.
chase of a product or
service. Every interaction with the brand has the potential for an im-
mediate reward. The Internet allows consumers to access informa-
tion, get involved in surveys and polls, and collect digital coupons or
enter into free sweepstakes and contests, and is customer
service–ready with e-mail responses, answers to consumer FAQs,
and round-the-clock, 24/7 service. These are the differentiating fac-
tors that define the “cyber” aspect of the brand that are found in no
other form, on any other medium.

37
 NEW LEVELS TO WHICH CYBERBRANDING
TAKES A BRAND

Every brand has the potential to flourish on the Internet. Taking the
brand to a new level is the ability to “think” Internet. This ability in-
creases the bond between the consumer and the cyberbrand. Before
Benjamin Moore, a popular brand of paint, went online, the com-
pany’s name and logo were a symbol of quality and trust a home-
owner (or business owner) could depend upon. The Benjamin
Moore brand name still carries the same meaning, but the Internet
adds a new dimension to the brand. Benjamin Moore’s consumer
and business audiences (homeowners, architects, designers, and
professional contractors, to name a few) go to its Web site for more
than the ability to view a full online paint catalog for home, office,
Taking the brand to a new level is the ability to “think” or building use.
Internet. This ability increases the bond between the Why? Because of re-
consumer and the cyberbrand. lationship market-
ing. In cyberspace,
Benjamin Moore offers one-on-one experience with the visitor. Au-
tomatically, the expectations are different. The visitor on the site an-
ticipates being able to use the Benjamin Moore paint calculator to
figure out the dimension of the structure to be painted, and exactly
how much primer and topcoat is necessary to finish a room from
floor to ceiling. These added extras on the site go one step beyond
the traditional mixture of brand elements.
Another area loaded with information is the “About Color” sec-
tion in the Homeowner’s portion of the site with articles relating to
color and lighting. The article entitled “When Color Is Critical,
Switch On the Light” educates a homeowner with respect to the dif-
ference between how we see color on the color card chip and the
color that dries on the walls of our home. The article offers tips on
how to avoid disappointment.1 With articles that change on a fre-
quent basis, Benjamin Moore’s Web site audience expects to return
to the site and see updated information and new tips and technique
articles. As a matter of fact, at one point on the Benjamin Moore site
there was an interesting piece on the appropriate colors to use for
each room of your home. Did you know that red in the kitchen pro-
vokes overeating? Benjamin Moore is appealing to audiences in a
new way, visually, emotionally, and interactively, with hands-on
helpful resources to keep them coming back for more—driving

38 CYBERBRANDING chapter 3
traffic to the online brand.2 This is only the beginning for the cyber-
brand. Another way that Benjamin Moore might continue to
“think” Internet is in offering online contests (contests are among
the top reasons consumers frequent Web sites). For example, The
“new homeowners before and after Benjamin Moore paint” contest
would offer new homeowners the opportunity to submit before and
after pictures of their homes for display and judging online (one
picture before the paint job and the other picture post paint job).
Drawing consumers into a contest that lets them take pride in their
homes, tied into the emotional bond with a brand of paint they
trust, drives traffic to the Benjamin Moore site, and gets consumers
to buy paint products (just to be a part of the contest).
Another strong example of a brand making the commitment to
the Internet and adding a new dimension to its meaning is P&G’s
Pampers online. We all know Pampers as a reliable brand of dia-
pers, one that has been around for decades. However, Pampers in
cyberspace goes one step further to benefit new parents and
aid them with the concerns and issues regarding parenthood. The
Pampers Web site welcomes parents to the “Pampers Parenting In-
stitute” (PPI). On this site, parents (and even day care and
preschool professionals) can access information on children’s safety
issues and childhood diseases and learn the latest information on
physical and emotional developmental stages from the professional
experts. The extension of the Pampers brand on the Internet evokes
a feeling of commitment to families in many ways. And with a host
of information updated on a frequent basis, loyal brand customers
will visit the Pampers site repeatedly for tips on child rearing from
the experts. What’s another way for the Pampers brand to “think”
Internet and harness the power of Pampers online? Pampers might
open a section of its Web site devoted to parents who want to share
those “adorable” children stories. Most proud parents jump at
the chance to tell their favorite “cute son or daughter account” (you
can only tell friends or relatives so many times before they tune
you out). If Americans can go on national television (on Oprah
Winfrey and Leeza) and share their problems, then what’s wrong
with sharing cute kid stories on the Internet? The benefit to the
Pampers brand is that millions of parents have a story to tell—an-
other case of increased traffic to the site—and that parents will
identify with a brand that supports their need to be fully absorbed
in their children.

CYBERBRANDING The Impact of the Internet on the Brand 39

 The last example of branding to a new level is Mattel’s
Barbie.com which allows interaction with the brand from the mo-
ment the pink site downloads. There are approximately seven areas
that permit loyal Barbie fans to be directly involved with the prod-
uct before any purchase of a Barbie doll. The “Hot & Not” Poll sec-
tion asks kids about their favorite activities—e.g., video games—and
also shows them results of polls from the day before. Posting results
from earlier polls is an excellent technique to get an audience to re-
turn to the site to see how their peers feel about these same topics.
Another popular section is the “My Design Barbie,” which allows
users to create their own personalized Barbie. Hands-on interaction
allows a youthful audience (an age group that loves to dress up and
wear makeup) to choose Barbie’s eye color, hair color, lip color,
hairstyle, and cool fashion outfit with accessories and even to select
a personality for Barbie (which corresponds to the special occasion
of your choice). Of course, once you design your Barbie doll, the
next logical step is to purchase that special doll or send it to a friend.
Pre-Internet, Barbie was in a box, on a shelf, and she came in a pre-
determined outfit, with predetermined hair and eye color. Mattel’s
Barbie site is all about hands-on interaction. The viewers on this site
know and love the Barbie brand and have the opportunity to have
fun with Barbie online, before any purchase. The interaction online
creates a stronger bond between the consumer and the brand.
Again, these are only a few ways that Mattel can take Barbie to a new
level on the Internet. One more way for Mattel to “think” Internet
involves little girls who enjoy telling stories about their favorite Bar-
bie doll. The Barbie site could have a section that allows girls to cre-
ate a favorite Barbie scene. Maybe it’s a scene with Barbie and Kelly
in their pool, or Barbie horseback riding, or even at a fashion show.
Online creation and coloring of the scene, and then an area to tell a
story for submission into a contest, would have little girls across the
country online hoping that their story is highlighted as the “Barbie
story of the month.” This is one more example of how the Internet
takes the brand to a new level and increases involvement with the
user resulting in continued brand loyalty.

40 CYBERBRANDING chapter 3
MORE WAYS TO “THINK” INTERNET IN SUPPORT
OF THE BRAND
The proof is out there. We see every day how brands need to move
beyond a name and logo, especially in cyberspace. Branding on the
Internet is more than characteristics and attributes. It’s all about
hands-on experience
and interaction with . . . brands need to move beyond a name and logo, es-
brands, something pecially in cyberspace. Branding on the Internet is
that was not always more than characteristics and attributes. It’s all about
available pre-Inter- hands-on experience and interaction with brands,
net. The best way to something that was not always available pre-Internet.
prepare for the online brand or e-brand (dot-com start-up) is to
start thinking Internet. Try your hand at Internet thinking in the
next few examples.

Example 1: The Situation

A national day care center, caring for infants up to age 5, is
known across the country for its nurturing environment, a
place where the atmosphere of the home is extended into the
classroom-learning situation. The center is an extension of the
child’s home. However, leaving a child in the hands of a day
care provider is one of the most difficult decisions made by a
parent. There is an enormous amount of trust placed upon the
center. In this instance, the brand has to satisfy an emotional
need for the parents, who are concerned about the safety of

CYBERBRANDING The Impact of the Internet on the Brand 41

 their children. Is there any way that the cyberbrand can calm
their fears and allow them to feel more comfortable with the
child care situation?

Questions:
■ What can this brand do to have a powerful
cyberpresence, leverage brand opportunity online, and
create a stronger bond with parents who are hesitant to
leave their children in day care?
■ What would happen if the company simply put its
brochure online?
■ What type of interaction will appeal to parents who want
to experience a day in the life of their children?
■ How can the brand online be developed so parents can
visit a site that fulfills their expectations?

Solution:
The Web site as an extension of the center’s brand must
allow parents to experience a day in the life of their child,
and interact with the center and their children as many
times as they like, in the following ways:
■ Interaction with day care directors and teachers via
e-mail, message boards, and parent–teacher conferences
online. Immediate response is the key to soothing an
anxious parent, and the Internet can accommodate
parents’ needs.
■ Chats or Q&A sessions with medical practitioners and
psychologists to bring the latest medical information to
parents. A brand that has experts available for the
support and well-being of the family unit is a brand that
cares and deserves loyalty.
■ Webcasts of center special events and activities for
parents who are tied up at work and cannot make it to a
dance recital or holiday show. It’s one more way to
experience those special times that parents would
otherwise miss because of busy work schedules.
■ Communication with other parents (via a message board
or chat session) to discuss the joys and frustrations of
42 CYBERBRANDING chapter 3
 parenthood and the exciting stages of a child’s
development. We already know how much parents love
to share stories.
■ Allowing parents to get involved in home activities with
their children by providing online curriculum to further
the classroom learning experience. Parents want and
need to be a part of their children’s growing and learning
process. When the brand offers a way to allow the parents
and children to work together at home, it benefits the
parents just as much as the children.

Clearly, the foregoing examples illustrate how the day care

center has moved from expectations of the traditional brand
to expectations of an online brand. A brochure and a behav-
ioral report card have much less impact than a cyberbrand
on the day care families. The cyberbrand brings much more
experience and fulfillment into their lives. Building the
brand is financially rewarding, whether traditionally or as
an online extension. However, when it comes to the Inter-
net, the online experience, interaction, immediate rewards,
responsiveness, and service complete the picture. Parents
will feel closer to their children by experiencing a hands-on
day care experience.

Example 2: The Situation

A well-known line of clothing marketed to young females, aged
12 to 17, has a brand name that evokes the feeling of what’s
“hip,” “cool,” and “extreme” among its youthful audience.
Moving the brand online will open new doors to creating an
unforgettable experience for this group. However, the cyber-
brand faces the challenge of evoking a community feeling
among an age group who are just discovering who they want to
be, the nature of their likes and dislikes, and what is accepted
and rejected by their peers.

Questions:
■ How does the company maintain its stylish image and
remain a guiding force for this audience when it makes
the commitment to the Internet?
CYBERBRANDING The Impact of the Internet on the Brand 43
 ■ Is there more to moving the brand online than having an
online catalog of clothing and a shopping cart?
■ How does the company drive traffic to the Web site and
get young females to take part in an online brand that is
all about being a part of a community that shares ideas
and experiences in a friendly way?
■ How will teen expectations be fulfilled?

Solution:
The company has to move the brand online and create a
teen community by utilizing the following cyberbranding
strategies:
■ Allow young women to express themselves with one-on-
one interaction. Young women must feel a part of this
community with easy access to message boards for
communication with one another. It’s always hip to
know what your peers are thinking. And on the Internet,
there is no threat to stating an opinion (unlike a
classroom setting). Young women do not have to feel
intimidated to participate in the community discussions.
■ Provide surveys and polls on the site to get visitors an-
swering questions about themselves and get them looking
forward to how their peers feel about similar issues. Again,
this aspect of sharing is a healthy way for teens to vent or
“blow off steam” and be heard and acknowledged.
■ Conduct chat session forums for teens to talk to their
favorite TV star idols or members of their favorite
musical group. Any way to follow a favorite star or music
artist will capture the attention and the hearts of millions.
■ Provide community contests to let viewers compete with
and/or judge their peers. With this audience, the sky is
the limit when it comes to contests. From writing essays
to forming musical bands to community service, contests
are traffic drivers.
A new teen community is now the extension of the brand.
Not only will these young girls feel good about wearing the
brand as the “coolest” line of clothes, but they will also ex-
perience interaction on a Web site that allows them to feel
44 CYBERBRANDING chapter 3
important, and a part of a “hot” Internet community that
satisfies an emotional need to be liked and well received by
their peers.

Example 3: The Situation

A car dealer has a line of vehicles of a well-known family
brand—one that promotes quality vehicles as well as customer
service satisfaction. But when the company moves the brand
online, it must maintain this set of characteristics and attrib-
utes as well as add a new dimension of interaction.

Questions:
■ How does the car dealer provide an online experience
that goes beyond quality vehicles and automobile
customer satisfaction?
■ Is there an opportunity for this car dealer to provide any
other types of information that might be related to
families interested in making an automobile purchase?
■ Will the brand be able to live up to the same set of
characteristics and attributes online?

Solution:
The car dealer must offer consumers information and an
experience that goes beyond a visit to the brick-and-mortar
dealership, with a Web site that has the following:
■ Editorial content including articles on car safety and road
hazards. Letting visitors know what experts are saying on
these topics just might save a life and projects the image
of a brand that cares.
■ Information on the popular destinations. Listing the top
10 places in their geographic area that families can drive
to in their new vehicles (amusement parks, museums,
family-friendly restaurants, etc.) is a way to become more
involved with this audience and what the families do in
their vehicles.
■ An opportunity to become a member of an online auto
club that gives discounts on services and coupons toward
purchases at area businesses (cyberpartnerships add
CYBERBRANDING The Impact of the Internet on the Brand 45
 value to the brand and drive traffic to the Web site).
Regional merchants will benefit from the ability to
promote one another’s Web sites to drive traffic back and
forth between sites.
■ A link devoted to customer service and one-on-one
interaction with an online dealership representative. And
the ability to have two-way communication with a car
salesperson or a service representative is ideal.
The car dealer now appeals to its car buyers not only with
the quality of its vehicles but also with the 24 hours a day,
7 days a week service promise that the Internet provides.
The car dealer’s site also affords the customer those extra
Internet benefits, including tips on travel and great deals
from participating in an online automobile club. Even
though the brick-and-mortar dealership can provide ser-
vice, pamphlets on safety, and maybe even an offline auto
club, the consumer won’t find it in the privacy of his or her
own home or sitting at a desk at work (where consumers
tend to spend most of their time and get the most done).

INTERNAL AND EXTERNAL DIMENSIONS

OF THE BRAND
It’s extremely important to think Internet before making the com-
mitment to cyberspace. However, in order to think Internet, com-
panies must fully
It’s extremely important to think Internet before mak-
understand both the
ing the commitment to cyberspace. However, in order
internal and external
to think Internet, companies must fully understand
dimensions of a
both the internal and external dimensions of a brand.
brand. And in the
case of moving the brand online, or even the birth of a dot-com, the
same considerations must be made. In an interview, Alan
Bergstrom, president of the Brand Consultancy, clarifies the impor-
tance of understanding the internal and external dimensions and
how this translates into brand opportunity (see “Branding—Internal
and External Dimensions” an interview with Alan Bergstrom).
Learning and discussing traditional brands, brand extensions
online, and e-brands evokes an interesting question. Is there a dif-

46 CYBERBRANDING chapter 3
ference between how the traditional brands are moving online with
brand strategy and how e-brands are developing their cyberstrate-
gies? According to Alice Uniman, president of Phoenix Brand
Strategies, there is an enormous difference (see “The Brand Perspec-
tive,” an interview with Alice Uniman).

CYBERBRANDING THEORIES
According to Advertising Age, understanding the cyberbrand has to
do with the three “i” theory. The first “i” is information, which does
not necessarily mean simply company brochure information, but
information that an audience expects from a brand in cyberspace
(which depends on the brand’s characteristics and attributes). The
second “i” is interactivity, that hands-on experience that adds a new
dimension to any brand pre-Internet. The third “i” is instinct, to
avoid emulating another company’s Web site branding and market-
ing efforts simply because it looks like a good idea.3
More theory behind cyberbrands brings us to the new four
“p’s.” In addition to Marketing 101, with its four “p’s” (price, prod-
uct, promotion, and placement), welcome the new four “p’s” with
an online branding twist. The first “p” is permission. This notion was
touched upon in the Bergstrom interview, in which he, too, agreed
that having permission from an audience to be online increases ac-
ceptance of the brand as opposed to consumer criticism. The second
“p” is penetration. There is the belief that online traffic will eventu-
ally transfer to
In addition to Marketing 101, with its four “p’s” (price,
smaller, niche sites
product, promotion, and placement), welcome the new
and marketers need
four “p’s” with an online branding twist.
to be smart about
where they form cyberpartnerships and promote their brands in
terms of allocating cyber advertising dollars. The third “p” is person-
alization. Knowing your customers and understanding their per-
sonal needs will allow for a more enjoyable personalized online
experience. The last “p” is profitability, realizing that the strength of
the brand online will leverage an opportunity that will lead to
stronger recognition and brand awareness.4 That’s why some ven-
ture capital companies insist that dot-coms are evaluated by brand
consulting firms pre-IPO, because the power of the brand reaps
profit.5

CYBERBRANDING The Impact of the Internet on the Brand 47

 BRANDING—INTERNAL AND EXTERNAL DIMENSIONS
Alan Bergstrom, president and attracting customers, where you try
Interview

founder of the Brand Consultancy to create a real powerful emotional

in Atlanta, Georgia, began his mar- bond or affinity that customers at-
keting career as a military intelli- tach themselves to. When that
gence officer and at one point bond is created, employees, like
served in the Reagan administra- customers, become great “brand
tion as a daily intelligence briefer. ambassadors.” The power of the
He later ventured into the consult- brand makes a person want to
ing field, helping American busi- work for a particular organization.
nesses to handle emerging trends It makes sense if you think about
and identify brand strategies to po- all of the dot-com start-ups and
sition themselves for the future. how these companies are attracting
After years of brand consulting for the best talent—it’s a result of the
firms in the Atlanta area, in 1996 opportunity, the excitement, and
Bergstrom formed the Brand Con- the potential of the brand. The key
sultancy, a company that focuses is to build a strong brand to attract
specifically on brand strategy, the brightest employees. For Brand
leveraging the brand to attract and Consultancy’s clients, branding is a
retain loyal employees and loyal “holistic” approach—it’s much more
customers (in addition to creating than a name and a logo. And no
more demand for a company’s longer is branding “just about ad-
products and services and often ob- vertising.” Every part of the organi-
taining a premium price if posi- zation must be involved in
tioned properly). delivering the brand promise that is
According to Bergstrom, brands made in advertising and in other
have both internal and external di- communications. The brand must
mensions. The internal dimensions be able to deliver what it promises,
involve the employees of the com- and that requires people through-
pany, the culture of a company, out the organization creating the
and the styles and personality it proper “brand touch-point” impres-
embodies. He states, “This not the sions every time the customer en-
easiest sell to many companies.” counters the brand, whether it’s in
Brands have to appeal to their em- the advertising, the customer ser-
ployees, and employees must be vice, the product or service itself,
proud of the brand. It’s the same the distribution channel, or the In-
approach you take externally when ternet. As a matter of fact, “We

48 CYBERBRANDING chapter 3
 choose brands because of their at- tunity, or worse yet, it may destroy
tributes and characteristics, the im- a positive impression that already
pressions we form about them, and existed or create confusion about
the value we receive from them,” what the brand stands for and ap-
states Bergstrom. If a company fails pear to deliver against its promise.
on any brand encounter, it misses Successful brands “walk the walk.”
the chance to maximize an oppor-

THE BRAND PERSPECTIVE

What is a brand? Alice Uniman, effectively respond to technological
Interview

President of Phoenix™ Brand Strate- change and shifts across elements

gies, offers this definition—a brand of the marketing mix.
is a “promisemark.” A brand So, is there a difference between
promises its customers the consis- a brick-and-mortar brand moving
tent satisfaction of a specific set of to e-commerce and an e-brand?
expectations. Consumers buy According to Uniman, who has been
brands, not products or services. in the brand-building business for
After all, consumers can’t buy prod- 20 years, there is a significant dif-
ucts off the factory line. They can ference. In a lengthy discussion,
only recognize your product by its Uniman raised some interesting is-
proper name, not its common name. sues about the difference between
Why are brands important to these two general brand types.
their “owners”? A successful brand Uniman stated that it’s easy to
engenders long-term customer loy- see the difference when you con-
alty that, over time, allows the sider the following scenario. Start
brand to accrue equity and true with the obvious fact that an
asset value. In turn, such brand e-brand is dependent on the WWW
power permits the brand to com- for its mere existence—and the
mand higher profit margins, higher brick-and-mortar gang is not. At
stock prices, a higher level of insu- least, not yet.
lation from competitive attack, and For the GEs, P&Gs or GMs of the
a far greater ability to weather and world, then, the Internet affords a

CYBERBRANDING The Impact of the Internet on the Brand 49

 powerful brand-building tool to publicity and why most of them
strengthen their total marketing rarely play a role in the “e-hype.”
clout. Often, the brick-and-mortars Long-lived, strong brands have
leverage the Net’s capability to maintained and nurtured their
serve as a channel for relationship valuable equity through many
marketing efforts and not necessar- changes—product design and man-
ily as a retail channel to directly ufacturing technology evolution,
sell product. (Although many, many the proliferation of retail channels,
of them already do move product a virtual explosion in number and
sales through the WWW.) types of media vehicles through the
From a customer relationship- years, and seismic shifts in con-
building perspective, the Internet is sumer attitudes and lifestyles. So
another avenue for customers to get managing change, to such success-
information. After all, the Internet is ful marketers, is a state of being.
that personal salesperson that you Even if the GMs or P&Gs are not at
can visit at three o’clock in the the center of all the cyberarticles,
morning when you are in your paja- they are not necessarily “asleep at
mas. Classic relationship marketing the wheel.” The savvy brick-and-
activities have been conducted for a mortars are involved in the Inter-
long while across a number of net, hold a long-term view about
venues—customer satisfaction sur- its potential, and have the business
veys, consumer clubs, reward pro- resources to stick with it.
grams, to name a few. Now, the Uniman focused the discussion
Internet presents another im- on the e-born brands. Unlike offline
mensely effective way for compa- brands, their existence is the Inter-
nies to facilitate their relationship net. Such brands are a bit more re-
marketing efforts. stricted in the number of elements
So, the next logical question is, in the marketing mix they can uti-
Do brick-and-mortar companies lize to build their business. As well,
have a cyberbrand? Not so far. But these brands are, in a funny way,
they do have a powerful channel to more fragile than offline brands.
expand and enhance the identity of They can’t be protected from com-
their offline brands. The core, petition by a patent or a unique, a
brand-building fundamentals em- secret formula, or some proprietary
ployed by such companies are un- piece of technology.
likely to change markedly. That’s The importance of superb brand-
probably why the brick-and-mor- ing skills becomes, therefore, that
tars’ Internet activities receive little much more critical if an e-brand is

50 CYBERBRANDING chapter 3
 to have a long shelf life. Some of the investors who make out like
them are clearly going to have to bandits) how many e-brands will
learn that lesson the hard way. As survive at least beyond the next 12
well, it is essential for an e-brand to months—and even whether some of
deeply appreciate the importance of the quite young and already quite
brand identity components, be- wealthy founders even care. Given
cause when the Web site is altered, the phenomenally high stock valua-
so is the very design of the brand tions—the “P” in the P/E ratio—and
and both the perceived and actual phenomenally low earnings levels,
consumer use experience. Today, a expect a giant shakeout.
strong offline brand can probably So, why do so many believe that
survive a substandard Web site. An only the e-brands will crack the e-
e-brand cannot. commerce code? As far as Uniman
With the intense flurry of new is concerned, it’s unlikely to be all
dot-coms, with the rich supply of the dot-com “newbies,” but rather
venture capital, and with the IPO of offline brand leaders who will au-
the day, it makes a lot of folks won- thor the cyberrules.
der (even some on Wall Street and

THE CYBERBRANDER’S CHECKLIST

From this point forward, you should be gearing your thoughts toward
the Internet. All of your thinking should be “Internet” thinking and
you should feel em-
All of your thinking should be “Internet” thinking and
powered by the
you should feel empowered by the potential of the
potential of the cy-
cyberbrand.
berbrand. And every
time you hear the word cyberbrand, you will automatically be thinking
that your online brand has met these requirements:
■ Permission to be online
■ One-on-one interaction
■ Personal experience
■ Immediate rewards
■ Service and responsiveness
■ Relationship marketing
■ Content beyond a static brochure

CYBERBRANDING The Impact of the Internet on the Brand 51

Mini-Case Study
THE AUTOMOTIVE INDUSTRY GOING ONLINE:
SAAB CARS USA
Saab customers can be described USA wanted to extend its brand
as predominantly professional, af- online. As a traditional brick-and-
fluent, independent-minded, and mortar car manufacturer, it needed
well educated. They are “premium” to differentiate itself from other tra-
car buyers, not luxury car buyers. ditional car manufacturers and at
When defining brand attributes and the same time maintain consistency
characteristics, which appeal to with the Saab offline brand adver-
these customers, the Saab brand tising, a campaign that utilized a
has both functional and emotional series of color drawing animations
dimensions: and messages reflecting the brand
attributes outlined above.
Functional
The underlying premise of the
■ Unique design brand message is centered on in-
■ Superior comfort and dependence and not being a
spaciousness “crowd chaser.” The Saab brand
■ Designed-in safety and security stands for being your own person,
defying convention, and seeking a
■ Smart engineering
spirit of uninhibited fun—the type
■ Technical simplicity
of individual who drives a Saab.

Emotional Challenges
■ Individual and personal ■ How does Saab Cars USA utilize
■ Unique and unconventional its Internet site as a place
■ Secure and safe where a Saab customer can be
his or her own person and
■ Intelligent technology
create an individual
To leverage this brand, every stitch experience?
of communication had to fully re- ■ How does Saab Cars USA grasp
flect the brand strategy. Saab Cars the power of technology for a
USA worked with an advertising satisfying customer service
agency to develop the campaign experience?
entitled “Find Your Own Road.” As
■ How does Saab Cars USA
a part of this campaign, Saab Cars
establish the brand online so

52 CYBERBRANDING chapter 3
 that it maintains an individual, cure environment for the purchase
personal, unique, unconven- of an automobile, reinforcing those
tional, safe, and secure image? attributes or “pillars” of the Saab
■ How does Saab Cars USA brand. The company was also suc-
remain consistent with its cessful with its online test drive
offline advertising campaign? service. A consumer could place a
test drive order over the Internet
Outcome and have the car delivered by a
Saab Cars USA developed a Web local dealer to his or her door
site that enabled individuals to ex- (home or office) the next day for
press individuality and uniqueness that test drive. The Internet af-
of character. The site allowed users forded Saab Cars USA the opportu-
to create links to other Web sites nity to communicate one-on-one
that were of personal interest, in- with the consumer to leverage that
cluding active sporting destinations personal and individual experience
like tennis, mountain biking, and that the brand represents. Saab
kayaking; and music and cultural Cars USA was successful at commu-
destinations, such as modern jazz, nicating the offline traditional
the arts, or dance. brand strategy on the Internet. As a
With respect to technology, Saab result of the brands being commu-
Cars USA was first in the automo- nicated so well, an audience,
bile industry to allow customers or whether it knew the brand strategy
potential customers to order a car or not, could easily figure out what
on the Internet through a local Saab was all about. Saab’s brand
dealership. A consumer could select message was delivered consistently
a vehicle with desired options and in words, visuals, and actions in
choose a delivery area. The site every medium; that made the
would then identify a dealership brand promise real.
SOURCE: The Brand Consultancy,
and have the vehicle order and de- Atlanta, Georgia.
livery instructions compete via the
Internet. For Saab Cars USA, the In-
ternet represented a safe and se-

CYBERBRANDING The Impact of the Internet on the Brand 53

 CHAPTER

4 The Emergence of the

Cyberbrand

Objective

The twenty-first century has brought the cyberbrand to

life. Accompanying its presence is loyalty from
consumers who believe in the Internet. Marketers need to
grasp the importance of the cyberbrand and treat it with
the same respect and consideration that has always been
given to traditional brands. Marketers branding online
will gain insight into this importance by taking the
following into account:

■ That consumer trust and cyberbranding go hand

in hand
■ The differentiating factors of the cyberbrand
■ The benefits of having a well-known traditional
brand
■ That consumers care about brands online
■ Tricks from the “new kids on the block”
■ The convergence of the traditional brand and the
cyberbrand

54
CONSUMER TRUST AND CYBERBRANDING
GO HAND IN HAND

T he cyberbrand has emerged. It’s not “just arriving,” or “starting

to emerge.” It’s here, it’s now, and it’s packing a punch so pow-
erful that consumers are logging on daily to see what cyberbrands
have to offer. The importance of the cyberbrand grows in propor-
tionate measure to how much time, energy, and trust consumers
place in the Internet.
The cyberbrand has emerged. It’s not
Whether it’s researching
“just arriving,” or “starting to emerge.”
information on the Web,
It’s here, it’s now, and it’s packing a
shopping online, or punch so powerful that consumers are
using the Web as a logging on daily to see what
source of entertainment, cyberbrands have to offer.
consumers are becoming
increasingly tech savvy and extremely comfortable with all of the
Net’s offerings. In a recent survey by Screaming Media, the results
revealed that for millions of Americans, the Internet is a trusted and
indispensable information source relied upon just as frequently as
traditional media channels including television and newspapers.1
Other significant findings included that survey participants chose
the Internet over television as a source of the most interesting infor-
mation, 67% to 18%. In addition, 65% chose the Internet as the eas-
iest source of information, and 63% were in agreement that the
Internet has the most in-depth information. With respect to con-
sumer trust, the survey also states that participants place the same
amount of trust in the online version as they do in offline news and
information.2

55
 Yes, the cyberbrand has emerged and continues to gain momentum
and strength as more people place their trust in the Internet as the
number 1 source of information. More evidence of consumer trust
is seen in the growing Internet numbers: online purchases, banking,
trading, and the rising numbers of advertising dollars from compa-
nies that know cyberbrands have emerged with immeasurable bene-
fits. Perhaps 100 years from now, marketers will view the
cyberbrands of today more like the traditional brands of the past.
Yahoo! will be like Coca-Cola and Ivory soap. Maybe, in the future,
there will be “solar” branding or “orbital” branding. The point is
that marketers will always be branding to influence consumer be-
havior and will utilize the technology of the times to capture the
hearts (and the
Perhaps 100 years from now, marketers will view the
pockets) of con-
cyberbrands of today more like the traditional brands
sumers globally. So,
of the past.
when a statement
pops up in conversation or in an article that refers to branding as
“old-fashioned,” marketing professionals automatically know the
inherent value of branding, and it’s certainly not old-fashioned. On
the contrary, it’s the force, coupled with technology, which has al-

56 CYBERBRANDING chapter 4
lowed companies over the years to forge into the future and move
brands to new interactive levels.

THE DIFFERENTIATING FACTORS

OF THE CYBERBRAND
The mixture of the brand and the technology that communicates its
message is a powerful combination. And with each combination
there’s a differentiating factor. Back in the days of just print and
broadcast media, these channels also had positive brand factors in-
cluding the print media’s instant credibility as a reliable source of
information and the broadcast media’s opening up consumers’ ears
and eyes to a new world of audio and visual entertainment. With
each factor was the opportunity for the brand to be more persuasive
to evoke consumer action. The Internet and the cyberbrand entice
consumer action with several differentiating factors. The Internet is
the only place where a consumer can interact with a brand for hours
prior to an actual purchase (and now, that purchase is online as
well). Because
The Internet is the only place where a consumer can inter-
the Internet is
act with a brand for hours prior to an actual purchase (and
technologically
now, that purchase is online as well.)
advanced, inter-
action with the brand can be in the form of audio, video, or 3D ani-
mation. One-on-one communication is available at all times—it’s
the user and the brand together, with a hands-on experience that
strengthens a bond between the two. The two-way communication
appears in various forms including chat sessions and message
boards to communicate with other users and the ability for con-
sumers to request information or make a service inquiry that is
given an immediate response. In addition, as a result of the Inter-
net’s reaching a point of trust with consumers (one of today’s major
issues), they are more apt to use credit cards, give out banking infor-
mation, and make transactions that would have been unheard of
decades ago. With more trust in the Internet, consumers take ad-
vantage of the convenience and ease of performing daily tasks that
otherwise take up much of their time. These differentiating factors
are the aspects of the cyberbrand that “pack the punch” and evoke
action.

CYBERBRANDING The Emergence of the Cyberbrand 57

 Take a look at Disney, for instance, a brand that has maintained
its strength by changing with the times and the new technology.
Walt Disney in his memoirs stated, “Disney is a family thing, a set of
constant expectations in the public mind. I’m not Disney anymore.
I used to be Disney, but now Disney is something we’ve built up in
the public mind over the years. It stands for something, and you
don’t have to explain what it is to the public. They know what Dis-
ney is and what it represents. They know they’re going to get a cer-
tain quality, a certain kind of entertainment.”3
When Mr. Walt Disney started his company, the brand was at-
tached to his name. Through years of organizational focus, brand
planning and strategizing, and consistent brand communication,
the Disney name and logo transcended Mr. Walt Disney’s life to be-
come among the top 10 brands in the world.4 Today, Disney lever-
ages its powerful brand online with an Internet presence that
catches the spirit, fun, and family entertainment the brand has al-
ways conveyed. From the moment the Disney site downloads, a visi-
tor’s attention is captured with so many interactive options. From
the action-packed games to the lovable music of Disney (captured
by downloadable sound clips) and all of the wonderful animation
that allows children to travel on a cyber Disney adventure, the site
translates into brand value. So, for children who know and love the
Disney brand, no more waiting for their parents to take them to the
movies or waiting for Mom and Dad to go to the Disney store. It’s
easy for children to experience a Disney adventure by visiting Dis-
ney’s online arts and crafts center, checking out the paint and play
section of the Web site, or listening to the Disney soundtracks. For
the big kids (adults fall under this category as well), information is
provided in the “Fun for Families” area on a 24/7 basis for movies,
Disney vacations, and a host of activities. Did Mr. Walt Disney ever
expect his name to mean so many things to so many different people
around the world? Both offline and online, the brand stands for
quality entertainment and an experience that fulfills expectations of
the Disney brand promise. The online brand allows Disney to flour-
ish in ways that were not possible pre-Internet—instant Disney fun,
ease of use, and convenience, all without making a single purchase
(yet enticing consumers to be a more connected part of the prod-
ucts). By being offered extra one-on-one interaction, convenience,
and immediate rewards, loyal Disney fans remain faithful Disney
customers.5

58 CYBERBRANDING chapter 4
THE BENEFITS OF HAVING A WELL-KNOWN
TRADITIONAL BRAND

Disney is just one of the many examples illustrating the importance

of a powerful traditional brand and how having an online brand
carries tremendous importance. Disney online reaches millions of
consumers, further enforcing the spirit of this world-renowned
brand with stimulating visual interaction. Most marketers realize
that a brand gains momentum, as every promise is fulfilled, for
every customer.
Most marketers realize that a brand gains momentum, as
And each time a
every promise is fulfilled, for every customer. And each
consumer is sat-
time a consumer is satisfied, loyalty to the brand goes
isfied, loyalty to
without question.
the brand goes
without question. Translation: Consumers will pay premium prices
when expectations are satisfied. After all, that’s why a large percent-
age of the youth population walks around in Guess, Tommy Hil-
figer, and DKNY. The reverse is also true—Wrangler is no longer a
sign of the times. How many teenagers are bragging about their
Wranglers? With our vast knowledge of brand power and the strug-
gle to keep messages alive and fresh in the minds of audiences, is
there any doubt that a cyberbrand would carry the same weight as
an offline brand? If we know that brands are so important, then
shouldn’t cyberbrands be given the same careful consideration? Yes,
and yes again! The rush to the Internet does not go without warrant,
because in some cases first to market wins, but not without careful
planning and consistent branding strategy—if there’s an offline
brand, then the online counterpart must be familiar to consumers,
yet capture a new interactive experience for them, like what we have
seen with the Disney brand. Or, with respect to the dot-com start-
up, there are careful steps to assure the brand’s life and strategies to
thrust the e-brand past its launch and into the minds of consumers
who recognize the brand immediately, like Yahoo!, Amazon, or
eBay. There are too many instances when companies should have
proceeded with caution but did not and thus caused irreversible
damage to the brand. Toys “ R ” Us is the traditional example. The
brand was moved online with high expectations from consumers
that Toys “ R ” Us would fulfill their holiday shopping needs. A
poorly planned holiday season marred the brand and sent con-
sumers running to e-toys. It’s unfortunate, and happens all too

CYBERBRANDING The Emergence of the Cyberbrand 59

 often. We know why brands are important. There’s no excuse for
not protecting every aspect of the customer experience and fulfill-
ment of the brand promise. For the e-brand, mistakes are happen-
ing just as often. Boo.com was the online fashion retailer that went
out of business within its first six months of existence. The new
start-up had famous names to back its efforts, including Bernard
Arnault, the Benetton family, Goldman, Sachs & Co., and J. P. Mor-
gan. Boo.com launched with promises to create a fashion experience
that would allow global service and advanced technology to con-
sumers who would view merchandise in three dimensions. The end
of Boo.com came quickly when consumers could not access the site
or take advantage of the technology that was promised to them. As a
result of these technical problems, the site took double the time to
develop. By the time the technology issues were straightened out, it
was too late. Consumer excitement and anticipation turned into an
unpleasant experience that led to the e-brand’s downfall.6
There’s an obvious advantage to having a well-known brand
offline: consumers who know the brand take the time to explore
and experience it on-
There’s an obvious advantage to having a well-known line. If consumers
brand offline: consumers who know the brand take the are willing to travel
time to explore and experience it online. If consumers to a brick-and-
are willing to travel to a brick-and-mortar location, mortar location, then
then the Internet is pure convenience. the Internet is pure
convenience. The
whole point of cyberspace is to provide convenience and that extra
something special we cannot experience offline. So, if a company
makes the commitment to take the brand online, every aspect of
branding should be well thought out and protected. Being unpre-
pared for a large shopping season or not properly managing the
technology that is promised will shatter the expectations of an audi-
ence that goes online
Any incident that has the potential to damage the
for an exciting cy-
brand should be an immediate call to action—reexam-
berexperience. Any
ination of brand-building strategies and a reevaluation
incident that has the
of the importance of a cyberbrand.
potential to damage
the brand should be an immediate call to action—reexamination of
brand-building strategies and a reevaluation of the importance of a
cyberbrand.

60 CYBERBRANDING chapter 4
 In an article that appeared in Computerworld in 1998 entitled
“Building Brands on the Web,” the author discusses the advantage
of an existing radio brand, National Public Radio (NPR), and how
its Web site is related to the offline brand, with a little something
extra for its loyal listeners on the Net. They’re not only listening to
the radio. For NPR’s “Car Talk” program (www.cartalk.com), fans
can visit a Web site to access their favorite broadcast programs that
are archived on the site and various forms of entertainment includ-
ing contests and trivia. The site includes what’s consistent with the
NPR brand promise with an added twist—again, it’s that one-on-
one interaction that allows more entertainment for program follow-
ers, more than they can get from the radio dial alone.
Communication of the online brand, just like its offline counter-
part, can make or break the brand promise. If sports fans went to
ESPN.com and could not access the latest information on sports
news and events, would those fans lose trust in ESPN.com and think
twice the next time around? Yes, indeed. That’s why ESPN makes a
promise to its loyal audience and keeps that promise with a Web site
that fulfills expectations of the offline brand. ESPN.com is online
with the same related sports information that is on its television
programming, yet moves in a new direction, into the online interac-
tive realm. The brand allows one-on-one interaction for the user
with video highlights and the ability to listen to audio highlights, to
participate in two-way communication in sports chat rooms, and to
gain hands-on brand experience in anything from football and bas-
ketball to Nascar racing and hockey. ESPN.com offers a host of in-
formation that is frequently updated, and accessibility at a
moment’s request with immediate rewards for sports fans of every
age. The Web site is also geared toward a younger audience (more so
than the offline brand). Children can enjoy hockey games and trivia
and access information on their favorite teams and players. In addi-
tion, ESPN.com accommodates its paying members, who join the
ESPN.com community, with Fantasy Football games and a wealth of
opportunities with respect to sports entertainment. Again, the on-
line brand can make or break the brand. ESPN realized the impor-
tance of the cyberbrand and in this case makes the brand a
pleasurable experience for users every time. It’s the opportunity of a
lifetime to get that much closer to a loyal customer, and careful con-
sideration with this brand was definitely exercised.

CYBERBRANDING The Emergence of the Cyberbrand 61

ch04.qxd 4/5/01 5:29 PM Page 62

CONSUMERS CARE ABOUT BRANDS ONLINE

Is there any proof that consumers care about brands online, or is it

strictly convenience? An article appearing in the Electronic Advertis-
ing and Marketplace Report, published by Simba Information, Inc.,
reveals that brands do play a role in online purchases. The article
discusses research conducted by a consulting firm that reveals how
online purchasers of computer products are placing far more em-
phasis on the brand name. Whether consumers were buying PCs,
hardware, or software, or even storage parts, much more value was
placed on the manufacturer’s brand name. Case in point—online or
offline, again, branding does matter.7 As a result, companies are re-
alizing more today the value of building their brands online. Offline,
we see how the brand is a promise, built upon the company’s history
and its current position in the market. The brand encompasses facts
about the company’s heritage and its future aspirations. In addition,
the offline brand is important because it comes with a set of values
that build toward a promise to employees, customers, and partners.
It’s the online brand that is considered to be every “touch point”
or electronic experience a customer can have with a company. And
with every experi-
It’s the online brand that is considered to be every
ence, a lasting im-
“touch point” or electronic experience a customer can
pression is formed,
have with a company.
one that builds upon
the brand or detracts from its overall appeal. As companies world-
wide see the connection between online brands and consumer pref-
erence, more emphasis is placed on the Internet. The importance
of the cyberbrand grows as each online visitor interacts with the
brand in a different and unique way. Companies are strategizing dif-
ferently as a result of the Internet. They are redefining the way they
interact with consumers, making the brand an experience long be-
fore the purchase of the actual product or service. The brand online
does more than communicate an idea. Think back to the days when
mom-and-pop stores were flourishing in your hometown. These
small, friendly stores had the best approach to customer service,
with the owners always remembering your name and how you liked
your cold cuts sliced. Not only did they remember your food prefer-
ences, but also they knew the names of the members of your family,
and always had something pleasant to say when you were
at the checkout counter. You never had to search for the item that

62 CYBERBRANDING chapter 4
you wanted, because you knew exactly where it was or they would
find it for you, and most of all they lived by the notion that the cus-
tomer was always right—a way of thinking that is somewhat archaic
in today’s market. Since the mom-and-pop stores of the past, time
has gone by with
. . . along comes the Internet and “personal” is the name of
little hope of re-
the game.
capturing that
small-town friendliness. However, along comes the Internet and
“personal” is the name of the game. It may not be as sincere as mom
and pop, but it certainly works.
Many of the cyberbrands understand this concept and carry the
personal message on their sites; Amazon and CDNow were among
the first to start the trend. How does this affect consumer perception
and judgment?
It is just as easy to frequent a Web site that makes a con-
In all honestly,
sumer feel welcome as one that does not.
quite a bit. It is
just as easy to frequent a Web site that makes a consumer feel wel-
come as one that does not. It’s a simple principle. Consumers will
always choose what will offer more personalization and experience
and ultimately what will make them happy. So, then, it should not
be a surprise that when a site knows the consumer’s name, remem-
bers what he or she likes, and makes his or her shopping experience
more pleasant, ultimately, that consumer will be back to purchase
more items in the future.

TRICKS FROM THE NEW KIDS ON THE BLOCK

There are a handful of new companies that are capitalizing on their
brand-building efforts and quickly realizing the importance of
branding. With U.S. households becoming more familiar with
names like Yahoo!, America Online (AOL), and Palm Computing, it
is evident that these companies believe in the power of the brand.
How did these new kids on the block become so brand-smart that
GE and P&G might take notice? And why is it that more than half of
U.S. households recognize the names AOL and Yahoo! immediately?
Furthermore, Palm Computing took only 18 months to sell its first
1 million units, significantly less time than it took Sony Walkman to
sell the same number of units. These companies are investing in
brand-building strategies, creating recognizable brands not only

CYBERBRANDING The Emergence of the Cyberbrand 63

 quickly but also at less expense. They are employing strategies far
beyond advertising, which is considered only “one element in a bag
of creative brand-building tricks.”8 Here’s trick number one: forget
the old saying “Why purchase the cow if you can get the milk for
free.” Give away the milk and the cow. Free samples are an immedi-
ate attention grabber. Take AOL, for instance: it’s king of the give-
away strategy, at one time distributing diskettes to American
households and then upgrading to CD-ROMs. A one-month free
trial is the best way to get the consumer to try the service. There’s no
better explanation than a hands-on experience. Even if the con-
sumer does not sign up for the AOL service, the brand is still visible
in a household, doubling as a coaster or a Frisbee for the kids (it’s
been done). Another example of the giveaway strategy is 3Com’s
Palm Computing offer that provided members of a 3Com confer-
ence a Palm Pilot for half price. There were 600 attendees at the
3Com conference that walked away with a half-price deal. Just by
getting the word out and by creating a stir, executives at subsequent
3Com events opted to buy Palm Pilot products for the full price.
Another useful tip is to utilize the reach of the ubiquitous Web.
Online advertising reached the predicted $4 billion in 2000, accord-
ing to Forrester Research. Beyond standard banner advertising, take
notice of Amazon.com and its ability to franchise in cyberspace.
Amazon capitalizes on the opportunity to appear on sites every-
where on the World Wide Web. Amazon partners receive a percent-
age from the company (somewhere between 5 and 15%) of any
revenue that is generated on their site. In 1998, the associate
franchising program (or the affiliate program) encompassed over
40,000 sites on the Internet. There are other companies striving to
duplicate the likes of the Amazon model.9 Last, a secret that rarely
gets out of the bag—public relations like never before. The power of
branding is complemented by the influence and credibility of a
third-party endorsement. Consumers are more likely to believe the
words of an objective third party than a company saying, “Try our
product, it’s the best.” Some of the latest brand builders have been
employing public relations strategies to make even more “noise”
about their products and services. It worked for Yahoo! with a mar-
keting campaign focusing on its youthful and instantaneously fa-
mous founders, David Filo and Jerry Yang, who got involved in
speaking engagements that generated substantial press for the young
entrepreneurs. Powerful public relations strategies include guerrilla-

64 CYBERBRANDING chapter 4
marketing stunts such as Java’s launching an intense guerrilla effort
against its opponent, Microsoft, by tying in JavaBeans™ with the ex-
plosion of the coffee house fad. Or what about the young man who
changed his legal name to “The Dot-Com Guy?” Other efforts in-
clude lobbying around industry issues to gain exposure, further en-
forcing the attributes and characteristics of the brand, whether it’s
independence or defiance, or anything else.

CONVERGENCE OF THE TRADITIONAL BRAND

AND THE CYBERBRAND
It’s true that some of the newer brand builders, as mentioned, have
built their brand recognition quicker. Does a newer brand that is ac-
knowledged sooner have the staying power in the market like an
older brand? We see how Coke and Disney have taken decades of in-
vestment and continuous brand-building strategies to create the
giant brands of There is opportunity on the Internet for both traditional
the world. Where brands and new e-brands to prosper. Therefore, forward-
do the newer thinking companies will rely on the importance of branding
brands fit in? Do and the power of the brand to forge ahead successfully.
these brands
have the patience and the understanding of the importance of
branding to continue brand-building efforts? There is opportunity
on the Internet for both traditional brands and new e-brands to
prosper. Therefore, forward-thinking companies will rely on the im-
portance of branding and the power of the brand to forge ahead
successfully.
These companies will take their brands to reach new market heights
and communicate through channels, such as the Internet, that have
the ability to promote everlasting life. It’s the power of the brand to-
gether with technology that produces what we will call the “opti-
mum brand.” There are two types of optimum brands that
marketers will strive for in the twenty-first century. The first opti-
mum brand is the one that recognizes its traditional roots and can
change with technol-
It’s the power of the brand together with technology
ogy to develop a
that produces what we will call the “optimum brand.”
strong cybercounter-
part that enhances overall brand value (Disney, Microsoft, NBC, to
name a few). Here, we have the successful convergence of the tradi-
tional brand and its online brand counterpart. The second type of

CYBERBRANDING The Emergence of the Cyberbrand 65

 optimum brand relates to the new dot-com start-up that quickly in-
corporates several traditional, offline branding strategies along with
cyberstrategies to have an existence that extends beyond the Internet
(like Yahoo! appearing under a billion Pepsi caps or teaming up
with Ben & Jerry’s, and E-Trade, which has signed a deal with Target
stores to open an investor zone for customers). Either way there is a
convergence: traditional brands need the cyberaspect to forge ahead
to meet consumer needs of the future, and e-brands require a bit of
a traditional foundation and “roots” to survive and flourish in
the twenty-first century. Hence, we have the emergence of the
cyberbrand.

66 CYBERBRANDING chapter 4
 EXERCISING CAREFUL THOUGHT ON THE NET
Anne Holland is the CEO and right idea. It bought roughly 300
Interview

founder of MarketingSherpa.com domain names—every possible

and has extensive experience as a name or variation of the brand
Web strategy consultant to online name that a reader might refer to.
content business. She has been For branding, this makes a great
marketing via the Internet since deal of sense. However, there are
1995. Holland discussed her expe- cases in which companies are not
riences with companies moving on- quick enough to grab their URL. In
line and the importance of the case of Phillips’ PR News, the
exercising careful thought on the company wanted to purchase
Internet. PRNews.com. But when PR News
With offline companies, accord- tried to secure this name, it had al-
ing to Holland, the first error is to ready been taken. (Note: The same
purchase a “bad” URL or domain thing happened to the New York
name. Usually the information Times, which is now stuck with
technology (IT) officer in a company NYTimes.com.) The next step was
makes the decision with respect to for the company to decide on a
the company’s online name. “A new online brand name. It may not
much better procedure would be to have been the “greatest solution,”
have a committee meeting with ex- according to Holland. It chose
ecutives of the company who logi- PRandMarketing.com, capturing
cally pick out as many domain only the “PR” portion of the offline
names as possible,” states Holland. brand name while not replacing it
She believes that these names can with a sufficiently “snappy” or ear-
range from all of the variations of a catching name to really do any
company’s name (and those of its easy branding.
brands and planned brands) to Holland offered a few sugges-
common spelling errors made by tions with respect to a new name.
consumers. For Holland’s company, Ideally, a company should try to
MarketingSherpa.com, she made a keep its brand name for its URL. But
point of purchasing a URL to catch when that doesn’t work out, try to
a common spelling error in the keep the following in mind:
word sherpa, making sure to obtain
■ The name must be easy to
the domain name with the word
spell.
spelled incorrectly (with an “i” for
shirpa). Reader’s Digest had the

CYBERBRANDING The Emergence of the Cyberbrand 67

 ■ It must be able to pass the decisions are also made to different
telephone test (most dot-com criteria than the parent offline
names are passed by word of brand. An attack company takes fi-
mouth). nancial risks, accepts outside in-
■ Stay away from using dot-net. vestments, and operates with
Not many people search by different bottom-line goals than its
dot-net. parent company might be able to.
On the contrary, defense-mode
■ Remember that dot-org is
companies have what is known as
reserved for not-for-profit
an “offline way of thinking.” They
companies.
are only testing the waters and do
Holland elaborated on another not want to take too big a risk
aspect of moving online that de- when it comes to the Internet. For
serves careful consideration: the these companies, the solution is to
cyber portion of a brand should make the Internet a part of some-
have a separate staff from the of- one’s job rather than having the at-
fline brand. For example, Washing- tack-mode attitude of “Let’s give it
ton Post Online staff are located in our all.”
a Virginia building several miles Holland gave a clear example of
away in location and attitude from how many companies are slowly
the Post’s offline headquarters in changing their mindsets. At a Direct
downtown Washington, D.C. The Marketing Association (DMA) Net
Post could also have housed the marketing show in February 1999,
cyber portion of the company almost every company participating
downtown, but made the strategic in the show had initiated an online
decision to devote a separate staff presence, but had done so in a
and location to the online brand. fairly tentative defense mode. Most
Having separate companies is one attendees said their jobs were split
way to make a firm commitment to between Web marketing and “reg-
the Internet. As Holland puts it, it is ular” marketing. Speakers stressed
the difference between a company the importance of separate Internet
that is in “attack mode” and one in players, separate budgets for Inter-
“defense mode.” When companies net departments, and the necessity
are in attack mode, they have a for separate job functions (online
full-time cyber department and a versus offline), urging, “Get 100%
full-time cyber staff. Their financial dedicated to the Web quickly,

68 CYBERBRANDING chapter 4
because it’s not a part-time job!” A from online-only brands in the
year later at the DMA Net market- coming year.
ing show in March 2000, clear Holland stressed that not being
progress had been made. After the complacent is by no means a way
overwhelming success of the of suggesting companies should
Christmas 1999 shopping season rush in their Internet efforts. Rush-
online, most show attendees re- ing to the Internet without a well-
ported that their companies were thought-out plan can damage a
now shifting as rapidly as possible brand. Offline companies, without
to attack mode. the pressure to rush to grab ven-
Companies need this type of ture capital funds that tie e-brands
critical thinking when it comes to into a frenzy, can afford to sit back
the World Wide Web, which leads a bit and really do this thing right.
to Holland’s final thoughts about Holland offered a piece of advice to
online brands: there is no compla- offline companies with respect to a
cency when it comes to the Inter- new online venture: slow down,
net. Offline brands moving online take a breath, regroup, and get into
and e-brands born in cyberspace the attack mode. Hire the most ex-
must put careful thought into their perienced and talented team you
branding strategies. There is al- possibly can. (Yes, they will be ex-
ways the fact that “no matter what pensive, and yes, you will have to
your great idea is, there are at least give them equity and a suit-free
10 more people who you’ve never place to work.) Give this team a
heard of working to take the same budget larger than you ever imag-
idea to market.” Competition is ined, plus the power and freedom
fierce, and no one can sit back and to move forward at hyperspeed
be complacent. Look how competi- without having their hands tied by
tion is changing. E-brands are offline company committee meet-
moving offline and suddenly chal- ings, business cannibalization
lenging brick and mortar. Take fears, rules about which of your
Alloy.com. Moving offline, the com- competitors they can’t partner with,
pany is creating print products for or internal power struggles. Then
teens. Yahoo! Internet Life maga- be prepared to flexibly change your
zine is another good example of an online business model as many
e-brand forging ahead to capitalize times as it takes to make your In-
on offline ventures. Expect to see ternet brand work for you.
brick-and-mortar stores launching

CYBERBRANDING The Emergence of the Cyberbrand 69

 CHAPTER

5 Using Technology Properly

to Cyberbrand

Objective

To provide marketers with immediate and simple tips to

use technology properly. Beginning with the develop-
ment of a Web site right down to how to avoid the
misconceptions of cyberbranding, marketers need to
consider the following:

■ Cyberbranding trial and error of the 1990s

■ Cyberbranding misconception number 1: With
the Internet, there’s a worldwide audience
■ Cyberbranding misconception number 2: Having
a 24/7 Web site allows a company to pay less
attention to consumer needs
■ Cyberbranding misconception number 3:
Launching a site means Web surfers will find it
■ Cyberbranding misconception number 4: The
Web creates an equal opportunity for the little
guy to compete with the giants of the industry
■ Cyberbranding misconception number 5:
Powerful graphics are the key to a “killer” Web
site
■ Simple cyberlessons learned

70
CYBERBRANDING TRIAL AND ERROR OF THE 1990S

T he 1990s were a decade of Internet trial and error. Web sites

were launched, and quite honestly, many lacked the proper
amount of prelaunch market research into the online needs of pri-
mary and secondary au-
diences. In addition, site The 1990s reflected a lack of cyberbrand
functionality was much emergence. The power of branding was
less than perfect, the apparent and the force of technology was
technology promised to also present, but there was little success
online consumers was in bringing the entities together.
unavailable when users
tried to access it, content was stale, and the average presence was
brochurelike. The 1990s reflected a lack of cyberbrand emergence.
The power of branding was apparent and the force of technology
was also present, but there was little success in bringing the entities
together. Only the field leaders, such as Yahoo!, MSN, Amazon, and
eBay, succeeded with optimum brands; they found convergence
early on and built models for other companies to emulate. Now we
see much more convergence and more optimum brands arising;
these brands are seizing the power of technology and utilizing the
power of the brand to create the omnipotent force. However, from
the trial and error of the 1990s to the twenty-first century with its
calculated and conscious Internet efforts, there is always room for
improvement.

71
 There’s a common phrase that creates a stir among profession-
als and confusion as well, used to describe the false impressions of
the Internet and Web site development: the misconceptions of
cyberbranding. In
In order for a brand to reach “optimum” status, it must
order for a brand
use technology properly. And what is the value of
to reach “optimum”
technology if the brand is isolated on the Internet with
status, it must use
no means of being found?
technology properly.
And what is the value of technology if the brand is isolated on the
Internet with no means of being found?
Let’s get to know the meaning of cyberbranding. Simply stated, cy-
berbranding is an opportunity to create awareness of a brand online,
develop name and logo recognition, communicate a brand message,
drive traffic to a Web site, establish an identity with primary and sec-
ondary audiences, build a customer base online, increase sales over the
Internet, and create a reputation so that as much as a mention of the
brand elicits a feeling of a pleasurable experience. You can easily find
the top 50 Web properties on Nielsen’s Net Ratings. These are brands
that have captured the essence of the cyberbrand and have been cyber-
branding properly. There are also smaller-scale efforts that deserve
recognition exhibiting simple steps taken by companies that have dis-
covered the power of technology and the necessary measures to allow
their Web sites to be found and to be functional on the Internet:

■ Ascovalve.com, a division of Emerson Electric, features

English, Spanish and Portuguese Web site versions for its
worldwide clients.
■ A consumer goes to CancerQ.com to “Ask the Dr.” a
personal question with regard to a relative’s disease and
receives an answer within a two-hour time frame.
■ Consumers use a keyword search on a search engine like
AOL, Yahoo!, MSN, Lycos, or GoTo.com, and a listing of
site descriptions appears.
■ A consumer goes to Northjersey.com for specific
information and is not bombarded with unnecessary content
that does not pertain to his or her geographic region.
■ At Tommy.com, consumers do not have to wait for long
downloads of graphics to view summer fashion trends and
Tommy Hilfiger product information.

72 CYBERBRANDING chapter 5
 These tactics illustrate sites and marketers that have been
doing their cyberbranding homework. They have avoided
the simple obstacles that start with research and Web site
development and continue on with the techniques used to
drive traffic to a Web site. They have avoided the miscon-
ceptions of cyberbranding.

MISCONCEPTION NUMBER 1: WITH THE INTERNET,

THERE’S A WORLDWIDE AUDIENCE.

One of the first questions is, Does the brand need a worldwide audi-
ence? Too many companies are not carefully targeting the appropriate
audiences in their geographic locations, or the specific groups that
need to hear a message. Market research prior to the launch of the site
is a critical tool to discover the needs of primary and secondary audi-
ences. Market research might be in the form of existing-customer
information or focus panels, one-on-one interviews, and question-
naires distributed to customers.
For AscoValve.com, a division of Emerson Electric, it was
necessary to construct a site that was available in three differ-
ent languages.
AscoValve, an off Market research prior to the launch of the site is a critical
line brand, orig- tool to discover the needs of primary and secondary
inally launched audiences.
its Web site in English and then, after extensive research, realized
that large portions of its customer base were in Spanish- and
Portuguese-speaking countries. As a result of the research,
AscoValve quickly redesigned its site to have full text and product
catalogs in Spanish and Portuguese. Larger companies on the
Internet must
face issues with Larger companies on the Internet must face issues with re-
respect to being spect to being fully equipped to handle the needs of a
fully equipped to global audience.
handle the needs of a global audience. For instance, a company that
has been branding offline globally cannot establish a Web site that
is only in one language. In 1999, statistics revealed that of the 180
million Web users, only 107 million read English. There is also the
issue of global access and interactive design. The media employed

CYBERBRANDING Using Technology Properly to Cyberbrand 73

 for a target audience or even secondary audiences can be the differ-
ence between success and failure on the Net. For example, the per-
sonality of a company in the United States is altogether different
from what the same company projects for its brand in other coun-
tries. Take the rules of color. The color yellow in some Asian coun-
tries connotes anger, while in other countries it suggests a positive,
favorable image and will increase product purchases when incorpo-
rated into the design and packaging of products. Other color exam-
ples include forest green, which in Germany is a recommended hue.
Royal blue is a color that immediately gains the attention of the
British. Colors translate into different meanings for different cul-
tures, so it is extremely important to be aware of this phenomenon
when designing a site for the global marketplace.
Because the Internet has the ability to deliver messages so broadly,
and so quickly, marketers must take the time to research audiences
and prepare for how global visitors will perceive a site. It is not always
in a company’s best interest to strive for a global site. To avoid the
misconception of believing the Internet affords a brand a worldwide
audience, the best strategy is to market research to understand the
brand’s reach, audiences’ preferences, and what they will expect from
your brand. And if it is a worldwide audience that you seek, be sure to
communicate the brand in a fashion that is acceptable to all of the cul-
tures that will have access to its global commerce landscape.

MISCONCEPTION NUMBER 2: HAVING A 24/7 WEB

SITE ALLOWS A COMPANY TO PAY LESS
ATTENTION TO CONSUMER NEEDS.
This statement could not be farther from the truth. The nature of
the Web as a medium is instant communication and gratification.
The Internet translates into immediate two-way communication be-
tween a company and its audience. Customer service is as important
in the digital world as in the real world. Neglecting clients online
will drive them away, and it’s a guarantee, that with all of the choices
What is expected offline is doubly important in cyber- on the World Wide
space because of the nature of the medium and the in- Web, they will not
stantaneous results it’s been known to produce. be back to a site that
neglects their inter-
ests. Customer service is built into a brand. What is expected offline
is doubly important in cyberspace because of the nature of the

74 CYBERBRANDING chapter 5
medium and the instantaneous results it’s been known to produce.
At CancerQ.com, if a visitor enters the section of the Web site to
“Ask the Dr.” a question relating to cancer, the visitor receives an
answer within two hours from a licensed physician or oncology
specialist. On any medical Web site, areas designated for answering
questions with regard to a user’s medication, specific medical
matters, or general health issues need to provide answers in an
acceptable time frame. For the consumer on the Internet, this means
immediately. No longer can a company get away with one of those
instant reply messages that simply acknowledge a request and then
answer the question 24 hours later. A consumer, even one who is
loyal to a particular company, will not stand for a less-than-
adequate communication turnaround time, especially when it
pertains to medical advice or health-related issues. Discovery-
health.com has an unacceptable time frame when it comes to an-
swering medical inquiries. Consumers who register on the site are
disheartened when they ask a question and receive a message that
states, “Your question has been received. Please check back in a few
weeks to see if your question has been answered. We’re sorry, but we
cannot personally answer every question. . . .”1 That is the equivalent
of calling up a pharmacist or a doctor and being told that your ques-
tion cannot be answered for a week and to check back when he or
she is not as busy. A patient, in this day and age, would not continue
relations with that pharmacist or doctor. After experiencing such a
less-than-adequate response, it’s highly unlikely the patient would
have the same bond or feeling of loyalty.
Regardless of the type of Web site, consumers on the Internet ex-
pect to visit a site and receive immediate rewards and answers to their
questions. In addition, every item featured on a site, in an online cat-
alog (think of the consumer walking through the aisles of a brick-and-
mortar, viewing
shelves stocked Regardless of the type of Web site, consumers on the In-
with products), ternet expect to visit a site and receive immediate rewards
should be avail- and answers to their questions.
able to the consumer including product description and information
and a reasonable price tag attached. Consumers expect products to be
order-ready (in small, medium, and large quantities), packaged se-
curely, and even gift wrapped, if necessary. Most of all, products need
to be shipped in a timely fashion and, of course, returnable if they do
not live up to consumer expectations. Barnes & Noble actually

CYBERBRANDING Using Technology Properly to Cyberbrand 75

 accepted incorrect Internet orders for return at a brick-and-mortar lo-
cation. That’s an example of customer service working to benefit the
brand and the overall customer experience. The Internet process, ide-
ally, should be a hassle-free experience that strengthens the bond be-
tween consumers and the brand. This is not asking the impossible.
Although many companies starting out in the 1990s did not get it right
the first time around, Web sites are now being launched fully tested
and prepared to handle the needs of demanding online consumers. To
go one step further (as Internet audiences expect), make the experience
even more enjoyable for the visitor by concentrating beforehand on
the customer’s pref-
When customer expectations are exceeded, the con-
erences; for example,
sumer and the company have formed a stronger rela-
provide special fea-
tionship, with service beyond what the consumer has
tures on the site, such
ever experienced offline.
as personalizing a
user’s visit by making suggestions on items that may be of interest, or
continuously furnishing consumers with new-product notifications
after they leave the site. When customer expectations are exceeded, the
consumer and the company have formed a stronger relationship, with
service beyond what the consumer has ever experienced offline. The
Internet makes customer service a 24/7 priority, and remember, what
is expected offline is expected in less time on the Internet—it’s the na-
ture of this powerful channel.

76 CYBERBRANDING chapter 5
MISCONCEPTION NUMBER 3: LAUNCHING A SITE
MEANS WEB SURFERS WILL FIND IT.

An all-time favorite misconception and one that is most popular on

the Internet is that if a site is launched, Web surfers will automati-
cally find it. When a company builds a physical structure, there is a
slight advantage. People walking by the store peek in the window,
become interested by the visual presentation of the window display
and enter the store to browse around or to purchase a product.
However, it does not work this way in cyberspace. Sure, someone
can stumble upon your Web site. But most Internet users these days
are savvy and surf the Web with ease, traveling to specific sites with
specific intentions. According to recent surveys conducted by Zatso
(formerly ReacTv) and the Pew Research Center, the days of aimless
surfing are long past.2 Consumers have a goal—they know exactly
what they want to accomplish online. The Internet is ubiquitous,
and it is unlikely
Consumers have a goal—they know exactly what they
that an audience
want to accomplish online.
will find a site if
the company does not take the steps to direct them to the site’s URL.
The use of metatags, developed in the HTML coding of a site, will
allow a site’s content and key words to be picked up by major search
engines. There are two types of metatags. The first allows the Web
site to use key words that will automatically be recognized by the
search engine. A gardening site might use key words including gar-
dening, garden, herbs, and flowers to be picked up by search engines.
The second metatag is a descriptive tag that allows a site to enter a
one-sentence description coded into the HTML text. The descrip-
tion appears in the search engine listing and provides the search en-
gine user with a concrete site explanation.3 However, contrary to
popular belief, simple listings in search engines are not enough. On
the large search engines, a user usually moves on after viewing 10 to
15 entries (if that many) that are pulled up by the search engine.
It is imperative that companies employ online and offline mar-
keting. For offline marketing, a company’s URL address should be
prominently displayed on any collateral pieces right down to the
giveaway items like pens, mugs, business card holders, mouse pads,
or T-shirts, which are an opportunity to display a Web site address
to drive traffic to the site. In the twenty-first century, CD-ROM

CYBERBRANDING Using Technology Properly to Cyberbrand 77

 interactive programs used as direct mail pieces are taking the place
of static brochures, with links to a company’s Web site, and CD-
ROM business cards are a novelty to high tech firms trying to im-
press new technology on their clients.
When marketing online, a factor to keep in mind is to pay care-
ful attention to the technique that best suits a brand and its message.
On the Internet, this is the difference between broadcasting and nar-
rowcasting. When it comes to a specific group that you are targeting,
either by profession, age, or even education, a narrowcast message is
necessary. Narrowcasting is the strategy that targets a message for a
specific group and
When marketing online, a factor to keep in mind is to
allows a brand to be
pay careful attention to the technique that best suits a
found by its audi-
brand and its message. On the Internet, this is the dif-
ence. Narrowcasting
ference between broadcasting and narrowcasting.
is much more practi-
cal on the Internet. So, instead of registering in a Yahoo! search en-
gine for that widespread broadcast message, companies might want
to consider choosing a regional portal; for example, a lawyer in New
Jersey may choose NJ.com or Inthegardenstate.com and list his or
her practice in a lawyer’s directory. It is a principle similar to offline
marketing. Mass-market media, e.g., network television and na-
tional radio, are messages broadcast to the masses. Utilizing local
cable stations and local television programming is much more prac-
tical for a brick-and-mortar that caters to customers within a 10-
mile radius.
Messages and communication channels need to be extremely
targeted to gain maximum exposure among a specific audience. The
Internet provides marketers with the tools to communicate a tar-
geted message and to build foot traffic. Using metatags, directory
listings in search en-
Messages and communication channels need to be ex-
gines, and link ex-
tremely targeted to gain maximum exposure among a
changes, with sites
specific audience. The Internet provides marketers
that have similar de-
with the tools to communicate a targeted message and
mographics, to drive
to build foot traffic.
traffic all promote
one central effort. It’s the ability to be found on the Internet and to
generate as many hits (whether they are original hits from a search
engine or a referral hit from a partnering site) as possible on a Web
site to build traffic and measure a return on investment (ROI).

78 CYBERBRANDING chapter 5
MISCONCEPTION NUMBER 4: THE WEB CREATES AN
EQUAL OPPORTUNITY FOR THE LITTLE GUY TO
COMPETE WITH THE GIANTS OF THE INDUSTRY.
Although things are a little brighter for the smaller guys on the Net,
these companies still do not have the same opportunities. Larger
companies have significant advantages:
1. They have the funds to hire better designers of their Web
sites.
2. They have the resources for timely updates to their Web sites.
3. They have the money to advertise their sites both online and
offline.

The top Web properties are giants in the industry. Among the
most well known, of course, are MSN, IBM, and General Motors,
which spend millions of dollars to promote their sites (and this is
only a drop in the bucket for these companies). In addition, the
television network–owned Web sites, such as NBC and CBS, have
an obvious marketing advantage. Their Web sites are promoted on
stations that already have millions of viewers—advertising is an
easy means for these networks. The same goes for radio stations on
the Internet. The New York all-news station 1010 WINS is con-
stantly plugging
On the brighter side, however, smaller companies with
its Web site URL
local patrons do not have to compete with the big guys
as a place to find
anymore.
further updates
on news and weather. It’s difficult for smaller companies to com-
pete against the larger entities that have the resources to cyber-
brand, unless it’s a new dot-com with venture capital backing the
promotional efforts.
On the brighter side, however, smaller companies with local
patrons do not have to compete with the big guys anymore. These
companies are taking advantage of local and regional portals that
are much more reasonable with respect to advertising rates and are
extremely targeted to specific user demographics. For example, be-
cause the Internet is used to create social interaction, the smaller
companies are participating in multiple list dwellings; for example,
a college campus may go online to form a unique community.
On the University of Florida’s Web site (www.ufl.edu), an area

CYBERBRANDING Using Technology Properly to Cyberbrand 79

 designated for the Gainesville community has directories for ad-
vertisers to list their stores with links to their sites. Merchants in
the vicinity of the campus participate in this portal by advertising
their products and services. Other businesses get involved in spon-
soring online events for the campus residents. The campus audi-
ence takes advantage of the many features on the site, including
daily news and
Regional sites are becoming increasingly popular with events on campus
residents who want to be a part of an online community. and activities within
a two-mile radius of
the community. For the online campus, information and events
range from those of clubs and fraternities to sporting and recre-
ation. At the same time, the college audience unknowingly receives
the branded messages of local businesses that participate as adver-
tisers and sponsors. These multiple list dwellings are definitely a
step in the right direction for small companies that do not have the
dollars to compete with larger advertisers that post their messages
on Yahoo! search engines or on news and informational sites.
Another excellent example of a regional portal that caters to the
needs of a specific community is Northjersey.com. Regional sites are
becoming increasingly popular with residents who want to be a part
of an online community. These sites bring residents news and in-
formation, entertainment, education, sports, health, travel, etc.
Northjersey.com is fully equipped with directories, providing access
to local information and online shopping malls that are relative
to the North Jersey
Targeted communication provides the little guys with a community. North-
distinct advantage, the ability to be closer to a spe- jersey.com allows its
cific audience. advertisers to pur-
chase anything from
simple directory listings (with minimal monthly fees) all the way to
e-commerce packages and the ability to build a site within the
Northjersey.com Web site. In reality, on the Internet, the little guys
do not have to sit back and be envious of the big guys and their
deep pockets. Targeted communication provides the little guys with
a distinct advantage, the ability to be closer to a specific audience.
Taking the time to find the most appropriate Internet channels will
allow a company to put its best foot forward and be found on the
Internet.

80 CYBERBRANDING chapter 5
MISCONCEPTION NUMBER 5: POWERFUL GRAPHICS
ARE THE KEY TO A “KILLER” WEB SITE.

For aesthetic purposes, yes, graphics are important. However, too

much, or overkill, can work to a Web site’s disadvantage. An abun-
dance of graphics can distract the user from the intended message
on the site and make it difficult to concentrate on or pay attention
to information or relevant content. What’s the use of finding the site
if the original purpose for being there is cluttered by graphic over-
load or graphics with slow downloads? A balance of graphics and
purposeful content is the key to retaining your audience. As the
Web is utilized more and more for entertainment, sites with games
are popping up all over. Uproar.com, Candystand.com, and Nabis-
coworld.com have tremendous interactive media appeal for audi-
ences. However,
A balance of graphics and purposeful content is the key to
take the dot.com
retaining your audience.
start-up that
wants to compete in the marketplace with these popular sites: it’s
faced with issues regarding graphics versus slow download time. It’s
extremely difficult to make the decision to sacrifice one for the
other. Should it be high-quality 3D graphics that take forever to
download, or shoddy graphics that download in 30 seconds? In
most cases, quality graphics in 3D animation have slow download
times, with file sizes ranging from 600K to 800K, depending on the
game. This could mean up to three-plus minutes that a visitor must
wait to play a game. A perfect example of a site with “killer” graphics
but slow download is Nabiscoworld.com’s Frog Toss game. With an
extremely slow download, the site could easily lose its players.
There’s not a great deal that can be done when it comes to high-
quality, high-resolution graphics, only a Band-Aid solution for this
situation. While the audience awaits the anticipated game, they can
get involved in a pregame trivia contest to get them interested and
interacting with the site. Sure, this might work on a game site when
viewers know what they are waiting for, but in all actuality, a Web
site that has a slow download time in general will lose the attention
of its audience, and there’s little hope of capturing their attention
once you have lost their interest.
On Tommy.com, the Tommy Hilfiger Web site, the graphics
download quickly, and visitors are captured immediately with a

CYBERBRANDING Using Technology Properly to Cyberbrand 81

 highly audiovisual Web site. Tommy.com has online male and fe-
male fashion previews (pictures and music appear in less than a
minute), musical artists including Britney Spears who endorse
Tommy Hilfiger and a large assortment of Hilfiger products that are
extremely captivating for a savvy audience searching for the latest
fashion trends. Tommy.com is a good example of a clean, well-
designed graphic pres-
. . . watch out for slow downloads. What you think entation. The visual
might be a “killer” graphic, may just “kill” the potential movement and stim-
of your site. ulation and music
and talk on the site
capture the user’s attention and keep Tommy Hilfiger consumers
coming back for more previews and products. On the other hand,
Coke.com has long downloads, and much as Coke is a world-
famous brand, waiting for site graphics to download (after three
minutes) is just too long a wait. Coke might want to consider the
Band-Aid solution with some type of “Coke trivia challenge” while
the site graphics download. In any case, watch out for slow down-
loads. What you think might be a “killer” graphic, may just “kill”
the potential of your site.

THE SIMPLE CYBERLESSONS LEARNED

There are simple cyberlessons for marketers to remember if they
want their brands to reach optimum status. To use technology
properly and enhance the brand’s ability to be found,

■ Identify your audience as a part of the pre-Web site research

(and keep in mind that this audience may expand beyond
the scope of an offline audience).
■ Make the Web site appropriate for the target audience.
Trying to be global means taking into consideration various
languages and cultural differences.
■ Know that customer service is the experience that leaves a
lasting impression. With the Web, it is automatically
assumed that service is instantaneous and comparable to—if
not better than—offline service.
■ Be aware that it takes only one bad experience to make a
visitor leave a site to never return again—the Web offers so

82 CYBERBRANDING chapter 5
 many choices that consumers are learning firsthand how to
comparison-shop and know exactly where to go to find what
they need.
■ Remember that launching a site in Cyberspace and having a
presence is not enough—online brands need to attract and
retain audiences. Metatags in HTML text and simple search
engine listings are helpful but are not the sole strategies to
drive traffic to a Web site.
■ Maintain your company’s online and offline marketing alike
in a well-rounded campaign (TV network and radio stations
online have an obvious advantage). Branding offline and
online will allow maximum exposure for the brand. The
Internet is only one communication channel of many to be
utilized.
■ Keep in mind that being among the little guys on the Net
with smaller resources means there are bigger opportunities
that many professionals do not realize when it comes to
advertising and sponsors on the Net. There’s no need to
compete with the big guys unless you are ready to join the
ranks of the “deep pockets.”
■ Employ aesthetics that are visually pleasing enough to draw
attention to your site but not overpowering or distracting.
The best mix is the proper amount of targeted content with
a complementary and quick display of graphics that appeal
to the Web site audience.

VISUAL BASICS AND THE MAKINGS

OF A WELL-EXECUTED DESIGN
Interview

William C. Miranda heads the William has also contributed his il-
design department at PFS Mar- lustrations to many of the “to go”
ketwyse. He works closely with series of books. An avid fan of new
the marketing department to Web design and technology, he
cyberbrand various projects. spends his leisure time searching

CYBERBRANDING Using Technology Properly to Cyberbrand 83

 the Net for sites that stand out from studio or ad agency to handle this
the rest. You can find his links to phase of the project. I have seen,
great sites at www.pfsmarketwyse. one too many times, clients re-
com/greatsites.html. questing savings in design and lay-
Overall user-friendliness, acces- out. This always ends with a
sibility of information and quick less-than-desirable logo, layout,
download times are extremely im- and production that only hinders
portant to your audience. But there the cyberbranding attempt. A cre-
is one concept that the cybermar- ative agency’s Web designers un-
keter must absolutely grasp. The derstand that good design is
quality of graphics and layout of planned out and executed in a
the site are key in portraying the manner that ensures your site will
intended image for the brand. Your look and feel professional. They
target audience has an amazing know that it truly is in the details.
ability to discern a half-hearted at- They implement certain methods of
tempt at graphics from an effort creating Web graphics that ensure
that is produced on a corporate quality and also speed download.
level. There is no comparison be- Creative thinking always aids in
tween the effect on a consumer of getting a Web site online that is at-
a well-executed design and that of tention-grabbing. Work the possi-
a poor one. Your audience immedi- bilities of themes and other visual
ately registers a good visual site tools into the branding effort. This
into its brains. The level of taste in can be used as a springboard for
the work stands out, and visitors creative graphics. Use interesting
pull the site out of the digital pile images and colors that get noticed
and render it to memory. In con- and also work for the brand. And
trast, poor design and layout has a by all means, take advantage of
negative effect in that it overshad- animation if it fits into the site plan.
ows the cyberbranding effort, and The design of the navigational ele-
turns an otherwise good marketing ments is also important. If the Web
campaign into a visual flop. site is mainly an information site,
If the budget allows (and it al- then graphical elements for but-
ways should, in my humble opin- tons and links must be used in such
ion), a good portion should be a way that the imagery does not
devoted to quality graphics and get in the way of the interface.
production. Hire a proficient design Sites that are created for more

84 CYBERBRANDING chapter 5
trend-setting products or services rest, especially if there are many
can use navigation based on competitors in the market. Keep
imagery. quality production work high on
In its simplest form, all imagery your list and your target market
must work together to create a will take notice.
Web site that stands out from the

CYBERBRANDING Using Technology Properly to Cyberbrand 85

 CHAPTER

6 Web Site Design to Enhance the

Cyberbrand

Objective

To look outward (beyond the company and past the

brand) and realize that the Internet has one central
focus—online audiences and their expectations. This
chapter will give insight into how specific Web site design
considerations enhance the cyberbrand and strengthen
the outward focus by examining the following:

■ Understanding that a Web site is not about a

company
■ Five Web-site factors
■ Cyber do’s

86
A WEB SITE IS NOT ABOUT A COMPANY

F rom the moment a Web site launches, it becomes the sole form
that encompasses a brand, 24 hours a day, 7 days a week. It’s the
look of the brand, the feel of the brand, and the essence and experi-
ence of the brand to-
gether in one unique From the moment a Web site launches,
presence. A Web site it becomes the sole form that encom-
is an opportunity—the passes a brand, 24 hours a day, 7 days
chance to communicate a week.
and impact an audi-
ence’s behavior instantly. A Web site shares information and pro-
motes interaction.1 Indeed, it is every touchpoint of a company and
a brand. That’s more than any other channel has to offer in the
twenty-first century. As such, a Web site should be outwardly fo-
cused. Every issue and consideration stems from the needs of an au-
dience. It’s not about the company. It’s not about the company’s
history. It’s not about
the company’s press re- A Web site is an opportunity to dazzle a
leases or its brochure. It’s user with creative site design, visual
about the audience— appeal, ease of function, and accessi-
their needs and prefer- bility. All of these considerations cen-
ences.2 For branding ter on the user, the central focus of
professionals, nothing the Internet.
has changed. It’s always
been about the audience, their likes and dislikes, and what they
deem credible. A Web site is an opportunity to dazzle a user with
creative site design, visual appeal, ease of function, and accessibility.
All of these considerations center on the user, the central focus of
the Internet.

87
 There are five factors that need to be considered when developing a
Web site to properly communicate a cyberbrand’s message:
■ Number 1: Ease of use. Web sites should be simple and
concise with consistent design for easy navigation and
location of information. Apple.com has a clean interface and
easy-to-access information. It has a one-click checkout
process in accordance with the “ease-of-use principle.”
■ Number 2: Provide up-to-date information. Relevant content
should be updated daily (if possible), and weekly at best.
iWon.com, a prize-winning Web site, is updated daily for its
users, who come back frequently to win cash awards and
view surveys and sweepstakes results (the more they visit, the
better their odds of winning).
■ Number 3: The importance of a fast download. Quick
downloads are necessary for visitors with slow connections
and short attention spans. Yahoo! is the leader of quick
downloads and a Web site model most frequently emulated.
■ Number 4: Consistent design and imagery for audience appeal.
Nickjr.com rates well among a youthful audience that visits
the site for its design and imagery and an experience that is
symbolic of the Nickelodeon brand.
■ Number 5: Provide the right content. Content must be
pertinent to the user and timely with the trends and must
revolve around current events and present interests. A
plethora of women’s sites have launched to face the content
issue head-on. Women.com and iVillage appear to be in the
lead, but are up against praise and criticism as they race to be
“queen of the hill.”

NUMBER 1: EASE-OF-USE PRINCIPLE

With an explosion of e-commerce sites, a consumer no longer has to
leave the house to get a shopping list filled. From clothing to pre-
scription items, the World Wide Web is accommodating to all. At
drugstore.com, a user can find items easily. Visitors can shop by
brand, or, if they choose, access specialty areas on the site (located
on the navigation bar) including the medicine cabinet, personal
care, and nutrition and wellness, to name a few. Drugstore.com is
88 CYBERBRANDING chapter 6
known for stocking those especially hard-to-find items that shop-
pers may have difficulty purchasing at their neighborhood drug-
store. These types of sites have popped up in large numbers, and
consumers are buying into the e-commerce process—that is, of
course, if waiting to purchase online is faster than actually waiting to
buy “on line” (at
. . . consumers are buying into the e-commerce
a brick-and-
process—that is, of course, if waiting to purchase online
mortar loca-
is faster than actually waiting to buy “on line” (at a brick-
tion). Because
and-mortar location).
e-commerce
sites can be thousands of pages encompassing thousands of prod-
ucts, navigation should be simple, concise, and consistent on all the
pages of the site. With thousands of pages and products to choose
from, sites should have navigational tools built within the form of
searchable databases. There are various ways that are acceptable for
audiences to search on a site. Sony.com has an easy search function
that allows the
user to type in a . . . searchable keyword databases and pull-down menus of
key word to ac- major categories are a necessity (the optimal location is at
cess a specific the top of a site or in the left-hand corner of the main
product and pages) for the user to navigate easily and find products
takes the user di- and information quickly.
rectly to a specific page. On the other hand, radioshack.com has a
more complicated search with a less apparent search function. An
indistinct search tab at the bottom of the home page allows the user
to type in a product category, such as portable CD player, and the

CYBERBRANDING Web Site Design to Enhance the Cyberbrand 89

 search produces a series of catalog pages for the shopper to access
within the site. That’s too much clicking to find one product. In any
case, searchable key word databases and pull-down menus of major
categories are a necessity (the optimal location is at the top of a site
or in the left-hand corner of the main pages) for the user to navigate
easily and find products and information quickly.
It’s a frustrating feeling to be lost on a Web site and not know
how to get back to a familiar area (an icon back to the home page
should be clearly labeled on every page). Whether it’s being lost be-
hind the wheel of a car or lost in the layers of a Web site, it’s the
same uneasy feeling. In a car, having a reliable map is a step in
the right direction; the same principle applies on the Net. Some of
the best sites have a
Some of the best sites have a reliable site map and reliable site map and
display that obvious link back to the home page. display that obvious
link back to the home page. And even if there are links to go outside
a company’s URL, the site could be designed either within frame-
sets, or with the opening of a new Web browser window that can be
closed for backtracking to the original URL. Most of all, information
should be placed in a fashion that is logical to the user and makes it
effortless to locate.
If visitors have to search for anything on the Net, chances
are they will not stick around for long. After all, especially on
e-commerce sites, the main goal is to get users to find the product
they want and to make a purchase. Apple.com is an excellent exam-
ple of easy-to-find products with a one-click shopping process. The
procedure is one click of the mouse after the user registers informa-
tion on the site. As a
If visitors have to search for anything on the Net,
one-click user, shop-
chances are they will not stick around for long.
pers create a “Buy
with one-Click” button that appears on most of the product pages
on the Apple site. The user is able to turn the one-click feature on
and turn off with ease. In addition, the Apple site has a clean inter-
face, with graphics that are well done and download quickly for
product display. The easy top tab bar is present at all times for trou-
ble-free navigation. Overall, as a result of the clean interface and
consistent design and navigation, information is accessible for con-
sumers and professionals who visit the Apple site.3
As a rule of thumb, companies need to evaluate shopping cart
procedures. If it takes more than two to three clicks to get to the

90 CYBERBRANDING chapter 6
checkout (not including the mouse clicks to add new items to the
cart), then the company might as well give the merchandise away—
maybe then a visitor would stick around. The Hewlett-Packard site
is an example of too many clicks for information and downloads. A
large percentage
Any long, drawn-out process contradicts the beauty and
of HP users go
nature of the Web—easy information at a fingertip’s
to hp.com to
reach.
download dri-
vers; however, it takes four to five mouse clicks before even starting
the download process. This certainly takes away from the “ease of
use” principle. Any long, drawn-out process contradicts the beauty
and nature of the Web—easy information at a fingertip’s reach.

NUMBER 2: PROVIDE UP-TO-DATE INFORMATION

Up-to-date information is a key to Web site “stickiness.” Informa-
tion that changes frequently is the reason to return to a Web site.
And although this is an obvious consideration, even the most expe-
rienced marketing professionals overlook it with regard to Web site
design. Timely updates in the form of news, daily specials, sale an-
nouncements, new coupon offers, calendar entries that post events
and activities,
Up-to-date information is a key to Web site “stickiness.”
tips and tech-
Information that changes frequently is the reason to return
niques on vary-
to a Web site.
ing subjects of
interest, and surveys and contest results are all excellent strategies to
attract the attention of visitors and mold them into repeat visitors.
Of course, consumers automatically expect that news headlines on
media and portal sites will be updated daily, such as the New York
Times on the Web and MSN.com, respectively. But it’s a strategy that
extends to all sites that want to draw an audience and keep their at-
tention on a
daily or even . . . if information is not current and “fresh,” then users
weekly basis. will quickly lose interest and have little reason to return.
What does that
mean for the average gift store, floral supply shop, or retail outlet
online? It means that if information is not current and “fresh,” then
users will quickly lose interest and have little reason to return.
iWon.com has a strategy that is worth discussing. The more you

CYBERBRANDING Web Site Design to Enhance the Cyberbrand 91

 visit the site, use the search engine, and take part in daily surveys,
the better your odds of winning a $10,000 daily sweepstakes, or even
a $1 million monthly sweepstakes. iWon.com posts the winners of
the $10,000 sweepstakes daily, with pictures and personal quoted
comments on their newfound earnings. The site even goes as far as
having audio clips of each daily winner discussing his or her sweep-
stakes success on
Up-to-date information keeps a site alive. If there’s
iWon.com. Not only
even a hint of “stale” on the Internet, an opportunity
are registered users
with a user is lost!
of iWon returning to
the site, but, as winners inform their families and friends to check
out their pictures and audio clips, it’s an opportunity to have new
visitors become instantly involved in this site’s successful “sticky”
tactics. Because Web audiences do not have unlimited attention
spans, sites must contain that element of “stickiness” in the form of
relevant up-to-date information. Up-to-date information keeps a
site alive. If there’s even a hint of “stale” on the Internet, an oppor-
tunity with a user is lost!

NUMBER 3: FASTER THAN A SPEEDING

BULLET . . . THE IMPORTANCE OF A FAST
DOWNLOAD
If you are designing your Web site and have access to an ISDN,
DSL, or cable line, then you are still considered among the elite on
On top of slow connections, people have short atten- the Web. As far as
tion spans that compound the slow download situa- bandwidth goes, it is
tion. About one minute—and no more—is the average still a major factor.
consumer attention span. ISDN, DSL, and
cable have not sig-
nificantly penetrated consumer markets. On top of slow connec-
tions, people have short attention spans that compound the slow
download situation. About one minute—and no more—is the aver-
age consumer attention span.
There are a couple of tips to help. Using duplicate imagery and
preloading graphics cuts down on download time. There are also
sites that give pregames or trivia tests as graphics are downloading
to get the user involved immediately. Yahoo.com is the pinnacle of
the “speeding bullet” on the Internet—quick downloads and easy

92 CYBERBRANDING chapter 6
access to information. As a result, the site is among the top Web
properties. No one wants to wait when it comes to the Internet.
That’s why we use the Internet to begin with. The Yahoo! site is de-
signed to have easy downloads. There’s little graphics, only the
Yahoo! logo and then a few banner ads for advertisers on the site.
There are so many sites on the Internet that could take a lesson
from Yahoo! An article entitled “To Yahoo, with Love” discusses
how Yoshi Sodeoka, art director at Word.com, published a letter on
the site stating that he would “swallow his pride as an accomplished
Web designer and return Word’s site to a simpler template.”4
Sodeoka found inherent value in Yahoo!’s “simple ingenuity” and
felt the need to go back to basics.5

NUMBER 4: USING ATTRACTIVE DESIGN

CONSISTENT WITH COMPANY IMAGE AND
AUDIENCE APPEAL
The design of a Web site should reflect the company and its prod-
uct(s). Colors, layout, fonts, and graphics all play a part in the de-
sign for maximum effectiveness. The careful thought of these
elements combined must appeal to the target audience. Successful
design has more to do with these elements than it does interactivity
and content. It’s market research that enables branding profession-
als to under-
stand primary Colors, layout, fonts, and graphics all play a part in the de-
audiences and sign for maximum effectiveness.
figure out what
sort of look and feel will make them respond to a Web site favor-
ably. In-depth research allows companies to understand audiences
before they come to a site. Research pinpoints a target audience with
respect to gender, age, education, and personal preferences of each
group. Pre-Internet research identifies what types of sites an audi-
ence will respond to with respect to demographic and psycho-
graphic information.
Brick-and-mortar brands online have an advantage. Because
these companies have been branding offline successfully, demo-
graphic research exists and can be used in Web site development.
The transition online must maintain designs and imagery consistent

CYBERBRANDING Web Site Design to Enhance the Cyberbrand 93

 with any offline messages. Nickjr.com is a good example of a chil-
dren’s site that has consistent designs and imagery of the brand that
appeal to young audiences. On Nickjr.com, pictures, activities, and
site animation reflect those lovable Nickelodeon characters recog-
nizable to children from the television programming. Online, chil-
dren experience similar adventure stories and hands-on activities,
which enhances the impact of the Nickelodeon brand. Through the
games and activities and information on Nickelodeon daily pro-
gramming, children who are familiar with the Nickelodeon brand
become closer to it as they continue to watch programs on television
and welcome the activities on their computer screens.

NUMBER 5: PROVIDING THE RIGHT CONTENT

Whether the Web site is up or is about to be launched, providing the
right content is the key to attracting large audiences and keeping
their interest. Relevant content is an ongoing consideration for the
life of a site. Every site has a reason for being, whether it is to brand
a message, to inform, or to sell a product or service. Messages have
to be related to the nature of the site and significant to those who are
visiting. That’s why as sites grow and expand, it is imperative to
choose content and partners selectively. With a recent surge of
Relevant content is an ongoing consideration for the women’s sites, it’s a
life of a site. constant race to be
the leader, with con-
tent as a major issue in the race to the finish line. Women.com and
iVillage have both been praised and criticized for their content. The
managing producer of Nickelodeon online, Jennifer Eno, discussed
her thoughts on iVillage in Silicon Alley Reporter’s review of
women’s sites. According to Eno, iVillage has “too many content
links [that] dilute any message to the users.”6 In the same review,
Ted Werth, COO of Digital Club Network, discussed Women.com’s
content “ups and downs.” Werth stated, “Most of the content comes
from a roster of established magazines, which, on the one hand,
gives the perception of higher quality. On the other hand, it says ‘re-
purposed’ and not particularly unique.”7
Every stitch of communication should be useful, interesting,
and valuable to users—not superfluous or to the point of clutter.

94 CYBERBRANDING chapter 6
There is always that line that should not be crossed where informa-
tion becomes
overkill. Overkill Every stitch of communication should be useful, interest-
can actually send ing, and valuable to users—not superfluous or to the point
visitors off in so of clutter.
many directions
that they forget why they went to the site in the first place. Or, worse
yet, if consumers are dissuaded from finding the information they
need, they may leave a site and not make that product purchase. Not
many people go
to Amazon.com Not many people go to Amazon.com and forget why they
and forget why are there.
they are there. If
you need a book, toys, or music, it’s ready without distraction. Con-
tent should never “get in the way” and should always work to en-
hance the meaning of the brand. Good content translates into Web
site stickiness and supports the cyberbrand.

CYBER DO’S

■ Navigation should be simple, concise, and consistent on all

pages.
■ Customers should not have to search for information—
make it easily accessible, with pull-down menus by product
name or category and searchable databases.
■ Keep information up-to-date to avoid the look and feel of a
“stale” Web site that no one will visit a second time.
■ Fast downloads will get an audience involved in a Web site
quicker—remember, the average attention span is roughly
one minute.
■ Design should be consistent and reflect the message the
company wants to portray as well as what the audience
needs to hear.
■ Understand customers before they come to a site—it’s much
easier to anticipate their needs.
■ Too much content can be distracting—customers should
not forget why they came to a site in the first place.

CYBERBRANDING Web Site Design to Enhance the Cyberbrand 95

Mini-Case Study
EXCEEDING CUSTOMER EXPECTATIONS:
BUDGET GROUP
Krista Musur is the manager of Inter- different challenge, that of technol-
net marketing for the Budget Group. ogy. The winning rent-a-car site is
With a background in advertising the one that provides the most perti-
and marketing, she manages the nent information, best value, and
online division of Budget with re- simplest booking process.
sponsibilities that include cyber re- The following is a mini-case
lationships with Budget.com’s study depicting Budget’s transition
online partners. Musur is also an in- to the Internet and the challenges
strumental player in the redesign of and successes faced by the brand
the Budget site. According to Musur, in cyberspace.
Budget’s connection to the Internet
began in 1996, when the company Background
partnered with Travelocity. How- The Budget name is always re-
ever, the road to e-commerce was membered among customers as one
only just beginning for Budget as its that translates into value. Whether
growth on the Net resulted in a need offline or moving online, the brand
to develop a leading-edge software message must be consistent. Bud-
application that would enable Bud- get made the transition to online
get to have incredible flexibility with booking and e-commerce commu-
its systems and allow for a very nicating this message and opening
streamlined booking process. “The new doors for the online brand
original online booking was not as with customers who:
easy for the customers as it could
■ Crossed all ranges of expertise
be,” states Musur. “The new inter-
face application that Budget devel- ■ Expected ease of use and
oped rearranges information so that excellent tools
several decisions can be combined ■ Wanted immediate results
in just a couple of steps; otherwise, ■ Were global in origin
it’s a less intuitive process for the
■ Would tell you exactly what you
user,” she says. The nature of the
wanted to know if you asked
Web is all about ease of use. The
competition for Budget is the same Budget first developed its Web site
in the offline world—prices are com- as an online brochure. Its road to
petitive in the open market. On the e-commerce unfolded in several
Internet, however, Budget faces a phases:

96 CYBERBRANDING chapter 6
■ 1996—partnership with Strategies and Results
Travelocity Budget saw the opportunity on the
■ 1997 – introduced online Internet with travel commerce
booking via Travelocity growing steadily. Online travel
■ 1998 – developed direct sales, according to Jupiter Commu-
e-commerce mission and nications, are projected to reach
launched $16.6 billion in 2003. Budget made
a full commitment to the Internet
■ 1999 – launched Bidbudget,
with a complete staff devoted to on-
the first online bidding system
line marketing. Right from the start,
in the car rental industry
there was a strong commitment
■ 2000 – Budget.com redesigned
from senior management, who un-
to perfect the booking engine
derstand and value the Internet as
and site navigation and allow
an important distribution channel.
a much more personalized ex-
Moving to the Internet, Budget
perience by prepopulating the
faced the following issues:
booking engine with user pref-
erences Technology
Budget was confronted with the
challenge of technology when it
Challenges
began with an online booking sys-
■ How does Budget use technol- tem that took too many steps to
ogy to streamline the booking complete the process. Booking could
process and meet consumers’ be difficult, and customers were
expectations online? often frustrated over the process. A
new booking engine was launched
■ How does Budget deal with
in 2000; plans to improve the
global issues as it moves the
process further are under way. Bud-
Budget brand online?
get is striving to simplify its process
■ How is marketing integrated
and exceed the expectations of its
to tie in offline and online
online customers. With the latest re-
branding?
design, individuals will not have to
■ How important is navigation request rates for individual vehicles.
and ease of use to Budget cus- Instead, they can enter their desti-
tomers? nation city and the dates of travel in
■ How will Budget make its site order to access all the available ve-
“sticky” and still avoid too hicles for that location as well as
much distracting content? their corresponding rates.

CYBERBRANDING Web Site Design to Enhance the Cyberbrand 97

 Global Issues members, they are automatically
Budget faces a challenge on the In- enrolled in Perfect Drive and can
ternet because the company has quickly begin earning points. This
both corporate and licensee loca- type of integrated marketing contin-
tions. As a result, global branding ues to drive traffic to the Web site.
on the Internet becomes more of a The launch of Bidbudget and the
challenge. Vehicle selection and procurement of the domain name
local as well as national promo- Budget.com were also extremely
tions can vary depending upon the successful in driving traffic to the
location. In addition, services in- site. BidBudget was hailed as a
cluding Fastbreak (Budget’s express market-leading product and led to
service) and Perfect Drive (Budget’s a very successful partnership be-
loyalty program) may vary around tween Budget and Priceline.com.
the world. One solution for Budget
Navigation and Ease of Use
is to avoid U.S.-centric graphical
treatments on the site. In addition, Clear and simple, navigation and
Budget enables customers around ease of use on a car rental Web site
the world to book cars both in the are the differentiating factor that
U.S. and internationally. The site sets a site apart from the pack. Web
also includes a global location visitors are savvy shoppers and are
finder so customers can quickly doing their comparison shopping
find the Budget location closest to more and more every day. The re-
their destination. design of the site, as mentioned pre-
viously, will significantly streamline
Integrating Marketing the navigation. By doing so, it will
Budget launched a successful cus- make shopping and booking quick
tomer loyalty program that tied di- and easy for customers. They will be
rectly into its Web site. The able to find all of the answers to
program, Perfect Drive, allows cus- their questions quickly and easily,
tomers to earn points toward free and important features such as
car rentals, Bolle eyewear, Calloway Booking, Hot Deals, and Perfect
golf clubs, airline miles, etc. Perfect Drive will be prominently displayed.
Drive found its greatest success on
the Internet—with the introduction Content
of Budget’s double points program. Budget strives to make content rel-
Now customers earn double Perfect ative and pertinent to its audience.
Drive points when they book their The question has come up several
car through Budget.com. In addition, times with regard to expanding
when customers become Fastbreak content to include other areas of

98 CYBERBRANDING chapter 6
interest for users, e.g., weather possible, what the customer
forecasts and events in various wants.
cities around the world. However, ■ Let technology support your
these are serious considerations. Web development efforts—
Content can make or break a site. streamlining processes will lead
And too much of it can be distract- to maximum efficiency and
ing and make Budget customers customer satisfaction.
forget why they came to the site in
■ The Web is all about navigation
the first place. Budget may not
and ease of use. The winners
have weather forecasts, but it does
on the Web will be
offer its users some “sticky” areas:
concentrating on making the
■ Contests: Usually occur in customer experience as easy as
conjunction with a partner. One possible.
contest included a weekend
■ People expect more from an
getaway (partnering with
online brand. Customers love to
ebags.com and AOL). The
communicate directly with a
winner received a free
company, and responses are
weekend with free air travel,
immediate—they’ll tell you
luggage, and rental of an SUV.
exactly what they want and
The industry average banner
how they feel, whether you
ad clickthrough rate is 2%.
asked them or not.
However, for this contest,
■ Integrating marketing efforts
banner ad clickthrough rates
(online with offline) is an
were significantly higher.
excellent strategy to drive
■ Budget.com Personality Test:
traffic to a Web site and create
Users are walked through a
Web synergy.
series of questions designed to
■ Strong commitment from senior
determine the best vehicle to
management is key. Devoting
match their personality. Are
resources to an online
you a Taurus or a Jaguar? And,
department is imperative to the
how many times will you
brand. Having senior
change your answer to become
management with a good
the car that you think best
understanding and appreciation
reflects your personality?
of the Web makes the process a
whole lot smoother. This type
Tips to Remember
of support will lead to a
■ Always remember and successful Internet venture.
incorporate, to the extent

CYBERBRANDING Web Site Design to Enhance the Cyberbrand 99

 Full-Case Study
BILLBOARD.COM
John Lerner is vice president and di- of experts we aim to offer them
rector of operations for VNU eMedia, surprising and insightful ad-
which is part of VNU USA. Lerner has vance knowledge they couldn’t
been running the Web division for possibly locate anywhere else.
the parent company for the past five (Billboard editor’s statement, 1999)

years and is one of the original

Billboard has an international au-
founders of the electronic media
dience with readers in over 110
group. Lerner shared, in a full case
countries. Billboard brings the “bible”
study, Billboard’s transition to the In-
of music and entertainment to the in-
ternet, the challenges facing the
dustry with top-notch news and re-
brand, and its successes on the Net.
porting of cutting-edge reviews, as
Background well as the most respected charts for
The Billboard brand name has been retailers, record company executives,
the premier source of music and en- and artists.
tertainment news, information, and
Interesting Billboard Facts
services for over 105 years. Billboard
Of the 150,000 readers of Billboard:
is more than just a trade publication;
rather, it’s a unique chronicle of the ■ 13% spend more than 40 nights
music, video, and home entertain- per year in a hotel (average 21
ment industries. The company’s mis- nights for all readers).
sion is: ■ 54% have purchased audio
To provide maximum new infor- equipment in the last year or
mation in the timeliest possible plan to purchase audio
fashion to help our readers do equipment in the coming year.
better business. Moreover, since ■ 23% take 10 or more airline trips
our audience includes a wealth per year.

Audience: Billboard Readership Demographics

Age % Sex
18–24 6 Male 69%
25–34 32 Female 30%
35–44 27 N/A 1%
45–54 26
55+ 9
Source: 1999 Readership Survey, Harvey Research, ABC state-
ment.

100 CYBERBRANDING chapter 6

 Industry % Responding Total Readers
Record companies, manufacturers of
hardware, studios 29 43,500
Retailers, distributors, mass merchandisers of
records, hardware, software, and accessories 25 37,500
Schools, colleges, students, faculty, library,
music fans, and audiophiles 15 22,500
Radio personnel including program and music
directors 8 12,000
Recording artists, performers, attorneys,
agents, and managers 8 12,000
Music publishers, songwriters, and related
fields 4 6,000
Journalists, PR organizations, agencies, etc. 3 4,500
Buyers of talent 3 4,500
Others allied to the field 3 4,500
Miscellaneous 2 3,000
Source: 1999 Leadership Survey, Harvey Research, ABC statements.

■ 52% have purchased computer The music and entertainment

equipment in the last year or plan industries’ authoritative voice.
to purchase computer equipment ■ Billboard conferences. Hosted by
in the coming year. Billboard’s expert editors, these
■ 46% use a cellular phone with an major conferences bring industry
average monthly bill of $183.00. leaders together to exchange
■ 29% have bought or leased a opinions and to network.
luxury car in the last year or ■ Billboard directories. Billboard
intend to buy or lease a luxury Music Group offers directories
car in the coming year. providing essential information on
Source: 1998 Readership Survey compiled by every facet of the industry—the
Harvey Research.
“definitive” who’s who for the
entire music and entertainment
Billboard Branding (Pre-Internet)
world.
■ Billboard magazine. Weekly ■ Billboard Entertainment
global coverage reaches over Marketing. Drawing on an
150,000 readers in 110 countries. international name and logo,
(continued…)

CYBERBRANDING Web Site Design to Enhance the Cyberbrand 101

 Full-Case Study
(…continued)

Billboard Entertainment
Challenges in the Transition to an
Marketing develops powerful
Online Brand
licensing opportunities including
world-class partnerships with ■ Utilize the World Wide Web as a
Fox’s top-rated Billboard Music viable communication channel to
Awards show and ABC’s provide content that is consistent
American Country Countdown. with offline brand
■ Extensions of the brand. Targeted communication.
publications include Amusement ■ Evolve with technology to sell
Business, which is the premier customers.
publication for the live ■ Incorporate the Internet into an
entertainment and amusement integrated online and offline
industries; Musician, which marketing campaign.
addresses the needs of today’s
■ Achieve a return on investment
active musicians and Music &
(ROI) for Billboard’s Internet
Media, the leading pan-European
venture.
trade for weekly radio and music
industries. ■ Face the fear of copyright holders
(similar to MP3 issues). Music is
Moving the Billboard Brand Online based on intellectual property,
and you cannot be a publisher
Billboard possesses a powerful brand
and not respect intellectual
name. With a century of brand equity,
property.
the company was able to move the
brand online to face new challenges ■ Handle unknown barriers that

and meet new successes. It was the “pop up” unexpectedly along the
brand name that was a major part of way with technology.
the process, making the Web a “no
brainer.” Billboard was able to lever- Strategies and Outcome
age the brand on the Internet, not Billboard actually started online as a
only as a business-to-business prod- dial-up site developed to download
uct but also as a business-to-con- software, where users could dial up
sumer product. The Web afforded into a proprietary software system.
Billboard the opportunity to extend its The Web at this point was a means of
reach to the consumer market with distribution that was cost-effective
ease. and had a tremendous reach. Then,

102 CYBERBRANDING chapter 6

with the evolution of the WWW, ing, but it’s always better to catch
companies were quickly learning that these glitches early on, before it’s no-
Web site technology was a way to ticeable enough among audiences
sell customers. Suddenly, the Internet and quite possibly could damage the
afforded Billboard a much larger online brand.
branding opportunity. However, it The power of content from indus-
was always the underlying notion try experts and the multimedia expe-
that whether offline or online, the rience on the site leverage the power
brand carried a tremendous power in of the brand in cyberspace. Was the
and of itself. The Web, to Billboard, transition ever a concern for the Bill-
proved to be a viable communication board print publication? Would there
channel. Now, Billboard was experi- be cannibalization of the offline
encing audience growth and reach brand? This is always a concern, but
like never before, with female audi- for Billboard, more so with tertiary
ences increasing tremendously. audiences. With clever marketing
On the Internet, Billboard does not strategies to drive traffic between
target a particular market; rather, on print Billboard and online
the ubiquitous Web, it focuses on a Billboard.com, the issue is minimized.
diversified pop culture—the people For example, the Billboard URL is
who follow music will follow Bill- added to the folio of all the maga-
board. The Billboard Web site zine’s pages. And in addition to Bill-
(www.billboard.com) takes brand board Internet audiences’ enjoying
content online with interactive expe- the site, the Billboard weekly publi-
riences beyond charts and articles. cation is still considered the “bible,”
The Web allows Billboard to have with everything based on the maga-
areas of multimedia for audiences to zine. At the same time, Billboard is
enjoy. Never before have the Bill- considered the top music information
board charts had sound clips accom- source on the Web. The site is traf-
panying them. The Web site also ficked with over 8 million monthly
brings Billboard videos to its audi- page views and more than 1.6 mil-
ence. At times Billboard faced slight lion monthly visits. It did not take
glitches with technology, such as long for Billboard online to become
having a radio show that had to established as the industry’s best
change from “streaming” to video source of Internet information and the
“on-demand.” Sure, it can be frustrat- “hot” destination for loyal Billboard
(continued…)

CYBERBRANDING Web Site Design to Enhance the Cyberbrand 103

 Full-Case Study
(…continued)

followers worldwide. As a result, retail information, to insert sound and

audiences expect the Web site to be video clips, and tour listings and ap-
current and up-to-date—an attribute pearance information. In addition, the
of the Billboard brand. This attribute Billboard Bulletin, the daily calendar
is reinforced on the Web with a site that concentrates on the essentials of
that is updated twice daily to main- industry news, is also found online
tain the brand image. Billboard online (by fax as well) to provide the “scoop”
gives visitors access to historical that every well-informed industry ex-
archives (10 years of past Billboard ecutives need. Via the Internet, global
articles and 40 years of past Billboard business learns about executive
charts), concert reviews, album pre- moves, the latest labels, artist sign-
views, online conference registration, ings, and retail activity.
and a tour of the search database. In Billboard, through the power of its
addition to constantly updating infor- brand, has made the transition to the
mation, Billboard regularly augments Internet smoothly and successfully.
design, although initially it exhibited The brand continues to thrive and
a skillful approach in building a Web fulfill audience expectations in the
site that was user-friendly and al- music industry by maintaining its po-
lowed visitors to navigate easily. The sition as the premier source of music
Web site content, of course, is fresh and entertainment news, information,
and always pertinent to the industry and services. Billboard fully utilizes
(consistent communication with the the Internet with its tremendous
offline Billboard brand). power to communicate the brand—
Also as a result of Billboard’s tran- expanding services to loyal followers
sition online, there are various oppor- as well as gaining new audience
tunities for professionals in the music reach. Billboard is able to satisfy its
industry to create a Web page and objectives both online and offline:
profile an artist on the Billboard site.
Billboard analyzes and inter-
An icon on the homepage, with
prets the present while both
album cover graphics, is prominently
anticipating and helping shape
displayed to reach millions of con-
the future. We are lonely in our
sumers. These feature pages allow
high ideals, determined in our
artists to display album reviews, im-
high standards, and dedicated
ages, and artist information, to in-
to the excellence of a form of
clude links to record label sites and
news gathering that has its

104 CYBERBRANDING chapter 6

 own news making momentum. communicated consistently and
There is only one worthy adjec- across many channels. The
tive for what we [Billboard] do Internet, although viable, is only
and it’s our name: We cover our one medium of many to consider.
international beat the Billboard ■ The Internet allows immediate
way. feedback from users. Use it to
Source: Billboard marketing materials, 1999.
your advantage. Online polls are
a great source to guide marketing
Tips to Remember
strategies.
■ When it comes to information, the ■ The Internet affords the
Web is a great equalizer. It brings opportunity to reach a larger
you back to basics—back to the audience with more interaction
product and the promise of the for users to experience.
brand. It equalizes everyone and ■ Driving traffic between online
puts us all on the same playing and offline media is a key to
field. minimizing cannibalization of an
■ Great branded content is key—it offline brand.
starts and ends with the expertise ■ Grow with technology and use
of a devoted staff. the Web to focus on in-depth
■ The brand itself will stay the test areas that could not be
of time and should be experienced offline.

CYBERBRANDING Web Site Design to Enhance the Cyberbrand 105

PART

2
Impacting
Audiences with the
Cybervision
 CHAPTER

7 Start with the Organization and

the Cyberbrand Vision

Objective:

For marketers to understand and implement the

traditional or “smart business” strategies that aid in
development, cultivation, and communication of the
cyberbrand vision and promote the success of the
Internet brand by recognizing the following:

■ Vision beyond the entrepreneurial idea

■ Avoiding the “rushed” vision
■ Developing the vision through offline versus
online comparison
■ The importance of the coalition to guide the
vision
■ Cybervisions that survive

108
VISION BEYOND THE ENTREPRENEURIAL IDEA
Every entrepreneur has an idea, but in today’s new economy, ideas
are a dime a gigabyte. A cyberbrand vision needs to be developed,
cultivated, and often reworked to suit the needs of the brand online.
Hence, every entrepreneur has the potential to create a cyberbrand
vision that expectantly possesses everlasting life. This occurs if and
only if the vision meets the challenge of the Internet issues head-on.
With the rise and fall of every cyberbrand vision there’s speculation:
Was the vision realistic,
. . . when it comes to the Internet, the
with attainable goals?
reality is that 10 other entrepreneurs
Did the executive team
are cultivating a similar “brilliant, never
have enough experience before seen” idea on the Web, . . .
to implement the vision?
Was the business model flexible enough to support the vision?
There are many questions and not enough history behind the Inter-
net to back up all the answers. Getting the vision right before
launching the Web site goes without saying. Yet, with the notion
that when it comes to the Internet, the reality is that 10 other entre-
preneurs are cultivating a similar “brilliant, never before seen” idea
on the Web, it’s difficult for the dot-com to have a vision mapped
out from start to finish prelaunch. Because the Internet provokes
the feeling of “first to market wins,” the cybervision suffers. Time
frames are terribly compressed, and launches that would normally
take 18 to 24 months (the business hatching phase) take only 3 to 6
months.1

109
 H ow is it possible to have the vision fully intact prior to launch of
a Web site? This is certainly a question that deserves a consider-
able amount of attention with brand building in the new economy.
The trials and tribulations of online companies in the retail indus-
try, such as Boo.com, and companies in the publishing industry, in-
cluding APBnews.com and Salon.com, are examples of cyberbrand
visions that come to fruition but do not reach their full potential.
Companies are faced with financial and technological problems
early on that result in employee layoffs and little success to secure
future funding. Even so, the nature of the World Wide Web allows
companies to get away with launching cyberbrand visions that are
not well thought out,
Companies are faced with financial and technological
with visions that
problems early on that result in employee layoffs and
cannot possibly meet
little success to secure future funding.
the challenges of the
Internet. Concerning APBnews.com, the crime Web site, “ . . . has
run out of money and fired all its staff.”2 For APBnews, there was a
tremendous challenge on the Internet to differentiate and create a
unique selling proposition (USP), because of the nature of online
competition. Although APBnews.com touted itself as the only crime
and justice site on the Web, online audiences still found it easier to
frequent portal news sites to receive their daily news and informa-
tion. Again, APBnews’ cyberbrand vision had tremendous possibili-
ties yet fell short of its true potential by not anticipating the
complexities of audiences and its competition.

AVOIDING THE “RUSHED” VISION

Maybe it’s a “cash galore internet economy”3 that focuses on pas-
sion and timing but neglects the vision in its entirety. When it
comes to venture capital and angel funding (equity funding whereby

110 CYBERBRANDING chapter 7

the investor obtains stock in a company), strategies differ. Start-up
companies on the Internet that receive angel funding usually tend to
have semideveloped visions (but that is considered acceptable), and
venture capital requires companies to fully develop their visions
postlaunch into implementation phases (but that’s a catch-22 in a
compressed time frame). And much as the new Internet companies
would like to slow down and not rush from concept to launch
phase, it just isn’t happening for many of them. This really has noth-
ing to do with passion and fervor; these are characteristics common
to the start-ups. From the onset, the entrepreneur persuades all who
come in contact with the cyberbrand vision that it possesses passion,
depth, and perpetual life. The trouble exists in the development of
the vision, beginning with the power of the team to execute the vi-
sion and, from
. . . much as the new Internet companies would like to
that point on,
slow down and not rush from concept to launch phase, it
continuing with
just isn’t happening for many of them.
the necessary
communication to enhance and extend its life. Evidence of the IPO
frenzy and “first to market wins” reveals itself with the release of
1999 statistics. In 1999, there were 698 companies that went public,
as compared with 350 in 1998.4 It would be interesting to analyze
how many of those IPO companies had fully developed visions and
how many were able to follow through with execution of the vision
postlaunch.
There are marketing professionals who have the opposite view-
point and believe that streamlining the launch process is efficient,
getting the new company off to a good start. But there’s a great deal
of evidence out there in cyberspace that paints a completely differ-
ent picture. In an article in Silicon Alley Reporter entitled “Punky
IPOs,” we can see that when the Webcaster.com site was over six
months old, it had $100,000 in assets and no revenue to date.5 To
top it all off, even though the article referred to Webcaster.com as
“contentless,” it went on to say that it filed for a $33 million IPO in
November 1999. It seems that the only marketable presence related
to the company is Punky Brewster, its 23-year-old cofounder. The
purpose of the site is to make its audience (visitors aged 13 to 35)
experience what the article referred to as the “inside world of enter-
tainment.” Reading on, it’s apparent that this site promised
(prelaunch) to get its viewers backstage passes to the entertainment
world. However, this hasn’t happened yet. Case in point: The co-

CYBERBRANDING Start with the Organization and the Cyberbrand Vision 111
 founders of the site had a “perfect” vision, full of passion with eager-
ness to succeed, and somehow from concept to launch only a partial
vision was executed.
Another example illustrating the execution of the partial vision
appears in an article entitled “Spinning Out of Control” that dis-
cusses Theglobe.com and its downward spiral from a record-setting
IPO in 1998.6 With descriptive phrases like “the flailing commu-
nity” and “downward spiral,” it begs the question, What happened
to the vision? How did the site deviate from its well-thought-out
plan to lack of execution of that plan? Apparently the cofounders (a
pair of 20-year-old school buddies from Cornell University) rose
quickly to Internet stardom with an IPO that climbed dramatically
from $9 a share to $97 its first day on the market. Theglobe.com
swiftly came down to $28 a share and, from that point on, contin-
ued to plummet. The article further states that the cofounders (also
co-CEOs) have stepped down to let a more experienced professional
in the company assume the role of president. Is this a case of Inter-
net hype, or execution of a half vision? Most likely it is a little of
both. There are a rash of Internet companies that rise quickly and
then fall just as fast.
On the opposite end of the spectrum are the companies with vi-
sions powerful enough to support rapid growth and flexible enough
to encounter rough terrain. Take a look at the ultimate vision, that
of Cisco Systems: the desire to have all computers around the globe
communicating with one another. This is the vision that got the In-
ternet off the ground, the vision that started a cyber precedent (or at
least should have). Again, the vision came to life with an idea shared
between two indi-
Making the vision a reality is a sign that the brand is viduals, Leonard Bo-
fully realized: the strength of the vision is tied directly sack and Sandra
to the brand. Lerner. The two
were IT people at
Stanford University who worked together to connect computers in
departments of the university. Finally, when they left Stanford, they
shaped the Cisco brand by starting a business that connected not
only educational institutions, but governments, organizations, and
all computers—no matter how little or inexpensive.7 The Cisco vi-
sion miraculously transformed from a dream into reality. Making
the vision a reality is a sign that the brand is fully realized: the
strength of the vision is tied directly to the brand. It’s referred to as

112 CYBERBRANDING chapter 7

the “brand vision,” and it’s the force behind the focus and stability
of a company. Few companies have experienced or ever will experi-
ence the same type of impact as the Cisco brand vision has had on
the Internet economy. For this reason alone, it is definitely worth
evaluating the strategies that cultivate a vision and lead to a success-
ful execution and brand strength.

DEVELOPING THE VISION THROUGH OFFLINE

VERSUS ONLINE COMPARISON
John P. Kotter authored a book entitled Leading Change, which is
well known among MBA graduate students. Although the book fo-
cuses heavily on organizational change, there are several valuable
strategies that lend a hand to developing and communicating a cy-
berbrand vision. According to Kotter, “Vision refers to a picture of
the future with an implicit or explicit commentary on why people
should strive to create that future.” In Kotter’s book, one of the
main components of his eight-stage process deals with developing
the vision. Although Leading Change does not address cyberbrand-
ing, there is a connection between Kotter’s brick-and-mortar
thoughts and the way companies should proceed with their cyber-
brand visions.
Let’s differentiate the offline and online visions for a moment to
illustrate their similarities and differences. Kotter believes that the
vision (referred to as the offline vision) will take root in the corpo-
rate culture if it has the following attributes:
■ Clarifies a direction
■ Motivates people to take action
■ Has a long-term interest

According to Kotter, the characteristics of an effective vision as de-

tailed in his book are as follows:
■ Imaginable: conveys a picture of what the future will look
like
■ Desirable: appeals to the long-term interests of employees,
customers, stockholders, and others who have a stake in the
enterprise
■ Feasible: comprises realistic, attainable goals

CYBERBRANDING Start with the Organization and the Cyberbrand Vision 113
 ■ Focused: is clear enough to provide guidance in decision
making
■ Flexible: is general enough to allow individual initiative and
alternative responses in light of changing conditions
■ Communicable: is easy to communicate; can be successfully
explained within five minutes8

Then, there is the cyberbrand vision, which is similar to the brick-

and-mortar vision because it clarifies a direction, motivates people to
take action and has every intention of being a long-term interest (as
stated in the first three bulleted items above). However, moving past
these points, the traditional attributes of the vision are altered to meet
the demands of the Internet. In the past, on the Internet we have seen
the following digressions from the offline vision attributes:

■ Imaginable: The portrayal of the future changes so quickly as

technology continues to advance rapidly. Companies must
always be 10 steps ahead of the competition and ready to
modify strategies (and business models) to meet the
changing interests and needs of audiences.
■ Desirable: Long-term is always the intention but some of the
20+ CEOs have abandoned their start-ups and bailed out a
little on the early side to let more experienced professionals
run the show.
■ Realistic: The Internet often fosters unrealistic goals and
promises; it’s that say it now then worry about it later type of
attitude. State-of-
The Internet often fosters unrealistic goals and
the-art technology is
promises; it’s that say it now then worry about it later
promised to online
type of attitude.
audiences and diffi-
culties lie in developing systems to handle these promises.
■ Focused: There is not always a clear path in cyberspace – a
great deal of trial and error in the 1990s is evidence of this
fact. If the vision does not keep its focus there is the tendency
to “go off on a tangent” and lose the meaning of the message.
Web sites should not attempt to be everything to everyone.
■ Flexibility: A great deal of flexibility is necessary to manage
rapid advancements as well as the built in two-way
communication feature that enables users to guide Web

114 CYBERBRANDING chapter 7

 efforts and directly impact the successes and failures of an
Internet company.
■ Communicable: If it’s ideal to communicate an offline vision
in five minutes or less, then with the Internet moving at
warp speed, fast and effective communication of the
cybervision, is a priority.
Comparison of the offline vision and the cybervision and pinpoint-
ing recognizable
. . . with the Internet moving at warp speed, fast and effec-
differences pro-
tive communication of the cybervision, is a priority.
vides a company
with a greater chance to meet the challenge of the Internet and be
prepared to face the obstacles that restrict the life of the cyberbrand.

CALL IN THE COALITION TO GUIDE THE VISION

Experts say that Internet companies are stealing the best talent. It’s
referred to as the talent drought; there just are not enough “techies”
to go around. Venture capital firms are looking for three things:
■ The potential of a unique idea
■ The value of a solid plan for launch strategy and
implementation
■ A management team that will bring the vision to life
The last item mentioned is a type of “coalition.” This is the trusted and
empowered group that will communicate the vision and move the
company well beyond its launch phase. This team is critical to the suc-
cess of the vision. In Kotter’s book, traditionally, the coalition is uti-
lized in any change effort.9 This group has “strong position power,”
and generally has the expertise, credibility, and leadership skills nec-
essary to get the job done.10 It is this team that is extremely crucial to
the execution of the vision. New dot-coms build coalitions all the
time. So, for example, in the world of dot-com start-ups, Kotter’s
coalition could be analogous to the entrepreneur and the executive
team that is pulled together prior to the launch of the cyberbrand. It is
this team that prepares for the launch, communicates the cyberbrand
vision to all that come in contact with it, and implements the vision’s
course of action completely and thoroughly.
The coalition in the click-and-mortar world becomes the key
players in an Internet division of a company. This group is assigned

CYBERBRANDING Start with the Organization and the Cyberbrand Vision 115
 the role of launching the online brand. In order for the vision to take
root in the corporate culture, Kotter stresses that internal communi-
cation must be embraced first by employees of the company. For the
cyberbrand vision to be embraced, all employees of the company, not
just an Internet division that manages the technology, must under-
stand and accept the brand in its new realm. This is imperative to the
traditional company. An article in Chief Executive magazine entitled
“Through the Looking Glass” spells out that brick-and-mortars have
to shift their culture. In the article, theStreet.com’s CEO Thomas
Clarke states, “With upstarts like us, there’s no culture shift that has to
happen. There’s no dragging someone from a legacy environment
into the new world.”11 Therefore, every member of the company must
be aware of and understand the meaning of the cyberbrand vision and
the strength and vitality of the brand online. Whether it’s “traditional”
or just “smart business,” there is the belief in the corporate world that
in order to project a message (the vision) outward to audiences, it must
be communicated effectively and continuously internally, using as
many channels as
. . . every member of the company must be aware of
possible. If, and only
and understand the meaning of the cyberbrand vision
if, the corporate cul-
and the strength and vitality of the brand online.
ture understands and
supports the efforts of the cyberbrand vision, in turn, this will result in
what is known as “proud communication” on behalf of employees.
When employees believe in the promise of the cyberbrand vision and
all of its implications, there’s that buzz in the hallways and the feeling
of excitement in the air, whether it’s in the break rooms or the com-
pany cafeteria. The organizations that communicate properly to their
employees first, via a strong coalition, are in all actuality allowing
these individuals to embrace the cyberbrand vision and empowering
them to be faithful cyberbrand communicators and loyal followers.

CYBERBRAND VISIONS THAT EXIST POSTLAUNCH

Moving past the so-called dangers and difficulties of moving the
brand online are the companies that have not only ventured into cy-
berspace, but also have high-tech visions that are making news and
making great strides. An article entitled “Old-Line Firms with High
Tech Vision,” written by Allison Kopichi of Bloomberg Personal Fi-
nance, illustrates how the traditional offline brands are successfully
executing cyber strategies. Who are these traditional cyber winners

116 CYBERBRANDING chapter 7

who quickly realized how to combine tradition and technology to
form an optimum brand? According to the article, Kmart is one,
taking the “blue-light special” online with free Web access for its
customers. And for United Parcel Service (UPS), it does not matter
who sells the goods online—UPS will reap the benefits. The com-
pany has invested in the package delivery market by providing Inter-
net purchasers with an easy process to track online orders.12 What
about American Express? Unlike some brick-and-mortars, this com-
pany is not worried about cannibalization. American Express did
not hesitate to offer online financial services for its customers. Last,
Federated Department Stores, which includes Bloomingdale’s and
Macy’s, has quickly caught on with the purchase of Fingerhut. Buy-
ing the Internet retailer not only fostered the Federated cyberbrand
vision, but also increased sales fourfold in 1999.13
Another article, appearing in CEO’s Web Review, scopes out the
benefits of Home Depot’s Web site. The Web review points out that
the site does not even sell products, but serves to maintain a dy-
namic presence with its customers. It goes on to say that Home
Depot is one of those “smart” brick-and-mortars that developed an
online following even before the e-commerce is launched. Home
Depot’s strategy entices visitors to get involved with do-it-yourself
projects, with help online every step of the way.14 This is a case of
using brand recognition and consistent customer service (in cyber-
space too, right from the start) to establish a powerful presence.
What do these click-and-mortars have in common? Here are a
few hypotheses about their cyberbrand visions. The visions were
most likely invented and then reinvented “on the fly,” illustrating
the flexible vision.15 Many of these click-and-mortars are finally
aligning IT with the business vision that defines how the Internet
will complement traditional operations.16 And even though at one
time these companies did not include IT as a part of their sales de-
partments, the two are slowly coming together; the marriage means
successful e-commerce.17 Last, if you get a strong management team
that generates enough enthusiasm from every single person who
comes in contact with the vision, the dream comes to life quicker
than was ever thought possible (because it’s Internet time). Put this
all together with the fact that these companies have existing brand
recognition and trust. What is the benefit? The “click-and-mortar”
advantage—a cyberbrand vision that survives after the concept stage
and continues to make strides postlaunch.

CYBERBRANDING Start with the Organization and the Cyberbrand Vision 117
Mini-Case Study
THE CHALLENGES OF A CYBERVISION: CYNET, INC.
Christopher Levy is marketing and convergent messaging solutions
public relations manager for CYNET, company. CYNET was able to offer
Inc., a Houston-based technology to its business-to-business audi-
firm focused on developing cus- ence full Internet and e-commerce
tomer-driven business-to-business solutions as well as proprietary
communications solutions. Levy, software (ADC 2000) that is fully
with a background in brand mar- customizable for clients, including
keting (having worked with popu- portals, procurement centers,
lar auto brands including Saab, e-trade, and online shopping malls.
Porsche, BMW, and Saturn during The CYNET vision evolved to
his tenure at Momentum Automo- meet the needs and demands of
tive Group) discussed candidly how an Internet audience:
CYNET’s cybervision came to life
from inception to IPO. CYNET’s Vision
To be the industry leader in con-
Background vergent communications by inte-
Founded in 1995, CYNET began as grating traditional and emerging
a fax broadcasting company. When e-mail, fax, data, voice, and video
the current management team as- messaging with Internet applica-
sumed leadership in 1998, they tions and wireless tools, to enable
saw the potential of the available simultaneous global communica-
technology and launched the Inter- tion.
net and wireless divisions in 1999
(www.cynetinc.com). At this point, CYNET’s Mission
CYNET expanded its traditional of- To maximize the efficiency of its
ferings to include what is referred clients’ business communications
to as unified messaging (an indus- and exceed their expectations by
try buzzword that describes the creating customized solutions
ability to send and receive mainly through the integration of conver-
fax, e-mail, and voice messages gent messaging, Internet applica-
from a single source). Going one tions, and wireless tools.
step further with its cybervision,
CYNET combined the power of In- CYNET’s Audience
ternet technology and applications CYNET’s primary target is “C” level
with that of wireless solutions, to executives (CEO, CFO, COO, CTO,
be positioned in the industry as a and CIO). Its secondary target

118 CYBERBRANDING chapter 7

audience is managers and directors operating officer, Bernard
with technology buying power or in- Beale uses his talent of work-
fluence on marketing, sales, IT, etc. ing with people to build
For CYNET wireless products, the CYNET’s name worldwide. His
primary audience is the mobile 20-year career began at
workforce, and the secondary audi- AT&T in the accounting de-
ence consists of sales managers, partment, working with fi-
road warriors, service organiza- nance and budgets, and then
tions, and governments. later moved into several in-
vestment banking positions
Challenges with the Cybervision
with companies such as Equi-
■ Proper planning and execution table and Meridian Bank.
of the vision pre- and post-IPO
Michael A. Galloway, VP of
■ Differentiating the company
Technology: Galloway came
from industry giants
to CYNET from General Motors
International Operations in
Outcome
Berkshire, U.K. His numerous
■ Planning and Execution of the
responsibilities included op-
Vision: The vision came to life erations management,
with an experienced executive process engineering, and IT
team as noted in CYNET’s program management. Prior
promotional material. to his position at General
Vincent W. Beale, Sr., Motors, Mr. Galloway held
Chairman and CEO: As chief positions with Dresser-
executive officer, Vincent Kellogg Energy Services and
Beale has the charge of en- Merck & Co.
suring the strength and David R. Hearon, Jr., Se-
longevity of the company. His nior VP of Institutional De-
career has spanned over 30 velopment: Hearon has
years including positions with enjoyed a successful career of
distinguished companies in- more than 36 years with the
cluding Shearson Lehman Bell System, Western Electric,
Hutton, Paine Webber, and AT&T, and Lucent Technol-
Merrill Lynch. ogy. Involved in numerous
Bernard B. Beale, Execu- telecommunications projects,
tive VP and COO: As chief Mr. Hearon was instrumental

CYBERBRANDING Start with the Organization and the Cyberbrand Vision 119
 in the development of many as Forrester and Hoovers. CYNET’s
of the modern telephone sys- strategic planning involved ongo-
tems used in today’s complex ing discussions and meetings with
communications networks. representatives from every depart-
ment in the company (marketing,
CYNET’s executive team began
product development, engineering,
forming strong alliances at incep-
interactive, graphics, and the exec-
tion to foster the cybervision. Its
utive staff). By involving all depart-
first major alliance was with
ments and communicating the
ENRON Energy, a Fortune 100
vision internally, CYNET was then
company. With an experienced ex-
able to communicate complex infor-
ecutive team (each member with
mation, in a clear and simple for-
20-plus years in the industry) and
mat, to its customers. The
the power of technology, CYNET
company’s communication priorities
was able to capture the attention
require not only informing its
of investors quickly. These key
clients, but also delivering a consis-
players “kept the ball rolling” and
tent message of quality and tech-
made sure the company was
nology intelligence to properly
headed in the right direction, un-
position the CYNET brand.
like other technology companies
that lose focus of their visions ■ Differentiating the Company
quickly. The combination of a
“young” (with respect to age of its Heavy competition from industry
employees), energetic company giants makes it difficult to stand out
and the qualified executive team in a highly saturated industry. In
led to a successful IPO. order for CYNET to differentiate it-
CYNET’s executive team was self from the competition, it focused
also responsible for the extensive on the elements that are highly de-
planning that went into the com- manded from customers, but diffi-
pany’s cybervision. To aid in the cult for large industry leaders to
development of communication provide. These services include
strategies for CYNET’s products and customization of products, effective
services, as well as CYNET, Inc., as pricing, and value-added extras
an entity, the company constantly that encourage customer loyalty.
reviewed extensive market re- In its efforts to implement the
search from reliable sources such cybervision and differentiate the

120 CYBERBRANDING chapter 7

company, CYNET has remained nizes the challenges of the Internet,
flexible with its business model. In and behind the planning and exe-
Internet time, “Years are equivalent cution of its cybervision there is the
to a day and CYNET must be ready understanding that “change is the
to adapt at all times,” states Levy. only true constant.”
CYNET is a company that recog-

CYBERBRANDING Start with the Organization and the Cyberbrand Vision 121
 CHAPTER

8 Empowered Online Audiences

Objective:

The twenty-first century is the age of the empowered

audience. Choices are vast, and decisions on the Web are
researched and calculated. It’s time to focus on the online
audiences that know their way around the Internet and
are looking for Web sites to further empower them.
Brand recognition is realized by understanding the
following:

■ The makings of an empowered audience

■ Offering additional information to build
relationships
■ Personalization to build relationships
■ Customization of products and services to build
relationships
■ Building relationships through incentive
programs

122
THE MAKINGS OF AN EMPOWERED AUDIENCE
The twenty-first century marks the emergence of the cyberbrand
and an age of empowerment. Chapter 7 illustrated how companies
empower employees to
embrace and become a . . . most businesses do not realize the
part of the cyberbrand changing dynamics of Internet cus-
vision. The result is high tomer relationships. Customers are in
energy and high output. the driver’s seat.
At the same time, tech-
nological advances empower online audiences to control their daily
messages and information. “A lot has been said about how the In-
ternet is turning many industries on their heads while putting con-
sumers in charge of relationships once dictated by businesses,” state
the authors of the article
“Attack of the 50 Foot There is a tremendous opportunity to
Empowered Consumer.” give online audiences more of the con-
Greg Sherwin and Emily trol they readily welcome—to further
Avila discuss how most empower them.
businesses do not realize
the changing dynamics of Internet customer relationships. Cus-
tomers are in the driver’s seat.1 They control the messages about the
products and services that interest them. There is a tremendous op-
portunity to give online audiences more of the control they readily
welcome—to further empower them. It’s not what the business has
to say anymore: less talking and more listening is in order to keep
consumers satisfied.

123
 I t’s not the easiest task to abandon old-school mass marketing ideals
to embrace the “empowered customer” concept. It may not be the
simplest transformation, but it is certainly necessary when dealing
with savvy online visitors, who have more information at their dis-
posal, seek specific Internet destinations, and realize their countless
Internet options. Building a strong relationship means focusing on
the customer: it’s the customer’s way or no way. Consumers are tak-
ing charge of the
Consumers are taking charge of the technology
technology that in-
that intrigues them and know how to satisfy their
trigues them and
daily needs on the Internet.
know how to satisfy
their daily needs on the Internet. At the same time, they remain loyal
to the cyberbrands that adopt a new paradigm, one that complements
their newly formed empowerment. Now it becomes a race to the fin-
ish line. In the new economy, it’s a competition to see how quickly
businesses can develop branding messages that empower audiences
by creating Web sites that foster these new relationships.
Empowered customers exercise their choices assertively. On the
Internet, loyalty to the cyberbrand may just be a repeat visit to a Web
site. In most cases, there’s no exclusivity to any one product or service.
Although visitors might be considered “loyal brand customers,”
chances are they also belong to the competition as well. Product pur-
chases in the past were anchored with one well-known brand; Internet

124 CYBERBRANDING chapter 8

choices are vast, and consumers are apt to make purchases and receive
daily information from more than one site. This is true when a visitor
conducts a search on a popular search engine. The user might begin
on Yahoo!, then travel over to Goto.com and try a Lycos or Hotbot
search from there. A company’s brand message should be comple-
mented by a Web site that utilizes relationship-building techniques to
capture and keep the attention of audiences that are taking control of
the information that surrounds them.

OFFERING ADDITIONAL INFORMATION

TO BUILD RELATIONSHIPS
On the Internet, a closed system refers to a Web site that denies the
existence of competitors and shuts out any additional information.
This system does not work on the Internet. It’s better to provide
a customer with extra resources; after all, customers don’t need
consent to access another site. A better strategy is to provide users
with more of the links they seek in their online excursions. How-
ever, an automatic reaction to the threat of losing a customer to the
competition is to tighten the reins and gain more control. This is a
natural reaction, but it contradicts the nature of the Web and an
open system that allows users to have many choices and the ability
to access them Web sites designed to help customers find additional
easily. Web sites information gain loyalty from their visitors.
designed to help
customers find additional information gain loyalty from their visi-
tors. Years ago, the holiday film Miracle on 34th Street was released
with the familiar scene that depicts a type of open system. The char-
acter Kris Kringle offers a Macy’s customer information on a prod-
uct that Macy’s does not carry. Kringle sends the customer to
Gimbel’s (a close competitor) to purchase the product. The open sys-
tem is an informational system that points the consumer in another
direction—even if that means a customer is satisfied somewhere else
and a sale is lost. However, the open system gains the consumer’s at-
tention and respect, and is designed to satisfy his or her needs by
going above and beyond the norm to supply relevant information.
Focusing back on the Internet, eMarketer.com, a daily newslet-
ter for Internet marketing professionals, is well on its way to build-
ing solid relationships by providing additional information.

CYBERBRANDING Empowered Online Audiences 125

 Marketers subscribe to the newsletter to receive the latest Internet
news, reports, trends, statistics, and e-commerce information. The
newsletter is a model example of the open system. Each article con-
tained in the newsletter is either written by eMarketer or is from an-
other Internet news source. Each “news daily” report contains
articles that link directly to CNET.com, Red Herring, and the Indus-
try Standard, to name a few. eMarketer.com is not concerned about
Companies that move beyond the threat of sharing losing an audience to
resources have the cyberbrands that promote the another publisher of
natural and logical flow of information on the Internet. Internet news and
information. Rather,
this dot-com has formed strategic partnerships with other sites to
gain improved access for its audience to valuable resources. As a re-
sult, the professional who subscribes to eMarketer has a stronger re-
lationship with an Internet publication that goes above and beyond
to provide additional relevant information. Companies that move
beyond the threat of sharing resources have the cyberbrands that
promote the natural and logical flow of information on the Internet.

PERSONALIZATION TO BUILD RELATIONSHIPS

Amazon started a trend of personalization on the Internet, and a host
of companies followed suit. Today, more companies are making a
concerted effort to design Web sites with personalized features to sat-
isfy their audiences’ needs. MSN’s Hotmail.com recently launched its
new calendar feature to provide Hotmail subscribers with a schedul-
ing function that sets up their daily schedules and reminds users of
important dates, meetings, and tasks. Another example of personal-
ization to build a relationship is seen on Earthlink.net, with the user’s
ability to personalize a home page. Online users can design their pages
to receive the weather in various areas of the country (perhaps where
they live and where they travel frequently on business) and to obtain
horoscopes, stock quotes, and news headlines.
Personalization is also seen on the popular teen site Alloy.com.
The Web site allows teens to send in a picture to post online and re-
ceive a virtual makeover by Alloy.com. Alloy.com’s Stylewise section
manipulates a young woman visitor’s “profile,” based on her pic-
ture, telling her what type of “spring fling dress” would look best,
how Local 212’s Donna tank top is “comfy and stylish,” and which

126 CYBERBRANDING chapter 8

color is “her” color.2 Of course, all of the product recommendations
are available for
It’s the personalization that creates a feeling of control
sale on the site,
over the information process and illustrates how cyber-
and the teen and
brands recognize a consumer’s right to make choices,
her friends are
which results in increased brand loyalty.
sold by the per-
sonalization. It’s the personalization that creates a feeling of control
over the information process and illustrates how cyberbrands recog-
nize a consumer’s right to make choices, which results in increased
brand loyalty.

CUSTOMIZATION TO BUILD RELATIONSHIPS

A Wall Street–type executive walks into a custom tailor shop for
men. He goes in and is greeted cordially by the tailor, who intro-
duces himself as the shop owner. First the man tries on his new suit
for the tailor, buttoning it completely to begin the tailoring process.
The tailor then pulls the suit taut and begins to take the man’s mea-
surements. First he checks the back of the suit and then starts to
measure the length of the arms. The tailor finishes the process by
checking the man’s waist size and pants length. This is traditional
customization. The man pays more for a suit that fits his physique
perfectly. Customization is costly, but leads to a finished and pre-
ferred look (more than if the suit were just worn off of the hanger).
A woman walks into a small boutique in Soho and admires a
lovely bangle with colored stones. The shop owner and designer of
the piece assists her customer. They exchange pleasantries, and the
woman compliments the bracelet, but mentions that she prefers yel-
low gold to white gold. The owner quickly tells the woman that she
would be happy to design the same piece in yellow gold and also
shows her the sketches for a complementary necklace that she is de-
signing. The owner then counsels the woman on the best length of
necklace that would complement her style of dress. And although
the woman had no intention of making a purchase, she leaves the
boutique that day with a receipt in her hand for the 50% deposit on
her new matching jewelry set. The purchase was based solely on cus-
tomization.
The practice of customization has been around for decades—
giving the customer the ability to choose and tailor a product to
meet the strictest criteria. Customization on the Internet is taking

CYBERBRANDING Empowered Online Audiences 127

 off as well. The new economy boasts a boom in e-commerce, and
online customization lends a hand in the process, motivating cus-
tomers to make purchases. When a customer makes a purchase
from a catalog, there
The practice of customization has been around for
is no guarantee that
decades—giving the customer the ability to choose
the order will be ex-
and tailor a product to meet the strictest criteria.
actly what the shop-
per has specified. Customization online shows consumers exactly
what they are purchasing by involving them in the process and of-
fering personalization at the same time.
Nike iD was introduced by Nike Retail Services to provide its
loyal brand followers the ability to build their own sneakers. Ac-
cording to Nike, “It’s all about participating in the design of the
shoe. It’s about the freedom to choose and the freedom to express
who you are. . . . It’s about time you had a say in what you’re wear-
ing.”3 Customization is working to capture the empowered audi-
ence. First is the customization strategy for the Nike brand lover to
choose the perfect sneaker. Will it be a running shoe, cross training,
or track-and-field? Then there’s the choice of color and accent, too.
With Nike iD, the
Customization is working to capture the empowered
user also gets to per-
audience.
sonalize an eight-
character message that appears on the back of the shoe. The Web
site technology allows the shopper to see how the style, colors, and
personal ID message look by viewing the sneaker from different an-
gles. This strategy has empowered the consumer to be a part of the
decision-making process.
At Landsend.com, the company did not want to lose any time
attracting female audiences wanting customization. Upon entering
the site, customization jumps off the page. Swim Finder is the tool
that locates swimsuits based on style, leg height, and body shape and
even considers the female’s “Anxiety Zone.” The premise behind
Swim Finder is to
. . . customization allows the consumer to take control
customize the search
of the shopping process . . .
function for visitors
to find exactly the type of bathing suit they need. The message is
loud and clear: spend less time at a store trying on bathing suits and
more time in swimwear on the beach.4 There are three features
highlighted in the Swim Finder. The Bathing Suit Sorter provides
search features for style and leg height. The Anxiety Zone focuses on

128 CYBERBRANDING chapter 8

any problem area a woman wants to camouflage and recommends
the best styles for those problem areas. Last, Body Shape focuses on
different shapes and sizes of women. All shapes and all sizes are
listed for women to find the body shape that best fits their attrib-
utes. This is only the beginning of what technology has to offer on
the Landsend site. The 3D model option is an advanced feature that
constructs a three-dimensional figure to match the user’s shape and
characteristics. A detailed questionnaire asks specific questions re-
garding measurements of shoulders, hips, waist, and bust. Then,
going a step beyond, Landsend.com gives the model a hairstyle, hair
color, skin tone, and facial structure similar to the user’s. When the
“Build My Model” button is clicked on, within less than a minute a
model appears to try on a swimsuit for the consumer. She may not
be a perfect match but is at least a fair representation. The model
can try on as many swimsuits as the user desires and rotates in dif-
ferent directions to help pick the most flattering suit. Again, cus-
tomization allows the consumer to take control of the shopping
process and create hands-on the swimsuit that best suits her taste
and fits her figure. The site is customized and personal and aids any
female in one of the most difficult tasks. Bathing suit shopping is an
arduous process, in a store or otherwise, but Landsend.com at-
tempts to make the process easier through customization. Loyalty is
gained for the brand that accomplishes this task.

BUILDING RELATIONSHIPS THROUGH

INCENTIVE PROGRAMS
Continental Airlines has its One Pass program for frequent flyers to
accumulate miles for free airfare. American Express has a frequent
buyer program that turns into “membership miles,” and the Dis-
cover card is famous for giving back a percentage of purchases to its
card carriers. It’s all about rewarding the loyal consumer for a faith-
ful relationship
Incentive programs have made it to the Internet, and cy-
with a brand.
berbrands are rewarding online consumers for frequent
This is the well-
visits to Web sites, answering surveys and polls, partici-
known incentive
pating in contests, and, of course, purchasing products.
or reward pro-
gram that is also illustrated in the form of sweepstakes, giveaways,
contests, and freebies. Incentive programs have made it to the

CYBERBRANDING Empowered Online Audiences 129

 Internet, and cyberbrands are rewarding online consumers for fre-
quent visits to Web sites, answering surveys and polls, participating in
contests, and, of course, purchasing products. At ClickReward.com
the brand message is clear: “Shop Here. Earn Miles.”5 The Web site
focuses on rewarding the customer. The site is able to facilitate this
effort by providing shoppers with an attractive reward program.
They receive free ClickMiles for shopping and donating to charities.
When users visit partnering e-commerce sites, such as PlanetRx,
Selfcare.com, and MCI Worldcom, they receive ClickMiles for join-
ing as members or for making a purchase. The partnerships add to
the value of the incentive program by bringing different shopping
resources to the site. The object for the consumer is to purchase
enough products to be rewarded from the Rewards Catalog. All of
the rewards require specific ClickMiles amounts. So, for example, a
Casio 2.3-inch color LCD TV is 5600 ClickMiles (that’s not bad,
considering that the shopper gets 200 ClickMiles just for subscribing
to a free online publication). The premise behind the brand is to
promote shopping on the site and have users become frequent buy-
ers to receive bigger and better prizes. The brand builds the incen-
tives and loyalty into its message. Consumers equate shopping with
rewards. Thus, the brand experience is a rewarding experience.6
ZDNet.com also relies on “freebies, bargains and contests” as a
daily practice to attract brand followers. “Whoever said ‘you can’t
get something for nothing’ never went online. Everyday we bring
you something free, something cheap and a chance to win big.” This
is a statement on ZDNet’s home page. Incentives are up front and
unmistakable. They are integrated into the daily design of the site.
And, based on the quote, if ZDNet says that users will find some-
thing free and something cheap and will win big, then that had bet-
ter be true. It is because of these very factors that consumers will
check back to the ZDNet site to see if it’s a free sample of perfume
from Calvin Klein or $10.00 off a product. Contests are also a main
attraction for users who want the chance to win big with a shot at a
BMW Z3. Incentives and rewards keep audiences “stuck” to the
ZDNet site.
Another site fully loaded with consumer incentives is AltaVista
Shopping.com. AltaVista launched its Web-wide incentive program
to reward shoppers for “their everyday shopping activities on Alta-
Vista’s Shopping.com.”7 This is a tremendous advantage AltaVista
takes over other portal sites, such as AOL, Excite, Lycos, and Yahoo!

130 CYBERBRANDING chapter 8

(none of which established a point-earning system for visitors). As
of May 2000, AltaVista’s program was up and running. Immediately
it gained attention from audiences who took advantage of “double
points” for any activity from product searches to visiting AltaVista’s
partner sites. As a kickoff program, AltaVista also enticed Web site
audiences with a sweepstakes promotion that offered a Mercedes
SLK 230 convertible as the grand prize and spectacular vacation
experiences.8
However, what happens to the Web site that is more content- or
product-specific and is not based on an incentive program? These
Web sites should integrate contests, giveaways, bargains, and free
items into a site’s content as often as possible. So, for instance, if users
are asked to fill out questionnaires, they should be rewarded for that
participation on
. . . Web sites should integrate contests, giveaways,
the site. If it’s a
bargains, and free items into a site’s content as often as
poll they have to
possible.
answer, they de-
serve a free gift or a percentage off their next purchase. On
efloralz.com, a virtual floral department store, wholesale shopping at-
tracts businesses and consumers that want to purchase in bulk. Visi-
tors on this site expect to find weekly bargains, featured discounted
products, and seasonal contests and sweepstakes. From the reward-
strewn Web site that screams “incentive” to the lightly clad site with
weekly, monthly, or seasonal rewards, this is the highly accepted Inter-
net practice and a recognizable sticky relationship-building technique
in the new economy.
Here’s the catch. Yes, new relationship-building techniques are
gaining attention—positive attention when the technique works
from a technological aspect and from a fulfillment standpoint as
well. However, when new techniques are introduced and don’t
function properly, the brand image suffers. Although Landsend.com
has advanced technology, it has to be available to all online cus-
tomers and not frustrate shoppers who have slower connections. At
the same time,
When the technology is successful and brings the user
with respect to
more information, customization, personalization, and in-
the 3D model
centive programs, loyalty to the brand is quickly realized.
questionnaire,
these must be as simple as possible and have specific tips and guide-
lines concerning measurement procedures to walk the female shop-
per through the measurement process.9 When the technology is

CYBERBRANDING Empowered Online Audiences 131

successful and brings the user more information, customization, personaliza-
tion, and incentive programs, loyalty to the brand is quickly realized.
Mini-Case Study

BUILDING CUSTOMER RELATIONSHIPS: DRUGSTORE.COM™

The drugstore.com Web site is the “We provide our customers with
leading online drugstore and infor- the information they need to make
mation site for health, beauty, educated purchasing decisions for
wellness, personal care, and phar- their health and well-being and
maceutical products. In an inter- that of their families. We also make
view, Judith McGarry, Vice it really easy for our customers to
President of Strategic Partnerships, buy the products they need and
discussed the company’s brand check out fast, so that they can
promise as “a very healthy way to spend more time doing the things
shop,” and how the company they enjoy,” states McGarry.
prides itself on valuing customer Establishing customer relation-
relationships by building the best ships is a top priority of the drug-
replenishment shopping experience store.com team, and by using great
on the Web. According to McGarry technology the company is able to
this is achieved through optimizing pioneer new ways to interact with
its great technology to establish customers in the newly emerging
and maintain customer relation- Internet landscape. The Internet
ships, demonstrating responsive- creates an entirely new paradigm
ness to customers’ feedback and for customer relationship manage-
needs, and, finally, rewarding ment, enabling extensive
customers for their loyalty with consumer-brand contact beyond
value-added services. the storefront. The drugstore.com
Web store optimizes this paradigm
Background by focusing on every touch point of
drugstore.com, Inc., was founded in the customer’s shopping experi-
July 1998 and launched its Internet ence, including browsing, purchas-
e-tail store in February 1999. The ing, e-mail order confirmations,
company’s mission is to become fulfillment, e-mail order status up-
the leading online drugstore by dates, packaging, live customer
providing a means to healthy shop- service, and HTML e-mail news-
ping, with convenient, timesaving letters. The company’s holistic ap-
features and value-added services. proach to the customer experience

132 CYBERBRANDING chapter 8

is its key success factor. Further- the products on “Your List” may be
more, being able to maintain con- running low. In addition, the drug-
tact with customers—even after store.com newsletter is targeted to-
they’ve made their purchase—en- ward individual consumer
ables the drugstore.com Web site to preferences. McGarry mentioned
turn a first-time customer into a that the online drugstore is excited
loyal drugstore.com shopper. about a new, targeted sampling
Great technology makes the cus- program that allows sample prod-
tomer relationship-building process ucts, targeted to the consumer’s
a reality, and recognizing and preferences, to be shipped with
greeting repeat customers through every purchase. For example, if a
personalization is the second es- consumer is a frequent makeup
sential piece in the drugstore.com user, the drugstore.com Web store
customer relationship management encloses samples of make-up for
strategy. For example, as a new the user to try and later purchase
customer browses the site, drug- on the site. By maximizing cus-
store.com technology learns more tomer-brand touch points and by
about the user’s behavior and uses personalizing each customer’s ex-
that to cross-promote additional perience, the drugstore.com Web
products, based on his or her selec- store is optimizing technology and
tions. The drugstore.com Web store a new space to build customer re-
has also developed “Your List,” lationships at Internet speed.
which automatically stores a cus- According to McGarry, all areas
tomer’s purchases to create a per- of the drugstore.com Web site are
sonalized shopping list that makes doing well with increased traffic
repeat purchasing easier and more every month. The company attrib-
efficient. This feature allows cus- utes its strong growth to its success
tomers to sort and organize their in developing strong customer rela-
personal lists by category, order tionships, by responding to and in-
date, and product type; set up corporating customer feedback. The
e-mail reorder reminders; and online drugstore has several pro-
order directly from their custom list. grams that enhance the relation-
“Your List” enables the drug- ship-building process. One of these
store.com Web store to make the is the “Test Drive” product review
consumer’s next visit more rele- program, which provides con-
vant, with messages that direct him sumers with an opportunity to try
or her to specific products or prod- and then write reviews on over
uct sales, or with reminders that 1000 products on the Web site.

CYBERBRANDING Empowered Online Audiences 133

 Each week, the drugstore.com Web easiest way for consumers to navi-
site recruits prospective reviewers gate the site while optimizing its
while they are browsing for prod- visual aspects, for a more enjoyable
ucts. Interested customers sign up and more rewarding shopping ex-
on the site, receive free samples to perience. The redesign of the site
test at home for one to two weeks, showed consumers that the drug-
and then complete a detailed eval- store.com Web store values cus-
uation. Verbatim opinions from tomer suggestions and feedback,
these home assessments are posted and is motivated to continuously
on the site. The program is so suc- improve, in order to benefit
cessful that more than 8000 cus- consumers.
tomers have participated in the Determining and meeting the
Test Drive product review program. needs of the drugstore.com con-
Plans for the coming year include sumer is also essential to the drug-
doubling the number of reviewed store.com relationship-building
products by adding another 1000 strategy. The targeted consumers
product reviews. are busy women, aged 25 to 54. In
fact, women make the majority of
The Future
health care decisions and overall
Proactively seeking customer feed- purchases in the family. Research
back, through formal survey re- uncovered four primary need states
search and focus groups, is for drugstore.com consumers:
essential to the drugstore.com cus-
tomer relationship-building strat- ■ Productivity: Often, women go
egy. Listening to customers to the drugstore.com Web store
articulate their likes and dislikes to get in and get out as quickly
prompted the Internet category as possible. Their main
leader to redesign the site in March objective is to purchase all of
2000. After a great deal of qualita- the items on their list quickly
tive and quantitative research, the and easily without complica-
e-tailer changed the look and feel tion. In addition to offering easy
of the drugstore.com Web site and navigation and relevant
added new features to better suit content, drugstore.com provides
the needs of its customers. The consumers with “Your List,”
company felt that the Internet, in which allows customers to
general, is still somewhat difficult quickly reorder their
for consumers to navigate and replenishment items from a
wanted the redesign to offer the personalized shopping list.

134 CYBERBRANDING chapter 8

■ Information seeking: Women can gather advice from the
also come to the drugstore.com drugstore.com Web site on how
Web site seeking information to eat a healthier diet, and can
about products in order to make frequent the site for additional
more informed purchase up-to-date information to help
decisions. The drugstore.com them achieve their goals.
online drugstore provides
■ Reward and enjoyment: The
consumers with relevant
leading online drugstore knows
information and buying guides
and understands that
which help them make edu-
consumers want to be
cated health care decisions for
rewarded for caring for their
themselves and their families.
families. The company strives
For example, a mother shop-
to inspire its consumers and
ping for cold medicine for a
create an enjoyable shopping
sick child often doesn’t know
experience at the drugstore.com
how one cold medicine stacks
Web store with products,
up to the next, let alone which
services, and features that
one is right for her child. The
support them and their
drugstore.com Web store offers
lifestyles.
concerned moms buying guides
and advice from child health McGarry’s final thoughts: The
experts, in addition to infor- drugstore.com site was redesigned
mation from the product manu- with these need states in mind,
facturers. The drugstore.com adding new editorial features such
pharmacy also has licensed as shopping guides, product com-
pharmacists available by phone parisons, related articles, and addi-
or e-mail to answer any tional product content into the site
additional questions customers architecture, so that content is
may have. more closely aligned with the prod-
■ Empowerment: At other times, ucts themselves. Content in context
consumers seek assistance in provides customers with the infor-
devising a regimen for healthier mation they need to make the right
living. For example, consumers purchase.

CYBERBRANDING Empowered Online Audiences 135

 CHAPTER

9 Cyberstrategies to Optimize
Audience Response

Objective:

Marketers need to understand the changing dynamics of

cyberbranding strategies. From search engine
optimization strategies to “viral marketing,” the new
economy supports advanced marketing techniques.
Audiences are actively engaged in cyberprograms that are
far more attention-grabbing than the programs of the
twentieth century. These marketing campaigns drive
traffic to Web sites and optimize audience response
because the “cyberbranders” behind the campaigns
recognize the need to do the following:

■ Move beyond search engines

■ Institute contagious (viral) marketing campaigns
■ Get serious about e-mail with opt-in programs
■ Exhibit sensitivity to online audiences and privacy
issues

136
MOVE BEYOND THE SEARCH ENGINE
Empowered employees communicate a cyberbrand with “proud”
communication. Empowered audiences embrace the cyberbrand
that involves them in the decision-making process. Relationship-
building techniques fur-
ther support audiences’ . . . it’s the cyberbranding strategies
needs to take control. that enhance the message of the
However, it’s the cyber- brand, drive the traffic to the Web site,
branding strategies that and optimize audience response.
enhance the message of
the brand, drive the traffic to the Web site, and optimize audience
response. The outcome: an Internet audience closely connected to
the brand and interacting with it on an intimate level.

137
 I n the beginning there were search engines. In the 1990s, popular
brands concentrated on search engine optimization. Two con-
cepts prevailed:

■ Cyberbrands bought precious real estate as an advertising

strategy.
■ Web site specialists were hired to build sites with
programming language easily recognized by search engines
that would identify metatags and key words (key words and
key phrases inside of HTML tags).1

For the cybergiants, search engine optimization was as simple as

that. Mega banner advertising dollars were expended on the search
engine site pages, and other considerations ranged from “designing,
writing, and coding a web site or some of its pages so that there is a
good chance that these pages will appear at the top of the search en-
gine”2 to researching how an audience will react to certain key
words in their search process.
But leaving the fate of a Web site’s traffic up to search engine
optimization is not realistic in the new economy. The practice of
building cyberbrands
. . . leaving the fate of a Web site’s traffic up to search by driving traffic, and
engine optimization is not realistic in the new economy. engaging audiences
interactively with the
brand, is moving in a new direction. Again, it’s the cyberstrategies
that personalize, customize, and engage users with information tai-
lored to their specific needs.

INSTITUTE CONTAGIOUS VIRAL

MARKETING CAMPAIGNS
When it comes to cyberstrategies, viral marketing (viral in a positive
sense, meaning a way to spread the word, not to be confused with
the negative conno-
When it comes to cyberstrategies, viral marketing (viral tation of “infec-
in a positive sense, meaning a way to spread the word, tious”) is “catching”
not to be confused with the negative connotation of “in- on in the new econ-
fectious”) is “catching” on in the new economy, . . . omy, states Karen J.
Banner in her article “It’s Catching,” which appeared in Adweek

138 CYBERBRANDING chapter 9

magazine. In keeping with its name, viral marketing spreads quickly
and is contagious on the Internet.3 Viral marketing is the strategy
that extends messages via a brand’s own users who, on behalf of the
brand, forward e-mail messages to friends, family members, and
colleagues.
At one time, viral marketing was just occurring, without mar-
keters’ even realizing the strength of its presence. For instance, a
consumer on the Internet would find an interesting Web site, a
product or a service, or a piece of information that was too interest-
ing not to share with someone else. The information was valuable
enough to pass along. MSN’s Hotmail developed an earlier viral
marketing strategy in the body of its e-mail system. When a regis-
tered user e-mailed another party, the bottom of the recipient’s
e-mail message stated, “Get your private, free E-mail from MSN
Hotmail at http://hotmail.com”4 (with a link to the hotmail site for
new users to reg- The most common form of viral marketing is the “tell a
ister). This was friend” option on a web site. Word of mouth and recom-
an extremely ef- mendation or referral from a friend is one of the easiest
fective tactic to marketing strategies.
pass on informa-
tion through brand users at no cost or inconvenience to the user or
the company. Banner’s article further describes how viral marketing
is becoming commonplace with advertisers looking to optimize
marketing campaigns. The most common form of viral marketing is
the “tell a friend” option on a web site. Word of mouth and recom-
mendation or referral from a friend is one of the easiest marketing
strategies. Consumers make choices based on referrals and have
more faith in the credibility of the referral.
Etour.com is a Web site that assists online audiences in finding
Web sites that interest them and allows them to share the newfound
information through a viral marketing campaign. Etour touts itself
as the personal Web tour guide. The brand message: Discover sites
you like, one click at a time, with a Web site that guides the con-
sumer every step of the way. Etour equates Web site clicking with
television channel surfing (an interesting comparison, as television
and the Web are coming together to reach larger audiences with dig-
ital and interactive television). Web site editors are hired to review
and add new sites daily to Etour’s spectrum of offerings for users to
enjoy free of charge. Any profitability on the site is strictly from

CYBERBRANDING Cyberstrategies to Optimize Audience Response 139

 advertising revenue from the site’s sponsors. Consumers enjoy
Etour for free. The user is required to fill out a lengthy questionnaire
(an example of personalization to target the campaign) that delves
into matters of education, profession, income level, residential sta-
tus, and detailed personal interests (from business and finance to
shopping and hobbies). After completing the questionnaire, the user
is officially registered (and has entered enough demographic infor-
mation for the cyberbrand to target specific interests, site content,
and advertising messages that will spark the user’s interest and make
the site sticky).
As an illustration of the tour aspect of the site, if a consumer fills
out the questionnaire with health as a topic of personal interest,
Etour provides several health-related Web sites for the user to view
and “tour.” On the bottom of the page, located next to the “Next
Site” button that advances the user to browse a new Web site, is the
“Send to Friend” option. The user clicks on the Send to Friend op-
tion and then indicates one or two e-mail addresses of friends, ac-
companied by a message regarding the site referral.5
In September 1999, Asimba.com, a health and lifestyle Web
site, instituted a viral marketing program that saved the company
significant marketing costs. Believing in the power of viral mar-
keting to spread the word via the site’s own consumers, a com-
pany with inadequate funding needed to embark on a new
strategy. Asimba.com set up a link on its site for what it called the
“Friends and Fleece” viral marketing program. The program itself
was a takeoff on MCI’s “Friends and Family” campaign.6 If an
Asimba.com user recommended the site to 10 friends, then when
the tenth friend registered with Asimba, the person who “spread
the word” received a new fleece as a free gift. The vice president of
marketing, Adam Roth, was pleased at the overwhelmingly popu-
lar response of the program. In June 2000, as a result of the
Friends and Fleece program, Asimba had over 500,000 users, and
the cost per acquisition of users was only $3.00. This is a tremen-
dous savings for a company, compared with the $300 per acquisi-
tion that would have been spent should the company have opted
for a television advertising campaign.7 For Asimba, viral market-
ing was fast and effective, and the company’s ability to combine
the strategy with a reward program optimized audience response
significantly.

140 CYBERBRANDING chapter 9

GET SERIOUS ABOUT E-MAIL WITH
OPT-IN PROGRAMS

According to Jupiter Communications, e-mail marketing has taken

off mostly because of high response and low cost. By 2005, the
e-mail market-
By 2005, the e-mail marketing category is predicted to
ing category is
grow to $7.3 billion, up from $164 million in 1999.
predicted to
grow to $7.3 billion, up from $164 million in 1999. In addition,
Jupiter also reports that by 2005 approximately 268 billion commer-
cial e-mails will be sent annually, a dramatic increase over the 3 bil-
lion e-mails sent in 1999.
Another e-mail marketing strategy that is capturing the atten-
tion of cyberbrands is opt-in e-mail programs. A recent survey con-
ducted by FloNet, an online marketing application service, and NFO
Interactive revealed positive attitudes toward opt-in e-mail based on
responses of approximately 1000 Internet users. Of those 1000 par-
ticipants, 94% had signed up for opt-in permission-based e-mail
programs. In addition, 89% of the participants believed that e-mail
is an effective way for consumers to learn about Internet products,
services, and information that interest them. In general, the survey
revealed that e-mail is an excellent means of communication with
brands online, and more than 50% of the survey respondents chose
to trade private information for personalized service. Other interest-
ing statistics were that 95% of the participants enjoy communicating
via e-mail, 69% think e-mail is the Net’s most powerful tool, and
71% of opt-in e-mail recipients opt to click through to view a com-
pany’s Web site.8
“Personalized, targeted and as graphically sophisticated as the
customer’s computer will allow . . .”—this is what technology has to
offer in the new economy, according to Internet World’s article
“Spam’s Good Twin.” The article focuses on e-mail done right—the
way consumers want to receive information. Not invasively, always
permission-based. Opt-in e-mail is the opposite of spam; it’s the
good twin that
Opt-in e-mail is the opposite of spam; it’s the good twin
users do not
that users do not mind receiving.
mind receiving.
The article also discusses the elements of a good e-mail pitch, which
include the following:9

CYBERBRANDING Cyberstrategies to Optimize Audience Response 141

 E-mails must be permission based. Users have to agree to receive
messages; that is, e-mail marketing must consist of permission-based
marketing. Companies need to ask users to sign up for an opt-in
newsletter or ask whether they would like to receive timely Web site
updates and reminders. Most opt-in programs notify the user at the
beginning of the e-mail with the following type of message: This
mail is never sent unsolicited. This is not “spam.” You agreed to re-
ceive this e-mail.10

E-mails should provide links for consumers to unsubscribe.

Making it easier for the consumer to opt out may just be the difference
between a successful and an unsuccessful program. With this type of
Making it easier for the consumer to opt out may just option prominently
be the difference between a successful and an unsuc- displayed to cancel
cessful program. the e-mail subscrip-
tion, a certain com-
fort level is established and maintained between the brand and the
consumer. Examples of opt-out messages:
■ Click on the link below to be removed from this “ezine”
list.11
■ If you do not wish to receive future e-mails, reply to this
e-mail with the word “remove” in the subject line and your
name will be promptly deleted from our database.12
Either option gives the consumer a way to cancel an e-mail market-
ing program. In most cases, just because they know they can cancel
their subscription, users do not generally end a program.

Use the e-mail to communicate the cyberbrand message. The

e-mail message should remind recipients that they chose to hear
from the cyberbrand. The body of the e-mail should include the
name of the company, logo, tag lines, and any visual representations
of the company (if the e-mail is in an HTML format with graphics).
The e-mail should also contain a hyperlink to the brand’s site. Even
a newsletter in plain text should contain the name of the company
in the subject line and a hyperlink.

Personalized messages make a difference. Users opt to receive

the e-mail, but pay more attention to the message when it is person-
alized and targeted. Stating the customer’s name in a greeting

142 CYBERBRANDING chapter 9

message and forwarding relevant information is more meaningful.
In addition, messages should be timely. If a consumer purchases a
product from a Web site, waiting approximately one month to for-
ward an e-mail
Users opt to receive the e-mail, but pay more attention to
message for a
the message when it is personalized and targeted.
special offer on a
related product is effective (e.g., after the purchase of a television
set, a special offer on a VCR is appropriate 30 days later).

Use results to guide the marketing campaign. Tracking e-mail

marketing results is a must. Regina Brady, vice president of strategy
and partnerships, FloNetwork, believes that analyzing this informa-
tion will assist the company in customizing future marketing efforts.
In addition, understanding sales volume and total purchases will
also guide the company with its strategic planning, allowing the
company to budget properly for programs that were successful and
to observe any breakdowns or failures of previous e-mail efforts.13

BE SENSITIVE TO ONLINE AUDIENCES

AND PRIVACY ISSUES
Optimizing audience response through cybermarketing strategies is
only as good as the audience that allows the program to be success-
ful. As companies strive to create these programs, it is imperative to
consider how consumers view and value privacy on the Internet,
and have the power to eliminate, from their cyber regimen, any
brand that infringes on their Internet privacy rights. In other words,
the cybermarketing program is in the hands of its audience. An arti-
cle called “Gauging Attitudes about the Internet,” by Jeri Clausing,
discusses the results of a research study that involved 10 two-hour
sessions with groups of consumers to find out how people really feel
about the Inter-
net and if they Optimizing audience response through cybermarketing
trust businesses strategies is only as good as the audience that allows the
online. The six- program to be successful.
month study un-
covered several interesting findings including the following quotes
from its participants: “It should be buyer beware or user beware,”
and “I think we should know where personal information is going. I
think we should be protected so not anyone could know where I

CYBERBRANDING Cyberstrategies to Optimize Audience Response 143

 live, [or] how old I am.”14 These issues are still quite present on the
Internet, and businesses need to address the manner in which infor-
mation is targeted and used for marketing purposes.
Take IBM, for instance. The company decided that it would not
advertise on any Web site that did not clearly state an up-front pri-
vacy policy for its users. IBM’s logic behind the decision was that
any cyberpartner associated with the IBM name must have the same
respect and concerns for privacy on the Internet. Any Web site that
did not adhere to this reasoning would mar the IBM reputation.15
In Washington, policy makers are closely watching Internet
information-gathering practices. As of June 2000, more than 20
companies and groups had opted to work together to find solutions
for privacy issues that would benefit consumers and soothe Internet
fears. The effort, which comprises companies such as AT&T, Dell
Computer, Ford Motor Company, and IBM Corporation, is called
the Privacy Leadership Initiative. The results will be the implemen-
tation of basic pri-
In the long run, audiences will share with cyberbrands vacy rules on the
what they want to share, when they want to share it. Internet, with Web
sites adhering to spe-
cific practices that will respect the right of the online consumer. A
further initiative is the new privacy technology, the Platform for Pri-
vacy Preferences (P3P), that took its first test drive in June 2000.
Specifically, this type of technology permits computer users to come
to a decision as to the amount of personal information they want to
divulge online.16 It’s evident that attitudes toward privacy range
from consumers who may not care much about the information
they reveal, to others who feel betrayed by brands that use informa-
tion improperly. Cyberbrands are quickly realizing that it is better to
be ultrasensitive to the issues that consumers have about privacy
and targeting information. In the long run, audiences will share with
cyberbrands what they want to share, when they want to share it.
Those brands that have respect for consumer issues, and those that
use targeting methodology and information-gathering techniques
properly, will benefit in the twenty-first century.

144 CYBERBRANDING chapter 9

Mini-Case Study OVERCOMING INTERNET CHALLENGES
AND OPTIMIZING AUDIENCE
RESPONSE: ATT.COM
In January 1999, AT&T launched challenges at that time, including
Personal Network, a Web site with the following:
online ordering, which allowed
■ Though they could sign up on
customers for the first time to select
the Net, when people had
different communication packages
problems with services they did
online and configure a bundle of
not always turn to the Internet
AT&T services in a one-stop shop-
or the AT&T Web site.
ping effort. An interview with Mar-
itza DiSciullo, director of consumer ■ AT&T provisioning centers
research, provides insight into the were still overtaxed in dealing
program’s awkward start and how with the response rate, which
the company strives to overcome led to lost sales and
Internet obstacles. AT&T antici- disappointed customers.
pated that customers would em- ■ AT&T realized that building a
brace using the Internet to choose Web site was not only about
services and get customer support. offering services online but also
However, customers were more about changing AT&T
likely to call in to place orders and customers’ behavior.
receive support. This resulted in ■ AT&T offered the best
call centers’ being overtaxed with incentives, but that had little
sign-ups, which, though good for meaning if the behavior did not
AT&T, was frustrating to many cus- alter.
tomers who wanted to receive
these services.
Solution
Challenge AT&T’s primary audience was its
“AT&T’s idea was ahead of its high-paying ($75-plus) customer,
time,” states DiSciullo. She ex- or the customer who selects multi-
plained that the launch of the Per- communications from AT&T (who
sonal Network occurred at a time orders Internet access through
when AT&T customers were not AT&T as well as a long-distance
completely confident about online plan and a cellular telephone). This
telecommunications. As a matter of group was the initial target of
fact, AT&T experienced several AT&T’s e-based services.

CYBERBRANDING Cyberstrategies to Optimize Audience Response 145

 Since the launch of the site, purchasing cars online as a daily
AT&T has offered its customers practice. Their customers still want
more incentives to take advantage to see and touch the product.”
of its online billing program. AT&T AT&T has employed extensive
is positioning online customer ser- research to find out why customers
vice as a program that benefits cus- are hesitant to take further advan-
tomers, allowing them to enjoy tage of online services and how the
several advantages, including: functionality and design of att.com
increases or decreases customer
■ The ability to view an online
participation on the site. AT&T con-
statement and have the
ducts usability studies regularly
convenience of automatic bill
(DiSciullo coordinates them, and
payment from a credit card or
analyzes the research findings) to
personal checking account
test whether customers know and
■ The capability to sign up and understand how to use the AT&T
receive free minutes of calling site properly. DiSciullo explained
(an incentive that is not offered that if a site is not designed appro-
traditionally) priately, then customers will not
■ An automatic payment system know if a transaction has taken
with no more paper bills place. This leads to confusion and
■ The convenience of online frustration. The usability studies are
customer service in a one-on-one setting, with the
AT&T customer at a computer ter-
The program stresses to customers minal. A series of tasks and func-
that online billing is “not like their tions are performed on the AT&T
average bill.”* Instead, it’s easy to Web site with the moderator timing
read and friendly and allows the and measuring the number of
customer to review telephone calls, mouse clicks to perform each task.
charges, and more with a click of Following the exercises, the partici-
the mouse. The customer can also pant is given a qualitative inter-
access online customer service rep- view to elicit responses regarding
resentatives quickly and easily. preferences, likes, dislikes, and
Even with incentives, the online opinions about the site.
billing program is about changing Through extensive research,
customer behavior. “For example,” AT&T has overcome several obsta-
DiSciullo says, “BMW has a great cles and has seen the following
reputation, but consumers are not results:
*www.shop.att.com

146 CYBERBRANDING chapter 9

■ More successes online with the line tickets and getting involved
billing system. with real estate and banking online
■ Wireless Web sites have (which was rarely heard of 5+
improved tremendously. years ago).” When asked to discuss
how AT&T fits into the picture, she
■ The site has been redesigned
explained that telecom is coming
to become neater, slicker, and
through slowly and that it requires
easier to use (with respect to
a great deal of commitment and
design, AT&T found out that
trust. AT&T customers tend to re-
less is more).
search and investigate the various
■ AT&T is working to integrate a
rate plans on att.com but still order
central theme and design for all
the service over the telephone with
of its Web sites and be consis-
a customer service representative.
tent with brand messages.
They tend to add in that extra un-
■ AT&T is able to offer a la carte necessary step offline, instead of
services for one-stop-shopping. just clicking the mouse and order-
ing online. This has absolutely
According to DiSciullo, with re- nothing to do with the brand; it all
spect to e-commerce, “consumers about the Internet as a medium—a
have gotten their feet wet with company could offer the best in-
companies like Amazon and the centives, personalization on a site,
ability to purchase a book.” She and customized products, but that
further stated, “This is the safe way is irrelevant if the Internet does not
to test the waters and then move have the complete trust of its con-
on to larger purchases, such as air- sumer users.

CYBERBRANDING Cyberstrategies to Optimize Audience Response 147

 CHAPTER

10 Persuasion in Cyberspace

Objective:

Persuasion on the Internet ranges from the most creative

branding communication endorsed by celebrities to the
simplest e-mail marketing and banner ad programs.
From rich interactive media to straightforward HTML
text messages, persuasion online urges consumers to try
new products and services. The objective of this chapter
is to reinforce how the Internet has varying levels
of acceptance of persuasion and to gain a clear
understanding of the following:

■ Powerful persuasive tactics

■ Persuasion in its infancy stage
■ Beyond the traditional endorsement
■ How technology intensifies persuasion
■ The fine line between persuasion and invasion
■ Varying levels of acceptance

148
POWERFUL PERSUASIVE TACTICS
Television, radio, and print media have seen their share of celebrity
endorsements—a powerful and persuasive branding technique pop-
ular with both the brands that seek to develop everlasting life and
the star personalities who want their unique personas to be associ-
ated with more than a movie, a hit sitcom, or a Broadway perfor-
mance (and, of course, for the sake of maximum exposure too).

Quick Test:
Which products are associated with these celebrities—Jerry
Seinfeld, Candice Bergen, Paul Reiser, Phil Rizzuto, Sarah
Michelle Gellar, Ricardo Montalban, and Dan Marino?

Answers:
American Express, Sprint, AT&T Long Distance, The
Money Store, Cover Girl, Chrysler, and Isotoner.

149
 F or the brand, a celebrity’s name translates into product recogni-
tion and increased brand awareness. For the star, endorsements
mean life beyond
For the brand, a celebrity’s name translates into prod-
immediate stardom.
uct recognition and increased brand awareness.
For this very reason,
Joe DiMaggio, famous for his record-setting career in baseball, will
always be remembered in the Mr. Coffee advertisements. And as the
Internet transforms brands into cyberbrands, the same persuasive
star power is present.
However, celebrity endorsements online have started on a
smaller scale—although, according to the New York Times on the
Web, Hollywood has found a new status symbol: it’s celebrities on-
line with “official” Web sites that offer fans a means to communi-
cate and interact with stars, allowing the stars to “. . . reach their fans
directly, skipping past press, promoters and movie studios.”1 Now,
there’s more to the persuasive presence of stars online. When sports
celebrity Shaquille O’Neal appears in a Business Week advertisement
(June 2000) endorsing Digex.com, he also has his own Web site ad-
dress and logo dis-
Both Cyber brands and talented personalities are look-
played in the ad
ing to team up to make the most impact in Cyber-
(dunk.net). Both cy-
space.
berbrands and tal-
ented personalities are looking to team up to make the most impact
in cyberspace. There are many popular personalities taking a stab at
Internet endorsements: William Shatner and his unmistakable
singing for Priceline.com, Whoopi Goldberg for Flooz.com, Sophia
Loren affiliated with Giftcertificates.com, and Florence Henderson
endorsing Carpetone.com. As a channel of persuasive communica-
tion, how does the Internet rate in comparison with offline endorse-
ments and persuasion?

PERSUASION IN ITS INFANCY STAGE

Persuasion on television is the same as persuasion on radio, which is
the same as persuasion in magazines, which is the same as persua-
Persuasion is persuasion is persuasion is persuasion. sion on the Internet.
Not so. The effects of persuasion depend upon the au- Persuasion is persua-
dience’s reaction to the medium that communicates sion is persuasion is
the persuasion. persuasion.

150 CYBERBRANDING chapter 10

 Not so. The effects of persuasion depend upon the audience’s
reaction to the medium that communicates the persuasion. A com-
mon, traditional definition of persuade is:
To cause [someone] to do something by reasoning, coaxing,
urging, etc.

The act of persuasion depends upon the recipient of the action.

Consider this scenario and how several tactics come into play. A 40-
year-old woman owns a cell phone and is not necessarily in the mar-
ket to buy a new one. She’s satisfied with her current AT&T
telephone and its accompanying plan. However, the woman hears
an advertisement on the radio offering a new Verizon plan with a
Nokia cell phone and 60 free minutes of telephone time on week-
ends. The advertisement comes on when she’s listening to her fa-
vorite radio station, and it’s not the first time she’s heard the
commercial. As a matter of fact she’s heard it at least six times dur-
ing her morning commute to work. The woman decides to memo-
rize the 1-800 number that is aired in the advertisement. A few
things have occurred in this situation. The woman is persuaded by a
repetitive commercial that airs on a radio station that she trusts and,
therefore, will consider researching the Verizon plan and the Nokia
brand.
In this example, persuasion is only as effective as the channel that
communicates it, the amount of trust consumers place in that com-
munication channel, the clarity of the message and the number of
times the persuasive message is communicated. When it comes to the
Internet, persuasion is still in its infancy stages. On the contrary, per-
suasion in print and broadcast is much more mature, with research
studies and statistics to prove its effects on consumer behavior. At this
stage of Internet development, persuasion may not necessarily result
in a product purchase or use of service via e-commerce, but may sim-
ply amount to holding an Internet audience’s curiosity. What does
William Shatner
. . . persuasion is only as effective as the channel that
sing about for
communicates it, the amount of trust consumers place in
Priceline.com, or
that communication channel, the clarity of the message
what will happen
and the number of times the persuasive message is
when the con-
communicated.
sumer puts that
AOL CD-ROM into the computer disk drive? And although the Inter-
net has penetrated more homes in a shorter time frame than television

CYBERBRANDING Persuasion in Cyberspace 151

 or radio has in the past, there are still significant consumer privacy is-
sues and concerns that hinder the effects of persuasion on a con-
sumer’s product purchase or use of a service online (even if the
consumer’s favorite celebrity is the spokesperson for the brand).
However, as compa-
. . . as companies and the government band together
nies and the govern-
to address privacy issues—and especially as more
ment band together
and more consumers put their trust into this interac-
to address privacy is-
tive and highly engaging medium—persuasion on the
sues—and especially
Internet will grow and surpass any other communica-
as more and more
tion channel.
consumers put their
trust into this interactive and highly engaging medium—persuasion
on the Internet will grow and surpass any other communication
channel. The Internet is the only medium that affords the cyberbrand
constant persuasive power, interacting with the consumer with a
broader reach than any other communication channel.

BEYOND THE TRADITIONAL ENDORSEMENT

Famous personalities, or agents on their behalf, are actively seeking
opportunities to assist companies to promote their brands for the sake
of constant interaction and exposure by employing persuasive
celebrity appeal. The mixing together of Internet reach, constant in-
teraction and exposure to the consumer, and celebrity charm is

152 CYBERBRANDING chapter 10

known as the convergence of high technology and celebrity culture,
with a branding potential that is tremendous for all parties involved.2
What happens when venture capital looks to the stars? Apparently,
“big” deals are being made between dot-com start-ups that need to
rise above the clutter and celebrities looking for more than just a pay-
check for an endorsement. Hollywood on the Internet is no longer the
same promotional game. Stars are looking for not only more exposure
and larger pay-
The Internet takes persuasion to a new level for celebrities
checks, but also a
and for companies that are trying to rise above the dot-
piece of Internet
com noise that has saturated print and broadcast media
action. Celebri-
channels.
ties are being of-
fered stock options worth millions of dollars and opportunities to sit
on the boards of directors of start-up ventures. William Shatner re-
ceived 125,000 stock options from Priceline.com, and Cindy Craw-
ford was offered a stake in estyle Inc. and the opportunity to sit on its
board of directors. Traditionally, these options were not available to
Hollywood. The Internet takes persuasion to a new level for celebrities
and for companies that are trying to rise above the dot-com noise that
has saturated print and broadcast media channels.3
The effect of persuasion on online consumers (from star endorse-
ments) is undetermined. However, the possibilities are limitless. Con-
sumers buy Nike golf wear and equipment because Tiger Woods
wears and uses that brand. After the equipment is purchased, the only
connection the consumer has to Tiger Woods is the memory of his
television advertisement. The Internet takes celebrity appeal to a new
level of interaction for the consumer and a new level of exposure for
the celebrity.
Voxxy.com, a Los Angeles start-up that targets a teen audience,
has chosen Jennifer Aniston as its “spokesgoddess.” According to
Aniston, “Voxxy will let me cut through the hype and allow me to
speak honestly with teens about anything from self-image and social
politics to family and friends—leaving little room for misinterpreta-
tion by the mainstream media.”4 Voxxy.com believes that Aniston’s
star power will go a long way on the Internet. And on the Internet,
teens will hear personal messages from Aniston that will draw them
closer to the cyberbrand. Aniston’s celebrity appeal will be constant
and extends far beyond the memory of a television commercial. It
can be reinforced every time the teen logs on to Voxxy.com. The
ability to reach the teen one-on-one is extremely persuasive and

CYBERBRANDING Persuasion in Cyberspace 153

 engaging for this audience. Persuasion on the Internet will be an on-
going effort for the cyberbrand. The Voxxy brand has the opportu-
nity to continuously reach teenagers, on a 24/7 basis, with
persuasive messages that cause them to respond to the brand with
one or more of the following reactions:
■ Association: Always making the connection between the
Voxxy cyberbrand and Jennifer Aniston, who is well known
and well respected as the likable character Rachel on the hit
television series Friends.
■ Familiarity: Remembering the Voxxy name and URL address
and feeling comfortable with a cyberbrand that Aniston is
involved with and contributes to daily, compelling teens to
talk about Aniston as if she were a personal friend.
■ Credibility: Celebrity appeal also translates into instant
credibility—if the teen likes Aniston and her friends do too,
the teen will like the Voxxy cyberbrand.
■ Notoriety: The feeling of self-importance that comes from
using a brand that Aniston supports and believes in herself.
Teens will feel as “popular” interacting on Voxxy as Aniston
is on television.

TECHNOLOGY INTENSIFIES PERSUASION

The Internet has the ability to take every consumer reaction and in-
tensify it because of the constant interactive quality of the medium
and the steady rein-
The Internet has the ability to take every consumer
forcement the Inter-
reaction and intensify it because of the constant inter-
net provides for the
active quality of the medium and the steady reinforce-
brand. Beyond star
ment the Internet provides for the brand.
endorsements, per-
suasion on the Internet also appears in other forms, including these
increasingly popular types of persuasive tactics:
■ Treeloot.com’s punch-the-monkey banner ad is persuasive
since it challenges the user to “punch” or “click” the monkey
to visit the Treeloot site and win a prize. Challenging ban-
ners evoke interest and tempt consumers to click on ads.
■ Interactive rich media banner ads with movement and Flash
programming use recognizable symbols to entice users to

154 CYBERBRANDING chapter 10

 click on banner ads. For instance, Trappolotto.com has bold
flashing dollar signs letting users know there are oppor-
tunities to win money. Banners that imply money and prizes
entice consumers to enhance their chances to win.
■ CDnow.com urges audiences to take advantage of great
music deals both in banner ad text and on the site itself.
The opportunity to receive a discount is appealing to the
consumer.
■ J. C. Penney e-mails consumers in HTML text (plain and
simple) alerting them to sales and holiday bargains (e.g.,
Fathers Day—25% off items for dad). Consumers appreciate
receiving the same type of deals that are available at J. C. Pen-
ney brick-and-mortar stores without having to make the trip.

THE FINE LINE BETWEEN PERSUASION

AND INVASION
When does persuasion on the Internet go too far? A 62-year-old
woman has been on the Internet for about six months. She has re-
cently purchased a laptop computer and enjoys the Internet for re-
search and the ability to communicate via e-mail with friends and
family. The woman definitely has “issues” with the Internet about
privacy and is not willing to purchase from just any Web site (even
if it appears to be a good deal). She logs on to CompuServe twice a
day (morning and evening) to check her e-mail. Since the merger
between CompuServe and AOL, the woman receives the same mes-
sage on her screen over and over again: “Learn more about
AOL. Click here for details—try 500 AOL hours free.” The woman
clicks the “x” to There has to be a limit to persuasion, a program that dis-
close the win- continues a series of messages or the same message de-
dow (every time livered over and over again if the consumer does not
the message ap- respond after a certain amount of time.
pears) and fi-
nally says, “Maybe if I just keep ignoring this annoying message, it
will eventually go away.” An annoying, repetitive message is how the
woman views the CompuServe/AOL message. Sooner or later she
will equate the annoying message with the brand. Persuasive? No.
Why? Because persuasion has crossed a fine line between reasoning,
coaxing, and urging to invasive and bothersome. And because the

CYBERBRANDING Persuasion in Cyberspace 155

 woman is a subscriber to CompuServe, she automatically receives
the message with no option to cancel it (on television she would
turn the channel, and on the radio she would change the station).
There has to be a limit to persuasion, a program that discontinues a
series of messages or the same message delivered over and over
again if the consumer does not respond after a certain amount of
time. Otherwise, the persuasive tactic becomes invasive and tar-
nishes the brand.
There are two traditional marketing terms, “Adspeak” and “Mar-
keting Speak,” both used in reference to a style of communication that
addresses mass audiences with manipulation and persuasion (treating
all of the members of the audience the same). At one time both Ad-
speak and Marketing Speak worked well over traditional communica-
tion channels. The Internet is not about Adspeak or Marketing Speak.
It is a one-on-one, permission-based medium—even when it comes
to the art of persuasion. What is the consumer looking for in a cyber-
brand? From the consumer’s perspective: If you want to reach me,
speak to me like a unique individual. Do not try to persuade me the
same way you (the cyberbrand) try to persuade thousands of other
prospects on the Internet. I am a real person and I want you to com-
municate to me in this fashion.5

VARYING LEVELS OF ACCEPTANCE OF PERSUASION

Different audiences accept varying levels of persuasion on the Inter-
net. Groups that are technologically advanced and Internet-savvy,
such as children, teenagers, and young adults, and who are exposed
to the Internet and computers through school programs are more
likely to be persuaded online than a senior citizen on the Internet
who is just beginning to research available information and services.
For instance, a 24-year-old male is easily persuaded to bank online
by PNC Bank because of its Account Link program. By registering
on the PNC Bank
Different audiences accept varying levels of persua- Web site, the young
sion on the Internet. man has the oppor-
tunity to win one of
five “great prizes” every week simply by using the Account Link
banking service. PNC Bank offers its customer the chance to win a

156 CYBERBRANDING chapter 10

new Dell PC, a Palm Pilot organizer, a digital camera, a CD rewriter,
or a color printer. For the 24-year-old, navigating the Internet and
using the Account Link program is trouble-free. He has grown up
with computers and has attended Internet classes in college. The
young man believes in the Internet and is not threatened by the
medium. He is therefore easily persuaded by his bank to take advan-
tage of Account Link.6 The earlier example of the 40-year-old
woman who heard the radio commercial signifies another level of
acceptance. She not only memorizes the 1-800 number, but also re-
alizes she can log on to the Verizon Web site or Nokia.com to find
out about the brand and to get a better cell phone deal. She is ex-
tremely accepting of persuasion online (females age 30+ are a large
Internet shopping audience) and will not hesitate to order services
for her new cell phone.
According to an Internet study of approximately 2000 Internet
users that was conducted by PeopleSupport, an Internet customer
service provider, 63% of those who shop online more than once a
week are women.7 However, the 62-year-old woman who logs on to
CompuServe
. . . 63% of those who shop online more than once a week
and receives an-
are women.
noying e-mails
has an extremely low tolerance for persuasion. The Internet is not
reaching her, because it lacks the human element she needs (the per-
suasive salesperson in a boutique who tells her she looks wonderful in
her dress, or the telephone customer service representative who assists
with a product return). Because the woman has not completely
grasped the technology, she does not fully understand what Web sites
have to offer and how they can satisfy her shopping needs. Therefore,
the woman does not allow herself to be persuaded online. Without
enough knowledge of or respect for the Internet, any offer that a cy-
berbrand makes is absolutely useless to the woman. It might not even
matter if Robert Redford, her all-time favorite celebrity, addressed her
personally and
Lack of knowledge on the part of the consumer is a dan-
asked her to ac-
gerous thing for the cyberbrand. Cyberbrands will be most
cept a discount
successful with persuasive tactics when all audiences ac-
coupon (unless,
cept the Internet as a viable, safe, and secure place to
of course, it was
shop and exchange information.
Robert Redford
making an “indecent proposal” as in his movie). Lack of knowledge

CYBERBRANDING Persuasion in Cyberspace 157

 on the part of the consumer is a dangerous thing for the cyberbrand.
Cyberbrands will be most successful with persuasive tactics when all
audiences accept the Internet as a viable, safe, and secure place to shop
and exchange information.
The results of a recent study aired on CBS Radio’s MarketWatch
discussed how the Internet lacks the “human element,” a Web strat-
egy that would result in an increase in e-commerce sales and further
acceptance of e-commerce programs among larger groups of con-
sumers.8 CBS Radio talked about how Web sites will be equipped to
handle more interactive conversation and how they need to be oper-
ational with technology that allows consumers to roll their cursors
over a product and receive an audio message that states, “May I help
you” or with the capability of immediate response and feedback to
answer consumer product and service inquiries. This study con-
cluded that brands on the Internet will lose 60 to 70% of their
e-commerce sales if the human element is not incorporated into
Web site design and technology.
There are programs being developed to add in the human ele-
ment. For instance, Instant Call by Global Online Telephone is an
e-mail application that allows the online consumer to receive a tele-
phone call from the cyberbrand. For example, the software allows
the user to input a name, an e-mail address, a telephone number,
and whether or not the user wants to be contacted in one minute,
five minutes, etc. The program requires Netscape version 3.02 or In-
ternet Explorer version 3.02 or higher and is an excellent means for
the user to experience the human element that is missing from most
cyberbrands. Incorporation of these human elements will make au-
diences more receptive to persuasion on the Internet. Thus, groups
that normally would not be as affected by persuasive Internet tactics
will soon be exploring cyber opportunities based upon newfound
trust and the nature of the persuasive messages they receive from cy-
berbrands. Remember, persuasion is as effective as the medium that
communicates the message.

158 CYBERBRANDING chapter 10

Mini-Case Study INTERVIEW: THE HUMAN TOUCH HAWAIIAN STYLE:
SURFWEARHAWAII.COM
The Internet is the only communi- WearHawaii’s primary audience is
cation channel that allows an audi- college students and people aged
ence to experience and interact 20 to 30. Secondary markets in-
with Hawaiian culture from any- clude those 13 to 18 years of age.
where in the world. SurfWear- To date, an existing customer’s av-
Hawaii.com, an international erage purchase is approximately
e-tailer of surf products including $75. “Because the Internet is still
Gotcha, More Core Division (MCD), educational for most, our shoppers
Faith Riding Co., XCEL, North Shore tend to order $25.00 in product the
Underground, and other popular first time around, and then usually
Hawaiian brands, sells contempo- increase orders to over $100 for
rary Hawaiian culture and shows second purchases.” According to
its audiences worldwide what it is Tuteur, repeat business is a lot
really like on the Hawaiian Is- cheaper than trying to win new
lands—the weather, the culture, the customers. SurfWearHawaii.com fo-
people, and the products. With cuses on “growing” repeat visitors,
trendy surf wear and a strong utilizing the following persuasive
Hawaiian brand, the company is techniques:
growing rapidly to facilitate mar-
■ Freebies for customers:
kets in the United States including
SurfWearHawaii gives away
Florida, Texas, Chicago, and Cali-
free surf stickers, calendars,
fornia, and also international mar-
and Lolo postcards to send to a
kets including parts of Europe,
friend or relative.
Hong Kong, and Singapore.
■ Discounts for customers: As an
Background incentive to purchase more
Rick Tuteur, president and founder products, programs such as “Mr.
of SurfWearHawaii.com, launched Big Buy” discount customers
the site in November 1998. In an 15% on their purchases of
interview, Tuteur discussed how he $250 and more.
left a “good” paying job in the cor- ■ The human element: The
porate world to pursue an Inter- human element is critical for
net venture and his dreams of customer service: “Talk to Us” on
educating the mainland about con- the SurfWearHawaii site
temporary Hawaiian lifestyles. Surf- prompts customers to order by

CYBERBRANDING Persuasion in Cyberspace 159

 telephone or to e-mail any one love to discuss what they like and
of four people for their customer dislike on the site including the
service and Web site inquiries. easy navigation and the ‘cool’
Hawaiian theme,” explains Tuteur.
“Having a customer service rep-
Research of this type is also ob-
resentative’s e-mail address avail-
tained through SurfWear-
able [e.g., susan@SurfWearHawaii.
Hawaii.com’s suppliers, who keep
com] gives customers the opportu-
Tuteur updated on the hottest col-
nity to receive real-time feedback
ors, what products sell the most,
from a live Hawaiian representa-
what their core products are, and
tive,” states Tuteur. He goes on to
in which areas they do well. “Sup-
discuss that the human element is
pliers are only too happy to con-
the single most important aspect of
tribute. Between supplier and
the SurfWearHawaii.com site. The
customer feedback, we have been
company has gone to great lengths
able to move forward with a site
to find out from customers what
redesign utilizing brighter colors (as
they need and what they enjoy on
preferred by audiences) such as
the site, and the company uses this
yellow and red which are also con-
valuable information to build a bet-
sidered traditional Hawaiian col-
ter customer service program. Surf-
ors,” states Tuteur. The company
WearHawaii.com believes in
moved away from blacks and blues
personal response, from the real-
toward happy, splashy colors that
time e-mail replies, to the personal
please its youthful audience and
Mahalo (thank you) letters from Tu-
reinforce the Hawaiian culture.
teur himself, signed in bright-red
ink, on yellow paper with an As-
trobrite envelope—completely The Future
personal and completely customer- Even with the business growing at
friendly. Even the FAQ section on a rapid rate, SurfWearHawaii.com
the site is updated frequently to faces its Internet challenges. The
display questions posed by cus- company was born online and, like
tomers. Most Web sites forget about any dot-com start-up, wants to see
updating FAQs to reflect new cus- return on investment. According to
tomer service issues or even new Tuteur, the company doubled its
Internet issues. SurfWear- traffic and sales within the first
Hawaii.com pays close attention to year (he jokes how every dot-com
customer inquiries. “Customers doubles traffic and sales, consider-
willingly offer us feedback. They ing where most start off!). In any

160 CYBERBRANDING chapter 10

case, Tuteur attributes 40% of site world to check out the weather and
traffic to the search engine listings beaches in Hawaii—Kauai, Maui,
and 60% to other Web sites (and and Waikiki; only the Internet
SurfWearHawaii.com’s upgrade to makes this possible for SurfWear-
an associate program). And, yes, Hawaii.com. The ability to reach
they too follow the Amazon Associ- out to mainstream communities
ate Program model. around the world and expose them
Tuteur’s final thoughts on the to contemporary Hawaiian lifestyles
direction of his company are to was never attempted pre-Internet.
have an entertaining site that is The Internet allows SurfWear-
rich with local Hawaiian culture. Hawaii.com to spread the hospital-
Currently, SurfWearHawaii.com has ity and friendliness for which
Web cams for customers around the Hawaiian culture is so well known.

CYBERBRANDING Persuasion in Cyberspace 161

 Full-Case Study
IBM AND CYBERBRANDING
In the new economy, IBM has man- Watson explained that for IBM,
aged to stay in the vanguard of mar- branding is an experience, and must
keting communications both on- and increasingly be looked at and treated
offline, by harnessing the unique ca- with a cross-functional approach,
pabilities of the Internet to better tying together all a company’s orga-
communicate with and serve its vast nizational vacuums and adopting a
range of customers. It has done so by customer-centric “e-perspective.”
focusing on three different functional While such efforts may begin with
perspectives: technology, organiza- online marketing communications—
tion, and culture. The outcome is a say, with an interactive banner or
brand that maintains its historical pop-up window featuring a com-
promise but at the same time empha- pany’s product or service—with the
sizes its evolving focus on providing move toward increased bandwidth
one-to-one, increasingly customized and device portability, it will increas-
“e-interactions” with its customers. ingly begin to force other functions to
According to Todd Watson, digital become an integral part of the inter-
brand manager with IBM Corporate active food chain, including customer
Marketing, the reach of the Internet support (before and after the sale), fi-
across traditional organizational func- nancing, product development, etc.
tions forces companies to begin fo- The Internet has forced companies
cusing on holistic customer to learn more about their existing
relationship management, or CRM, as markets and to branch out into new
it has come to be known. Watson, markets. Watson discussed how IBM
who has been involved with the IBM increases the brand experience
Web since September 1994, and who through an understanding of its cus-
is a passionate and energetic advo- tomers and the nature of their needs.
cate for sound digital brand manage- “Data is critical for the new model. If
ment, suggests that making this you don’t know your customer, you
transition requires an especially sen- will lose them,” explains Watson.
sitive understanding of the issues Companies focused on creating an ef-
surrounding consumer privacy and fective cyberpresence will increas-
customer data protection, which will ingly have to take the steps to
increasingly impact Internet market- identify customers—whether they’re a
ing communications. group that spends $100,000 or

162 CYBERBRANDING chapter 10

$1 million—and their needs and, more ever, the foundation of any relation-
important, cultivate ongoing, mutually ship is mutual trust. E-businesses
beneficial relationships with existing must understand this relationship and
customers. Despite the recent dot- realize that customer data and pri-
com fervor, reality is hitting home, vacy will prove to be the single most
and companies are realizing they important issue in the new economy.
must move beyond simply focusing The ability to receive customer data is
on Internet acquisition and instead a privilege and should be treated as
begin to focus on long-term retention. such. A business asks questions be-
Simply put, the Internet has forced cause it is looking to find out what
companies to learn more about their the customer needs and wants, and
existing markets and to branch out everything it does from there out
into new markets. should be based on that permis-
sioned business.
Challenge IBM employs research before, dur-
Companies need to understand exist- ing, and after to test for the effective-
ing markets and branch out into new ness of a campaign’s results, which
markets by better understanding their ultimately begins to pave the way for
customer needs and preferences a better service relationship with its
while at the same time ensuring that customers. “A company that goes out
their business intelligence is both of its way to service its customers is
permissioned and sensitive to con- well on its way to building long-term
sumer privacy concerns. loyalty. Building that loyalty begins
with the customers’ first touch-point,
Solution no matter whether that’s via a conver-
There’s evidence that reveals people sation with a customer service repre-
are revisiting how to use data—re- sentative at your call center or via an
sponsibly, placing information back interactive communications experi-
into the product and service develop- ence via the Internet.” Increasingly,
ment cycle. All of this suggests that respecting that customer’s privacy in
effective cyberbrands moving forward the cultivation of your ongoing busi-
must learn how to more intelligently ness relationship is going to become a
and responsibly gather and analyze competitive advantage. Customers
customer data and information. How- want to feel in control of an
(continued…)

CYBERBRANDING Persuasion in Cyberspace 163

 Full-Case Study
(…continued)

experience, which, in turn, leads to Solution

increased interaction. Opt-in e-mail, Through gathering data and research
for example, is a way of saying, “I information, cyberbrands will provide
have full permission from a customer users with better brand service expe-
who is willing to engage in an inter- riences. As a result, communication
action with my cyberbrand.” How- will be useful at all times and inter-
ever, some companies are not action will be informational, educa-
respecting privacy issues and are tional, entertaining, and even
being hammered for selling online humorous.
customer data. Companies need to be Watson’s final thoughts focused on
responsible with how data is handled. the IBM brand experience. “We’ve
IBM creates a brand experience for come a long way. Every brand needs
its customers by “energizing” the to take that extra, one-step-further
brand and focusing on more than the approach to know each individual
mere message. The communication customer. It’s the only way to achieve
should be useful at all times. “Take long-term customer loyalty,” he
Amazon.com, it can send me an states. For all companies, especially
e-mail any time,” says Watson. His the brick-and-mortar establishments
explanation: with existing infrastructure, it’s a
■ Amazon knows its visitors. (How? challenge to get over the organiza-
Because it asks and remembers tional dysfunction. However, success
the user’s likes and dislikes.) lies in the ability to provide Web au-
■ Based upon information, Amazon diences with positive brand experi-
ences every time there’s contact with
makes useful recommendations.
the brand, which means those dis-
■ Amazon makes it easy to
parate functions must be brought into
purchase and easy to complain.
closer alignment.
■ Amazon also knows that if
the brand experience is not Tips to Remember
pleasurable, www.bn.com is ■ The Internet forces companies to
10 keystrokes away. wrestle with providing effective
and holistic customer relationship
Challenge management (CRM). Accept the
Marketers need to create this service challenge and gather as much
brand experience online in order to information on the customer as
build long-term customer loyalty. permissible with the objective

164 CYBERBRANDING chapter 10

 of providing better service of any sound business relation-
relationships. ship is mutual trust. The ability to
■ All of the touch points in a gather customer data and the
company need to be in place for privacy issue will prove to be one
a complete brand experience. of the most important concerns in
One bad brand experience can the new economy. Having a solid
frustrate the customer and understanding of consumer
mar the brand. privacy issues and respecting
those concerns will build
■ Cyberbrands effectively gather
confidence with your customers,
and analyze customer data so
which, ultimately, translates into
that they can better understand
profits.
their audiences. The foundation

CYBERBRANDING Persuasion in Cyberspace 165

PART

3
Market Research
for Effective
Cyberbranding
 CHAPTER

11 Traditional Research Aids

in Cyberspace

Objective:

To reinforce traditional research is at the heart of a

marketing campaign and the life of the brand. Research is
the key element that allows a company to understand the
customer’s needs and, as a result, optimizes audience
response. Research methods will always exist, whether
they are offline for the brand or taken to a new level and
implemented in cyberspace. Focusing on the newer
online techniques, they are becoming increasingly
popular, not only because they work successfully, but also
because they are quicker to execute. Cyberbranders will
benefit by paying attention to:

■ The value of market research

■ Traditional research and the cyberbrand
■ Cyberbrands and research beginnings
■ Transformation of the traditional method—
questionnaires
■ Transformation of the traditional method—focus
groups

168
THE VALUE OF MARKET RESEARCH

O ptimizing audience response takes more than a team of execu-

tives brainstorming around a boardroom table. It means more
than just applying popular strategies, such as customization, person-
alization, and the incen-
tive programs that are Call it traditional research or take it
surfacing with the devel- online; either way, it’s the research
opment of new cyber- that is crucial to the brand.
brands. It’s even more
than the technology that launches the brand into cyberspace. The
key element missing, the one that drives the executives to strategize,
identifies the necessary customization, personalization, and incen-
tive programs, and makes the technology highly interactive and ef-
fective in changing audience behavior, is research. Call it traditional
research or take it online; either way, it’s the research that is crucial
to the brand. It’s the research that determines how audiences feel
and how they react to the brand at the time of its birth and at every
intersection and crossroad of the brand’s life. It’s all about re-
search—from the beginning to the middle to the end.

169
 Research supplies data, which, when analyzed, leads to better, more
powerful strategies and brands that entice and evoke audience re-
sponse. With traditional research that is applied offline, the first step
in the process is to recognize the problem or the situation. The com-
pany then identifies what or who needs to be researched to draw an ac-
curate conclusion. Next is the decision as to which method is
appropriate to elicit true responses and valuable information. Survey
research, focus groups, in-depth interviews, content analysis, and us-
ability studies were all methods frequently used and relied upon pre-
Internet. After the
Companies have been employing these research
research is observed,
strategies for years. Just because the digital revo-
measured, and ana-
lution turns the world upside down, this does not
lyzed, the most criti-
mean that any traditional strategies should be
cal step in the
abandoned.
research process is
implementing the results to benefit the brand and optimize response

170 CYBERBRANDING chapter 11

to the brand. Companies have been employing these research strate-
gies for years. Just because the digital revolution turns the world up-
side down, this does not mean that any traditional strategies should be
abandoned. As a matter of fact, because the World Wide Web has
been thrust upon brands in the new economy, there is more of a rea-
son to employ traditional research in the marketing mix.

TRADITIONAL RESEARCH AND THE CYBERBRAND

Research is classified as either primary or secondary. Primary re-
search, for instance, comes directly from the audience whose behav-
ior needs to be altered. Secondary research comes from a reliable
source about the audience whose behavior is being studied. The reli-
able Internet research sources, mentioned daily in both broadcast
and print news, are Jupiter Communications, Forrester Research,
The Gartner Group, and Nielsen Net Ratings, to name a few. These
companies are among the leaders in Internet information with
in-depth studies and analysis. Jupiter Communications (www.
jupitercommunications.com), for example, offers a comprehensive
view of Internet commerce. The company provides expert analysis
of broad strategies online as well as market strategies that are re-
gion-specific.1 Jupiter offers its clients the ability to assess research
on market trends, analyze competitive landscapes, and evaluate suc-
cess criteria as well as a host of services to best suit a client’s infor-
mational needs.
As for primary research, the ability to question audiences di-
rectly will always be a key strategy to understand the needs of an au-
dience. Perhaps this is one of the reasons why traditional
face-to-face research is crucial and should be used throughout the
life of the brand. For instance, one well-known method, the focus
group, is designed for conversation between participants and the
moderator of the group with researchers and clients behind a one-
way mirror to view the interaction of the group. Typically, focus
group participants represent different publics and are valued for this
reason. But one of the true values of focus group research is the non-
verbal communication that is observed by the client and the re-
searcher behind the one-way mirror. This type of communication
might be anything from eye rolling and a grimace to crossed arms
and tapping pencils at the session table. Body language reveals a
great deal about how a panelist truly feels with respect to a particular
CYBERBRANDING Traditional Research Aids in Cyberspace 171
 question or subject that just cannot be measured through an online
research method. This theory holds true for in-depth personal inter-
views, survey panels, and usability studies as well. Nothing will ever
replace the body language or the true value it holds in research for
the brand.
Cyberbrands are out there employing traditional methods. For
instance, one of New Jersey’s largest newspaper groups needed to
take its 26 print brand newspapers and move them online with news
Cyberbrands are out there employing traditional methods. and information
for its North Jer-
sey audience. Sales representatives were asked not only to sell tradi-
tional advertising to their faithful print brand clients, but now also
to give a sales pitch about online advertising in the form of directo-
ries, classifieds, banner ads, and sponsorships. This was a tremen-
dous undertaking and required traditional research methods at the
onset of the project. The first step was to find out from sales repre-
sentatives and managers how they felt about pitching Internet ad-
vertising and their level of understanding of the Internet. Did they
believe that their client advertisers would see the online advertising
as an opportunity, or an unnecessary expenditure that was not valu-
able enough to be included in their advertising budgets? In addition,
the newspaper group needed to find whether or not their sales rep-
resentatives and managers would actually buy into the online ad
program and what incentives would make them eager to push the
Internet advertising along with the print advertising opportunities.
The Internet division of the newspaper group held a series of video-
taped focus groups with its sales representatives and managers of the
various newspapers. This type of method was extremely valuable for
the brand to see that there were extensive concerns regarding the
sales representatives and their ability to pitch Internet advertising
confidently. Issues were raised immediately regarding the represen-
tatives’ lack of understanding of the Internet and concerns of not
having the proper materials to present to clients to interest them in
an online advertising program. After careful review of the video-
tapes, a report was submitted to the head of the Internet Division
suggesting that the sales team be presented with an internet adver-
tising kit that would enable them to have a comprehensive guide to
Internet advertising on the Web sites. The kit included Internet sta-
tistics on the North Jersey area, Internet rate cards, presentation ma-
terials to show advertisers, frequently asked questions (FAQs) that

172 CYBERBRANDING chapter 11

advertisers might ask, benefits to Internet advertisers, and benefits
and incentives to sales representatives who participated in the pro-
gram. The company also went a step further and provided sales
teams with the opportunity to attend cyberbranding conferences
and to ask cyberbranding experts questions about the Internet and
discuss the concerns about Internet advertising. This effort could
not have started without traditional research to gain a better under-
standing of the sales teams’ concerns. The information from the
focus groups proved extremely valuable to the company’s cyber-
brand vision.
OnlineBoardwalk.com, the virtual boardwalk in cyberspace,
planned a Labor Day 2000 launch of its site. The site is positioned to
become a model or field leader of online gaming. It carries a board-
walk/amusement pier theme with carnival-type games for children
and teens, and more challenging parlor games such as trivia, chess,
checkers, concentration, and keno for older audiences. Eventually,
the site, through extensive development postlaunch, will expand
with a new game a month to become an exclusive online gaming
community. OnlineBoardwalk employed traditional research meth-
ods during the development of its site to fully understand the nature
of its competition and to find out what target audiences felt about
other popular game sites. The company performed a series of us-
ability studies, with children (ages 6 to 12), teens (ages 13 to 19),
young women and men in their twenties, and women aged 30+. The
usability studies were conducted at a computer terminal with each
study participant logging on to competitive Web sites including
Uproar.com, Nabiscoworld.com, Boxerjam, and a host of other game
Web sites. The users were observed as they accessed each different
competitor and had to figure out how to play various games on each
site. The users were timed for their ease of use on a site and their
ability to navigate quickly, and observed for their level of frustration
with game playing, etc. Facial expressions were monitored, as users
were irritated when games did not download quickly and were also
difficult to operate. These findings were extremely significant to
OnlineBoardwalk.com during the developmental stages of its Web
site. From the usability studies, the company was able to develop its
site with a quicker download time and an easier navigation system
to “walk” the Boardwalk and find the game of a user’s choice, and to
develop games with easy-to-read instructions that do not frustrate
users before they begin playing. These strategies were incorporated

CYBERBRANDING Traditional Research Aids in Cyberspace 173

 into the Web site based upon the initial market research findings.
Usability studies will continue, as the site develops to provide On-
lineBoardwalk users with the best possible game site on the Web.

CYBERBRANDS AND RESEARCH BEGINNINGS

Jeffrey Graham, e-marketing director of Novo, discusses in his arti-
cle “Building a Research Mosaic” how research is not static. When
research is used correctly, it becomes the driving force behind a
marketing campaign. “That’s why you must work closely with the
client and the account team to create a comprehensive research plan
that starts from day
Indeed, the companies that are online with successful one of the invest-
brands are the companies that utilize research as the ment online,” states
critical “building blocks” in the planning phase. Graham.2 He ex-
plains that unplanned research is much less effective. Indeed, the
companies that are online with successful brands are the companies
that utilize research as the critical “building blocks” in the planning
phase. Cyberbrands such as the newspaper group in New Jersey and
OnlineBoardwalk.com are off to a good start with initial market re-
search to guide the marketing effort and Web site development.
Market research, both qualitative and quantitative, has been around
traditionally to study brand success. Research must be conducted,
whether it is by the “good old” traditional method or the traditional
methods extended to the Internet, which provide rapid results.
Brands that do not constantly test target markets and use research to
segment customer bases will not survive—especially on the Internet.
In cyberspace, competition is fierce and brands need to employ the
findings of research in order to rise above and stand apart from the
competition.

TRANSFORMATION OF THE TRADITIONAL

METHOD—QUESTIONNAIRES
There’s a great deal of discussion about research online and whether
it’s truly effective. Of course, with every method employed there are
“best practices” to consider (and best practices for online measure
too). For example, what’s the difference between the way to formulate

174 CYBERBRANDING chapter 11

a traditional offline questionnaire and the way to construct an on-
line template?
A questionnaire on the Internet created for an online audi-
Questionnaires
ence must be precise, considerably shorter with only the
that are devel-
information that is necessary and relevant for it to be filled
oped for offline
out accurately.
audiences tend
to be longer and more comprehensive, with several parts for users to
complete. A questionnaire on the Internet created for an online au-
dience must be precise, considerably shorter with only the informa-
tion that is necessary and relevant for it to be filled out accurately.
With the average online consumer having an attention span equiva-
lent to that of a toddler (just a judgment based upon the amount of
Web surfing going on out there), a questionnaire that is not short,
sweet, and to the point will not receive a large number of willing re-
sponses. Among other helpful hints for online questionnaires, ques-
tions should be
. . . participants who answer questions want to be re-
targeted toward
warded. Let’s rephrase that: they expect to be rewarded.
a specific audi-
That’s the nature of the Internet: it’s all about immediate
ence (general
response and reward.
questions that
ask for broad audience responses are less effective) and easy to read
and interpret. And as in traditional questionnaires, questions should
avoid jargon or business-type language (unless it’s a specific group
that will identify with the language being used, such as lawyers on a
legal site). Last, participants who answer questions want to be re-
warded. Let’s rephrase that: they expect to be rewarded. That’s the
nature of the Internet: it’s all about immediate response and reward.
Established brands have also figured out the benefits of online
surveys—fast, cost-effective, and easy to tabulate. They are employ-
ing Internet research daily. Bonne Bell, the company known for pre-
teen and teen cosmetics, recently utilized a short Web site survey
entitled “A Fun Little Fragrance Questionnaire.” With only seven
questions on the survey, Bonne Bell was able to enlist the help of its
online brand users to determine that a necklace with fragrance
would not be a popular item for its teen audience. The simple ques-
tion “If you had a perfume or a fragrance that could be attached to a
necklace or a clip-on key ring so that you could wear the fragrance,
which one would you choose?” led Bonne Bell to develop the clip-
on key ring with a fragrance.3 According to Buddy Bell, executive

CYBERBRANDING Traditional Research Aids in Cyberspace 175

 vice president of the company, the survey was completely voluntary
and Bonne Bell would never force anyone to participate. Bonne
Bell’s young audience was more than willing to cooperate. The ease
of use of the Web makes compliance higher than traditional
methods.

TRANSFORMATION OF THE TRADITIONAL

METHOD—FOCUS GROUPS

It’s been said that on the Internet “everyone is the same.”4 The abil-
ity to give an open and honest answer when an online participant
does not have to look someone in the eye is valuable research—find-
ing out exactly how someone feels “no holds barred.” Subjects that
are sensitive in nature—for instance, medical and health-related
topics, workplace relations, and, of course, Internet-related sub-
jects—are a natural for online discussion.5 Thus, the focus group
online appears, with companies and researchers asking probing
questions and monitoring typed-in responses.
Companies are figuring out how to emulate face-to-face re-
search methods. VRRoom, a New York–based company, gathers
people together for what it calls a “specialized chat room.” As in tra-
ditional focus group research, there is a moderator to ask the ques-
tions for the participants to answer; however, all of the Q&A is done
via the computer. The company that contracts for the research study
is able to review the chat sessions in progress at a separate computer
terminal (one that is set up to allow clients to see the transactions in
real time and which allows them to redirect the line of questioning,
if desired). They are also able to walk away that day with a transcript
of the focus group discussion for further analysis.6 The assumption
of the online focus
. . . the future of online focus group research is moving
group is that partici-
toward videotaped chat sessions that film participants
pants all have access
as they type in their answers to online focus group
to a computer with
questions.
Internet connections
either at home or at work. And although currently the nonverbal
communication aspect is removed from the research method, the
future of online focus group research is moving toward videotaped
chat sessions that film participants as they type in their answers to
online focus group questions. This will provide visual images to

176 CYBERBRANDING chapter 11

companies in real time and combat the threat of losing the nonver-
bal communication.7
George Paap, manager of e-business intelligence for Motorola
Semiconductor Products, gives his interpretation of the coming to-
gether of the online focus group. He describes the convergence as an
encounter similar to that of guests meeting for the first time at a
cocktail party.8 This is an interesting analogy—it appears that the
same type of “small talk” takes place in both situations as people dis-
cuss the weather and find common ground with one another. As the
people in the focus group session become more comfortable, they
realize the advantage of being in this situation. It’s the ability to an-
swer questions whenever they want without having to stop and wait
for another participant to finish. Traditionally in the focus group,
one participant speaks at a time. In the online sessions, everyone
types at the same time. This eliminates one party from dominating
the session (which often occurs in traditional surroundings and can
be intimidating to other group members). The nonstop participa-
tion from all members creates communication that flows in a much
less stifling environment.
Research and data-gathering techniques are the keys to customer
relationship management. The ability to compile information from
audiences, analyze the information, and then put it back into the
product or service development cycle is the differentiating factor be-
tween the companies with cyberbrands that survive and the compa-
nies that come to life with a burst of energy and a flame that fizzles out
quickly. It’s more than the cyberbrand vision; it’s more than the tech-
nology; it’s more than the executives at the boardroom table—and the
list goes on.
The ability to compile information from audiences, analyze
There’s only one
the information, and then put it back into the product or
thing that ties the
service development cycle is the differentiating factor be-
components of
tween the companies with cyberbrands that survive and
the marketing
the companies that come to life with a burst of energy and
mix together—
a flame that fizzles out quickly.
it’s the research
that is analyzed and recycled to keep clients satisfied and with which
better products and services are built. With research, brands are able
to have one-on-one interactive relationships with customers. As a re-
sult, these relationships will be more than just marketing-based. On
the contrary, they will be service relationships that increase customer
loyalty and trust of the cyberbrand.

CYBERBRANDING Traditional Research Aids in Cyberspace 177

Expert Viewpoint

Interview: Academia search principles, coupled with

Embraces Online Research good Internet knowledge, to
reap the benefits of an online
Is it easy for traditional re- research forum,” states Dr. Li.
searchers to make the transition Dr. Li is a firm believer in
online? According to Dr. the potential of online research
Hairong Li, a professor at Michi- and discussed the many benefits
gan State University (MSU), the for researchers. Provided the re-
traditional principles of re- search methodology consists of
search, focusing mostly on sur- assembling a “good” sample,
vey research and focus panels, online research will produce a
are still utilized in the online “good” response rate. Dr. Li dis-
forum. Online research is not cussed how (1) online research
that much of a break from the is convenient to use and elicits a
principles of the past. Chat ses- quicker response rate since a
sions, focus panels, and Internet poll or survey can be completed
polls are assembled in the same and e-mailed back to a re-
manner. Dr. Li, who instructs searcher in a moment’s time,
doctoral seminars on Internet (2) the cost of online research is
research methods at MSU, considerably lower (online elim-
works with students and profes- inates the cost of mailings and
sionals who are learning to use prepaid stamped return en-
the Internet as a tool for social velopes) regardless of whether
research in cyberspace. Dr. Li there are 10 or 10,000 respon-
has a background and area of dents, (3) online research is be-
expertise in traditional and new coming familiar to a society that
media research. His courses is grasping technology with
focus on survey research, con- ease, and (4) it is also a forum
tent analysis, experimentation, that allows people who would
and focus groups, all via the In- not normally contribute to a
ternet. Dr. Li conducts hands-on group discussion to become ac-
workshops for students to test tively involved, to voice their
and analyze new online re- opinions and be heard.
search software and fine-tune There are similarities and
research online. “Students are differences between the offline
very knowledgeable and really and online research methodol-
know their way around the In- ogy. Dr. Li discussed that sur-
ternet. My courses show them veys, for instance, on the Web
how to take the existing re- are constructed following some

178 CYBERBRANDING chapter 11

Expert Viewpoint

of the same principles for a mail reading the participants’ body

survey. Specific to both tradi- language and facial expressions.
tional and new media is the Also, when conducting online
way professionals need to apply focus panel sessions, certain nu-
the same amount of social, ethi- ances are lost when respon-
cal, and legal responsibility dents are typing answers
when conducting research on- compared with a face-to-face
line. On the other hand, online discussion with a mediator. Last,
surveys should be easier to read with online research, Dr. Li has
and have short questions. Last, discovered that the size of focus
the use of random digital dial- panels needs to be smaller and
ing (RDD) when assembling a condensed to six to eight peo-
survey still applies to both fo- ple for maximum results.
rums. There are, however, slight Dr. Li’s final thoughts are
differences that researchers that online research is here to
need to address when moving stay. The traditional principles
research methodology online. and confirmed methodologies
Consumers are familiar with tra- are being integrated into a
ditional research methods. They forum that is quicker and more
know what a survey looks like cost-effective and enables par-
and can identify with the re- ticipants to take part with ease.
search process. Therefore, it is The result is a society that
important to construct ques- steadily embraces new technol-
tions and research models that ogy and moves in the direction
people can recognize. With on- of the online forum to increase
line research there is a missed response rates and accurate
opportunity with respect to findings.

CYBERBRANDING Traditional Research Aids in Cyberspace 179

 CHAPTER

12 Online Research—Leave It Up
to the Technology Experts

Objective:

Brands are making the cyber transition by utilizing fast

and accurate online research. As this occurs, it is
important to realize that there are varying degrees of
control of the online services available. From the simplest
survey to more sophisticated techniques like online focus
panel discussions and competitive analyses, the Internet
is becoming an effective medium to facilitate the research
process. Cyberbranders must determine when to move
away from the “homegrown” research techniques (the
do-it-yourself methods resulting from low budgets and
plain, old traditional habit) and embrace the
methodologies of the new economy. This chapter
highlights the different types of online research, with an
in-depth discussion of the following:

■ When to turn to online methods

■ Tradition and the Internet—the best of both
worlds
■ Benefiting the brand and the consumer
■ Extending beyond offline limits
■ Research—finding the middle ground
180
WHEN TO TURN TO ONLINE METHODS

T he Internet facilitates online research techniques that were not

even possible 10 years ago. The methods used today are consid-
erably less expensive, are flexible, and most of all are timely with
same day analysis and results. And with every question that surfaces
regarding traditional methods, the same questions and more revolve
around online techniques. How do you know the numbers supplied
actually add up? How well does the sample match the desired popu-
lation? Will one method of data collection greatly influence a re-
sponse over another method?1 A word of caution: When it comes
right down to sophisti-
cated technology and When it comes right down to sophisti-
credible online market cated technology and credible online
research, companies market research, companies reaching
reaching out to target out to target audiences should leave
audiences should leave the research technology to the “online
the research technology research experts.”
to the “online research
experts.” Yes, there are those methods that are referred to as “home-
grown.” This process might simply be asking customers, friends,
and family members to reply to an uncomplicated online question-
naire (created in a word document, of course). However, just as
technology enhances the brand (let’s not forget the meaning of the
optimum cyberbrand), it also enhances a company’s ability to re-
trieve information and data with respect to a cyberbrand.

181
 Kozyhome.com had to decide whether or not it would use its own
homegrown research or online research from the experts. The
Chicago, Illinois, company launched an online retail furniture Web
site in January 2000. It went the homegrown route first (as many
start-ups do) by utilizing in-house focus groups and then advanced
to word document surveys. Unfortunately, the homegrown meth-
ods had a low response rate, with the company gaining little feed-
back. Kozyhome.com approached an online market research expert
(enter Vividence.com into the picture).2 The San Mateo, California,
firm specializes in “Web experience evaluation.”3 A visitor entering
the Vividence Web site is greeted by many questions including:
What critical business questions keep you up at night? How effective
is your company’s Web site? Are you meeting and exceeding the ex-
pectations of online customers? And, How do you outperform the
competition?4 These questions are right on target. Not only is it the
cyberbrander’s quest to obtain the answers to these questions, but it
is also the cyberbrander’s job to search out the answers to these
questions, even if it takes going to great lengths to get the job done.
Vividence is successful answering these questions as evidenced by
the endorsements on its site that include companies such as Com-
paq and drugstore.com. Both click and mortar and e-brands are
praising Vividence for the new found ability to better recognize the
needs of online audiences.
Vividence came aboard the Kozyhome.com research project to
conduct a study of 500 people nationwide. Kozyhome.com saw the
difference immedi-
Homegrown research just cannot compare and should
ately between the
not be considered in the same league as what the ex-
homegrown, word
perts can do in terms of sophisticated online research
document survey and
technology.
the large-scale effort
implemented by Vividence. Homegrown research just cannot com-
pare and should not be considered in the same league as what the ex-
perts can do in terms of sophisticated online research technology.
OK, next question: What about research budgets? Yes, money is
a factor, and that goes without saying, with both traditional offline
methods and cyber research. But Kozyhome.com realized that with-
out Vividence, its research effort was “the poor man’s version”5 of
the type of research necessary. With a growing cash pool of approxi-
mately $30,000, Kozyhome.com was able to step up to a higher

182 CYBERBRANDING chapter 12

research plateau and have Vividence apply techniques that actually
guided the direction and development of the Kozyhome.com cyber-
brand.
Through Vividence’s research techniques, Kozyhome.com was
able to confirm what it originally suspected regarding the company’s
Web site. Vividence employed consumers in an e-tour of the furni-
ture site and then followed up with the consumer with an online
survey. The analysis and results of the tours and surveys prompted a
drastic change to Kozyhome.com’s Web site including its shopping
cart procedures.
Vividence has assisted companies with online research since the
site launched in February 2000. According to Internet World’s
“Company to Watch” section, Vividence is creating quite a “media
buzz.” The 100,000 Web site testers, located around the United
States, are the company’s secret weapon. According to Internet
World’s review, “Vividence uses demographically selected consumer
recruits to evaluate a site’s search functions, registration and naviga-
tion.”6 Vividence’s clients are well-known companies including
Compaq, Excite@home, drugstore.com, and Nordstrom (Vividence
attracts large companies that can easily afford its customizable re-
search programs that begin at $20,000+).

TRADITION AND THE INTERNET—THE BEST

OF BOTH WORLDS
When it comes to online research, there’s an automatic assumption:
all research participants need to be wired with a PC in their homes.
Guess again. Actually, companies such as InterSurvey.com are be-
coming increasingly popular with cyberbranders for the following
reason. InterSurvey (www.intersurvey.com), of Menlo Park, Califor-
nia, uses households (up to 250,000 households by 2001) whether
they are con- When it comes to online research, there’s an automatic
nected to the In- assumption: all research participants need to be wired
ternet or not.7 with a PC in their homes.
The company
does a random sample of telephone numbers (they refer to it as ran-
dom digit dialing, or RDD) to provide an unbiased list of possible
research candidates. These potential respondents are selected re-

CYBERBRANDING Online Research—Leave It Up to the Technology Experts 183

 gardless of Internet use in their homes. InterSurvey uses a trade-off
or barter program for research participation. Participants are of-
fered free Internet hardware and the ability to be wired for their in-
volvement with InterSurvey. Usually, participation from any
household amounts to one survey per week. The candidate is pre-
screened to obtain demographic information—profile data is main-
tained for all respondents. Any household that chooses to partake in
a research study is shipped the necessary hardware, and receives a
free Internet connection, on a monthly basis.8 InterSurvey touts it-
self as a unique consumer research organization that combines the
strength and broad reach of the Internet with the statistical reliabil-
ity of traditional sampling methods. InterSurvey satisfies both
worlds—the traditional and cyber—coming together in a harmo-
nious union. This online research firm certainly proves that cyber
research service providers work harder to tackle the obstacles that
would get in the way of a company investing in an online research
firm. InterSurvey is establishing new ground through innovative
techniques by placing the proper equipment in a research partici-
pant’s home. The benefits are significant: better random sampling of
participants, increased compliance by respondents, and higher levels
of accuracy and detail in the participant information collected.
Other benefits from this type of online research include:

■ With a Web-based platform, various forms of content that

were considered too expensive previously can now be
reviewed.
■ Research studies have participants observe panoramic
images, three-dimensional images, high-fidelity audio, and
TV-quality video.
■ The hardware or equipment installed captures the visual and
audio stimulus that is crucial in measuring attitudes.
www.InterSurvey.com9

InterSurvey takes the traditional research (probability sampling)

and mixes it with the power of the Internet, to get the resulting right
groups of people answering the right sets of questions. Again, when
tradition meets technology, the outcome is a powerful cyberbrand.

184 CYBERBRANDING chapter 12

BENEFITING THE BRAND AND THE CONSUMER

The Internet is transforming not only the way that companies are
utilizing research but also the methods in which groups of con-
sumers participate. Two factors need to be acknowledged: (1) the
extent to which
The Internet is transforming not only the way that compa-
companies are
nies are utilizing research but also the methods in which
moving toward
groups of consumers participate.
online research
to directly influence the way cyberbrands are developed and mar-
keted, and (2) the nature of participation on behalf of the consumer
respondent. Why are consumers so willing to partake in online re-
search studies? The Internet makes it easier for research companies
to offer incentives for participation.
Greenfield Online (www.greenfieldonline.com) is another com-
pany that takes research to a new plateau. Greenfield Online appeals
to a consumer’s ego not only with messages that pinpoint the im-
portance of consumer research guiding and directing the develop-
ment of products and services, but also through an enticing
incentive program. First, Greenfield Online plays up the one-on-
one communication aspect with each participant to the point of
stating that it’s the consumer and Greenfield Online building better
products and services. Then, it’s the “hook, line, and sinker” ap-
proach of the program—cash, prizes, and giveaways. The process of
participating is easy (nothing less is expected from the Internet),
and of course, confidentiality of data is up front in Greenfield On-
line’s privacy statement. After research candidates fill out a confi-
dential sign-up survey, they are ready to participate in online
questionnaires and focus panels. Greenfield Online uses the col-
lected data wisely. The company matches a participant’s back-
ground and interests with the nature of the survey and focus group
conducted, on behalf of a brand. A portion of the Greenfield Online
site, which is dedicated to informing potential research participants
about the Greenfield Online process, states, “We try to match you
with fun and exciting surveys that match your background and in-
terests.” A cybermarketer’s translation: We want the most accurate
and truthful responses from consumers who are qualified to answer
specific questions. Participants are then e-mailed when a survey is
available for them to review and give responses. Greenfield Online

CYBERBRANDING Online Research—Leave It Up to the Technology Experts 185

 also has consumers participate in FocusChat, which is “an opportu-
nity to discuss a variety of topics with a small group of people all
with similar interests.”10 A trained moderator leads the chat, which
lasts anywhere from one to two hours.
All participants are paid and are selected based upon the infor-
mation given in the confidential sign-up survey. The member par-
ticipants of Greenfield Online become automatically eligible for an
iGain account. Talk about incentives. As in offline research, partici-
pants are looking for rewards. The free iGain account provides
members with an account that accumulates “Greenfield Online in-
centive money,” which is incentive money for participating in re-
search studies. For every focus panel, the participant has money
deposited in an
As in offline research, participants are looking for
iGain account. At
rewards.
any time, the mem-
ber can elect to receive payment from the account or donate incen-
tive dollars to a charity. With Greenfield Online, a brand benefits as
more research is collected and at the same time research participants
accumulate more and more Greenfield Online incentive money.
The outcome—brands gain valuable and immediate research from
prequalified participants who are more than willing to take part in
an effort to better a brand.

EXTENDING BEYOND OFFLINE LIMITS

Another pioneer of online research is CLT Interactive (www.
cltresearch.com). According to the company’s background section
on its Web site, in 1993, CLT began “building, running and servic-
ing all Internet based initiatives from the simplest of Web surveys to
[its] latest online tools such as WebSim™, Reflector™, and Site Visi-
tor @rchitecture™ (SV@).”11 CLT is among the first of the research
companies to complete an international focus group project and is
also known for its development of global research industry guide-
lines for cyberspace. Many research companies around the world
recognize CLT for its published papers and expertise in online re-
search methods.12 Among the many unique, trademarked methods
used by CLT is its Reflector program. Reflector is longitudinal on-
line focus groups or a new perspective that allows online focus
groups to remain in session for weeks (as opposed to the normal

186 CYBERBRANDING chapter 12

offline or online session that lasts from one to two hours). Reflector
uses proprietary e-mail technology that enables this effort and in-
creases the amount and depth of knowledge obtained from
participants.
The Reflector session is different from the normal focus group:

■ The moderator e-mails a question or topic to the group of

participants.
■ Clients who contract the research peruse all of the responses
and redirect follow-up questions, if necessary.
■ Multimedia is included in all e-mails, attached as either files
or hyperlinks.
■ Each group member sees only questions from the moderator
and not the answers of other members.
■ Reflector gathers all responses from group members, at
which time every respondent sees compiled answers, instead
of random responses, which ultimately leads to more
interactive discussion.

CLT’s research technology is an example of the extent and reach

of the Internet, with little geographic limitation, domestically or in-
ternationally. This type of research has the same benefit as the re-
search used by the other companies highlighted in this chapter;
however, the extended length of the session allows participants to
respond at their convenience. In addition, the ability to move across
borders for demographics is a tremendous advantage for global
brands.
Another interesting CLT Interactive program is WebScore.
Brands need to be concerned with competitors, and WebScore is a
simple method that has research participants evaluating a brand and
its direct competition. WebScore uses a sample of 100 to 200 re-
search candidates (selected from a qualified database of respon-
dents). Participants are enlisted to make a full assessment of a Web
site and its competitors, evaluating the following for each: perfor-
mance, content, ease of navigation, graphics, technical performance,
advertising, games/contests, free downloads, etc. Again, the reach of
the Internet and advanced technology make competitive intelligence
easier, faster, and customized for the company contracting the re-
search from CLT.
CYBERBRANDING Online Research—Leave It Up to the Technology Experts 187
 RESEARCH —FINDING THE MIDDLE GROUND

There are other cyber research firms that fall in the area known as
the “middle ground,” in between the homegrown methods and
“leave it to the experts” with advanced Web technology. These com-
panies allow brands to develop their own research tools and tech-
niques, giving them guidance along the way. WebSurveyor (www.
websurveyor.com) is an example of an online firm that allows mar-
keters to borrow technology and obtain and calculate their own re-
search findings. WebSurveyor is so confident about its technology
to build custom online surveys that it offers a free trial account for
companies to set up a test survey and calculate results (talk about an
incentive for marketers). WebSurveyor provides marketers with the
tools necessary to conduct a survey “without any headaches, hassles,
or long-term commitments.”13 And for users who are inexperienced
with research technology (WebSurveyor refers to these individuals
as nontechnical managers), WebSurveyor pro-vides desktop soft-
ware and an Internet service to design, construct, distribute, and
tabulate research findings. According to the WebSurveyor site, the
company provides “a unique hybrid approach to conducting elec-
tronic surveys [that] gives you the optimal mix of speed, control and
availability while eliminating your dependence on your overworked
technical support staff and webmaster.” WebSurveyor leaves the de-
sign and control up to the user who can tailor a survey appropriately
for a desired audience and then be involved in the distribution
process (unlike the other research companies highlighted in this
chapter). WebSurveyor does not provide the means to find the pre-
qualified research participants. This is done either through a com-
pany’s own database of clients or by purchasing a list from a list
broker. WebSurveyor takes over the research process once the user
designs the survey (by downloading desktop software and utilizing
the Survey Builder Wizard) and all e-mail addresses are entered into
its e-mail list manager. Then, according to WebSurveyor, it’s a 1, 2,
3 step process. The built-in Publish Wizard uses customized e-mail
notification to distribute the survey. Participants either receive a hy-
perlink to access a survey in the body of the e-mail or receive the
survey as an attachment to the notification. After a participant com-
pletes the survey, a “Submit” button transfers responses to WebSur-
veyor.Net, where all answers are quickly tabulated and charted for a
user’s convenience. Companies like WebSurveyor serve as that

188 CYBERBRANDING chapter 12

in-between step for brands in need of timely, inexpensive research
results (under $200 as priced in July 2000) that do not want to hand
over the entire research process (and lose control of that process) by
outsourcing the project to a research firm.

REAL-TIME CUSTOMER SERVICE:

AN INTERVIEW WITH WEBSURVEYOR
Interview

The Challenge what the company does) to its sen-

WebSurveyor (www.websurveyor. sible spending (unlike most dot-
com) faces the challenge of utilizing com start-ups with first-round
the Internet as a communication funding), WebSurveyor is moving
vehicle. “We’re not out to replace forward with practical marketing
traditional research methods,” strategies. Using low-cost and
states Tom Lueker, market surveyor highly effective marketing tactics
(note the clever job title to enforce including viral marketing on sur-
branding and name recognition). veys, customer referrals, search en-
Lueker, in an interview, discusses gine positioning, and affiliate
how WebSurveyor came to life on programs, the company has grown
the Internet as a survey tool that more than 1000% within the first
requires a fraction of the time and year of operation despite using
cost of traditional survey methods. only one paid promotional effort.
And even though traditional sur-
veys have been around for 30+ The Solution
years, WebSurveyor is confident WebSurveyor exists to provide the
that its online brand will become a ultimate customer experience. At
significant survey research solution. first, the company sold its survey
According to Lueker, WebSurveyor research as “shareware.” But it
is building an online business that quickly learned that customers on
can flourish over the next 20 years, the site had difficulty downloading
unlike many dot-com start-ups that the survey-building software. Real-
focus on only short-term success. izing that most clients are not tech-
WebSurveyor’s long-term perspec- nical experts, WebSurveyor took
tive is critical as the company puts away the technical frustration by
its best foot forward. From its name giving customers access to libraries
selection (one that definitely states of information on survey building

CYBERBRANDING Online Research—Leave It Up to the Technology Experts 189

 and a strong customer support service and call support system. “If
team. WebSurveyor also made ad- there’s a request for sales help at
ditional resources available to its 2:00 a.m., and the only person in
clients, including newsletters on the office is a technician, then he
tips and techniques of survey dis- will respond to the inquiry,” states
tribution and the best types of Lueker. The fact that it’s not just
questions to incorporate into a sur- one person’s responsibility, rather
vey. WebSurveyor focuses on its that the whole company is ac-
customers’ needs. Lueker stresses countable, is an attitude that is dif-
that when a client has an issue, it’s ficult to find yet fosters success in
resolved within the first e-mail or the new economy. This attitude
telephone call placed to the cus- shows when 90% plus of Web-
tomer service department. And if Surveyor’s customers would recom-
that means a refund—then a refund mend the site and the survey tools
is made. “The customer is not evil,” to colleagues and friends.
says Lueker. It’s not unusual for WebSurveyor
to receive praise from its customers.
The Future
As a matter of fact, the service ex-
WebSurveyor’s goal is to have a cels just based upon the timely re-
site that is completely self-service sponses from WebSurveyor
for individual decision makers in a customer service representatives to
company. According to Lueker, clients’ inquiries. Take the follow-
WebSurveyor puts a tremendous ing response from a satisfied client
amount of energy into making a after his question regarding e-mail
process that is simple to under- gathering was answered thor-
stand—one that enables customers oughly by a customer service
to figure out the survey-building representative:
procedure on their own. In order to
be successful, WebSurveyor has You are incredible! You an-
designed a clean and uncluttered swered all my questions, and
site. The site design makes it easy I am now able to do every-
to navigate and find information, thing that I need to do. I am
and the free trial offer entices users extremely impressed by the
to go through the survey-building level of customer service I
process before signing up for the have received at Web-
paid program. Most of all, Web- Surveyor. Not only do you
Surveyor is proud of its customer know your product, you

190 CYBERBRANDING chapter 12

 answer all my questions expected from a brand—quick re-
quickly and accurately. Kudos sponses with accurate answers to
to you and your company for specific questions.
developing a very user- WebSurveyor has a vision, one
friendly program and support that it has been communicating
system! and carrying out every day since
site launch. It’s the quest for all
This enthusiastic response came
decision makers in customer com-
from a user who received the an-
panies to have and utilize the Web-
swer to a general (uncomplicated)
Surveyor technology to move their
question. Imagine the customer’s
businesses into the future. WebSur-
response when larger, more press-
veyor forges ahead with the solu-
ing issues are proposed and then
tions that enable its customers to
solved immediately. Every company
gather strategic business intelli-
in the digital economy should re-
gence, through fast and affordable
ceive praise based upon better cus-
research, and build better relation-
tomer service and an overall
ships with their own clients.
superior brand experience. This is
automatic. Nothing less should be

CYBERBRANDING Online Research—Leave It Up to the Technology Experts 191

 CHAPTER

13 The System of Web Tracking

Analysis

Objective:

Research has excelled to new heights—from buzzword

terms and data measurements to the Web tracking
software that pinpoints an online visitor’s every move.
Marketers are utilizing this information wisely to guide
their cyberbranding campaigns. This chapter provides
solid examples and expert insight into the critical online
research issues including:

■ The phases of surveillance and “The System”

■ When too much data leads to paralysis
■ How research guides the branding campaign
■ Understanding the tracking measurements
■ Difficulties and opportunities with professional
tracking software
■ Turning the tables on the trackers

192
THE PHASES OF SURVEILLANCE
AND “THE SYSTEM”

I t’s research in the year 2075—a female shopper enters her favorite
brick-and-mortar department store. The moment she enters the
establishment, surveillance (hereinafter referred to as “The System”)
identifies her as Megan Ashley Jones, consumer #000072 (here-
inafter referred to as “#000072”). The System also recognizes
#000072 as a female, age 37, married, mother of two children, ages
four and eight, income over $175,000, professional accountant, resi-
dent of Dallas, Texas, once-a-week shopper, . . . and the profile con-
tinues. After she enters the autosensor doors and steps onto the
floor tram (a treadmill system that moves the customer through the
facility), The System calculates and analyzes every move that
#000072 makes—how much time she spends in a particular area of
the store, what products she glances at or admires, the products she
picks up, her facial expressions and body language. The System
monitors #000072’s entire shopping experience for customer profil-
ing analysis. It knows her every move and determines what she ex-
pects to see and experience on each visit to the establishment. After
spending 32.666 minutes in the department store, #000072 ap-
proaches the checkout counter, where an automated teller (humans
no longer operate checkout systems) completes her transaction and
sends #000072 on her way.

193
 It’s not the year 2075, and The System at the brick-and-mortar de-
partment store does not exist yet. Consumers still have names, not
numbers, and humans are present at checkout counters. However,
the scenario of The System sounds vaguely similiar to the technology
experienced by the consumer on the Internet. With every move, click,
and purchase, a consumer gives away a small piece of information.
The System is similar
With every move, click, and purchase, a consumer
to the customer-
gives away a small piece of information.
profiling and data-
gathering methods that are rapidly evolving and implemented by
cyberbrands to improve the overall customer shopping experience.
The cyberbrand, like The System, gathers information on Internet au-
diences as they browse a Web site. Tracking software applications en-
able Web sites to identify online visitors in many ways including:
■ Identification by region or general location
■ Their most frequently requested pages and how often these
pages are accessed (and the average time the user spends
viewing a particular page)

194 CYBERBRANDING chapter 13

 ■ Detection of the visitors’ least requested pages, which also
uncovers which pages of a Web site are less frequently
accessed
■ Classification of top entry pages, showing the first page
viewed when a user visits a site (most likely, this is a home
page, but in some cases it may be a specific URL that the
user enters to access a particular page)
■ Identification of top exit pages, revealing the most common
pages users abandon or their place of exit from a site
■ Classification of single access pages to uncover the pages of a
Web site that visitors access and exit without viewing any
other pages on the site
■ Identification of the countries most active in visiting a Web
page
■ Summary of users’ activities on an hourly, daily, or weekly
basis
■ Classification of the most downloaded file types on a Web
site

WHEN TOO MUCH DATA LEADS TO PARALYSIS

The preceding list identifies only a few of the numerous ways that
Web site tracking gathers information on a visitor and how it is
measured. The buzzword clickstream data refers to the data that is
gathered by a Web site on behalf of a visitor as he or she navigates
throughout a site, clicks on various pages or banner advertisements,
and browses other options. Clickstream data is used to tweak or
redirect the de-
sign of a Web . . . collecting too much information is a common mistake.
site for optimal
audience response and to guide the efforts of a cyberbranding cam-
paign. However, a question arises. Is there a possibility that collect-
ing an abundance of data on each site visitor will end up a mistake
for the dot-com? Actually, yes, collecting too much information is a
common mistake. The concept of analysis paralysis sums up how
companies can collect too much data, not knowing what to do with
the information and how to use it properly.1 Acquiring too much
information is as useless as having too little data on a Web audience.

CYBERBRANDING The System of Web Tracking Analysis 195

 Most companies that purchase software tracking programs are best
off finding out the following specifics about visitors:2

■ Where did the visitor enter, and what directed the visitor to
the site? Was it a banner ad, a link from a partnering site, or
a search engine?
■ How many pages were viewed, and in what order?
Establishing patterns of visitors reveals trends.
■ What length of time was spent on those pages, and how
many products did the visitor view on the browsed pages? If
specific products are not being viewed (on less visible pages),
a redesign of product positioning might be in order.
■ How many products were purchased, and what was the
subsequent cost of purchases?
■ What total length of time did the visitor spend on the site? If
visitors are abandoning the site within a small time frame,
redesign of content for stickiness should be considered.
■ At what point did the visitor leave? If, for example, visitors
are abandoning a page frequently prior to checkout, then
directions on the checkout process may need fine tuning
to make them clearer and to avoid user frustration.

HOW RESEARCH GUIDES THE BRANDING CAMPAIGN

Cyberbrands are, however, quickly taking advantage of the knowledge
gained from the “virtual footprints” left by Web audiences.3 Take
CVS.com and its quest to become proficient at assisting customers in
navigating through an inventory of over 15,000 products. David
Zook, CVS.com Strategist Alliance member, faced the challenge of
studying more num-
Cyberbrands are, however, quickly taking advantage of
bers than he might
the knowledge gained from the “virtual footprints” left
have ever imagined.
by Web audiences.3
With numbers upon
numbers, amounting to sheets of information, the compilation of
data looked to Zook more like a mixed-up jigsaw puzzle than any-
thing else—a perfect example of how too much information often
makes little sense. CVS.com needed a better understanding of its site

196 CYBERBRANDING chapter 13

to facilitate a redesign that was overdue. The purpose of the overhaul
was to help CVS.com visitors move easily to desired portions of the
site, without experiencing confusion or frustration. In turn, they
would find the products they needed and make online purchases
hassle-free. CVS.com, hopeful like every other brand, wanted to boost
its bottom line.4 CVS.com tried the basic tracking software products
to learn more about its audiences’ needs, and unfortunately experi-
enced low-end results. When the company then invested a few hun-
dred thousand dollars, the difference was that it got high-end results
for the difference in what it paid. CVS.com used the new software and
immediately gained a clear understanding of problem areas on its site
that needed to be addressed. Analysis determined that customers were
leaving the site at the checkout page. The procedures that CVS.com
thought were clear, in fact, were confusing to online audiences. By
changing checkout procedures, guiding customers with uncompli-
cated messages, and streamlining processes, CVS.com looks forward
to lowering consumers’ frustration levels so that ultimately fewer vis-
itors will abandon the site.

UNDERSTANDING THE TRACKING MEASUREMENTS

Just for the record, number crunching and compiling statistics is not
enough. It takes a thorough understanding of the Internet and Inter-
net-specific audiences to properly analyze the information that is
readily available. With all of the terms and numbers being thrown
around loosely in the dot-com world, it’s important to learn the dif-
ferences between
the terms and the . . . number crunching and compiling statistics is not
basics of the enough. It takes a thorough understanding of the Internet
measurements and Internet-specific audiences to properly analyze the in-
being recorded. formation that is readily available.
So whether it’s hits, unique visits, or page views, the numbers often
vary depending on the source recording the data. Understanding the
basics enables cyberbranders to weed out the unnecessary informa-
tion and utilize the proper knowledge for a strategic plan of action.
Take the overused term hits. Many professionals still throw this
term around without realizing its true meaning. First off, when it
comes to Web tracking, a Web browser requests a file from a site

CYBERBRANDING The System of Web Tracking Analysis 197

 (that’s the point at which the consumer is accessing information).
The log file on a site keeps a record of the “interaction” or the pass-
ing back and forth of information. The record is a single line of in-
formation that contains the following:

■ The computer retrieving the file

■ The date and time of the inquiry
■ A numerical code (to identify a successful or unsuccessful
transaction)
■ The amount of data (bytes) transferred
■ The location of the Web browser before the request was
made to the server
■ The type of Web browser and operating system making the
inquiry
5
(Clickz.com )

Why the need for this long-drawn-out explanation? Well, mostly

because the long-winded process takes place for every file requested
by a browser. That means that if there are five lines in a log file, then
the Web page requested could contain one line for HTML code and
four other lines for the graphics visible on the page. And every time
a cyberbrander discusses a “hit” on a site, simply stated, that refers
to each line of the log file. In other words, the term “hits” is some-
what meaningless; it describes more how a site is designed than the
number of visitors on that site. In addition, when the lines in a log
file are clumped together by the same browser, this is the definition
of the “site visit” per user. In Net conversation, this term and hit are
often interchanged and misused.
A question popped up on The Standard’s “Ask Nettie: Traffic
Report,” which is an online question-and-answer dialogue between
The Standard’s Net Returns staff and its online subscribers:

Question:
We’re in the middle of a site redesign. . . . Most of the decision
makers are making informed choices based on traffic and click-
stream data. . . . How can we use this information to find out
what changes would really be useful to our customers? 6

198 CYBERBRANDING chapter 13

 Answer:
Traffic data is the fastest way to read your visitors’ minds. But
this information often gets ignored when it comes to major re-
vamps. The importance of spending time with your Web
server’s visitor log before you make any changes cannot be
overstated.7

Nettie’s answer goes on to discuss how Eppraisals.com used

clickstream data to entice people to use the site’s services. The com-
pany, Chicago-based, has an online presence that charges visitors
$20 for appraisals of art, furniture, and memorabilia done by a panel
of experts. Eppraisals.com analyzed clickstream data to find out that
over 50% of its traffic came from its link on the Web site of a na-
tionally acclaimed art and antique expert by the name of Leslie
Hindman. Eppraisals realized that it could improve its integrity by
placing a picture of Leslie Hindman on the site’s home page. From
that point on, visitors were continually clicking her image. This is an
excellent example of utilizing traffic analysis to guide the branding
campaign. With the newly formed partnership between Eppraisals
and Leslie Hindman, both parties benefit. As a result, the site’s wel-
come message to visitors reads:8

Hi, I’m Leslie Hindman. Welcome to Eppraisals.com—a fast

and affordable service for learning more about what you have
and what it’s worth. Learn more.

Analyzing clickstream data led to a powerful and credible endorse-

ment for Eppraisals.com.

ISSUES AND OPPORTUNITIES WITH PROFESSIONAL

TRACKING SOFTWARE
There are a slew of key vendors that offer Web tracking software.
The companies in the news include Quadstone, WebTrends,
AccrueSoftware, NetAcumen, and Personify, to name a few. The
beauty of these Web tracking packages is not only the ability for
marketers to compute traffic, but also to join together patterns that
are revealed by the demographic information available on site visi-
tors. Quadstone (www.quadstone.com) is recognized for its unique

CYBERBRANDING The System of Web Tracking Analysis 199

 software tools (for the telecommunications, retail, insurance, and
banking industries) to comprehend and influence the behavior of
online audiences.9 Quadstone is designed specifically for business
users, who most typically are marketers. The company attracts mar-
keters with the notion that they have the knowledge about strategies,
the market, and customers and with the right tools can drive the
analysis process home.10 Not only does Quadstone provide the soft-
ware tools, but it also offers recognized analytical consulting services
to its clients. With its team, which has over 100 man-years of experi-
ence, Quadstone touts itself as a company that can help its clients to
extend thinking beyond the traditional marketing limitations—a
must for branding in the new digital economy.
WebTrends (www.webtrends.com) is another Web tracking
analysis company that offers award-winning management and re-
porting solutions. With its WebTrends Live, for advanced real-time
e-service, companies can receive up-to-the-minute information,
seven days a week, about Web traffic analysis, e-commerce revenue,
and ad campaign
. . . the amount of information from the professional management for any
tracking software product is endless. size Web site.11 Web-
Trends Live provides
answers to specific questions, including: How much revenue was
generated by a campaign, and which products sold? How often do
customers visit a site prior to a purchase and between purchases?
When are peak traffic hours? What type of information do visitors
look for, and which pages are the most popular?12 The questions and
answers are continuous, and the amount of information from the
professional tracking software product is endless.

TURNING THE TABLES ON THE TRACKERS

But what about the customers’ perspectives, knowing at any time
they are being followed and that their Web site habits are stringently
analyzed? How should customers feel knowing that the Internet
“System” is at work, following their every move? Even if the profil-
ing is on the “up-and-up” and respects privacy issues, consumers
are still skeptical about being tracked for the sole purpose of allow-
ing cyberbrands to get them to spend money (the negative attitude
that conveys, “It’s about the money and not the cyberbrand

200 CYBERBRANDING chapter 13

experience”). As a result, there are also companies online that spe-
cialize in “permission based personalization software that enables
ebusinesses to deliver webwide profiling with built-in consumer
trust.”13 For instance, Youpowered’s SmartSense Consumer Trust
product (www.younology.com) allows e-businesses to download
software for the following purposes: to cooperate with consumer-
dictated infor-
Tracking software enables companies to tie incentive pro-
mation, secure
filing into their tracking so as (1) not to irritate customers,
the exchange of
(2) to offer relevant suggestions, and (3) to make cus-
sensitive data,
tomers feel welcome as they browse a site.
build trust with
customers and turn it into loyalty and lifelong value, refine market-
ing strategies for each visitor, and recognize different behavioral
patterns, all with technology that allows customers to maintain con-
trol over their information at all times. Tracking software enables
companies to tie incentive profiling into their tracking so as (1) not
to irritate customers, (2) to offer relevant suggestions, and (3) to
make customers feel welcome as they browse a site—and at the
same time giving the consumer the opportunity to block a commu-
nication after the visit (in the form of unsolicited e-mail).
Better yet, there are actually companies with software to com-
bat the “Web tracking hunter” and allow the consumer to take re-
venge.14 Take IDcide, Inc., a company in California and Israel that
specializes in a new application known as Privacy Companion. Ac-
cording to IDcide, it is a one-of-a-kind product that alerts users to
when and by whom they are being tracked. In addition, the pro-
gram allows online audiences to disable Internet trackers. Which
brings to the table the discussion of the infamous cookie, that tiny
bit of digital information placed or stored on a user’s computer.
Cookies are standard features in browser software that assign each
visitor a random, unique number. This is an anonymous user ID
that rests on the visitor’s computer. The cookie does not actually
identify the user, just the user’s computer used to access a particu-
lar Web site. Products such as IDcide’s Privacy Companion inter-
cept cookies and allow surfers to decide what level of privacy is right
for them—minimal to high protection. Privacy Companion is a free
download for users. It’s interesting to note that IDcide does not
charge online audiences for using Privacy Companion; instead, the
company’s cofounder, Ron Perry, states, “The goal of IDcide is to

CYBERBRANDING The System of Web Tracking Analysis 201

work with companies that respect a surfer’s privacy, and that IDcide would be
providing ‘added value features’ to these sites for which a fee would be
charged.”15
So here it is, The System of the year 2075 in its developmental phases—it’s
that of the Internet and the many ways that surveillance technology tracks on-
line audiences. Just wait, The System is almost here!

Expert Viewpoint

Programming 101—The
simple terms, this is your Web
Language behind the Internet
address or domain name, for ex-
Catherine Mellado is a Web pro- ample, www.YourURL.com. This
grammer at PFS Marketwyse, task is accomplished by register-
Inc., in Totowa, New Jersey. She ing through one of the many
leads a team of programmers, domain registration sites out
and is actively involved with there. Once a domain name is
client projects ranging from registered, you own it (usually
Flash Action Scripting to com- for two years) and no one else
plex back-end e-commerce pro- can have the same name.
gramming. With five years of Once you have an address,
experience in her field, Cather- you need a host. A hosting com-
ine’s expertise and devotion has pany usually charges you a
led to a career that has ad- monthly fee and in exchange
vanced her quickly through the provides space on its server for
ranks to a senior-level position your Web site to reside on. A
at her company. server is a computer that stays
Catherine’s opinion is that on all of the time, and is spe-
there are some common miscon- cially configured by your host-
ceptions when it comes to Web ing company so that every time
terminology. The best way to someone types in your URL your
clear them up is to go through page will appear. The way you
the creation process from begin- put files on your server is by FTP
ning to end. Catherine gives her (file transfer protocol). There
thoughts on the process: are programs that will help you
The first step towards mak- do this; it is as easy as copying
ing a Web site is getting a URL and pasting files from one com-
(universal resource locator). In puter to another.

202 CYBERBRANDING chapter 13

Expert Viewpoint

The most basic Web sites rollovers), and some even re-
are made up of text and pic- member you when you go back.
tures. These “plain” Web sites All of this interaction is usually
are coded in HTML (hypertext achieved with JavaScript. This is
markup language). HTML is a a simple scripting language, a
very simple language that small version of its big brother
browsers (such as Netscape and Java. JavaScript goes right into
Internet Explorer) translate; it is the HTML document, and is also
used for formatting purposes. interpreted by the browser.
You can usually see the actual There is also another script-
file by right-clicking and select- ing language called VBScript;
ing “view source” on any Web however, it is compatible only
page. When a user goes to a with Internet Explorer, so it is
Web site, the browser recog- not very popular for front-end
nizes the file extension (.htm or scripting.
.html) and then displays the Even though JavaScript can
contents. For example, if the make your page do some really
browser reads <b>this is my “cool stuff,” many Web sites
text</b>, it would know that need to keep track of visitors,
the text should be bold and it merchandise, and other statis-
would display this is my text. tics. It is not easy to manipulate
Images for the Web usually this information using simple
have extensions of .gif or .jpg. JavaScript; thus, back-end lan-
The difference is how each one guages have been created to fill
is compressed, and it is impor- the void.
tant to know which one to use Until now we have dis-
for each situation. A .gif is used cussed only front-end technol-
for images that have 256 colors ogy. It is important to note the
or less, have some transparency, difference. Front-end technol-
or are animated. A .jpg is used ogy refers to Web sites coded in
for images that have more than HTML, VBScript, or JavaScript.
256 colors, such as photographs. What actually makes them
Of course, most Web sites front-end is that when a user
have some level of interaction, opens the page, the browser
some show the current date, automatically translates
some have pictures that change everything for them. Back-end
color when the mouse goes technology is used, but not lim-
over them (commonly known as ited to, databases, and is usually

CYBERBRANDING The System of Web Tracking Analysis 203

Expert Viewpoint

coded in languages like ASP, If you are planning to use

PHP, or Cold Fusion. The reason back-end scripting for any of
it is considered back-end is that your pages, you should look
when a user goes to your page, into specific hosting companies
the server looks at the code for the technology that you are
first, gathers the information planning to use. Each server has
the page is asking for, and then specific capabilities and limita-
spits out the HTML into the tions. Many servers are Unix
user’s computer, and finally the servers; ASP needs a Windows
user’s browser interprets it, dis- NT server to run on, and so a
playing the results. Unix server would not display
For example, I have a data- your pages correctly.
base of members; I want to dis- You have probably also
play all the members on my heard of Java. This is a “com-
Web page. The problem is, piled” language. Basically, Java
there are many members, and is coded in a special program
my list is constantly growing. So that translates or compiles the
I write a back-end script that code and creates a miniprogram
will solve this problem. When a called an applet. The applet is
user goes to my Web site and small enough to be down-
clicks on the Members link, my loaded easily, and will be in the
ASP page will be called, and the user’s computer memory for as
server will get the page and re- long as it is needed; the mo-
alize that it is a back-end page. ment you leave the page, the
It will read through the code applet is discarded from your
that tells it to “get every mem- computer. Another important
ber name from the database!” feature is that Java was made
It will gather all the information with specific limitations to make
on the database, and will write sure no one can code a virus
the HTML for all the members. with it.
It will then give the results to Finally, other file formats
your browser, which will then that you will probably en-
display all the members who are counter on the Internet are
currently in the database. This Flash files (.swf extension). This
comes in handy, because now, I program is used for complicated
do not have to go back and edit interactive animations that
the page every time someone download fast, .avi and .mov
becomes a new member. files used primarily for short

204 CYBERBRANDING chapter 13

Expert Viewpoint

movies and videos, and .pdf If you have made it this far,
(portable document format) and understand the terminol-
files that make it possible to ogy up to this point, congratu-
print formatted documents lations: you are on your way to
more reliably than simple Programming Language 102.
HTML.

CYBERBRANDING The System of Web Tracking Analysis 205

 CHAPTER

14 Ethics on the Internet

Objective:

For cyberbranders to understand that Internet ethics

encompass an enormous area, worthy of entire books. As
these ethics unfold, certain issues that pertain to
cyberbranding must be addressed. This chapter offers a
quick walkthrough of prominent ethical issues that have
surfaced on the Internet, with insight into the following
areas:

■ Broadcast ethics of the past

■ Ethical beginnings on the Internet
■ Privacy, fraud, and other Internet issues
■ Industries developing ethics
■ A cyberbrand’s road to ethics

206
BROADCAST ETHICS OF THE PAST

O n the eve of Halloween 1938, the actor Orson Welles broadcast

his scheduled radio program. During the live performance, a
realistic announcement stated that Martians had landed on Earth
(in a small town, Grovers Mills, New Jersey) armed and ready to at-
tack. Many local residents of the town became hysterical and ran to
take cover or found firearms to retaliate. The panic continued to
create local street riots, as the hysteria spread to surrounding areas.
Finally, the network broadcasting the program went on the air to ex-
plain that the radio listeners had been subject to an “unintended
hoax” and that Orson Welles’s presentation of The War of the
Worlds belonged to the weekly series of radio programs called Mer-
cury Theatre.1 Although the show was preceded by an announce-
ment stating the program was only a simulation, Orson Welles was
reprimanded by “practically everybody connected with radio broad-
casting.”2
In 1964, Soupy Sales, the well-known comedian, played a practi-
cal joke on his television show that aired on WNEW-TV. “Hey kids,
get those little green pieces of paper with pictures of George Wash-
ington, Benjamin Franklin, Lincoln, and Jefferson on them, send
them to me, and I’ll send you a postcard from Puerto Rico.”3 And
that’s exactly what hundreds of children did. Of course, the money
was returned, and Soupy Sales’ television show was suspended for
seven days.

207
 T hese are classic examples of how radio and television are closely
monitored and regulated to assure that audiences are protected
from communication that is not responsible (by intention or not),
ethical, and/or suitable for audiences of all ages. Audience protec-
tion continues today in broadcast communications when warning
messages on commercials state, “You must be 18 years or older to
order this product,” and when television and movie ratings advise
audiences of nudity, adult themes, and graphic violence. Television
is even equipped with channel controls for parents to monitor their
children’s TV viewing habits.

ETHICAL BEGINNINGS ON THE INTERNET

On the Internet, however, ethics and responsible practices are only
now unfolding. The World Wide Web as a vast communication
channel has saturated more homes and businesses more quickly
On the Internet, however, ethics and responsible than any other
practices are only now unfolding. means of communi-
cation. Thus, it poses
a larger challenge to
regulators. In 1989, when the Internet first surfaced, the Internet
Activities Board (IAB) posted a memo entitled “Ethics on the Inter-
net.” Back in 1989, it was apparent that this communication
medium had the potential to cause concern. Because the Internet is
largely available and accessible:

The U.S. Government sponsors of this system have a fidu-

ciary responsibility to the public to allocate government re-
sources wisely and effectively. Justification for the support of
this system suffers when highly disruptive abuse occurs.
Access to and use of the Internet is a privilege and should be
treated as such by all users of this system.4

To date, there are numerous instances of abuse on the Internet,

illustrating how Internet users neglect to focus on the word privilege.
When The Federal
. . . there are numerous instances of abuse on the In-
Trade Commission
ternet, illustrating how Internet users neglect to focus
(FTC) instituted its
on the word privilege.
Privacy Initiatives, it
was clear that the initiative focused on Internet value and apprehen-
sion alike:

208 CYBERBRANDING chapter 14

 Advances in computer technology have made it possible for
detailed information about people to be compiled and shared
more easily and cheaply than ever. That’s good for society as
a whole and individual consumers. For example, it is easier
for law enforcement to track down criminals, for banks to
prevent fraud, and for consumers to learn about new prod-
ucts and services, allowing them to make better-informed
purchasing decisions. At the same time, as personal informa-
tion becomes more accessible, each of us—companies, asso-
ciations, government agencies, and consumers—must take
precautions to protect against the misuse of that
information.5

The FTC initiative begins with a focus on the positive commu-

nication—the true essence of Internet communication. However, as
on any communication channel, there is the likely possibility for
misuse to occur. And although the noted initiatives are clear state-
ments, what is communicated in these documents is not necessarily
representative of the WWW (World “Wild” Web). How to use tech-
nology responsibly and ethically is a question that has been asked
for years. The question has moved to a more advanced technological
state, and companies, associations, agencies, and consumers should
no longer have to guess, Where are the ethics on the Internet? A fine
line is being drawn between responsible communication and the
unethical prac-
Where are the ethics on the Internet?
tices that in-
fringe on personal safety and privacy. Privacy, especially, is a
growing concern. In a study conducted by PriceWaterhouseCoopers
(PWC), approximately 60% of Internet users in the United States
stated they would purchase more online if they had increased confi-
dence in an e-retailer’s use of personal data.6 In a New
Zealand–based survey, conducted by SimplyQuick.com, the privacy
policies of the top 100 consumer sites were evaluated. Survey results
in July 2000 revealed the following:
■ Over 50% of the surveyed consumer sites permitted
information on customers to be shared with third parties.
■ Only 11% of the sites made sharing information difficult.
■ Approximately 21% have privacy policies that appear with
an easy option for consumers to opt out.
■ About 3% had no statement or an unclear policy statement
7
)
(eMarketer 2000

CYBERBRANDING Ethics on the Internet 209

 PRIVACY, FRAUD, AND OTHER INTERNET ISSUES
Information on the Internet is obtained on consumers who are will-
ing to fill out user registration questions before making a purchase
or viewing areas of a Web site. Most companies require consumers
to give this information, and in some cases it is necessary to divulge
personal information to receive a login and password before access-
ing a site. Companies are looking to learn more about their visi-
tors—name, e-mail address, street address, telephone number
(optional), salary, profession, etc. This voluntary information is uti-
lized to respond to a consumer’s requests, customize the shopping
experience, and improve overall communication between the user
and online brand.
Then there’s the information that is gathered without users’
awareness—the monitoring of their clicks and page views. Con-
sumers leave numerous “footprints” behind and don’t even know it.
Cookies from a Web site are transferred to the consumer’s hard
drive, enabling a site’s system to recognize the user’s browser for
tracking purposes. The misuse occurs when companies share

210 CYBERBRANDING chapter 14

information with affiliated businesses, or sell information to third
parties without the consumer’s knowledge.
Every day, the news media are saturated with cases of Internet
abuse. The rules of privacy are no longer a private matter, as compa-
nies are learning quickly that handling personal customer data im-
properly can cause serious legal complications for cyberbrands.8 In
the case of Zapme, a broadband interactive network, the company
faced a “privacy meltdown” as it was accused of violating students’
rights. In a deal with Yahoo!, Zapme was providing schools with the
technological tools and resources necessary for learning in the new
economy. Zapme was criticized early in 2000 for using the schools as
a way to reach
Every day, the news media is saturated with cases of
children with
Internet abuse.
advertising.9 The
CEO, Rick Inatome, stated that he did not collect any information
that allowed Zapme to identify individual students. Zapme “only”
inquires about a user’s gender and age, and Inatome was adamant
that the company does not sell this information to third parties or
track the whereabouts of its users. The legislation introduced suc-
cessfully in 1998 (and effective April 2000) known as the Children’s
Online Privacy Protection Act (COPPA) mandates that Web site op-
erators targeting children under the age of 13 must post the follow-
ing information to inform audiences with respect to personal data:

■ Notice of the type of data the site collects and the purpose of
the collection
■ Requirement of parental permission prior to retrieval of
such information
■ Ability of parents to view and alter any information collected
■ Secure maintenance of the collected data
10
(SAR, Issue 35 )

Take MamaMedia.com, the popular children’s game Web site.

This cyberbrand is an advocate of children’s privacy issues. In its Web
Safety Center, a parent or guardian is able to find descriptive text on
how MamaMedia.com sets a good example for other children’s sites,
and how it prides itself on setting the highest children’s safety stan-
dards. For parents, MamaMedia.com also makes available informa-
tion on what COPPA means to them, Web safety tips, and the “10
Rules of the Online Road for Kids.” In addition, MamaMedia.com

CYBERBRANDING Ethics on the Internet 211

 asks children for only limited information: a screen name, password,
birth date, and gender. Children must also provide a parent’s e-mail
address in order for parents to be informed when their child registers.
MamaMedia.com is a good example of a cyberbrand that strictly ad-
heres to the children’s privacy laws and as a result gains the trust of
parents.
Children’s issues are among the top concerns as Internet privacy
issues unfold. The case of Toysmart.com, the Walt Disney majority-
owned company, was highlighted as one of the most important
cases amongst privacy advocates.11 As a part of the e-tailer’s bank-
ruptcy plan, the FTC
Children’s issues are among the top concerns as Inter- announced a settle-
net privacy issues unfold. ment to allow the
company’s customer
database to be sold.12 This immediately raised eyebrows among leg-
islators and privacy advocates. However, firm limitations were im-
posed on the proposed sale to make sure that the database would
remain in a family-related retail market and would be purchased in
its entirety, and that the prospective owner would have no intention
of selling the database without the express consent of any persons
listed.
Privacy issues are the most publicized, but other types of com-
munication concerns are finding their way to the court systems.
Moving into legal territory, defamation cases are high on the Inter-
net abuse list. On an international level, there was a highly publi-
cized case of a physicist by the name of Lawrence Godfrey who won
a court battle that entitled him to receive $24,000, or the equivalent
of 15,000 pounds, from Demon, the British ISP. It was a case of In-
ternet defamation in
. . . defamation cases are high on the Internet abuse which Godfrey ac-
list. cused the ISP of not
eliminating slanderous statements from a newsgroup. According to
The Standard, 80 suits have been filed by companies stating that
their executives and management have fallen victim to derogatory
comments in chat rooms and on message boards.13 The numbers
continue to grow as more policing takes place.
On the Internet, the famous saying “caveat emptor” has more
meaning than ever. And not only should the buyer beware, but the
seller as well. Beginning with the former, an example of Internet

212 CYBERBRANDING chapter 14

fraud that surfaced in the news was the cancellation of eBay’s sale of
an abstract painting. According to the New York Times on the Web,
the seller of the
painting artifi- On the Internet, the famous saying “caveat emptor” has
cially raised the more meaning than ever. And not only should the buyer be-
sale price and vi- ware, but the seller as well.
olated eBay’s auction rules. Apparently, the seller led online buyers
to believe that the painting was by the famous artist Richard
Diebenkorn; the misrepresentation not only inflated the bidding on
the painting, but, as the article confirms, illustrated how fraud is
quickly finding its way to auctions on the Internet.14 The article fur-
ther states that Internet auctions remain at the top of consumer crit-
icism and that cases grew close to 10,700 in 1999.15
But that is only the buyer portion of the caveat. With respect to
the seller, there is just as much at stake. Experts say that online sell-
ers have much to worry about. They have little protection. The
buyers of faulty goods through online auctions have remedies
through credit card companies and insurance plans. On the other
hand, there is no recourse for sellers who end up with phony
money orders, stolen credit cards, or checks that do not clear.16
The Gartner Group performed a study, released in July 2000, stat-
ing that although brick-and-mortar merchants face their fair share
of stolen credit card incidence, the online sellers are 10 to 18 times
more likely to be confronted with the issue.17 According to the
FTC, there are people who have the sole responsibility of reviewing
all data to recognize instances of fraud on the Internet auction
sites. The FTC has remained on top of the fraud cases and is re-
sponsible for providing the information to the proper local law en-
forcement agencies.18

INDUSTRIES DEVELOPING ETHICS

A simple dictionary definition of ethics reveals that ethical practices

are the morals and customs considered normal or standard for a
group or profession. Ethics on the Internet unfold as groups of pro-
fessionals develop their working codes. Take health care online and
the e-code of health. Professionals in health care early on saw the
need to develop standards of privacy and confidentiality as scores of

CYBERBRANDING Ethics on the Internet 213

 health care sites appeared on the Internet. In May 2000, the “eHealth
Code of Ethics” was initiated. Dr. Helga E. Rippen, Ph.D., who is
cochair of the eHealth Ethics Initiative’s steering committee, affirms
that the code focuses
Ethics on the Internet unfold as groups of profession- on ethics (more so
als develop their working codes. than law) and is con-
sidered an all-inclu-
19
sive and comprehensive initiative. Other groups, such as online
advertising networks, are in the hot seat receiving attention from pri-
vacy advocates and consumers alike. As a result, a coalition has
formed that represents approximately 90% of the United States’ on-
line advertisers. The Network Advertising Initiative’s (NAI) plan,
which is backed by the U.S. government, identifies issues including
Internet firms’ using data—whether it is a person’s Social Security
number or medical or financial information collected on behalf of
that user—for the purpose of selecting advertisements to put on
users’ computer screens.20
The number of cases continues to grow as the government and
industries involved in Internet communication define and enforce
clear standards. Privacy law is still a budding field. As issues surface,
the battles continue between proposed legislation on Capitol Hill and
privacy advocates who feel the planned initiatives are too weak. The
“spirit” of the Internet started with open communication and mod-
est regulation. To start off with few guidelines and then quickly in-
crease communication restrictions is a natural cause for controversy.
As much as groups are hungry to step in and give the Internet the
kind of control they feel it needs, the Internet brands continue to
fight against this legislation. These brands are reacting to the ease of
loose communication in the beginning and fear of a future of too
much control in the end.
An optimistic answer, although not necessarily a simple one, lies
in the principles of ethics. In the interest of the cyberbrand, there
has to be a conscious effort on the part of professionals to enforce
ethical communication standards (everything from a Web site’s pri-
vacy policy to how data is handled). Following the guidelines and
the continual use of ethical, responsible communication will, in the
long run, help prevent overzealous laws and allow the online brands
to better serve customers with the data they collect. There will al-
ways be groups that feel the need to take more control. This is not
exclusive to the Internet. Taking an active stance to communicate

214 CYBERBRANDING chapter 14

privacy policies and the proper use of personal consumer data is the
first step to minimizing the controversy.

A CYBERBRAND’S ROAD TO ETHICS

In the spirit of open communication, and as clear standards are de-
vised, here’s how companies and professional branders can take an
aggressive stance on privacy issues:
■ Develop a clear privacy clause that defines the collection of
data on customers.
■ Ask customers for permission to collect data.
■ Provide up-front information about the transfer of data to
third parties (if any).
■ Inform customers how information is used.
■ Give clients access to review and update information.
■ State policies on how records are kept secure.
■ Explain policies regarding accidental leaks or theft by third
parties.
■ Analyze the type of information the company needs to
collect and what is necessary for accurate profiling—
eliminate any information that is not useful.
■ Allow visitors to review the information and erase
information that they feel is not accurate.
■ Explain how cookies operate on a Web site and make a site
more responsive to the needs of a visitor.
Remember, the use of the Internet is a privilege (never forget this
word). It was a Remember, the use of the Internet is a privilege (never for-
privilege in 1989, get this word). It was a privilege in 1989, and is just as
and is just as much a privilege now.
much a privilege
now. And make sure that whatever is stated in your privacy policy is
true. Otherwise, the door is open for a lawsuit!

CYBERBRANDING Ethics on the Internet 215

Expert Viewpoint

Privacy Q&A With Blakes, number of countries have

Cassels & Graydon, LLP begun reevaluating their ex-
isting privacy protection. Ac-
David Fruitman is an associate cording to a report issued in
of Blake, Cassels & Graydon, LLP. late 2000, nearly 50 jurisdic-
Blakes is a Canadian national tions have, or are in the
business law firm with offices in process of enacting, compre-
Toronto, Ottawa, Calgary, and hensive privacy and data
Vancouver, in Canada and in protection statutes, and over
London, U.K., and Beijing. David a dozen countries have en-
practices in the Toronto office acted such statutes or up-
in the areas of privacy, competi- dated previous statutes in the
tion, foreign investment, and past year.1 Close to home,
e-commerce. He has provided the first phase of Canada’s
privacy advice to a number of federal privacy legislation
Canadian corporations includ- comes into force January 1,
ing Canadian subsidiaries of for- 2001, and will become fully
eign-based multinational effective January 1, 2004.
corporations. In addition, he has Various provinces are also in
a long-standing interest in In- the process of reviewing their
ternet issues including privacy. existing privacy policies and
He has been a member of vari- the province of Quebec has
ous on-line communities since had privacy legislation for a
the late 1980s and has main- number of years. Other coun-
tained his interest through tries, which have recently in-
membership in numerous Inter- troduced or are in the
net and privacy-related list process of introducing
servers. In a Q&A e-mail ex- stronger privacy legislation or
change, Fruitman gave his in- protection include Denmark,
sight into Internet privacy Germany, Spain, Italy, the
issues. He was able to take a Netherlands, Austria, the
complex topic and answer ques- United Kingdom, Mexico,
tions in a user-friendly manner.
1. With respect to privacy issues
and legislation, which coun-
tries are introducing stronger 1
David Banisar, Privacy and Human
Rights 2000: An International Survey
policies? of Privacy Laws and Developments,
Largely as a result of the Eu- published by Electronic Privacy Infor-
mation Center and Privacy Interna-
ropean Privacy Directive, a tional.

216 CYBERBRANDING chapter 14

Expert Viewpoint

Switzerland, Argentina, and than is necessary, whether it

Australia. is retaining the information
longer than necessary, or
2. What should companies on whether it is using the infor-
the Internet be doing to ad- mation for purposes other
dress privacy issues? Is a pri- than for which it was col-
vacy policy enough? What lected.
information should be in- A company that wishes to
cluded in a company’s pri- be proactive should then at-
vacy policy? tempt to model its privacy
practices in accordance with
The response to this question the requirements of the rele-
will vary based on the juris- vant jurisdiction(s) or, as a
diction(s) within which a starting point, the privacy
company’s privacy policy is in- principles established by the
tended to apply. In general Organization for Economic
terms, a privacy policy alone Cooperation and Develop-
is not sufficient but is a nec- ment or regional or industrial
essary step in addressing pri- standards associations. Ap-
vacy issues. It is also essential plicable privacy principles can
that a company ensure that it generally be focused down to
establish appropriate prac- a few simple components:
tices and implementation
procedures to comply with its 1. Obtain the informed con-
privacy policy and the privacy sent of an individual with
laws of the relevant jurisdic- respect to the collection,
tion(s). use, and disclosure of their
A company intending to personal information;
address privacy issues should 2. Protect that information
examine its entire business both internally and con-
model to determine what tractually when disclosing
personal information is gath- that information to third
ered and how it is gathered,
parties;
stored, and used. A company
3. Permit individuals to access
should ensure it understands
why it gathers, uses, or dis- their personal informa-
closes personal information tion, and amend it when
and determine whether it is necessary or retract their
collecting more information consent; and

CYBERBRANDING Ethics on the Internet 217

Expert Viewpoint

4. Ensure that the company which the company is doing

has a representative who business or effecting transac-
can be contacted by indi- tions. However, compliance
viduals or relevant regula- with a properly crafted
tory authorities. privacy policy and ensuring
These issues should be ad- that the company follows ap-
dressed in both a privacy pol- propriate procedures to sup-
icy and in implementation port that policy will go a long
procedures. Privacy policies way in protecting the
often also address issues such company.
as cookies and information
related to minors. 5. Please comment on the differ-
ent industries (advertising,
3. What laws have been passed
health, etc.) that are facing
regarding privacy issues, and
government regulation as a
what laws are pending that
result of privacy issues.
you know of?
Many industries including ad-
In addition to the informa-
vertising, health, and finan-
tion provided in response to
cial services have specific
question 2, other European
privacy guidelines through
Union member nations are
industry associations or
presently addressing the
through industry specific leg-
need to comply with the Pri-
islation or regulations. Tradi-
vacy Directive. Japan, Thai-
tionally, many privacy
land, and South Africa are
concerns were initially raised
also expected to pass privacy
in the context of specific sec-
laws in the near future. Re-
tors such as the ones listed
cent developments in the
above. In Canada, the Cana-
United States are discussed
dian Marketing Association,
below.
Canadian Bankers Associa-
4. How can companies protect tion, and the Insurance Bu-
themselves from lawsuits re- reau of Canada all maintain
sulting from privacy issues? industry specific privacy
A response to this question is guidelines. In the United
complex and may require a States, where there is cur-
company to comply with the rently no general federal pri-
laws in all jurisdictions in vacy legislation, federal

218 CYBERBRANDING chapter 14

Expert Viewpoint

privacy regulation is gener- that the safe harbor princi-

ally addressed on an industry ples provide “adequate” pro-
specific basis such as the tection for personal data
Gramm-Leach-Bliley Act that transferred from the Euro-
applies new restrictions on pean Union permits certain
how financial institutions can exchanges of personal infor-
use personal information mation between companies
gathered from customers. resident in the European
Union and the United States.
6. Please comment on the The European Commission
United States and privacy has put the United States De-
law. partment of Commerce on
Finally, one of the most im- notice that it may seek im-
portant recent developments provements if the principles
in privacy law has been the do not provide adequate
European Commission ap- remedies for individuals.
proval of the United States While recent articles have
safe harbor principles for suggested that the next
purposes of compliance with United States congress may
the Privacy Directive. This ap- pass Internet privacy legisla-
proval has been the subject tion based around the Fed-
of controversy given the Eu- eral Trade Commission’s
ropean Parliament’s resolu- privacy principles of con-
tion to reopen negotiations sumer notice, access, choice,
and the significant criticism and security, these reports
of the effectiveness of these appear speculative. Despite
principles. The safe harbor extensive privacy regulation
creates a voluntary code of on an industry basis and
conduct for United States media attention on this issue,
companies. Despite the lack it is unclear whether there
of generally applicable na- will be any significant move-
tional privacy legislation in ment toward generally ap-
the United States, the Euro- plicable federal privacy
pean Commission decision legislation.

CYBERBRANDING Ethics on the Internet 219

PART

4
Cybermarketing to
Enhance the Brand
 CHAPTER

15 Changing Market Landscapes

Objective:

To focus on changing Internet landscapes and how the

scope of competition in the dot-com world is changing as
well. Cyberbranders need to grasp the major issues and
understand how to outmaneuver competition by
providing the best interactive experience and customer
service. Topics of interest relating to changing landscapes
include the following:

■ Five seconds of stability and fifty-five seconds of

change
■ Lessons from the heavy hitters
■ Straightforward examples of gaining customer
share
■ How cyberbrands are gaining customer share

222
FIVE SECONDS OF STABILITY AND FIFTY-FIVE
SECONDS OF CHANGE
The changing landscape of the Internet has turned the modern
world on its side. The digital revolution is characterized by long pe-
riods of change and short periods of stability. What can you count
on in the new economy? Only 5 seconds of stability and 55 seconds
of change that brings
forth more technology The digital revolution is characterized by
than one could ever long periods of change and short periods
imagine. From the Inter- of stability.
net to wireless technol-
ogy, consumers have additional choices and expect more from the
companies in which they invest time, money, and interest. With
such rapid growth and so little stability, what can brands expect
from the digital economy? A humorous scene from the movie Meet
Joe Black sums it all up, when Anthony Hopkins and Brad Pitt are at
the boardroom table and Pitt’s character (Joe Black, representing
death) for the first time learns that “in this world nothing is certain
except death and taxes.” (Of course, this is also a famous quotation
from Mark Twain.) This is still true in the new economy (even
though tax law on the Internet is not yet fully enforced).

223
 B ecause of shifting landscapes, brands face new challenges daily.
The nature of competition has taken on a whole new meaning.
It is still critical for a company venturing into cyberspace to under-
stand its target market, consider the strengths and weaknesses of
other vendors of products and services in the market, and position
the brand with a USP (unique selling proposition) that differentiates
it from the likes of any other brand. However, the Internet brings to
life the concept of “mega superstores” or “Net-partment stores” that
house everything from commerce to stock quotes to varied news
content. No longer is
No longer is the competition just from like products, the competition just
in similar industries, within the same geographical from like products,
location. in similar industries,
within the same geo-
graphical location. For instance, with respect to Priceline.com, su-
permarket chain stores were forced to compete with the
cyberbrand’s bidding structure. However, at the present time, com-
petition has forced Priceline.com out of the grocery and retail gaso-
line business. And although bidding on online tickets through
Priceline.com is still available, a new competitor has entered the
arena. Hotwire.com is forming an alliance with major U.S. airlines
to knock Priceline
The rules are being made as fast as the Internet play-
.com right out of the
ers can make them. Speed to market leads to brand
sky. On the Internet,
recognition, but not necessarily profit margins.
it’s not about a sin-
gle retailer selling a unique product or service. Instead it’s about
overgrown portals that offer everything from customized products
(from A to Z) to customized content.
The rules are being made as fast as the Internet players can make
them. Speed to market leads to brand recognition, but not necessar-
ily profit margins.

LESSONS FROM THE HEAVY HITTERS

What are the heavy hitters doing to create stronger brands and a
better experience for their users, and how are they dealing with the
competition? For starters, the field leaders are eliminating as many
competitors as possible early on by joining forces, and in some
cases, it’s with the enemy. Take Toysrus.com, for instance, which

224 CYBERBRANDING chapter 15

realized its strengths and weaknesses as an e-tailer during the 1999
holiday season. It didn’t take another season of misfortune to figure
out that a strategic alliance with another powerful, forward-thinking
business was necessary. By August 2000, Toys “ R ” Us, Inc., an-
nounced its co-
. . . the field leaders are eliminating as many competitors
branded online
as possible early on by joining forces, and in some cases,
venture with
it’s with the enemy.
Amazon. Imag-
ine the implications of the largest toy seller and an Internet giant
coming together in holy matrimony (a powerful marriage that bene-
fits both entities). The joint venture, proposed in two phases, was to
begin with Phase I, the launch of a toy and video game store in Fall
2000. Phase II was to occur approximately six months out in time
with the opening of an online baby products store. The deal made a
tremendous amount of sense, with each partner capitalizing on the
other’s strengths, and both ultimately overcoming their weaknesses
together. First, Toys “ R ” Us has the infrastructure to manage the in-
ventory, and Amazon has a better grasp on the type of Web site de-
velopment necessary to facilitate e-commerce, fulfillment of orders,
and handling the overall online customer service experience that is
friendly and familiar to loyal brand users.1 This is an ideal example
of using a partnership opportunity to increase customer satisfaction
by joining two powerful entities together for a synergistic out-
come—better experience for the user and e-loyalty to the brand.
Another heavy hitter, General Motors (GM), is forging ahead in
the dot-com arena. The company, one of the top three automobile
makers, is not taking a back seat to the Internet competition.2 Auto-
bytel.com has established a recognizable e-brand that allows con-
sumers to find the cars they want at a dealer closest to their locale.
However, GM takes the Internet one step further by teaming up
with its dealerships to customize cars online for its loyal patrons.
Stepping up to the e-commerce plate may be GM’s last opportunity
to reclaim glory with a position that has slipped at least 30% over
the years.3 GM will no longer be considered that big, slow company.
Its e-commerce strategy will reposition the company to be known as
big and fast. GM’s BuyPower.com site is responsible for online vehi-
cle orders in which customers can place an order on one day and
pick up their custom vehicle within two weeks at the nearest brick-
and-mortar dealership (GM includes its dealerships as key players in
this Internet venture). GM has also proposed another joint venture

CYBERBRANDING Changing Market Landscapes 225

 that would provide consumers with information on other cars out-
side of the GM make and model. For the number 1 auto manufac-
turer, this is a courageous move, not to mention a strong statement
to its competitors. Consumers would still be able to purchase GM
vehicles online, but there would be outside links to other manufac-
turers’ cars.4
The heavy hitters are strategizing in a number of ways that extend
beyond the traditional principles of marketing. Moving beyond the
four P’s, these giants are forming strategic alliances with the enemy to
capitalize on strengths and weaknesses (combining technological ex-
pertise and traditional infrastructure to create an optimum cyber-
brand) and, in the case of GM, offering competitive resources to
audiences as a part of a business model—a practice that would be un-
heard of in the bricks-and-mortar world of the twentieth century.

HOW CYBERBRANDS ARE GAINING

CUSTOMER SHARE
There are e-businesses that continue to retain customers and attract
new ones just by word of mouth alone—by excellent e-service. The
market has changed from mass perspective to the one-on-one cus-
tomer perspective. The Internet fosters customer share. And, the
companies that realize that a transformation has occurred, and con-
centrate on share of customers, are much better off in the digital
economy. These are the companies that will outmaneuver their
online competitors.5 Judith McGarry of Drugstore.com believes
that cyberbrands are
There are two types of winners, the first to market and
forced to realize
then the best (in Cyber space, this translates into the
early on that in
brands that provide the best experience).
order to survive on
the Internet it’s more than a marathon; it’s a sprint to the finish
line.6 Just as for the traditional companies of years past, on the In-
ternet it’s much easier and less costly for a company to keep an ex-
isting client happy by providing superior service than it is to solicit
business from a new client. There are two types of winners, the first
to market, and then the best (in cyberspace, this translates into the
brands that provide the best experience).
KBkids.com and eToys.com are competitors. At first glance,
they both appear to be online toy sellers with little variation between

226 CYBERBRANDING chapter 15

the two brands. With respect to price, they are comparable; for ex-
ample, the Razor Scooter, by Razor, is priced at $99.99 on both Web
sites. These brands have online stores that sell toys, video games,
and software and allow users to shop by age. Now, for strengths and
weaknesses and value added services. KBkids.com allows visitors to
shop by price, brand, and category. KB Toy Stores positions itself as
a company that takes the speed of the Internet and combines it with
the convenient return policy to any of the 1300 KB Toys Store loca-
tions.7 Then, there is eToys. The e-brand does not have a separate
search component on the site to find toys by price, brand, or cate-
gory, but works into the function of the site an educational compo-
nent that is unique to the online seller. Discovery Toys has a
segmented area of the eToys site that is focused on educational toys
that are fun for children. This is a value-added service that illustrates
not only the product description but also the child’s learning poten-
tial when using the toy. eToys touts itself as a company that com-
bines a commitment to excellent customer service and expertise in
children’s products with the convenience of Internet retailing, in
order to deliver a fun and unique experience for online audiences.8
The following situation is a true story, and is not intended to
show favoritism toward either KBkids.com or eToys.com. It does,
however, illustrate a clear example of how superior service prevails
and maintains e-brand loyalty.

A Toy Situation
The owner of an advertising, communications, and production
firm wants to create a stress-free and fun environment for her
employees who work off hours and sometimes around the
clock. With the inclusion of chess and checkerboards, a pinball
machine, and a box of “squishy” toys to add to the décor (the
squishy toys include stress balls for squeezing and rubber frogs
that stick when thrown against the wall), the agency environ-
ment is friendly, fun, and creative. The owner decides that she
wants to purchase mini-basketball hoops, which would be a
CYBERBRANDING Changing Market Landscapes 227
 welcome addition to the company “fun” policy. She goes to
KBkids.com with the intent of purchasing mini-basketball
hoops for all of her 25 employees (a hoop per cubicle or office).
On KBkids.com, a search retrieves a Spalding basketball mini-
hoop set that intrigues her. With little product information on
the site, the owner calls up the customer service number dis-
played on her computer screen. “Customer service, this is
Randi speaking …” (the names are changed to protect the in-
nocent). The conversation continues as follows:

Owner: Hi Randi, I’m wondering if you can help me out. I am

thinking about the purchase of several mini-Spalding basket-
ball hoops for our offices, but was unsure as to whether they
hang on the wall or clip to a door.
Randi: Well, I really don’t have that information. What you
see listed by the product in the site is all I really know about
the product. However, you could go to the Spalding site to
learn more about their products.
Owner: Thanks anyway, Randi.

The owner’s next action was a quick e-mail to the KBkids.com

customer service support center, which asks, “What do you
need to know?” She writes,

“I need to know why Randi could not tell me if the Spalding

Miniature Basketball Hoop sticks to a wall or gets attached to
a door. She told me to visit the Spalding site to find out more
about their products. This is not satisfactory. Basically, I
could just order the product from Spalding. Thanks for
listening.”

Is there a happy ending to this potential customer service

nightmare? Yes, a personal e-mail message from a higher-up
at KBkids.com that addresses the frustration and concerns of
the prospective customer:

“I apologize for the lack of information you received from

Randi. The information we have regarding the products on
the Web site would be the same information our customers
pull up when they visit our site. Our tool of product descrip-
tion is what information is available on our site. In regard to
this product, I personally know that you can wall-mount with
a screw or nail and you may also door-mount this product.
Again, I apologize for the frustration and lack of information
you received.”

228 CYBERBRANDING chapter 15

 Based upon the personal response and the level of customer
service that is still considered unique to many companies on
the Internet, the owner decides that she will make her purchase
through KBkids.com. The e-brand just illustrated what it
means to win “customer share,” and continuance of this type
of superior service will lead to winning that Internet
marathon.
Trend Micro’s NeaTSuite (which includes the product An-
tiVirus.com) is a competitor of Symantec’s Norton AntiVirus 5.0.
Both antivirus products protect file servers, e-mail servers, and
client PCs, and are certified by the International Computer Security
Association (ICSA).9 With similar scanning features and virus detec-
tion options, how do these brands compete? The following scenario
illustrates that the winning factor is in the service aspect of the prod-
uct and the quick treatment of the client. It’s a story of the “good”
e-brand experience with a service provider (so little is heard about a
good experience).

A Computer Virus Situation

A group of authors who work together and pass material back
and forth often accidentally circulate a virus through e-mail
(every computer user’s nightmare). One of the authors realized
what had occurred when a message bounced back from his
publishing house’s corporate deflector shield. But for those less
fortunate, the virus got through those small-town servers to
wreak havoc. However, with quick thinking the author went to
antivirus.com and got a free house call to sweep his PC. He
then downloaded a small program and the service swept all the
drives through the Internet. The service also cleaned or deleted
the virus files it found. The service, which was offered by Trend
Micro, Inc., frequently sends the author, by e-mail, updates of
all the other viruses circulating and any warning symptoms he
should be aware of. For the author, this was a helpful and easy
fix that had him writing, again, in no time at all.
The competitive landscape has changed. In the bricks-and-
mortar world, stores with like products would compete by location
(helped by signs), adequate parking, foot traffic of a mall, traditional
marketing tactics, etc. And once the customer is in the store,
chances are he makes the purchase based upon the fact that he
CYBERBRANDING Changing Market Landscapes 229
 traveled to the store in the first place. That’s not the case on the In-
ternet. No matter how consumers find a Web site, they do not have
to stay there. It took only a few seconds to locate the URL or to click
there from another Web site. The challenge is keeping customers on
the site and providing the experience and value-added service that
makes the brand worth using again. In the case of Trend Micro, the
timely updates and warning symptom notification are how this
brand competes in cyberspace and wins.

STANDING APART FROM THE DOT-COM CROWD

The previous situations are examples of customer service marathon
winners, with brands focusing specifically on the individual experi-
ence. This just might be the differentiating factor in e-loyalty. Supe-
rior service stands out above all of the dot-com noise, and weeds out
the winners from the losers and the boys from the men, so to speak.
Excellent service is the key to customer share even when the compe-
tition is stiff and varied and the marketing noise is thick with dot-
com clutter. Service will always be remembered as a crucial part of
the brand experience. Unfortunately, according to the Internet
consulting firm Dig-
Superior service stands out above all of the dot-com
ital Idea, only 10 to
noise, and weeds out the winners from the losers and
15% of online users
the boys from the men, so to speak.
would remain loyal
to a Web site, feeling a significant bond with a brand with the inten-
tion of recommending it to a friend.10 The results of a Gartner
Group study revealed that a great deal of customer relationship
management (CRM) is just “lip service” on the Internet. By examin-
ing the top 50 e-retail sites, Gartner Group discovered in its eService
Functionality Study that the scores of the top sites were less than
promising, with none of them receiving an excellent or good rating.
There’s a lot of room for e-service improvement in cyberspace.11
In fact, Jupiter
The winners of the Internet marathon are the sites that
Communications re-
have loyal audiences because they not only fulfill ex-
vealed that there is a
pectations but exceed them.
discrepancy between
expectations and actual satisfaction and that “72 percent of Net
surfers say good customer service is important, but only 41 percent
of the customer service they received online is sufficient.”12 The

230 CYBERBRANDING chapter 15

winners of the Internet marathon are the sites that have loyal audi-
ences because they not only fulfill expectations but exceed them.
The old days of pushing products and services to mass audiences are
over. The Internet has become the user’s stage for experience. Inter-
net users demand that their “stages” be built upon excellent cus-
tomer service, which leads to cyberbrand loyalty.
So, it’s true then, everything is changing. The Internet is chang-
ing competition, and competition is changing the Internet, and ulti-
mately, the consumer is in control of who will be the true Internet
marathon winners. The cyberbrands that focus on good, consistent,
value-added service will prosper. Now, with respect to cyberbrands,
competition, and the new economy, maybe the only thing you
should count on is good service, taxes, and death.

CYBERBRANDING Changing Market Landscapes 231

 CHAPTER

16 Banner Ad Sustenance
in Cyberspace

Objective:

To prove the inherent branding value of banner

advertisements, and how despite controversy, banner ads
have survived as one of the most popular techniques to
drive audience traffic to a Web site. The marketer will be
guided by tips and suggestions on the following topics:

■ Banner ad survival
■ Banner ads serve a purpose
■ Banner ad basics
■ Elements of design
■ Questions to ask in banner ad placement
■ Banner ad campaign results

232
BANNER AD SURVIVAL

News Flash: According to Nielsen NetRatings, clickthrough

rates are down from 2.5% in 1995 to 0.34% in March 2000. 1
Headline News: In July 2000, Jupiter Communications predicts
that online advertisers will face challenges in “taking advantage
of the Internet as a global advertising medium.”2
News at the Top of the Hour: eMarketer concludes that U.S.
banner ad spending will decrease from 83% to 71% by the year
2002.3

These are the banner advertising issues in the news every day illus-
trating a decline in online advertising revenue. Did someone neglect
to tell the vice president of Internet marketing at Accenture (for-
merly Andersen Consulting) and the CEO of Ernst & Young that
banner advertisements are a waste of time and money? After all,
both companies post banner ads, as a part of their advertising strat-
egy, in familiar places, such as the New York Times on the Web. And
did the vice president of
marketing at Gateway Even though banner ads are the target of
Computers forget to controversy, use of the banner is frequent
check the clickthrough by companies (from the Fortune 500s to
statistics from the latest the small Internet start-ups).
Internet advertising re-
ports published by the Gartner Group and Nielsen NetRatings?
Gateway also spends advertising campaign dollars on the Internet
placing banner ads on CNET.com. It’s unlikely that Andersen Con-
sulting, Ernst & Young, and Gateway did not do their homework—
there’s a method to the madness. Even though banner ads are the
target of controversy, use of the banner is frequent by companies
(from the Fortune 500 to the small Internet start-ups). It’s been said
that banner ads, from any perspective other than branding, are
questionable.

233
 Lesson Number 1:
It’s the immeasurable branding (the impression registered in a
consumer’s mind) that provides the banner with life and suste-
nance. When banners first appeared on the cyberscene, they
were a novelty. Indeed, companies were quickly buying high-
profile, high-visibility banner ad placements for large advertis-
ing campaign dollars. Eventually, the dust began to settle and
the banner ad faced the ROI challenge. Marketing profession-
als had to answer to higher-ups who wanted to know, Just how
do clickthrough rates turn into dollars? Banner ads will con-
tinue to face that frequently asked ROI question. It’s the same
question that has been asked by management about space ads
for years. However, professionals are learning that the answer
lies in the banner as a powerful branding tactic.

Lesson Number 2 (a word to the wise):

A banner ad campaign should not constitute a company’s en-
tire online branding strategy, just as the Internet is only one
communication channel (a powerful one at that) utilized si-
multaneously with other communication channels for a well-
rounded marketing campaign. Banners may not constitute
an entire campaign strategy, but they certainly deserve
234 CYBERBRANDING chapter 16
 recognition for the space they occupy. Banners appear where
consumers spend time. However, amid the negative news sto-
ries and statistics, the banner ad lives on for a reason. In fact, it
thrives with click-and-mortars and e-brands that continue to
spend more and more dollars on banner ad campaigns. The
negative press will continue to surface, but simultaneously so
will the increasing statistics of Web advertising revenues. Thus,
the news flash reads: Jupiter sees sharp growth in Web ad rev-
enues from
A banner ad campaign should not constitute a company’s
1999 to 2000,
entire online branding strategy.
when they
will reach over $7 billion. In successive years, growth will re-
main steady.4

BANNER ADS SERVE A PURPOSE

Banner ads serve a specific purpose. Cyberbranders realize that the
average consumer recognizes the banner ad—it’s that flashing box
(sometimes annoying and always a glance away), usually rectangu-
lar, or possibly square, that varies in size and price. These highly rec-
ognizable banners are extremely visible on a Web page, and in most
cases eye-catching by design (regardless of flashing, movement, or
interactive media). Banners are registered by the eye and the brain at
a mere glance and, whether the consumer realizes it or not, leave a
lasting impression. Banners, to the benefit of the brand, automati-
cally appear on a Web page. They are an integral part of the content
of a page, unlike
television or Banners are registered by the eye and the brain at a mere
radio ads, which glance and, whether the consumer realizes it or not, leave
are not a part of a lasting impression.
a scheduled pro-
gram. Thus, the consumer runs to the kitchen for a snack as a com-
mercial interrupts a scheduled show or selects a new radio station
when an irritating jingle comes on for the fourth time. On the con-
trary, the banner is there for the viewing until the user clicks on it or
navigates to another area of a Web site. In some cases, it’s been said
that banner ads are annoying for consumers who travel to sites for a
specific purpose. Yet the distraction may actually be a useful tactic—
consumers tend to remember distractions. On the other hand, the

CYBERBRANDING Banner Ad Sustenance in Cyberspace 235

 banner ad often intrigues a consumer’s curiosity with a question, a
discount, or a contest offering. In either case, the fact that the brand
is displayed in the banner ad and it sits prominently on a page (one
that research identifies as a targeted page that will reach the demo-
graphics of the desired audience) reinforces awareness of the
brand—its look, feel, and overall message. Via the banner, the brand
has increased visibility and has the opportunity to restate a consis-
tent message. In this respect, cyberbranders need to evaluate both
the online audiences who click on ads and those who choose not to.5
Measurement of brand awareness via the banner is not easy, and it is
tough for anyone at this point to negatively judge or discredit the
value of the banner. Not enough time or analysis has been con-
ducted on the banner ad as an awareness tool.
It is critical for advertisers, especially in cyberspace, who fight
tooth and nail for awareness to realize that the banner is an immedi-
ate opportunity to receive attention from consumers. The memory
of the “impression” is valuable. The consumer may or may not have
an interest in click-
. . . the banner is an immediate opportunity to receive
ing on the ad, but at
attention from consumers.
the same time a tar-
geted ad on a Web site is one way to display a repetitive brand mes-
sage that will eventually lead a consumer to interact with a
company. At some point it just may come down to a choice between
products, and the banner might be the final factor that leads the
consumer to make a decision between Barnes & Noble and
Amazon.com, Coca-Cola and Pepsi, or the choice of Tommy
Hilfiger over Guess jeans.
The memory of the impression is so valuable that breaking
through the banner ad controversy is the fact that in June 2000,
TheStandard.com rated banner ad popularity among click-and-
mortars and e-brands at 89%. This is the highest percentage rating
of all the techniques utilized to drive visitors to a Web site.

BANNER AD BASICS
To look at banner ads in terms of branding makes the most sense. It
It’s the nature of the Internet to impose speed upon is imperative to un-
the brand, and in the rush to cyberspace, banner ad derstand everything
basics are overlooked. about the banner—

236 CYBERBRANDING chapter 16

from the meaning of the banner buzzwords to where and how ads
are placed to achieve an effective cyberbranding campaign. It’s the
nature of the Internet to impose speed upon the brand, and in the
rush to cyberspace, banner ad basics are overlooked. Taking the
time to understand the components and measurements of banners
proves beneficial in the long run.
Test your knowledge and rate your expertise before moving for-
ward in the development of the banner ad campaign by answering
these banner ad basics (Answers in Appendix B):

1. Name the term(s) that describe the number of times a Web

page is requested by the server.
2. What is considered the standard file size for the banner ad?
3. The measurement 468 × 60 pixels represents what size
banner?
4. What does CTR stand for?
5. What is the measurement that refers to cost per thousand?
6. The number of responses to a banner ad by the user is the
number of times the user does what on the banner?
7. With respect to advertising rates, what is the difference be-
tween CTR and CPM?
8. What is a banner ad conversion rate?
9. How do you calculate cost per visitor on a Web site?
10. What is considered average for banner ad rates?

These are the fundamentals of banner ads, the rudiments that de-
serve careful attention. Success at answering these questions leads to
the next step, which is to consider the phases of the banner ad cam-
paign: design, placement, and measurement.

ELEMENTS OF DESIGN
It doesn’t matter if the banner ad campaign is developed within the
brand’s in-house marketing department or if an outside agency pre-
pares the ads
Design is crucial to the life of the banner ad. The wrong
and the online
design will leave a lasting negative impression.
media buying.
It’s still necessary to have an understanding of every basic

CYBERBRANDING Banner Ad Sustenance in Cyberspace 237

 component of the phases of the campaign. Design is crucial to the
life of the banner ad. The wrong design will leave a lasting negative
impression. Taking the time to leave a favorable impression is as
easy as becoming familiarized with these quick tips of banner ad de-
sign:

■ The banner ad design should be consistent with the brand

message.
■ The brand’s logo must be visible on the banner.
■ Animation or movement piques audience interest.
■ Banners should contain as little text as possible.
■ Web audiences should always be guessing what the ad is all
about. Give audiences only enough information for them to
“chew on,” prompting them to pursue learning more about
the brand.
■ Bright colors should be used. If the colors of the site of
potential placement are known, the banner ad colors should
offset the site colors.
■ Easy-to-read fonts work best when audiences are glancing
quickly. Fancy scripts and letters that run close together are
not an advantage to the brand. Font size is also a valuable
consideration as text is flashing or only appears
momentarily.
■ It is
. . . the average banner impression is three or six necessary to reveal
seconds. the text of the
banner just long enough for the user to read it before
changing ad script to continue with the banner message.
Keep in mind that the average banner impression is three or
six seconds.
■ Steer clear of jumbled designs with too much clutter and
activity. A clean banner is the most pleasing to the eye.

QUESTIONS TO ASK IN BANNER AD PLACEMENT

Following the foregoing tips, the banner ad campaign will attract
and intrigue audiences to learn more about the brand—the ultimate

238 CYBERBRANDING chapter 16

branding goal. However, in the effort to brand, never underestimate
the value of the clickthrough rate (CTR). CTR as a measurement
does count, yet may not always lead to the sale of a product or ser-
vice. CTR is definitely a desired behavior in the progression of the
banner ad campaign and moves the user in the right direction—one
step closer to interaction with the brand. Companies are struggling
with banner ad placements and measurements, CTR versus CPM
(Cost Per Measurement), and are not always asking the appropriate
questions regarding these rates on a Web site. First, before even con-
sidering the actual media buys, it is in the brand’s best interest to
thoroughly research potential sites to house the banner ad cam-
paign. Then, upon requesting banner ad rates from these sites (for
comparative pricing), it is necessary to raise the following questions:

■ What are the page views on the site? Page views determine the
amount of traffic and, in turn, let the advertiser know the
possible number of views the banner ad will receive in a
specified time period.
■ What is the audience breakdown on the site? This makes a
difference with the CTR. For instance, CTR is higher when
the banner is placed on a targeted site, such as a female
pharmaceutical product on Women.com. The reverse is also
true: lower CTR for the same product ad on a more general
site on CNET.com.
■ What is the user return rate on the site? The more a visitor
returns to the site and views an ad additional times, the
more likely will the brand capture that visitor’s awareness.
■ How many advertisers are on the site? It is important to find
out the number of advertisers to determine the exact
positioning and opportunities available on a Web site.
■ Does the banner ad rotate with other ads, or will it capture the
ad space alone? Knowing the scheduled rotation (e.g., six
advertisers rotating on the top banner ad of the home page)
tied into the page views on the site gives the advertiser an
indication of the number of impressions available and how
often the banner will be viewed. Having 20 banners rotating
on the top banner ad of the home page of a Web site offers

CYBERBRANDING Banner Ad Sustenance in Cyberspace 239

 less of a chance to be seen than six advertisers rotating on
the same space.
■ Is there any reporting software available on the site to track an
advertiser’s CTR? The Web site where the ad is placed is
responsible for keeping track of its advertiser’s clickthrough
rate by providing banner ad documentation including how
many times the banner ad was “hit” by visitors.
■ Where is banner ad space available on the site? Is banner
advertising available on the home page? Although more
expensive, this is the optimal spot and is the gateway to all
the other pages. It is also important to inquire which other
pages on the site receive heavy user traffic. Run of site (ROS)
is less expensive, but often not as visible as other popular
pages.
■ Is the banner method on refresh, or does it rotate for the visitor?
If the banner is on a rotating scheduling, then several
advertisers will rotate in one ad while one viewer remains on
a Web page. Refresh mode is a single banner impression per
Web page.
■ Are banner ads on a three-second rotation or six-second? This
is extremely important in the design of the ad, to know if a
series of textual messages will be visible long enough for the
user to read and understand.

Answering these questions thoroughly will lead the brand to an eas-

ier decision regarding banner ad placements in order to receive de-
sired campaign results. More important, remember that it’s a buyer’s
market and CPM and CTR are negotiable. The rates on the online
rate card are only a starting point. Depending on the Web site and
the brand’s relevance to that site, there’s quite a bit of flexibility.
Web sites are still hungry for advertisers, and smaller sites with
growing page views will practically give the space away.

BANNER AD CAMPAIGN RESULTS

The banner ad campaign designs are complete. The questions re-
garding online banner advertising are answered. The media buys are

240 CYBERBRANDING chapter 16

placed. The ads are live and the expectations are high. Now, what
about the measurement of the results of the banner ad campaign?
As mentioned
earlier, it’s prac- . . . it’s practically impossible to measure the branding ele-
tically impossi- ment without going directly to Web site audiences.
ble to measure
the branding element without going directly to Web site audiences.
Ways to measure the effectiveness of branding for online ad cam-
paigns would be through surveys of viewers to find out their re-
sponsiveness to designs and campaign messages, or to ask
consumers and/or clients which means of advertising led to the pur-
chase of a product or service. However, to date most of the cam-
paign measurement falls with CTR and cost per sale (CPS).
Unfortunately, the likes of the positive banner campaign results
often take the backseat to the negative press. For instance, no one
was shouting from the rooftops that the women’s site iVillage.com
received spectacular clickthrough rates, up to 52%, with a banner ad
campaign that reached out to women interested in entertainment
topics. iVillage.com was able to run a campaign that utilized online
advertising to add a “Celebrity Horoscope” on Hollywood.com’s
“Women in Film” section. The banner ads placed in this section of
Hollywood.com allowed its audience to visit iVillage.com and share
audience traffic. A combined effort of banner ads throughout the
Hollywood.com site along with promotion in weekly member
e-mails led to stellar banner ad clickthrough rates for iVillage.com.6
Another banner ad success story involves the launch of iWin.com,
with results that would have heads turning—approximately 3.2 mil-
lion female visitors on the site. According to Mark Stroman, senior
vice president of sales and marketing at iWin.com, the company did
its homework. All of the advertising was online, with banner ads
tested on over 1000 sites and then placed on 100 sites on a regular
basis. As a result of smart online banner ad buys, the results of the
campaign included site traffic jumping 30% and a top 40 ranking in
MediaMetrix’s Web properties.7
Measuring banner ad effectiveness can also be calculated from
the CPS perspective. In fact, the number of clicks on a banner is not
representative of the number of purchases of a product or service.
CPS is still heavily relied upon in cyberspace, because in the final re-
view of the clickthrough report, CTR does not provide ROI. The only

CYBERBRANDING Banner Ad Sustenance in Cyberspace 241

 way to differentiate the clickthrough audience and the actual buyers
is through sophisticated tracking software. Cookies on a site will
make this differentiation for the brand, determining ultimately the
best results from ads placed on the winning sites that resulted in
sales for the brand.
Of course, CPS is affected by the amount of clicking on the banner
by the audience as well as the actual CPM price. Higher CTR and
lower CPM rates on a Web site will result in lower CPS (a desired
outcome). However, all too often advertisers are quick to place on-
line media buys at a CPM rate without negotiating price. In addi-
tion, they often do not consider an alternative banner ad pricing
structure—the pay per banner ad click method. The pay per click
method enables an advertiser to pay only when the ad is clicked on
by the user. This method, known as cost per click (CPC), facilitates
ad buys that are strictly pay-for-performance. These CPC buys usu-
ally fluctuate between $.25 and $.50. At times the CPC method is
combined with the CPM model.8
Regardless of the model, CPM or CPC, or whether or not evalu-
ation is based on CTR, CPS, or branding, the banner ad is not going
to fade away anytime soon. Yes, it’s been difficult to prove the corre-
lation between banner ads and branding in the past. However, as
new technology surfaces and banner ad strategies advance, more
companies will take the time to analyze banner ads as a branding
tool. As these companies probe audiences directly, they will find out
that impressions do in fact lead to interaction with a brand. The fu-
ture is bright for banner ads as they change shape, advance with
rich, interactive media, and eventually take the form of entertain-
ment as well as an awareness tool for users. The power of banners as
a branding tactic also increases as online audiences continue to rec-
ognize these flashing boxes. This is not to say that the banner ad
controversy will cease. The disbelievers will always have their say.
Yet, with respect to
The future is bright for banner ads as they change
branding, no one has
shape, advance with rich, interactive media, and even-
concrete evidence to
tually take the form of entertainment as well as an
dispute that banner
awareness tool for users.
ads are as noticeable
as other online and offline advertising strategies. As such, and to
their benefit, banner ads cannot be turned off or thrown out. The
value of direct mail, for example, with a 2% return rate on a cam-

242 CYBERBRANDING chapter 16

paign, is constantly questioned over the years. With the realization
that most direct mail pieces are filed in the “circular file,” most pro-
fessionals still utilize direct mail as a part of the marketing mix. The
threat of the circular file does not stop the company from using the
direct mail strategy. This is proof that each marketing method faces
its own set of trials and tribulations, and in every case there is a
method to the madness. The development of the banner ad simply
follows suit, and in the long run, it will prevail.

CYBERBRANDING Banner Ad Sustenance in Cyberspace 243

 CHAPTER

17 Affiliate Marketing
for the Future

Objective:

To clarify how affiliate programs extend beyond the

standard clickthrough commission program and provide
brands with an opportunity to increase exposure,
awareness, and sales of a product or service. The affiliate
program has suffered from lack of attention in the
cyberbranding arena, and now it’s time to revisit the
strategy and jazz up the program options by considering
the following:

■ Moving beyond the “traditional” model

■ Setting up a winning program
■ Implementing a program that attracts affiliates
■ Working with affiliates to maximize results
■ Jazzing up programs for the future

244
MOVING BEYOND THE TRADITIONAL MODEL

T he advantage of the affiliate model is that it allows for multiple

possibilities. There is much to offer both the merchants who
initiate affiliate programs and the member affiliate sites that want to
become involved in the
program. Cyberbrands Cyberbrands are just learning to move
are just learning to move beyond the basics.
beyond the basics. As a
result, the following scenario is all too familiar. When the owners of
a click-and-mortar enter their advertising agency’s office for a strat-
egy meeting, the affiliate program is thrown on the table for open
discussion. The agency stands by the affiliate program, pointing out
the success of the Amazon model for the following reasons: (1) it’s
the industry standard, (2) it gives affiliate members anywhere from
a 5% commission on up to a 15% commission, and (3) Amazon
boasts over 400,000 affiliates in its program. The company’s execu-
tive team hems and haws over the value of this strategy with ques-
tions like, How much business could we possibly obtain from
continuing this program, and how many more resources will have
to be directed toward program maintenance? The bottom line—is it
really worth the effort? The agency does not have any hardcore, con-
vincing, jazzy stories to persuade the executive team about the real
value of affiliates, only the basic facts. As a result, the group does not
reach a definitive answer. It moves to the next item on the agenda.

245
 When Joel Gehman, the author of the article “What Is Affiliate Mar-
keting,” attended International Institute of Research’s (IIR) Online
Affiliate Conference, he was somewhat surprised. Conference par-
ticipants asked panel members to discuss “the basics” of affiliate
programs.1 It’s the new economy, the twenty-first century, and the
hype is still centered on the basics. The premise behind the confer-
ence—to bring forth cutting-edge strategy; to listen intently to in-
dustry experts discuss their views on the direction and future of
affiliate marketing. Instead of futuristic tactics and enthusiasm,
there was nothing more than simple, straightforward, rudimentary
elements. Why? A simple answer—because cyberbrands are still
grasping the basics, and rightly so. It’s understandable that profes-
sionals grasp technology at varying speeds. Of course, learning the
basics is a must, and will elicit the program’s true potential.

SETTING UP A WINNING PROGRAM

Moving beyond the basics does not mean sidestepping the basics.
The first set of affiliate programs, as demonstrated by the early con-
tenders (do they
Moving beyond the basics does not mean sidestepping
have to be named?),
the basics.
focused on the basic
elements and received consideration from two perspectives: the
merchant side and the affiliate side. The essential considerations for
merchants developing a program included:
■ Having a secure domain name (although this is very obvi-
ous), one that is uncomplicated and has brand recognition.
■ Possession of a valuable and reputable product or service
that will attract audiences from an affiliate’s site.
■ A thorough clickthrough tracking system that allows
merchant to calculate commission payments and run reports
for affiliate members.
■ The desire to share the wealth, which must be a fair portion
of a sale. Five percent is a bit on the low side (without any
other incentives), and with all of the many programs
surfacing on the Net, affiliates are looking for the most
attractive package.
■ Designation of an affiliate manager or team (depending
upon the scope of the program) to work with affiliate

246 CYBERBRANDING chapter 17

 members and to analyze results for smoother operation of
the program.
2
(www.webtechniques.com, June 2000 )

The necessary considerations for affiliates interested in joining a

program are the following:
■ The very obvious: a functional Web site to link to a
merchant site.
■ Belief in the value of the product or service being offered by
a merchant site. Whatever you put on your company’s Web
site is an automatic reflection of the brand.
■ A feel for the navigational system and functionality of the
shopping cart process (from the number of steps to get to
the checkout, all the way to the responsiveness of customer
service for inquiries) on the merchant’s site to make sure
that your audience does not get lost, annoyed, or perplexed
when trying to make a purchase.
■ Making sure that the merchant’s offering appears on the
appropriate pages of the Web site. The merchant kiosk
should be relevant to the content on a page.
■ Being choosy about the number and type of programs. The
last thing a cyberbrand needs is clutter on a clean and easy-
to-read site.
■ Being sure that the program links from the affiliate site
directly to the merchant product pages. Sending your audi-

CYBERBRANDING Affiliate Marketing for the Future 247

 ence to the merchant’s front door might be frustrating and
confusing. Avoid sending consumers on a wild goose chase.
■ Whether the merchant requires a fee from an affiliate to
participate in the program. If so, don’t bother with the
affiliate registration—most programs are free!
3
(Ibid )

IMPLEMENTING A PROGRAM THAT ATTRACTS

AFFILIATES
There are four key elements to the success of an affiliate program
(this holds true for the traditional models as well as the jazzed-up,
futuristic ones):

1. No one benefits from a skimpy program—neither the mer-

chant nor the affiliate members. The decision to move for-
ward and take on affiliates is the decision to build a program
utilizing the proper resources. The merchant site must have a
team of professionals who are able to guide the program and
work side by side with affiliate members. The days of tossing
the program to an IT employee who is juggling other respon-
sibilities are over. The team’s ultimate goal is to increase the
traffic to the Web site and the number of purchases on that
site. Affiliate pro-
No one benefits from a skimpy program–neither the grams do not function
merchant nor the affiliate members. successfully without
supervision and proper attention from dedicated managers. For-
rester Research reported in its “New Affiliate Marketing Mod-
els” study that most companies, up to 50%, dedicate two or
more employees to manage an affiliate program.
2. The merchant site must invest in a reliable tracking pro-
gram, of which there are several. These affiliate management
packages usually include software to set up a shopping cart, a
third-party processing system, e-mail list management, IP
address and cookie tracking, as well as tiered commission
rates. A few of the well-known affiliate management pack-
ages can be researched and located at the following Web
addresses:4

248 CYBERBRANDING chapter 17

 www.theaffiliateprogram.com
www.myaffiliateprogram.com
www.cybertrakker.com
www.affiliatetrackingsoftware.com
www.groundbreak.com.
There are a number of software options. A word to the wise:
Prices range from a couple of hundred dollars to thousands
of dollars as a base price, and then there is an additional
monthly charge. Research your options carefully and pay the
higher price for management software only if your program
warrants it. If an e-brand answers to investors, advertisers,
affiliates, and an in-house marketing team, you will need to
know all of the profile, demographic, and tracking informa-
tion. Thus, the larger end management system is required.
3. It is necessary to distinguish affiliate member program levels.
Perhaps that means a rating system of 1 to 4 stars, similar to
that of a movie or hotel rating system. Or you might use the
gold, silver, and bronze Olympic hierarchy that will differen-
tiate the top affiliates (the members of the program that drive
the most traffic and whose audience makes the most pur-
chases) from the lower-tier group (unfortunately, they may
comprise a larger percentage of your affiliate members). A
first objective is to set up a system that rewards top affiliates
with
. . . set up a system that rewards top affiliates with
bonuses,
bonuses, higher commission, and other attractive incen-
higher
tives. Keep these affiliates happy by rewarding their ef-
commis-
forts as they drive traffic to your site.
sion, and
other attractive incentives. Keep these affiliates happy by re-
warding their efforts as they drive traffic to your site. The next
objective is to move every lower-rated affiliate member to a
higher plateau. Constant communication with affiliates is
achieved through newsletters and e-mail programs. This type
of ongoing communication provides them with the tips and
suggestions that allow the affiliate to earn more from the pro-
gram. As of March 2000, sites including Reel.com and Lend-
ing Tree Brand Network were giving new banners on a weekly
basis and $12 per lead, respectively.5

CYBERBRANDING Affiliate Marketing for the Future 249

 4. Launch the affiliate program and make some noise. If poten-
tial affiliates don’t know that the program exists, there is lit-
tle need to allocate the resources to have a program in the
first place. Of course, start with your existing customers. Set-
ting up links, for starters, in the many program directories is
crucial for attracting members.6 Listings can be submitted
manually in these directories or an outsourced company,
e.g., Affiliate Announce can submit listings. There are a
number of helpful directory sites: (1) PlugInGo Affiliate
Network has a two-tier affiliate program directory. (2) Asso-
ciatecash.com lists, rates, and reviews associate and affiliate
programs. (3) Affiliate Options allows the prospective affili-
ate member to search for programs that are either one- to
two-tier, multiple-tier, or by category of product. (4) Clicks-
Link.com has an extensive program directory including ap-
parel, electronics, sports, and software to name a few.
ClicksLink.com allows interested parties to register for the
affiliate program through the search directory.

WORKING WITH AFFILIATES TO MAXIMIZE

RESULTS
Put yourself in the shoes of the affiliate you would like to attract. Re-
verse roles if you must. Start thinking of what you would want to get
out of a program. Is it a higher commission? What about a bonus
check per referral? Would you like a free banner ad in a prime location
on the merchant’s site? Is an e-mail sponsorship opportunity on the
merchant’s newsletter appealing? Perhaps it might be a matter of
sending your affiliates a small token of your appreciation (mugs, T-
shirts, hats, or other promotional items) as another way to say thank
you for a job well done. It might be one or all of these incentives. The
affiliate manager plays a key role in determining the likes and dislikes
of an attractive program, and understanding the preferences of the
members is critical. The key to a successful program is to understand
what affiliates are looking for and to really push these positive rela-
tionship-building tactics. Strategies that are not creating better rela-
tionships with affiliates should be reevaluated and redirected to
promote better program performance. Listening to the affiliates, and
what their thoughts are about a program, makes the difference. The
250 CYBERBRANDING chapter 17
affiliate manager is not only a professional responsible for smooth
strategic operations to maximize results, but is also the primary cus-
tomer care representative who takes the time to listen and respond to
any member in-
quires. Shawn The key to a successful program is to understand what af-
Collins, author filiates are looking for and to really push these positive
of “Communica- relationship-building tactics.
tion 101 for Af-
filiate Managers,” gives some good tips about communication.
Collins, as an affiliate manager for ClubMom, Inc., and the founder of
the New York Affiliate Manager’s Coalition, makes it a point to re-
spond to affiliates within a 24-hour time period, every day of the
week.7 Collins also started an e-group, which is basically a focus group
using affiliate–members. Treat the affiliates as if they were the mem-
bers of your sales team. Affiliates need to be guided by a sales manager,
must understand the company’s offerings, must be constantly up-
dated with company information and promotions, and should be
treated as an outside entity that has an extremely important func-
tion—a communicator of the cyberbrand. Would you hire a sales
team and not train them? Absolutely not!
Another tactic to get the program “stirring” is publicity. Take off
your marketing hat for a moment and think public relations (free pro-
motion from a third party). Let the media know that you have a suc-
cess story to tell about an affiliate program. Case studies are an
excellent tool to getting noticed. Select the top affiliates in the pro-
gram. Ask them to participate in a public relations campaign that
highlights the affiliate–merchant relationship and how the affiliate has
reached a top level. Information of this type should be forwarded to
editors of advertising, marketing, and Internet publications, to start.
These publications are interested in sharing with their readers the
ways to jumpstart a successful program. In addition, generating news
releases on a monthly basis naming new affiliates (especially relation-
ships with well-known e-brands or click-and-mortar brands), and
any interesting reward system that is devised for revealing program
growth, is another tactic for getting the program and the cyberbrand
in print. Public relations is a win–win situation for both the merchant
and the affiliate member. Gathering information for success stories or
news releases is not particularly time-consuming and ultimately leads
to reliable third-party endorsements and greater awareness for a well-
executed affiliate program.

CYBERBRANDING Affiliate Marketing for the Future 251

 JAZZING UP PROGRAMS FOR THE FUTURE

Affiliate programs usually start with a commission program. But

there are many cyberbrands developing jazzier programs to attract
and keep their affiliate members satisfied (because they extend be-
yond the traditional model). Take Commission Junction, otherwise
known as the CJ Network (www.cj.com), which allows affiliate mem-
bers to benefit in a number of ways. Of course, CJ Network has the
successful click-through lead program that enables affiliate members
to receive a commission on each lead generated through the affiliate’s
site. However, CJ Network also provides an affiliate the opportunity
to place targeted ad-
. . . there are many cyberbrands developing jazzier pro-
vertising banners its
grams to attract and keep their affiliate members sat-
Web site to drive
isfied (because they extend beyond the traditional
e-commerce rev-
model).
enues. CJ Network
works with over 1,000 merchants from which the affiliate member can
select banners suitable to site content. For every banner ad placed, the
affiliate has the chance to receive $2.00 for each new lead transaction
and then a continuous 5% commission for the length of the affiliate
partnership. CJ Network is listed among the top affiliate programs ac-
cording to the affiliate program directory, top10affiliates.com. CJ
Network is cited for its two-tier program as well as opportunities to
engage in sweepstakes, “free-stuff,” and Lotto.8
At Cruel World (www.cruelworld.com), a Web site that is revo-
lutionizing the online job search, the affiliate program is not even
based upon a commission of sales. Cruel World has experienced
recruiting specialists who use cutting-edge technology to match
mid- to senior-level opportunities with interested and qualified pro-
fessionals.9 Cruel World’s mission is to help professionals “work
happily ever after.” In its quest to fill job positions, it looks to its af-
filiate members for potential recruits. Cruel World specifically tar-
gets cyberbrands that attract a business professional audience of
software developers—a select audience. The premise behind the
program is to make money—$2.00 per user from an affiliate site
that clicks through and fills out a career profile, which is confiden-
tial and free, as explained on the site. No mess, no fuss, just an easy
way to make money with no purchase necessary.
Vstore.com has an interesting affiliate program. Vstore.com in-
vites small businesses and individuals to open up their own store, stat-

252 CYBERBRANDING chapter 17

ing, “You’ve got a great idea. We’ve got the products, the services, and
the e-commerce savvy to make it more profitable. . . .”10 Vstore.com
shows would-be merchants (who in reality are affiliates) comparisons
between its affiliate program and those of Amazon, CDnow, Barnes &
Noble, and FogDog. One notable comparison: Vstore.com gives com-
missions ranging from 5% to 25% on sporting goods (for the first sale
and every sale) as compared with other affiliate programs that give
higher commissions based upon a sales amount. At Vstore.com, there
is a set commission for each product the “merchant” chooses to sell.
There is also a 7% to 15% commission on return visitors who pur-
chase as well. Another benefit is the program’s payout system, which
is awarded quarterly as long as the merchant has a $10 minimum
commission (most quarterly payouts have to exceed $100).
Last, Lobster Net in Maine (www.lobsternet.com) has an ap-
pealing program. The Web site, which offers a Down East lobster
feast, provides its affiliates with a 5% commission on gross sales (not
net, but gross). And the lobster gift basket commissions are way
above the $.50 commission (average orders at ProActive sites are
$250). As Lobster Net puts it, “We’re talking real money.”11
Affiliate programs have come a long way, but still have a long way
to go. Merchant sites are concentrating on what would make a better
program and how to satisfy affiliates. They are realizing that an affili-
ate program, in and of itself, is an extension of the sales team. The
communication, information, and attention paid to the affiliate
member are to the benefit of the cyberbrand. At the same time, affili-
ates are realizing that they have options including commissions and
then some. The most attractive programs have the higher-tier payout
scale, promotions, sweepstakes, bounties, referral programs, public
relations, and set dollar amounts for just directing a visitor in the right
direction. Affiliate programs will move into the future with stronger
affiliate management teams, better tracking systems, and better re-
porting options to analyze program successes. There will be more in-
formation available than ever before (this comes naturally with the
progression of the Internet and the cyberbrand). That means that the
next time the
Affiliate programs have come a long way, but still have a
click-and-mor-
long way to go.
tar meets with
the agency and the affiliate program is thrown out on the table for
open discussion, there will be a celebration of the affiliate program as
the jazzier programs surface and are recognized by more cyberbrands.

CYBERBRANDING Affiliate Marketing for the Future 253

 CHAPTER

18 Driving Traffic on
the Cyberhighway

Objective:

To reinforce the necessity of well-rounded marketing

strategies both online and offline to support the
cyberbrand. Although the Internet has tremendous reach
as a communication channel, it is one medium in an
entire branding campaign. Cyberbranders fare best by
understanding the following:

■ Communicating to suit the new-economy lifestyle

■ Using more vehicles for more reach and greater
impact
■ Getting cyberattention the “traditional” way
■ Moving out of the box

254
COMMUNICATING TO SUIT THE NEW-ECONOMY
LIFESTYLE

R eaching the customer is the number one priority. Even the most
Internet-savvy individual does not lead an existence chained to
a desk viewing a computer screen or strapped to a wireless device. A
Worldcom advertisement that appeared in the September 11, 2000,
issue of Business Week
states, “The siren’s song Reaching the customer is the number
of the Internet gets more one priority.
alluring everyday. And as
a member of the chorus, we’re not about to tell you the Internet
isn’t a tool your business needs. It’s just not the only tool your busi-
ness needs.”1 Although this quote comes from a different context
(more from a technological perspective than a marketing one), it’s
thought-provoking and draws attention to the reality that many
communication tools are available.

255
 The following two scenarios are a representation of life on the go in
the digital economy and the filtering of messages via many commu-
nication vehicles:

Scenario I:
Picture this—A calorically charged man with more scalp than
hair, in his mid-40s. They call him Joe. He is an average type
of guy who stumbles out the door each morning with a cup of
coffee in one hand and a briefcase in the other. Joe’s tie is usu-
ally undone because he can fix it by the time he reaches his of-
fice. With a piece of toast in his pocket, Joe runs to the bus stop.
While waiting for the number 194 to arrive, he buys a daily
newspaper, eats his toast, and then reads for the 45-minute
ride to work. Joe arrives, just on time, and is bombarded by the
stimuli of the big city—lights, billboards, and posters. Once at
work, Joe turns on his computer and his radio (for sanity) and
conducts his normal daily 9-to-5 schedule. He returns home on
the same number 194 bus that he took in the a.m. The minute
Joe gets home he turns on the television and settles into his
nightly routine.
Question: Where does Joe go to find the next “big” thing that
will impact his life?
Answer: Joe needs more than a flash piece and a banner ad
(and he needs a life).

Scenario II:
Picture this—Mary grabs her two-year-old in one arm and her
five-year-old by the hand, and checks to make sure a milk bot-
tle is in her pocket as she scurries out the door. Once in the car,
she turns on the radio, looks in the rearview mirror at both her
children, then tilts the mirror her way and attempts to fix her
hair and put on lipstick. On the way to school, Mary passes
other buses, bus stops, and local merchant signs. She gets to
school and kisses her child goodbye. On the way home, she
stops at a coffee shop and watches a cable television program as
she waits for her order. On the way out she also grabs Self
magazine. And once she is finally at home, Mary plops her
toddler in front of the television and turns on the computer to
check out Self magazine’s Web site. By lunchtime, the routine
repeats itself when she picks up her kindergartner from school.
256 CYBERBRANDING chapter 18
 Question: Mary, Mary, quite too busy, is it fair that you have
no time to download?
Answer: Mary needs more than an online opportunity to be
reached during the course of her very busy day.
(PFS Marketwyse2)

USING MORE VEHICLES FOR MORE REACH

AND GREATER IMPACT
For each scenario, there are at least 10 missed opportunities for a
cyberbrand to reach either Joe or Mary. And in all seriousness,
cyberbrands
. . . cyberbrands need to grasp the urgency of utilizing of-
need to grasp
fline marketing strategies to increase brand awareness
the urgency of
and drive traffic to a Web site.
utilizing offline
marketing strategies to increase brand awareness and drive traffic to
a Web site. There is every indication from the two scenarios of Joe
and Mary that the following factors come into play:

1. Work and play patterns of the average consumer in the new

economy are fast-paced.
2. Joe and Mary contribute to the rising statistics and research
findings from consumer reports on daily media intake.
3. Joe and Mary represent audience fragmentation, based upon
the number of communication vehicles they encounter in the
course of their busy days and on the division of their attention
spans, given the media choices in the digital economy.
3
(ICONOCAST, June 2000 )

CYBERBRANDING Driving Traffic on the Cyberhighway 257

 First, to address the way audiences deal with the busy new-
millennium lifestyle. Consumers are proficient at multitasking. Ex-
amples of multitasking are present when Joe eats a piece of toast and
runs to the bus stop and when he reads a newspaper as he waits for
the bus. Signs of multitasking are present in Mary’s hectic schedule
when she puts on her lipstick, fixes her hair, and drives the car all at
the same time. Yes, this is the true essence of multitasking, so famil-
iar to professionals, nonprofessionals, and just about every human
creature known to mankind. On a higher plateau is the concept of
“multimedia tasking,”4 which takes multitasking to a new level and
is a phenomenon of an ambidextrous and technologically advanced
society. Multimedia tasking is the ability for Joe to turn on his com-
puter and complete his work while he listens to the radio. It also oc-
curs when Mary has the television on in the room where she reads
her Self magazine. There are many communication vehicles from
which the consumer
There are many communication vehicles from which
receives valuable
the consumer receives valuable messages.
messages. And, when
it comes down juggling the requirements of a busy lifestyle, multi-
media tasking is becoming a preferred method of operation.
Now for the multimedia tasking facts. According to Erdos &
Morgan’s 2000 study, 73% of the study participants watch television
and read a magazine simultaneously. Also according to the study,
40% of the respondents use a computer and listen to the radio, and
only 27% use the computer and watch television at the same time.5

258 CYBERBRANDING chapter 18

No longer can a brand rely on just one mass medium to spread a
message to an audience (as in the historical days of television net-
works capturing over 90% of consumer reach). The same principle
holds true of the cyberbrand. Cyberbrands cannot solely focus on
the Internet as a main source of communication to reach audiences.
According to the 1999 eAdvertising Report, Volume II, “While the
Internet is growing rapidly, it will never totally supplant advertising
in traditional vehicles.”6 Cyberbrands are struggling to rise above
the clutter and combat a diffused attention span. They just want to
be heard and must do so by relying on clever online and offline
strategies that add to a diverse line of attack.
What is the most powerful mode of attack to deal with a dif-
fused attention span and be able to drive traffic to a Web site? Al-
though television, radio, and print advertising are proven strategies
because they are visual and engaging (and can incorporate a URL
address into a message), even these vehicles are saturated with dot-
com noise. The cyberstrategies are popular too (although it’s not
recommended to use a cyber-only campaign), and a natural part of
the dot-com existence. E-mail, viral marketing, search engine regis-
tration and keywords, banner ads, etc., are all naturally associated
with the online brand. But what makes a campaign interesting, dif-
ferent, and, above all, something that makes the brand stick in the
consumer’s mind? A unique combination of cyber and offline
strategies, and that means, of course, not necessarily focusing on the
obvious. The real difference lies (1) in the many interesting ways
messages are communicated and (2) how the strategies of today
have a heavier emphasis on out-of-the-box thinking, event and
guerrilla market-
Cyberbrands are using the popular, proven strategies with
ing tactics, and
a bit of zest, even if these tactics might be considered
strong public re-
somewhat risqué or off the wall or were even unheard of in
lations efforts
the twentieth century.
(which take root
from the good, old-fashioned, traditional methods that really create
some noise). Cyberbrands are using the popular, proven strategies
with a bit of zest, even if these tactics might be considered somewhat
risqué or off the wall or were even unheard of in the twentieth cen-
tury. This is the subtle but important difference between being
heard (and possibly diffused) and being noticed (and absorbed sub-
consciously) above and beyond the clutter.

CYBERBRANDING Driving Traffic on the Cyberhighway 259

 GETTING CYBERATTENTION THE
“TRADITIONAL” WAY

Getting cyberattention the “traditional” way means a unique mix-

ture of communication vehicles, even if the brand’s existence is
completely online. Letstalk.com launched its campaign with a focus
on guerrilla market-
Getting cyberattention the “traditional” way means a
ing, which is the
unique mixture of communication vehicles, even if the
term coined by Jay
brand’s existence is completely online.
Conrad Levinson de-
scribing marketing events that are more theatrical, shrewder, and
less expensive than the conventional communication strategies.7 As
an online retailer of wireless phones, Letstalk.com created a national
buzz with what its agency referred to as an “alternative” plan. As a
part of a guerrilla marketing effort, the company created a
pseudopolitical campaign, with a fictional character by the name of
“Uncle Cell,” for the purpose of reaching consumers on an intimate
level. Professional actors dressed as Uncle Cell visited cities across
the United States wearing purple-and-yellow striped outfits, with
white wigs and long white beards. A motorcade ran the streets of
Washington, D.C., with a yellow Cadillac and yellow-and-purple
motorcycles. The purpose of the event was for Uncle Cell to stop
pedestrians, have them answer survey questions, and reward con-
sumers with Letstalk.com promotional items including mobile tele-
phones, accessories, and coupons. The guerrilla marketing
campaign turned into numerous public relations opportunities on
40 television and radio stations to discuss Letstalk.com.8 That’s the
way to rise above the clutter.
The director of marketing of AssociationCentral.com needed a
clever strategy to enlist the many American associations (there are
over 135,000) in its directory for a small fee of $19.95 to receive a
general site listing. If the executives who head these associations are
not at the stage of surfing the Web to gather information, what is
the best way to reach them and sign them up for the program? With
the knowledge that a great number of the country’s associations are
headquartered in the nation’s capital, the director decided to launch
a campaign that would have association heads clicking to register.
The campaign was a twofold effort. The first effort focused on posi-
tioning visible posters around the five local subway stations in
Washington, D.C. (executives use Washington’s Metro public

260 CYBERBRANDING chapter 18

transportation). The other part of the campaign centered on the
radio and reaching executives during early morning and evening
drive times. The radio spots appeared on National Public Radio af-
filiate stations and local radio stations. The director was extremely
pleased with the results of the campaign when at various confer-
ences she was approached about AssociationCentral.com by inter-
ested executives who remembered the posters and were familiar
with the radio commercials. There’s nothing terribly glitzy about the
strategy, but certainly a good example of a simple and cost-effective
campaign to draw attention to a cyberbrand.9
Reflect.com is an online retailer of lotions and potions and
beauty wonders for women. Executives working on the marketing
campaign of this dot-com wanted to “. . . distinguish the newcomer
[Reflect.com] from its rivals by stressing the customized products
sold at the site. . . .”10 As a result, the advertising campaign is some-
what “quirky,” with print illustrations that use humor and are
whimsical. The ads assert that it’s not about being a supermodel
(because supermodels are under contract and have to wear specific
products dictated by their contracts). Instead, it’s about being
women, “real-looking” women (also reflected in the illustrations of
the ads), making choices because they are free to create what they
like and not what is dictated. The ads appear for the “beauty-
involved” in notable magazines including Vogue, Allure, Self, and
Elle, to name a few. Reflect.com’s campaign is an example of effec-
tive advertising, a bit on the quirky side, all to benefit the cyber-
brand and drive traffic to its Web site.

MOVING OUT OF THE BOX

It’s not difficult at all to think of a handful of commercials, print

ads, or radio advertisements that pinpoint thought-provoking issues
and use visuals that would have shocked twentieth-century branders
and consumers. Some of the out-of-the-box cyberbrands are mak-
ing noise. Blue-
Some of the out-of-the-box cyberbrands are making noise.
fly.com’s print
advertisement is clever, with a young man wrapped in a towel (it ap-
pears as if he has just showered) and a young woman sitting on a
chair in her underwear mesmerized by her laptop screen (she’s re-
laxed and logged onto Bluefly.com). The ad leads the consumer to

CYBERBRANDING Driving Traffic on the Cyberhighway 261

 believe that visiting Bluefly.com is just as satisfying as smoking a cig-
arette, let’s say, after being intimate with that special someone.
Then, there’s the UPS commercial, which aired in September 2000,
with an older woman pulling skimpy women’s underwear out of a
box (this is definitely not your usual UPS commercial) that was
shipped to her by UPS. The commercial announcer says, “You or-
dered online. . . .” Last, is the truth.com television commercial that
shows beautiful people enjoying the sun and the surf when people
start dragging body bags onto the beach, trampling the sunbathers.
The “nonsmoking youth of today” are pulling the bags over the sand
and lining them up. The last scene shows a graveyard of body bags
with one living youth left asking, “Does any body need lotion?” A
person sitting in the lifeguard chair is holding up a piece of drift-
wood with the message, “What if cigarette ads told the truth?”
And it’s not difficult at all to find those cyberbrands that are way
out of the box. Safesense.com is the perfect example. Safesense.com
is an online retailer of condoms and related products, home tests,
books, and videos. The Web site aims to inform visitors about safe
sex and allows them
. . . it’s not difficult at all to find those cyberbrands that
to purchase items in
are way out of the box.
a manner that is pri-
vate, convenient, and much less embarrassing than trips to the drug-
store. With cyberpartners that include Durex and Dr. Drew, the
online sex therapist and the well-known doctor who appears on
CBS’s hit show “Big Brother,” Safesense.com is on its way to becom-
ing the preferred condom e-retailer. From the onset Safesense.com
wanted a marketing campaign that was purely event-driven. Its
guerrilla marketing events were to include “waking up a sleepy
American town” with the highest per capita pregnancy or AIDS sta-
tistics by donating over 1500 condoms to its residents. And what’s
even more eye-opening is the manner in which they wanted the
condoms presented: with a helicopter that drops the condom pack-
ages from midair, with a news tip-off to the local television stations
and press. There were other way out-of-the-box guerrilla marketing
plans. Safesense wanted to drive across America in a Volkswagen
Bug with the Safesense.com Girls (who all practice safe sex). The
Bug would travel across the country informing students at colleges
and universities about the Safesense.com “Don’t Catch the Bug”
campaign. And better yet, the Volkswagen would have Velcroed
condoms attached for any interested parties to grab as a free sample.

262 CYBERBRANDING chapter 18

Safesense.com uses “shock” for a reason—the sake of education.
With every promotional effort, the cyberbrand enforces education
about sex in a professional as opposed to an offensive manner. Even
the cyberbrand’s media kit rises above the clutter—not only are
business cards included, but each recipient receives a free condom
that comes with the kit. For Safesense.com, out-of-the-box is the
only way to cut through the clutter (even though they say that sex
sells).
The important points to remember are that cyberbrands need to
extend branding beyond the Internet and that online/offline strate-
gies drive traffic to a Web site. Whether the strategy is a simple or a
quirky one or
. . . cyberbrands need to extend branding beyond the Inter-
that way out-of-
net and that online/offline strategies drive traffic to a Web
the-box thinking
site.
by the new breed
of branders, the patterns for branding in the twenty-first century are
established. Consumers will get busier, the clutter will get thicker,
and attention spans will be more diffused. This is only the beginning
for the cyberbrand, so choose those communication vehicles care-
fully and rack your brains for clever, out-of-the-box thinking, be-
cause there’s a long road of noise ahead.

Expert Viewpoint

Interactive Technology Still

of CD-ROMs and other interac-
Needs Offline Methodology:
tive programs. These programs
An Interview with WILL
provide users with virtual-expe-
Interactive
rience interactive movies where
Sharon Sloane and Lyn McCall personal lifestyle choices deter-
founded WILL Interactive, Inc., mine the outcomes. The interac-
in 1994. Under their guidance tive movies are a cross between
and direction the company a feature film and a video
forged ahead quickly from a game. Players make decisions
training, consulting, and in- that alter the storyline every 30
structional technology business to 40 seconds. WILL launched its
to a high-tech product–based Web site, www.willinteractive.
business with the development com, in 1996 to attract cyber-

CYBERBRANDING Driving Traffic on the Cyberhighway 263

 Expert Viewpoint

audiences interested in the use ence Interactive Learning Soft-

of its educational and consumer ware) is a methodology that
software programs online. For provides viewers with lifestyle
WILL, the Internet was an excel- choices in which a simple yes or
lent vehicle to promote its no response could lead to their
brand, yet the company still re- happiness or their demise (will
lied on offline communication the user make the choice to
to drive traffic to its Web site. drink another beer, and if so,
In an interview, Sloane dis- what will occur?). This technique
cussed how the virtual-experi- of decision-making training is
ence movies focus on educating tracked, and choices are ana-
users and altering high-risk be- lyzed for educational purposes.
haviors. WILL Interactive soft- WILL’s Web site is one of the
ware products run the high-risk main communication vehicles,
behavior gamut and include and with the use of Webisodes
everything from binge drinking (Web episodes), audiences are
and unplanned pregnancy, to engaged in interactive learning
substance abuse and violence. tools. However, the Web site
“These unique educational alone is not enough to reach
products reach the youth popu- WILL’s professional and con-
lation in order to prevent them sumer audiences. WILL, faced
from getting involved in these with several challenges, devised
types of problematic behaviors,” a marketing campaign with the
states Sloane. “And, they have underlying premise that, “Wher-
been shown to work in indepen- ever they [an audience] are,
dent studies by Boston Univer- that’s where we need to be,” ex-
sity and Walter Reed Institute of plained Sloane. “And, whatever
Research,” she adds. WILL kind of technology they need,
patented an interactive behav- we must have it,” she added.
ior modification system that cor- Knowing fully that the Internet
ners the market on the use of and the use of Webisodes for a
virtual-experience movies to re- cyberaudience to watch is not
duce high-risk behavior. Al- enough, WILL focuses on several
though www.willinteractive. communication strategies to
com is an effective forum, the reach new-economy audiences,
interactive movies are also deliv- including the following:
ered on CD-ROMs, PCs, and
other technological formats. The ■ Kiosks installed in youth
virtual experience software centers (this was a test-
known as VEILS (Virtual Experi- ing ground for one of

264 CYBERBRANDING chapter 18

Expert Viewpoint

WILL’s first products, In- licensing of Webisodes to its

teractive Nights Out 1) partner organizations, the com-
■ Shopping mall and pany has secured several high-
movie theater kiosks to profile working relationships
replace the use of video with the FBI and the United
games for young adults States Army to produce training
■ Pilot studies and market software products.
research programs at var- Sloane’s final thoughts fo-
ious organizations, such cused on WILL’s initiative to ac-
as Walter Reed Army In- commodate customers
stitute of Research regardless of where they are on
■ Trade show and conven- the technology continuum. Ac-
tion exhibits to display cording to Sloane, “This is the
CD-ROM products type of visual media that needs
■ Infomercials that adver- to be viewed in order to be
tise WILL’s product line truly understood and appreci-
on cable television ated—talking about an interac-
■ Public relations strate- tive movie or trying to describe
gies to attract media at- it is not enough. We find any
tention (which resulted way that we can at WILL [off-
in coverage by local tele- line or cyber] to get the virtual
vision network affiliate training programs into the
stations) hands of our users. Once they
experience the programs per-
As a result of WILL’s offline
sonally, they get ‘addicted’ to
marketing effort, along with its
them.”
strong cyberpresence and the

CYBERBRANDING Driving Traffic on the Cyberhighway 265

 Full-Case Study
JOBS.COM: THE SUCCESS OF BANNERS
Jobs.com is claiming its stake in the The Power of the Banner
online recruitment arena. The com- Believing in the power of the banner
pany, based in Dallas, Texas, is a advertisement, Jobs.com offers ban-
cyberbrand that leverages the power ner advertising on its site (tied to
of technology and the use of banner other promotional packages) for cor-
advertisements to drive job seekers porations and businesses looking to
and employers to its Web site. Ac- attract interested job candidates.
cording to Dave O’Neill, Vice Presi- “Jobs.com is particularly successful
dent of Marketing, Jobs.com enables with its clickthrough rates—as high as
Web visitors to search for new op- 45%,” stated O’Neill. He further ex-
portunities to create professional re- plained that for Jobs.com, the power
sumes and “manage their careers.” of the banner for maximum effective-
The company is attracting large cor- ness depends upon the following:
porate entities through the use of
■ Placing banners in the top right-
banner ads and offline marketing ac-
hand corner.
tivities that drive traffic to these
banners. O’Neill, with a background ■ Recognizing that there should be
in computers and working with For- an obvious tie-in between banner
tune 500 companies, joined the content and branding.
Jobs.com team with the belief that
■ Creating color schemes so banner
cyberbranding is an effective
advertisements stand out on a
method. “I remember viewing a
page.
CNBC program and agreeing that cy-
■ Being careful not to over-
berbranding is the most effective
method; it’s the only branding that advertise and clutter a Web page.
has eye-and-hand coordination,” ■ Avoiding the least effective spot
stated O’Neill. He discussed at length for a banner advertisement,
how cyberbranding the Jobs.com site which is the bottom left-hand
has its challenges and rewards corner of a Web page.
based upon entrance into a competi-
tive marketplace, the nature of the Banner Ad Benefits
online audiences, and technological For Jobs.com, banner advertising is a
advances that continue to add di- serious business, and the company is
mension to the digital realm. treating it as such. Jobs.com has

266 CYBERBRANDING chapter 18

developed a 15-page manual on how testimonials set better expectations
to treat its own logo in the scope of between employers and employees.
banner advertising. “After all, being a For instance, Jobs.com has Cruise
guest on someone’s site, you are rec- West as a testimonial advertiser with
ognized by your logo,” said O’Neill. the following campaign: first is the
“And, although people may say that banner ad, “Be a part of the Love Boat
they generally do not like banners, Cruise”; second is the area of the site
they are actually helpful in the with the testimonial, which includes
job-hunting process,” he further a 30-second video clip with footage
explained. of real people working on the ship to
Jobs.com sells banners to compa- reflect the job being offered by Cruise
nies, and then ties the advertising, West. The video and personal testi-
with a click of the mouse, to an area mony show the job criteria and set
of the Jobs.com site that has testimo- better expectations. Clearly, the ban-
nials for various corporate sponsors. ner advertisements on the Jobs.com
Jobs.com is very much into utilizing site have proven to be the driving
rich media and finds that this interac- factor that gets jobs seekers to review
tivity provides a new way for the job- company testimonials.
seeker to participate on the site.
Through Jobs.com, a company, such Other Marketing Strategies Tie
as Honeywell, with a fixed budget, into Banner Advertisements
can retain a three-month contract With the many banner advertisement
and have a banner ad to lead a user offerings on Jobs.com (including run
to both a video and audio testimonial of site banners all the way to special-
on Jobs.com. “The benefit of the on- ized placement), the company uses its
line testimonial is to reduce miscon- affiliation with CBS and six different
ceptions between employers offering radio stations on the West Coast to
jobs and prospective employees,” enhance its cyberbranding effort.
stated O’Neill. He added that a com- When these radio spots run on CBS
pany places a great deal of effort into affiliate stations, announcements in-
the hiring and training of an em- clude, “For these exciting jobs, check
ployee and then to lose that em- out Honeywell at Jobs.com.” As a part
ployee is extremely costly to the of an advertiser’s package with
company. The Jobs.com online Jobs.com, the advertiser receives
(continued…)

CYBERBRANDING Driving Traffic on the Cyberhighway 267

 Full-Case Study
(…continued)

radio coverage with cumulative reach Successes:

of 2.5 million people a week. The use Final thoughts from Dave O’Neill on
of radio in the marketing campaign the successes of Jobs.com, based
has a two-fold strategy: it drives in- upon its cyberbranding efforts,
terested parties to the Jobs.com site, include:
and it directs them right to advertisers
■ Technology allows Jobs.com to
with engaging testimonials. Jobs.com
find out minute details that
makes sure that their advertisers are
continue to aid in the
highly visible to immediately capture
development of its marketing
the attention of a potential job candi-
strategies; everything from
date. In addition to radio, Jobs.com
information regarding the time of
believes in the use of other integrated
day a user is on the site and their
marketing strategies that have re-
navigation control, as well as
sulted in more banner ad clicks on its
which audio/video profile is the
site. These strategies include placing
most popular with job candidates.
ad panels on the backs of buses, in-
cluding the Metro Line in downtown ■ Jobs.com’s strongest marketing
New York, and plastering Penn Sta- push has been the heavy reliance
tion with Jobs.com billboards. on banner ads to lead visitors to
testimonials, along with a blend
Challenges: of radio promotions and moving
and stationary billboards.
■ Every method of advertising is
■ Jobs.com has found its success as
difficult to track, except for the
a major player in the online
banner ads.
recruitment industry by
■ For the ad panels on buses and concentrating on driving traffic to
billboards, the tracking numbers banners to benefit its corporate
are not confirmed. advertising audience.
■ There is the option to ask the ■ Most of Jobs.com’s competitors
online visitor how they heard drive traffic through heavy
about Jobs.com, but there is the advertising campaigns that
risk of “probing too far.” include television, and Jobs.com
■ External mediums, on the whole, does not have to spend exorbitant
have much less control. amounts on mainstream media.

268 CYBERBRANDING chapter 18

PART

5
Cyber Public
Relations—The
Credible Online
Endorsement
 CHAPTER

19 Public Relations—Is There

Room for Tradition in
Cyberspace?

Objective:

To confirm that the public relations tactics of the past are

quite present and effective in cyberspace. This chapter
focuses on Internet PR and angles to reach the media for
publicity and brand awareness. Cyberbrands will find
value and appreciation for the practice of public relations
online, and need to consider the following:

■ PR of the past updates in the twenty-first century

■ Proven PR techniques are still apparent
■ From static to interactive
■ Know the media in cyberspace
■ PR comes full circle

270
PR OF THE PAST UPDATES IN THE
TWENTY-FIRST CENTURY

I n 1985, Company No Tech introduced its first widget into the

marketplace with a campaign that kicked off with a news confer-
ence dazzling the local media. The company invited business editors
of newspapers and widget journals and radio and television person-
nel to the star-studded, gala event to catch a live speech from the
president, Iam Widget. Company No Tech’s public relations agency,
My People Will Talk to Your People, Inc., was on hand to direct the
sequence of events, to take photographs of Iam Widget holding the
new product for post-PR measures, and to field media questions.
The PR representatives worked diligently from the time of the initial
decision to host the conference right down to calculating and secur-
ing all of the fine details. The PR representatives’ days were filled
with meetings: pinpointing the location, deciding upon menu
choices, choosing the design of the invitation, compiling lists of po-
tential guests, agenda and speech writing, and, of course, the mea-
sures to publicize the event (mailings, telephone calling, and faxing
to the media). It seems as if the telephone calls to the media were
endless, right up until the night before the occasion.

271
 What is it about PR in this instance that is so valuable?
■ It’s the PR of the past that has evolved with successful
strategies.
■ It’s PR that evokes interest from credible third parties.
■ It’s the intangible PR, so hard to grasp and often forgotten,
that has the power and strength for changing behavior,
relationship building, and increased awareness of a brand.
What happens to public relations when it goes cyber, and how
does this affect the public relations practitioner? Cyber PR, when
implemented correctly (as any public relations strategy must be),
can be the practi-
Cyber PR, when implemented correctly (as any public tioner’s dream—
relations strategy must be), can be the practitioner’s with increased speed
dream—with increased speed of communication, of communication,
broadness of scope to reach audiences, and quicker broadness of scope
tangible publicity results. to reach audiences,
and quicker tangible publicity results.
Here’s another hypothetical example, updated to reflect the
twenty-first century. Whatagreat.com is launching its new “dotbox”
video system for game-playing audiences. Whatagreat.com hires
Peppy PR Associates, Inc., to handle the product launch and the
public relations campaign. Their job is to make as much noise as
possible with print, broadcast, and Internet media that will (1) at-
tend the event, (2) watch the scheduled Webcast, and/or (3) write a
story based upon post-PR efforts. To gear up for the launch event at
a San Francisco hotel, Peppy PR has to accomplish the following:
design of the invitations, compilation of the lists of potential guests,
agenda and speech writing, coordinating the production crew to
film the Webcast, updating Web site content to inform visitors and
the media of the event, and, of course, the measures used to contact
the media (broadcast e-mails, the World Wide Web wire services PR
Newswire and Business Wire, and telephone calls). Right up until
the night before the event, Peppy PR Associates is planning and
staging the Webcast and contacting the media via e-mail and tele-
phone to beef up attendance. Peppy PR will be on hand for the fes-
tivities to direct activities, field questions, and take photographs of
the president’s speech (does this sound familiar?). When all is said
and done, Whatagreatdot.com will have live Internet and television
coverage of its product’s entrance into the marketplace; several

272 CYBERBRANDING chapter 19

newspaper and magazine articles written by reporters discussing the
event and the product, both in print and online; cyberaudiences
logged on to the Internet for the Webcast; and, for those who are
not able to participate, the ability to view the video-on-demand ver-
sion on the company’s Web site.
What’s happening in this hypothetical instance is a familiar sce-
nario. PR of the past meets cyber PR strategies of the digital econ-
omy, and the
Public relations is profoundly impacted by the Internet and
potential for
the PR person’s use of the computer.
brand awareness
is tremendous. The difference between the two scenarios and the
benefit to the brand is the ability to communicate faster and in a
broader fashion. Public relations is profoundly impacted by the In-
ternet and the PR person’s use of the computer.

PROVEN PR TECHNIQUES ARE STILL APPARENT

PR has evolved through and is continually affected by technology.
Take the traditional definition of PR from Encyclopaedia Britannica,
which states that PR involves actions intended to communicate in-
formation on and improve the public’s attitude toward any individ-
ual or group, whether it’s a government agency or a corporation.1
Public relations efforts still focus on responsible communication to
enhance a positive image and raise awareness of various groups. The
core PR strategies, visible throughout PR history, have maintained
their presence in the modern day—from the public relations tactics
to lobby for a political cause, to the need of large industries to im-
plement public relations as a means to help relations between the
government and the private sector. As public relations became ap-
parent as a growing field, there was a realization that technology was
the driving force.
In the fifteenth century it was the invention of the printing press
by Johann Gutenberg that enabled a communication vehicle to
persuade large
groups of peo- In the twenty-first Century, it’s the technological advances
ple. In the of the Internet and wireless devices that carry powerful
twenty-first cen- messages to an individual, corporation, government
tury, it’s the agency or organization.
technological
advances of the Internet and wireless devices that carry powerful

CYBERBRANDING Public Relations—Is There Room for Tradition in Cyberspace? 273

 messages to an individual, corporation, government agency, or or-
ganization.
The difference between public relations of the past and the pub-
lic relations of today is more in the advent of technology than in the
nature of the practice, objectives, and goals of the public relations
practitioner. After all, the types of campaigns have not changed.
Public relations is widely known for investor relations, media rela-
tions, crisis management, publicizing new product and service
launches, community affairs, and planning and publicizing events
and exhibitions, to name just a few. Formulating the messages and
targeting the audiences have not changed either. Messages need to
be clear, concise, consistent, and tied to the campaign objectives.
That might translate into more hits to a Web site, a change in be-
havior of the target audience, a more favorable attitude with regard
to a brand, etc. And the same types of research are still utilized to
identify groups that would benefit from a particular type of cam-
paign based upon demographics, pychographics, and behavioral
characteristics. A great deal of tradition and foundation from the
twentieth century is
. . . the most significant change is the technology—
present in public re-
how it changes static PR to interactive PR and less tan-
lations campaigns
gible to more concrete results.
today. However, the
most significant change is the technology—how it changes static PR
to interactive PR and less tangible to more concrete results. Cyber
public relations is effective and reaches large groups or publics when
approached in the appropriate fashion.

FROM STATIC TO INTERACTIVE

Public relations on the Internet is user-friendly. With the same
premise that a Web site audience is always one click away from the
next-best product or service, content providers—i.e., the media—
need to offer targeted, interactive information for audiences. Note:
Public relations is not exclusive to just contacting media for online
placements (i.e., magazines and newspapers with Web formats);
many Web sites are
. . . many Web sites are seeking interesting content to
seeking interesting
interest users and to promote cyberbrands.
content to interest
users and to promote cyberbrands. As a result, Web sites are offer-

274 CYBERBRANDING chapter 19

ing interactive material, such as Webcasts, chat sessions, “Ask the
Expert” sections, and Q&A forums. In any one of these instances,
there is an opportunity for a cyberbrand (or a representative of the
cyberbrand) to take part in an interactive forum for the sake of pro-
motion. Having the CEO of Whatagreatdot.com on a game-playing
site (as the featured guest of a chat session) or video-on-demand
clips from an interview (that covered the product launch event) on a
San Francisco radio station’s Web site is excellent PR. It’s not static,
because the user is involved in a hands-on display of sound bytes, or
a direct back-and-forth discussion between participants of a chat
session. Cyberbrands benefit from the fact that content providers
need useful targeted content. That also means on the part of the cy-
berbrand knowing what a Web site is looking for to entertain its au-
diences and interest an audience. This, too, is a proven public
relations tactic of the past. A public relations professional would
never pitch the editor of a magazine or producer of a radio or televi-
sion station without understanding the following:
■ Who is the audience?
■ What are the demographics?
■ What are the reporters writing about or reporting on?
■ What stories or features are in upcoming issues (check the
editorial calendar)?
■ Do you really understand what that media representative
needs to inform an audience?

KNOW THE MEDIA IN CYBERSPACE

It’s the same story on the Internet: don’t bother with the pitch if
you haven’t done
It’s the same story on the Internet: don’t bother with the
your homework.
pitch if you haven’t done your homework.
Take the follow-
ing scenario to heart.
An overzealous company representative of a new dot-com de-
cided to try his hand at cyber PR. Being somewhat unfamiliar with
the nature of public relations (both online and offline), he for-
warded a news release and a simple cover letter to ZDTV without
fully understanding the nature of the Web site, ZDTV’s programs,
or its audience. The producer received the information and was

CYBERBRANDING Public Relations—Is There Room for Tradition in Cyberspace? 275

 kind enough to let the young man know that this was not the best
way to proceed with a pitch. The entire scenario takes place via
e-mail between the young man and the producer, beginning with
the producer’s response to the first pitch e-mail (names are con-
cealed to protect the innocent):
Producer: First, let me say that we appreciate your thinking
of ZDTV for your pitch. As one of the head producers in this
department, I wanted to also pass along some advice on
pitching to ZDTV. I do not know if you had a chance to see
our programming yet, but a trip to ZDTV.com will certainly
give you access to streaming video, audio, as well as show
overviews that highlight content. This information will
greatly help you in developing a more targeted and direct
pitch that will get the attention of the booking department
and show producers. I alone receive over 200 pitches coming
into my e-mail box every week. If a pitch reflects no under-
standing of ZDTV’s content, and also shows that the person
pitching has not made an attempt to find the specific contact
for the pitch, well, those pitches are discarded. I will go ahead
and pass this information to the right contacts for you, but
would strongly recommend for the next time around that
you take a look at ZDTV.com and clearly target your pitch
based upon the kind of material we cover. Here is some infor-
mation you should consider in your future efforts:

■ What trends or issues does this company [the one you are
pitching] address?
■ What makes their technology better than any solutions that
might already exist?
■ Is this something that has never been done before?
■ Who’s running the company?

This type of valuable information will go a long way toward a

story getting attention by ZDTV, and it might have a stronger
chance of making it onto the show. I hope this information is
useful, and if you have other questions please let me know.

The ZDTV producer’s comments are passed to the com-

pany’s PR/marketing department and handled from a “marketing”
perspective:
Marketer/PR representative: Thank you for your response to
our inquiry. I appreciate your input and realize that my col-
league e-mailed to you a standard cover letter accompanied
by a news release.

276 CYBERBRANDING chapter 19

 Producer: So, some people still do send form pitches? It’s
surprising to hear that in this day and age.

Overall, the ZDTV producer was helpful to the marketer/PR rep-

resentative, providing constructive criticism. However, this is not al-
ways the case when there is a media contact/PR representative
confrontation. On the contrary, there are times when an inappropri-
ate pitch automatically leads to a lost opportunity for the cyberbrand.2

PR COMES FULL CIRCLE

Based upon the incident between the dot-com and the producer of
ZDTV, it is apparent that whether public relations is practiced online
or offline, professionals need to practice the basics. They must pay at-
tention to what would interest a media representative and a respective
audience to produce better public relations results. The days of “mass
anything” are over. Technology should enable cyberbrands to become
more efficient and targeted in public relations practices. There is no
reason for indus- The days of “mass anything” are over. Technology should
try professionals enable cyberbrands to become more efficient and targeted
to use standard in public relations practices.
letters or to con-
struct media lists that are not directed to an exact media contact that
specializes in a particular subject. However, that does not necessarily
mean sending a pitch letter to an e-commerce reporter if he just wrote
a story on e-commerce. There has to be more to the pitch: an interest-
ing angle and a reason why his audience would benefit. In the article
“Eyeball Wranglers,”3 which appeared in the Silicon Alley Reporter,
Sabine Heller, UGO Network’s PR manager, commented on a grow-
ing problem with public relations agencies. She discussed how lower-
level executives, the “underlings,” are called upon to contact the
media representatives who appear on a company’s “A” list. Heller also
noted that these high-caliber media contacts were not receiving cus-
tomized pitches because the underlings are not familiar enough with
a particular media outlet to truly understand what type of pitch would
be appropriate. A procedure such as this needs to be reworked for any
type of tangible results for the brand. It’s the same predicament as the
ZDTV situation. The point of contention is that professionals are not
using the proven public relations tactics of the past. Knowing the
media before a pitch is not a new development. In fact, the rules about

CYBERBRANDING Public Relations—Is There Room for Tradition in Cyberspace? 277

 pitching are more stringent with the newer technology. Practitioners
should be able to find targeted information quickly and conveniently
on Web sites, including online editorial calendars, e-mail address lists
of editors and/or producers, and their areas of expertise.
With technology advancing, every aspect of communication
and branding, in all likelihood, will result in cyberbrands’ looking
toward cyber PR to benefit from the speed of the pitch and the tan-
gible results it produces (if, and only if, the targeted approach is
pursued). Public relations has been around for a long time and has
survived technological advances with benefit to the brands that are
aiming to raise awareness, change behavior, and/or inform the pub-
lic. Technology al-
Technology allows professionals to have better tools
lows professionals to
and resources to compliment each and every public
have better tools and
relations tactic—now just let the proven tactics guide
resources to comple-
you in a new interactive forum.
ment each and every
public relations tactic—now just let the proven tactics guide you in
a new interactive forum.

Expert Viewpoint

Interview: Public Relations

charismatic speaker, took the
and Internet Technology
podium and dazzled an atten-
At the Public Relations Society tive audience with his discussion
of America (PRSA) Professional of the digital economy and the
Day event, the president of the Golden Age of PR. Following
organization approached the the conference, Seitel discussed
podium to introduce the in a candid interview the role of
keynote speaker. She stated, the PR practitioner in the new
“Our honored guest needs little economy and how technology
introduction as he is well has a profound influence on the
known and well respected in field of public relations. “The
the field of public relations . . . Internet has impacted every
Fraser Seitel.” The 25-year vet- level of society,” stated Seitel.
eran of public relations counsel- “The primary way is the speed
ing, and author of The Practice in which people communicate.”
of Public Relations, was greeted He further commented that the
warmly by a crowd familiar with ability to communicate has ex-
his work. Seitel, a charming and panded rapidly as has the vol-

278 CYBERBRANDING chapter 19

Expert Viewpoint

ume of communication avail- with the advent of Internet

able. “In this economy, every- communication, there is, unfor-
one knows and values the tunately, the danger of losing
importance of communication; the traditional elements of the
an organization constantly counselor’s role. “Public rela-
needs to talk to its public, and tions is not an ‘old’ field; it is
at the same time that organiza- less than 100 years old. The first
tion is constantly talked about. PR surfaced in the day of Ivy Lee
Public relations becomes more and John D. Rockefeller around
important, and as a conse- 1910. In the past, public rela-
quence, the field has expanded tions was strategic, less a com-
with professionals who are modity,” explained Seitel.
hired to be Internet monitors, Traditionally, public rela-
and specialize in Web site de- tions was identified as crisis
sign.” Seitel stressed how in this management, relying on practi-
day and age, PR counselors tioners for advice relating to
need to be tech-oriented, not strategic matters and the most
only in terms of the role they effective manner to communi-
play for tech companies, but cate to the public. However, the
also in the promotion of any computer compounds the iden-
company that is Internet-savvy. tity crisis. The question be-
The role of the PR practi- comes, Is public relations still a
tioner has grown tremendously means to advise companies and
with the Internet and the com- to be of counsel, or is it the tech
puter. Thus, the awakening of function simply to promote and
the Golden Age of public rela- publicize? As the computer
tions is manifested in the num- overwhelms the traditional
ber of public relations positions function, the counseling aspect
available and in the increased of the field risks being sub-
salaries for professionals in the merged. With the many public
field. In addition, public rela- relations agencies that are tech-
tions companies are merging based, the strategic importance
into larger, more established or- becomes vulnerable and the PR
ganizations, and a field once professional is viewed as the
unknown to society is becoming person who monitors the Inter-
well known. Yet, according to net and the person who takes
Seitel, public relations continues on the responsibility of print,
to face an identity crisis; the broadcast, and Internet public-
field is not easily defined. And ity. Seitel describes this function

CYBERBRANDING Public Relations—Is There Room for Tradition in Cyberspace? 279

Expert Viewpoint

as a lower level of public However, there is a positive

relations. There is a correlation side. The computer is a direct
between the loss of the counsel- way to reach every public
ing element and the heavy quickly, whether it’s investors,
emphasis on the tech function, the media, or customers. The In-
which has led to PR’s being con- ternet allows companies to move
sidered more of a commodity. at warp speed. Seitel discussed
However, one would think that the positive aspects of the Inter-
with all of the advanced tech- net on the profession. “The
nology and the ability to com- media over the last few years
municate broadly that have really taken to
organizations would grasp the e-mail. Although you have the
counselor aspect of PR. For in- same mechanisms at work, with
stance, Seitel discussed the junk news releases by fax or
Bridgestone/Firestone faulty tire mail, now there is junk e-mail,”
incident and how some folks in he stated. PR professionals have
management still downplay the the ability to reach the media
importance of strategic PR. The not only directly, but frequently
“head in the sand” approach as well. However, with every
will only lead to further public positive, there is the potential
bashing of the brand. And with for a negative. Thus, the Internet
the case of Bridgestone, at long allows “any yahoo” to communi-
last, the company fired its presi- cate on Yahoo! This could be an
dent and hired PR counsel. An- organization’s greatest threat to
other newsworthy case is its reputation and viability. With
Oracle’s admittance to “snoop- unmonitored chat rooms and
ing through the trash of consul- message boards, companies are
tants to archrival Microsoft.” bombarded by comments that
CEO Larry Ellison admitted that directly affect stock performance
he was aware of the snooping and brand reputation. It all boils
practice and was unapolo- down to the PR profession, and
getic—an unfortunate scenario in this day and age, the ability
that warrants PR counsel. Over- for the brand to be online is also
all, Seitel feels that even though a call to action to have a profes-
there is a tremendous need for sional monitoring the Internet at
strategic counseling, there are all times. PR is fortunate in the
not all that many strategic respect that in good times, and
counselors; this is unfortunate in times of crisis, the field pros-
and diminishes the importance pers and there is work for the
of the field. practitioner.

280 CYBERBRANDING chapter 19

Expert Viewpoint

Seitel’s final thoughts are to doing it. A word of advice

inspire young professionals and would be to avoid being pulled
individuals not familiar with the into the Internet, and not to be-
field of PR: the knowledge of lieve that the knowledge of the
the Internet is obligatory. Internet is enough in the digital
Young professionals have this economy. Understanding what
knowledge, and definitely have you are doing, and why, will
a leg up in the digital economy. lead to an attitude toward
Yet, what they also need is the counseling that is actually the
philosophy behind what they “juice of the field.”
are doing and why they are

CYBERBRANDING Public Relations—Is There Room for Tradition in Cyberspace? 281

 CHAPTER

20 PR Cybertools for Cyberspeed

Objective:

To illustrate how PR techniques, advanced technology,

and cyber resources enhance a public relations effort and
produce light-speed results. This chapter focuses on the
cybertools that facilitate faster and stronger media
relations and how targeted public relations campaigns are
a direct result of the following:

■ Retiring outdated PR resources

■ Updating PR tools cyberstyle
■ Using basic cybertools—media guides move
online
■ More Cybertools—editorial calendars; clipping
and monitoring services

282
RETIRING OUTDATED PR RESOURCES

F or decades, public relations practitioners have used the trusted

PR resources (media guides, editorial calendars, clipping and
syndicated news services,
For decades, public relations practitioners
etc.) to guide campaign
have used the trusted PR resources
efforts. Take the simple
(media guides, editorial calendars, clip-
task of compiling a
ping and syndicated news services, etc.)
broadcast media list.
to guide campaign efforts.
More than 10 years ago
in a small agency in New York, an assistant account executive was
given this project. Back in 1988, this was not as easy as it appears to
be. The directive given by the vice president of the company was
clear: “We have a new client. He is a financial analyst, who just com-
pleted his first book on future market trends. Our public relations
campaign will focus on a broadcast media tour that concentrates on
the major hubs in the United States—New York, Atlanta, Chicago,
Houston, Los Angeles, and San Francisco. We need to book radio
and television interviews for the author as he tours each city. We are
looking to interest radio and television stations that have talk show
interview formats, with topics that include business and the econ-
omy.” With that said, the assistant account executive knew she had a
great deal of work ahead. First she needed to compile the list of
radio and television programs and the producers who would accept
the information on behalf of the agency’s client. This process was
completely manual and extremely time-consuming.

283
 Unfortunately, this was the day and age of large books of media con-
tacts (updated with stick-um labels over previous outdated entries).
Looking through the large media books, pulling out the names, ti-
tles, telephone numbers, addresses, and fax numbers, and placing
them into a cohesive format was only the beginning of the process.
The next phase was the verification phase—to make sure that every
piece of information on the list was accurate, especially the contact
person listed to receive the information. This is among the top rules
of public relations and building media relationships: make sure the
package ends up in the appropriate media contact’s hands, or it will
surely find the circular file. The assistant account executive used the
bulk of her days to verify each and every piece of information to ac-
curately compile a national media tour list. The process took at least
one week to complete.

UPDATING PR TOOLS CYBERSTYLE

Ten years later, the same young woman, now a public relations
manager for an agency just outside of New York, is working on a
project to publicize a fashion show for a well-known charity, the Ju-
venile Diabetes Foundation. She is working with her team of ac-
count executives and assistants as well as other PR and marketing
staffers. She gives the directive to the assistant account executive to
compile a list of print and broadcast media in the New York metro-
politan area to invite to the fashion extravaganza. The assistant ac-
count executive knows that she will have to use the company’s
media contact database (CD-ROM format) to compile her lists. This
will take approximately two-plus hours of formatting, and then she
will have another few hours of telephone verification (the CD-ROM
is usually accurate, especially if she takes the time to keep the data-
base current by updating it with the quarterly revisions sent to her
on disk by the company that produces the database). Total time to
implement the process is, at the most, three days. This very same
woman years ago would also expend countless hours making calls
for media kits, spend time on the telephone inquiring about sub-
scription information from PR industry newsletters, and attempt to
access industry information through colleagues or through her or-
ganization, the Public Relations Society of America.

284 CYBERBRANDING chapter 20

 The examples illustrate a transition over time; they reveal in one
particular instance (over the course of a young woman’s career)
how technology changed the resources available to public relations
professionals between the 1980s and the 1990s. And now, in the
twenty-first-century economy, another drastic change has occurred,
one that facilitates retiring the outdated methods of the past and cel-
ebrates the new technological processes. There are tremendous dif-
ferences between
the resources of Cyber PR resources are surfacing in abundance—from the
prior decades companies that have been around for years that update
and the offerings their services and retire outdated material, to the new
on the Internet e-brands that are stepping into the PR arena with signifi-
today for public cant impact.
relations practices and brands seeking public recognition. Cyber PR
resources are surfacing in abundance—from the companies that
have been around for years that update their services and retire out-
dated material, to the new e-brands that are stepping into the PR
arena with significant impact.

USING BASIC CYBERTOOLS—MEDIA GUIDES

MOVE ONLINE
Take a look at Bacon’s Media (a PRIMEDIA Company). This is a
company that in the past has provided various media guides with
updated labels to stick on existing pages of its books. In 1988, that
poor assistant account executive dreaded the day that she opened
the mail and the Bacon’s stickers were in the envelope. Years later,
she has the experience behind her and the knowledge to recognize
the need to have an extremely targeted media list. That “once willing
to stick labels on a page of a media book” assistant account execu-
tive now owns her own company and makes the decision to sign up
for a yearly contract for an online directory of print, broadcast, and
Internet media contacts. Through Bacon’s online, the process is
amazingly simple with thousands of media updates performed by
the vendor daily. The process is effortless, and, better yet, quick and
accurate—just what is expected of an Internet service. Bacon’s, as
well as other media guide software companies, is taking its resources
online in response to the PR professional’s needs for advanced

CYBERBRANDING PR Cybertools for Cyberspeed 285

 technology to facilitate a targeted campaign with faster results.
When the woman reflects on the years of countless hours spent
compiling lists by hand, typing them into the computer, and verify-
ing each and every entry, she sighs with relief knowing that her em-
ployees will have a quick cybertool that provides five times as much
detail as ever before.
Standard information is only the beginning with these online
directories. The newspaper and magazine directories (print and on-
line formats) provide specifics: editorial lead times, wire services
used, editorial profiles, special feature sections, types of publicity ac-
cepted, and, more significantly, editor pitching information (build-
ing the relationship
. . . building the relationship still exists and works ex-
still exists and works
tremely well in this day and age . . .
extremely well in
this day and age). For broadcast media, the directory provides tar-
geted research regarding shows by topic, show profile, format, de-
scriptions, air time, and what type of publicity is accepted (video
news release, public service announcement, news release, etc.)
If only the good “stuff” came cheap. Prices for an online media
guide, including print, broadcast, and Internet media contacts, can
range from $2000 to $3000. That sounds like a heavy price tag for a
year’s contracted service. But from the perspective of saving time
and human resources (the salary paid to an assistant account execu-
tive who religiously uses the directories), the online service pays for
itself. The assistant account executive or even an intern could pine
away for a week compiling lists. A service that is Internet-enabled
and updated daily allows lists to be compiled more efficiently than a
hard copy manual version or even the use of a CD-ROM version.
What is paid up front in cash will result in proficient service, accu-
racy, and better campaign results (which translates into more pub-
licity mentions, bigger-ticket items in the news, interviews with the
media, hits to the Web site, and overall increased recognition).

MORE CYBER TOOLS—EDITORIAL CALENDARS;

CLIPPING AND MONITORING SERVICES
Another significant advancement for the practice of public relations
is the ability to view online editorial calendars. The ability to review
an editorial calendar of a print publication is a key to targeting “the

286 CYBERBRANDING chapter 20

pitch” for an editor or a reporter. An editorial calendar is an up-
front calendar of what a magazine will be focusing on in each issue.
These calendars are planned yearly and guide the PR professional to
pitching a particular story for a particular issue of a publication.
Again, the online calendar is one more way to have targeted ammu-
nition that will gain the attention of a media contact and not waste
his time with an angle that does not even fit the format, interest, or
scope of the magazine. Going back to that same woman in the late
1980s and the early 1990s, editorial calendars were not the easiest to
access. Telephone call after telephone call was made to editorial de-
partments of magazines and trade journals, which would then send
out packages via mail or facsimile transmission. Although the aver-
age practitioner survived this painstaking manual task, there is no
survival of this kind in the twenty-first century.
The digital economy is all about knowledge at your fingertips,
and the Internet is a wonderful medium when it comes to retrieving
quick research and information. There are services available, such as
www.edcals.com, that enable public relations professionals to access
over 130,000
story opportuni- The digital economy is all about knowledge at your finger-
ties in con- tips, and the Internet is a wonderful medium when it
sumer, business, comes to retrieving quick research and information.
and trade publi-
cations as well as the leading daily newspapers. Similar to online di-
rectories, this type of service updates calendars weekly for “accurate
media intelligence.” However, for smaller PR budgets, the online
services are not necessarily a consideration. Professionals will still
benefit from the readily available information from online publica-
tions. For instance, Business Week online (www.businessweek.com)
makes it a straightforward process to access its online editorial cal-
endar. There is no subscription fee to preview the information. With
easy admittance into the site from the navigation bar (with a click of
the mouse on the Media Kit button), a new section appears: “Edito-
rial & Planning Calendars.” Under this category, there are a few op-
tions, including an editorial and planning calendar for the current
year and the next year’s issues.
Most Internet-savvy publications are making these resources
readily available, complete with special editorial features and issue
dates. The media, too, realize the need for PR people to be extremely
targeted in their efforts. The use of the online directories to access

CYBERBRANDING PR Cybertools for Cyberspeed 287

 information, and the ability to target a particular media contact and
view an online editorial calendar to pitch appropriately (considering
angles and lead times), is an asset to the PR person who wants to in-
terest a media contact and build a relationship. When it comes to
the media, knowing their business and the audience they reach is
key to getting “ink.” The Internet facilitates this process quicker,
more than any other technology of years past.
Directories and editorial calendars are only the beginning; clip-
ping services and Internet monitoring for public relations (and
competitive analysis) are available. Companies such as eWatch
(www.ewatch.com) and CyberAlert (www.cyberalert.com) act as
clipping services to track articles and mentions of brands on the In-
ternet, but also go a step further as a cyberintelligence unit. Al-
though there is a fee involved, these services also act as Internet
monitors to provide companies with not only a clipping portfolio
but also a review of how their products and services are discussed
on message boards
. . . the ability to use an e-brand for online competitive and in usenet
intelligence is just one more way that the digital econ- groups.1 Clipping
omy aids in brand development and awareness. services have been
around for over a
hundred years, but the ability to use an e-brand for online compet-
itive intelligence is just one more way that the digital economy aids
in brand development and awareness. CyberAlert, for instance,
searches the Internet daily as a part of its “Brand Reputation” pro-
gram. The Internet has a track record for abuse—misinformation
and rumors are no stranger to the medium. In 2000, the incidents
of the infamous 15-year-old Cedar Grove, New Jersey high school
student who posted misleading information on a message board to
raise the value of shares of stock and the college student indicted in
the dissemination of a false news release on behalf of Emulex are
perfect examples of Internet misinformation, rumors, and abuse
punishable by law. Apart from countering such illegal activities,
however, CyberAlert provides brands with newer and broader PR
tactics that are an “early warning system to identify malicious com-
mentary in ‘attack’ Web sites. . . .”2 With the ability to clearly iden-
tify Web surfers who are practicing their First Amendment right to
speech on message boards and in chat rooms, this type of commen-
tary is handed over to the brand’s PR team for early action to coun-

288 CYBERBRANDING chapter 20

teract negative opinion, if it is not too late to change that opinion.
Of course, with this type of intelligence there is controversy. eWatch
says that working through the cleansing of information, “We can
neutralize the information online, identifying the perpetrators be-
hind the uncomplimentary postings and rogue Web sites.”3 How-
ever, that is not to say that the idea of “information cleansing” is
not unsettling to privacy advocates and could actually end up in
more of a PR mishap than intended.4
Public relations is successful when it is knowledge-based, i.e.,
when it comes
from knowing Public relations is successful when it is knowledge-based,
the industry, the i.e., when it comes from knowing the industry, the media,
media, and how and how other PR professionals are conducting business
other PR profes- and handling industry issues.
sionals are con-
ducting business and handling industry issues. One of the best tools
and most well known PR newsletters is Jack O’Dwyer’s Newsletter.
Years ago, this newsletter, which by industry standards is the “inside
news” of public relations, was available only via subscription. In
2000, a subscription to Jack O’Dwyer’s Newsletter was $275.00 for 50
issues in a year. However, the newsletter can also be found online at
www.jackodwyers.com. At least 75% of the newsletter is available
online with archived issues to peruse. Having easy access to relevant
PR industry news is key to understanding how to handle PR prac-
tices for brands in the digital economy.
There are also new e-brand PR newsletters. For instance,
[email protected] is a weekly PR newsletter that highlights
relevant and current public relations issues in the news with a help-
ful letter from the editor, feature stories, and information regarding
the media. For those who cannot afford the online databases,
MediaMap.com provides information on media contacts from pro-
motions to resignations, making it easier for the PR person to reach
out to a contact and build a relationship on behalf of a brand. Al-
though MediaMap.com does not have the same reputation as Jack
O’Dwyer’s, it is still a useful and free service that aids in better un-
derstanding the nature of PR and gives helpful PR do’s and don’ts
practices.
Last, adding to the changing nature of PR tools is the way in
which the news wire services are branching out on the Internet to

CYBERBRANDING PR Cybertools for Cyberspeed 289

 offer other useful PR tools. Aside from the ability to send out news
releases over the wire, PR News Wire (www.prnewswire.com), for
instance, offers Virtual IQ or Investor Relations Web pages to cyber-
brands. These Web pages are hosted and maintained by PR News
Wire with the sole
The possibilities are endless for the cyberbrand to in- purpose of conve-
crease awareness based upon the updated PR tools nience to deliver the
that aid in the recognition-building process. investor relations
message for the
company. The pages of Virtual IQ are designed to look like the
brand’s corporate pages. And with the same look and feel, they are
delivered to investors and various publics in a concise, straightfor-
ward fashion for them to retrieve information on behalf of the
brand.5
The possibilities are endless for the cyberbrand to increase
awareness based upon the updated PR tools that aid in the
recognition-building process. Becoming familiar with the cybertools
is a process in and of itself, and the following should always be kept
in mind:

■ Retiring old tools does not mean abandoning the

relationship-building strategies necessary to attract an
audience. Rather, it means better cybertools to foster
stronger relationships with the media, which, in turn, will
get the word out to the public.
■ New tools are surfacing on the Internet from both the
companies that have been around for generations of PR
professionals and the new e-brands with their cybertools.
The PR budget will determine the vendors and the tools
used.
■ The Internet has the means to facilitate quick, efficient, and
targeted information gathering that in the past was
performed manually and took five times more manpower to
perform. With more resources becoming readily available in
cyberspace, careful researching of tools, prices, procedures,
and benefits is always in order before signing a contract with
an online service or data provider.

290 CYBERBRANDING chapter 20

■ The practice of utilizing public relations organizations to
guide the cyberefforts, such as the Public Relations Society of
America (PRSA), will continue. Except now, it’s not
necessarily a telephone call to access information, but rather
the ability to log onto www.prsa.com for information on
conferences and seminars for local chapters that touch upon
cyber issues, tools, and tactics.

CYBERBRANDING PR Cybertools for Cyberspeed 291

 CHAPTER

21 Relationship-Building Tactics
with the Media

Objective:

To learn to use the Internet to enhance a relationship

with the media and increase PR campaign results. When
it comes to public
When it comes to public relations, the relations, the
audience that needs to be addressed, audience that needs
first and foremost, even before the
to be addressed, first
client, is the media.
and foremost, even
before the client, is the media. It’s the media that will
spread the third-party endorsement on behalf of the
brand. PR relationship-building tactics and other topics
of interest include:

■ A quick PR relationship-building test

■ Don’t let yourself be labeled as the non-PR
professional
■ First things first—nail down the relationship-
building basics
■ Technology to enhance relationships

292
A QUICK PR RELATIONSHIP-BUILDING TEST
Here’s a quick PR quiz called, “Who am I? Guess my nickname.”
Test your PR knowledge with 10 simple statements that should en-
able you to reveal the character’s identity by the tenth statement.
Good luck.
1. I call myself a PR person.
2. I want to get “ink” for my company, and I am trying to make
as much noise as possible.
3. I send out at least six news releases a week (sometimes more)
that alert the media to anything and everything that happens
in my company—even when I receive editorial publicity
from another outlet, I let other media contacts know where
they can read the story.
4. I follow up with the media to see if they receive my press re-
leases. Sometimes I call every day and leave messages until I
get them on the telephone.
5. I believe that advertising in a publication gives me an auto-
matic right to publicity in that venue.
6. I insist on seeing any articles a reporter writes on behalf of
my company prior to publication—it is my duty and right to
do so.
7. I send out at least four news releases to each editorial depart-
ment just to make sure that all of the different reporters
and/or editors know what’s happening in my company.
8. When dealing with the media, I find it easier to attach fact
sheets, news releases, and contact information as an attach-
ment to e-mail. Then, of course, I follow up to see if they re-
ceived the e-mail.
9. I send information to the same editorial contacts every time,
even if they do not necessarily cover a topic. It’s easier for
them to pass it on to a colleague than it is for me to look up
another contact.

293
 10. I like to create news releases that are as comprehensive as
possible—sometimes three pages is not even enough infor-
mation to convey.
Who Am I? Hint: There is a new Web site named after me! Here
are some choices:
■ I am a marketing person who is stuck with some PR person’s
job, of which I know nothing.
■ I am a CEO of a dot-com who needs to get his hands into
everything.
■ I am the eight-year-old child referred to in the article “Fire
Your PR Consultants and Replace Them with Eight-Year-
Olds from the Neighborhood.”
■ I am a public relations professional with 15+ years of PR
experience.
■ I am a temp hired to help out with the PR while the real PR
person is on vacation.

The answer: None of the above. Although the marketer, CEO,

eight-year-old, and temp definitely fit the bill to implement all the
PR blunders listed, the true identity, well known to many reporters,
editors, producers, program directors, and PR professionals, is the
stereotypical PR flack. Unfortunately, there must be quite a few PR
folks out there an-
Unfortunately, there must be quite a few PR folks out
noying quite a few
there annoying quite a few media representatives. . .
media representa-
tives (although there are always three sides to the story: his side, her
side, and then the truth), for a Web site to be developed in the PR
person’s honor. Whackaflack.com is a site that actually allows all of
those annoyed media representatives to release some stress and get
back at those “pushy” PR professionals. The site has a message that
is loud and clear:
Tired of those pushy PR flacks and overzealous young ac-
count execs huffing breathlessly over the virtues of the next
useless.com? Feeling bombarded by inane hype? Here’s your
chance to give them a taste of their own . . . media kit.1

Does this sound like a group of people who have gained the re-
spect of the media? At whackaflack.com, the user can choose a PR
agency of his choice that was the most irritating (there is a long list

294 CYBERBRANDING chapter 21

of choices). The game gives the user a perfect opportunity to
“fling,” with the click of the mouse, paper airplane news releases at
various PR personalities who pop up and down during the game.
After all, the site goes as far as saying that it’s practically impossible
for the true PR person to lay low and stay out of the picture for any
significant amount of time.2 For users, it could be that there’s
tremendous pleasure in hitting the fictitious characters, such as
Prentice Newman who just graduated from college, ambitious and
overly conscientious—he’s the one who sends out multiple e-mails
a day. Or perhaps there’s a bit of bliss in whacking Hardy Knox, the
old-time PR guy who was in the business pre-fax machines and
overnight courier service. The hypothetical characters, the nature
of the game, and the humor in mocking the flack (because it really
is meant to be humorous and not offensive) offers PR professionals
a taste of reality.
Another well-known Web site that is receiving attention in the
media realm is Jim Romenesko’s MediaNews at www.poynter.org/
medianews, a site that he developed for the not-for-profit journal-
CYBERBRANDING Relationship-Building Tactics with the Media 295
 ism school, The Poynter Institute. “PR Beefs” is an area of the site
that allows both journalists and PR representatives to post their dif-
ferences. MediaMap editorial newsletter discusses Jim Romenesko’s
site in its October WebPR issue and states, “This may not win
MediaNews a Nobel Peace Prize, but it can be said that he’s getting
people talking.”3 And according to the article, Jim Romenesko real-
izes the intense emotions that brew on both sides, those of the
media contact and the PR person, knowing that each group has a
grievance. Romenesko states, “PR people see many reporters as
being arrogant, and reporters see PR people as being annoyances
when they send materials that are ‘off topic.’”4 Some of the postings
on “PR Beef” include an opinion from a media contact at the
Boston Herald who is denouncing the practice of sending the media
person a gift because it’s viewed as a form of bribery.5
A senior writer from Philadelphia City Paper posts his thoughts
on how PR agencies should do themselves a favor and hire experi-
enced journalists as PR account executives. He even goes as far as
saying that individuals right out of college who majored in PR
(which, in his opinion, does not mean a great deal) are clueless. In
fact, making these people the “front line” is of no benefit to the
company.6 The comments about PR people go on and on, ranging
from their not knowing the publication being pitched and acting
like telemarketers making cold calls, to not answering questions in a
timely fashion and attempting to get ink in a competitor’s publica-
tion the day after a story runs. There is far more bashing of PR peo-
ple going on than there is negative commentary from PR people
directed toward the media.
Let’s clarify the record. It certainly is not a sin to be zealous
and conscientious. And there is nothing wrong with graduating
with a bachelor of arts degree in communications concentrating in
public relations. Most of all, in this business, it is not a sin to want
to make some noise
. . . it is not a sin to want to make some noise about a
about a brand that
brand that has a novel, instructive, or provocative
has a novel, instruc-
story to tell.
tive, or provocative
story to tell. It’s the way of going about the process that has given
PR people the bad rap. Technology enables professionals to make
contact quicker, easier, and more frequently. Unfortunately, the
very same technology can work to the practitioner’s disadvantage.
Technology is an advantage only when it enhances the relationship

296 CYBERBRANDING chapter 21

(sparking the relationship with relevant news and information
that, in the past, would take longer to uncover); otherwise it’s a
case of non-PR performance by the professional. Non-PR will not
build media relationships, non-PR will not get the “ink,” and non-PR
does not enhance awareness of the brand.
Finally, non-PR has been going on for a long time, and, as a re-
sult, affects ROI. PR people are held accountable when it comes to
results of the PR campaign and ROI, especially in the digital econ-
omy with the fierce and changing nature of competition and the
speed of changing technology.

FIRST THINGS FIRST—NAIL DOWN THE

RELATIONSHIP-BUILDING BASICS
There are simple steps to address even before considering the way
that technology plays a part in the PR effort. These simple PR tactics
will combat the negative PR flack stigma:

1. Do your homework and know exactly which medium you

are pitching and what type of story is of interest to a particu-
lar contact.
2. Do not bombard the media with excess news releases that have
no bearing or relevance. Stick to the facts and keep it concise.
3. Do not overestimate the reality of the company and have
“egomaniac expectations.”7 Keep in mind the types of com-
panies that get coverage in publications such as the Wall
Street Journal and the New York Times. If the company or the
cyberbrand is not a forerunner in the industry, then don’t
pitch the company that way to the publication.8
4. Do not send multiple copies of news releases or materials to
reporters and editors of the same editorial department. With
busy schedules that often do not concur, it is humiliating to
have two contacts working on the same story.
5. Do not ignore the media and avoid questioning. If they do not
hear it right from the PR people, they can always seek outside
sources that may not pose a situation in a favorable light.
6. Do not interrupt a reporter or editor who is on deadline. It’s
best to ask if he or she has a moment to talk, or when it
CYBERBRANDING Relationship-Building Tactics with the Media 297
 would be a better time to discuss the information that you
want to pitch.

With the basics intact, the PR person quickly discovers the capa-
bilities of the Internet in one of two ways. First, there is the likeli-
hood that he or she gets caught up in the frenzy of a fast-paced
industry, and uses the Internet inappropriately; and second, there is
the distinct possibility that the Internet becomes a medium that in-
forms, educates, connects, and assists the PR person to better com-
municate with a contact. Will the Internet continue to add fuel
to the PR flack fire? Absolutely not, if the PR person considers the
following:

1. Do not ever assume that a media contact wants to be

“spammed” by anyone, not a PR person, another colleague,
or even a relative. As a matter of fact, Len Stein, a 20-year
veteran who founded Visibility PR, discusses in his article
“SPam, SPAm, SPAM . . . Fire Your PR Agency” how he
Do not ever assume that a media contact wants to be hopes that PR pro-
“spammed” by anyone, not a PR person, another col- fessionals are devel-
league, or even a relative. oping targeted lists
and managing them
properly. With hundreds of e-mails to sort through daily,
media contacts begin to resent seeing the same person or
people clogging up their inboxes with unsolicited e-mails.
2. Technology is the PR person’s dream—it’s so easy to shoot
out numerous e-mails and attach documents of interest to
the many media contacts. Wrong. Few journalists of print
and cyber publications prefer to receive attachments. In
fact, with the high incidence of computer viruses, more
media representatives are setting their browsers to pass over
attached documents.9 Besides, when you are building a rela-
tionship with any business contact, it is a normal business
practice to inquire as to how the person wants to receive in-
formation. Then, of course, respect the method your con-
tact prefers. If the method of choice is not e-mail, but,
rather, the U.S. Postal Service or messenger service, then
that’s the way to go (any other method would result in the
PR person’s losing face and maintaining flack status for not
listening).
298 CYBERBRANDING chapter 21
3. Use the Internet to provide further information on a brand
and any developments in a company. Too many cyber-
brands
Too many cyberbrands in their hurry to send out news re-
in their
leases over the wire, and forward packages to broadcast
hurry to
and print media, are not fully set up on their Web sites for
send out
an unexpected visit from the media.
news re-
leases over the wire, and forward packages to broadcast and
print media, are not fully set up on their Web sites for an
unexpected visit from the media. Before any material goes
out the door, it’s in a brand’s best interest to have an area
of the site devoted to media and/or investor relations. The
area should be easy to locate and contain the company’s
fact sheet, news releases, mission statement, updated prod-
uct information, investment information, etc. In addition,
this section of the site must be updated frequently to reflect
time-sensitive information and issues (updating Web pages
goes without saying for Internet audiences). However, cy-
berbrands should avoid imposing registration and pass-
word entry for the media—this practice slows their efforts
and sends them off to another site’s online pressroom for
information (possibly a competitor’s).
4. The Internet is a great tool to research information to be-
come fully knowledgeable about industry occurrences. The
PR folks at Grayrun Group (www.grayrun.com) feed into
media relations by keeping an eye out for tips and stories to
provide to reporters whom they have worked with in the
past.10 Watching for stories that cover a reporter’s beat is
particularly helpful. The Internet is as global or as local as
you want
it to be, The Internet is as global or as local as you want it to be,
and find- and finding information to provide to a contact further aids
ing in- in the two-way street media/PR relationship.
formation to provide to a contact further aids in the
two-way street media/PR relationship. Having relevant in-
formation available helps the media person who suffers from
time constraints and, in some cases, is assigned a story that
might not necessarily be in his or her area of expertise. Imag-
ine being assigned several of these types of stories in a short
time frame. The PR person looks like the knight in shining
CYBERBRANDING Relationship-Building Tactics with the Media 299
 armor when valuable information is exchanged. Flack?
Flack, who?

Granted, the digital economy stirs up industries, and there is the

incessant need to rush, rush, and rush some more! However, keep-
ing the rush factor in mind, it’s worth taking a little extra time to
access Internet infor-
. . . if you want to make some noise on behalf of your cy-
mation and know
berbrand, then take the time to understand the media’s
exactly who, what,
needs in order to gain their trust and mutual respect.
why, when, and
where you are going with a PR push. Squashing the flack issue is not
easy. It’s psychologically embedded in the minds of both parties. But
for the new generation of PR people in the digital economy, if you
want to make some noise on behalf of your cyberbrand, then take
the time to understand the media’s needs in order to gain their trust
and mutual respect. Relationships take time and effort. The best
business partnerships were not built in a day, any more than the best
marriages and unions. The PR/media relationship is like any other re-
lationship that requires two-way communication and, of course, is a
two-way street.
To recap, the cyberbrand will build better and stronger relation-
ships when the PR team adheres to the following tactics:

■ Don’t waste the media’s time. Remember, egomaniac syn-

drome gets the cyberbrand nowhere.
■ Pitch a good story, one that is appropriate for the contact.
■ Be responsive to the media (avoid evasiveness), and they will
not only take your explanation, but will come back to ask for
more expert opinions and comments.
■ Make the media’s job a little easier. Listen to how they need
information, and get the information to them appropriately.
■ Don’t treat PR like a sales call. Telephone call upon tele-
phone call, or endless spamming, will not benefit the cyber-
brand.
■ Take the time to understand the different types of stories
the media find newsworthy: timely disclosures, company
progress, human interest, novelty, trends, and stories of
prominent figures. Then, use technology to provide this
information as quickly as possible.

300 CYBERBRANDING chapter 21

Expert Viewpoint

Building Media Relationships: An company to profile its execu-

Editor’s Point of View tives and its business plan. In
Thomas J. DeLoughry, executive fact, DeLoughry mentioned that
editor of Internet World, has one of the most difficult aspects
received thousands of pitch let- of understanding the many
ters and news releases over the companies that cross his desk is
course of his 13 years in the to figure out just what is their
field of journalism. As execu- vision and business model.
tive editor of the ever popular Unfortunately, in the digital
and quickly growing Internet economy, many companies are
publication, DeLoughry relied moving too quickly and hiding
on technology every day to behind jargon in their corre-
make his job easier. In an inter- spondence with the media. This,
view, he touched upon how ultimately, makes an editor’s
technology fosters a relation- job more difficult; straightfor-
ship between the media and ward information is best, and
public relations professionals high-tech, intricate verbiage
and how to use technology usually does not impress a
properly when dealing with media contact. DeLoughry of-
editors. fered a list of surefire ways that
Beginning with the use of would induce him, as an editor,
the Internet, “Lots of times I to give a company an editorial
want to make a telephone call placement in Internet World:
or need more contact informa-
tion about a company, which ■ Make the story accessi-
might even include directions to ble—leave out the jar-
their offices for an interview,” gon and stick to the facts
stated DeLoughry. “Now most that Internet World’s
companies have Web sites and audience would under-
make this type of information stand and appreciate.
readily available.” According to ■ Watch the hype—be-
DeLoughry, the “About Us” sec- ware of discussing un-
tion of a Web site is tremen- known companies that
dously helpful to provide detail are “the leading forces”
on lesser-known facts about an yet have no customers
organization (regarding venture and have only just
capital funding and where it launched a product or
originated). “The more informa- service.
tion—the better,” he explained. ■ Confirm that the infor-
These sections are valuable for a mation being pitched ac-

CYBERBRANDING Relationship-Building Tactics with the Media 301

 Expert Viewpoint

tually fits the format of ture capitalists push too

Internet World. Spam- hard.
ming an editor or re- ■ Do not call an editor to
porter about ideas that find out if he received
are not covered in the your e-mail. “Put it this
magazine is useless. way,” said DeLoughry,
■ Work with any execu- “send it when you have
tives of a company to time and it will be read
understand the message when the editor has
to be communicated— time.”
then, the pitch to the ed- ■ Avoid mentioning the
itor is more concrete and fact that you are an ad-
pertains to the com- vertiser in a publication.
pany’s overall branding This may work in lower-
strategy. end magazines, but it is
■ Do not let the “rush to insulting to the media
the Internet at 80 miles representative who takes
per hour from the get- pride in every story
go” be the driving force. written.
Getting useless informa- ■ For Internet World, faxes
tion out quickly does not are a waste of time, and
impress anyone, and it snail mail is a thing of
only wastes valuable the past. E-mail is the
time. DeLoughry poses best way to go, as it can
the question, “Venture be forwarded to mem-
capitalists look for com- bers of the Internet
panies that are full World staff in various
throttle, yet, consider parts of the country.
the recent dot-com “However, this is not to
Super Bowl commercials. say that every editor
Does anyone remember wants e-mail,” stated
the name of the actual DeLoughry. “There is a
company?” His point is tremendous difference
to beware of the five- between an Internet
times-the-normal-pace publication and a daily
mentality when it comes newspaper. Newspapers
to PR and building still house large editorial
media relationships— departments where a fax
even if the client or ven- can go a long way. But,

302 CYBERBRANDING chapter 21

Expert Viewpoint

for Internet World faxes discussed how the Inter-

are antiquated.” net World Web site gives
■ Know the company you the information on who
are pitching. Do not covers what (he even
waste an editor’s time says this in his telephone
with uneducated pitches. message to PR folks).
The steps to get to the ■ Major pet peeve: When
right person for accurate PR folks send informa-
information are time- tion to Tom DeLoughry
consuming—it’s best that at Interactive Week or
the PR person know the The Industry Standard.
company inside and out. Whether that’s a typo or
■ Never send a blind just a funny thing that
pitch—understanding happened in your e-mail
the publication is crucial, program, it’s a sure way
and it lets the editor not to get any attention.
know that you have
DeLoughry’s final thoughts
done your homework. It
focused on solidifying good,
also shows the editor
long-standing relationships. His
that the company is well
best relationships are with PR
positioned for the publi-
professionals who are totally
cation. Editors give
plugged into a client. They can
credit to those profes-
understand the clients so well
sionals who take the
that answering questions is sec-
time to read the publica-
ond nature. “These are also the
tion being pitched—it’s
practitioners who know the
worth the effort.
client’s industry and can let us
■ Refrain from calling
know when something is going
every media contact on
to happen that is newsworthy,”
the masthead of a publi-
said DeLoughry. For DeLoughry,
cation. For every editor
these are the companies that
and reporter, at a small
get noticed based upon the PR
editorial department, to
person being considered a part-
hear the same pitch and
ner. “Let’s face it, the best PR
bounce around the idea
comes from professionals that
is a waste of valuable
offer insight and information
time. It’s much more ef-
that is valuable to our readers—
fective to target a con-
it’s these folks that make our
tact. DeLoughry
jobs a bit easier.”

CYBERBRANDING Relationship-Building Tactics with the Media 303

 CHAPTER

22 Best PR Practices

Objective:

To appreciate the value of public relations and provide

insight into public relations campaigns and the
professionals who run the programs. Cyberbranders who
wish to do well should know the following:

■ Telltale signs of PR fluff that raises the red flag

■ PR accountability demonstrated by professionals
■ Best-case scenarios to generate interest
■ Helpful PR hints for successful campaigns

304
TELLTALE SIGNS OF PR FLUFF

S uperstoredotcom is among the many e-tailers to enter the on-

line marketplace to sell women’s, men’s, and children’s cloth-
ing. PRdotcom is the company that wants the $10 million PR
account. In a large, comfy meeting room in Silicon Valley, PRdot-
com is anxious to start its presentation. The senior vice president of
PRdotcom dims the lights in preparation for the PR pitch. The pro-
jection screen lowers from the ceiling and the festivities begin.
There’s energy in the air, and PRdotcom puts on the performance of
a lifetime: audiovisuals, stimulating interaction, and lots of heavy
media name-dropping to further entice Superstoredotcom into a
contract. When the dog-and-pony show ends, the group is ready for
questioning.

305
 VP of marketing, Superstoredotcom: Thank you for an exciting
presentation. Did you happen to mention what types of PR
placements (offline and cyber) we can expect if we hire
PRdotcom?
Director of PR, PRdotcom: We have numerous contacts with
major newspapers, consumer and business publications, and
television stations across the country. We envision Super-
storedotcom to be picked up by these media if we get in-
volved with the account.
VP of marketing: What benchmarks can we count on with this
type of large national effort?
Director of PR: We just completed a campaign for a dot-com
in the high-tech sector and were picked up by several publica-
tions with circulations over 200,000. However, for propri-
etary reasons I am not able to discuss the account in detail.
VP of marketing: Can we see a bio of each member of the PR
team assigned to this type of account?
Director of PR: Accounts are so specialized that I do not have
the information at hand. However, I would be happy to put
something together for you.

Has the red flag been raised yet? What’s wrong with this sce-
nario? Besides the fact that the PR company did not partake in the
cardinal rule of selling, that of INPC (introduction, needs, presenta-
tion, close), the presenters engaged in the following tactics:
■ Evasiveness—no straight answers or concrete facts
■ No clear-cut benchmarks and no numbers or percentages to
back up information
■ A sense of a lack of accountability
■ Name-dropping but no substance or physical placements to
present
■ The distinct chance that upper management puts on a dog-
and-pony show but the account executives work the
campaign

It’s tough to find the right agency to outsource a public relations

campaign. And a
PR, like any other type of marketing communication, is
company that shows
accountable for ROI, and so are the professionals who
the telltale signs of
run the effort.
“fluff” from the get-
go just might be the same agency that does not feel accountable for
the outcome of the campaign. PR, like any other type of marketing

306 CYBERBRANDING chapter 22

communication, is accountable for ROI, and so are the professionals
who run the effort. PR fluff begins with the company that talks a
good game (but has no substantive proof), and $30,000 a month
later with no increase in traffic or commerce on the Web site, the cy-
berbrand’s executive team wonders: Where’s the ROI?

PR ACCOUNTABILITY DEMONSTRATED
BY PROFESSIONALS
Alas, the ever-familiar scene in the cash-burning dot-com commu-
nity. Even, the click-and-mortars have found their share of lack of
PR accountability. There has to be a clear set of standards to consider
before signing
There has to be a clear set of standards to consider before
on for PR ser-
signing on for PR services.
vices. According
to Jack O’Dwyer (a long-time veteran of public relations practices),
there are several standards to consider before making the commit-
ment. Companies should be on the lookout for the following:
■ PR agencies that discuss “grandiose future plans and
strategies described in glowing terms.”1

CYBERBRANDING Best PR Practices 307

 ■ PR agencies that constantly bash the media.
■ PR agencies that are evasive with respect to any key players
on the PR team (signaling that the handoff might be a lower
tier of expertise).
■ PR agencies that do not provide a lengthy client list. If they
don’t offer the information, by all means, just ask.
■ PR agencies that do not discuss full PR campaigns and just
mention random placements.
■ Most of all, watch out for the hype, the fluff, or the stuff that
only sounds good in
. . . watch out for the hype, the fluff, or the stuff that
a presentation but
only sounds good in a presentation but never surfaces
never surfaces
otherwise.2
otherwise.2

Looking for the foregoing characteristics will help to weed out

the “all talk” agencies from the successful PR professionals who
perform with a sense of urgency and accountability. Employing the
right professionals to handle communication on behalf of the cy-
berbrand will result in better campaign results. But there are still
challenges to be faced by brands in the digital economy. With the
speed of technology and timely news, the saying goes, “News occurs
every half hour.” With that said, what types of campaigns could
possibly capture the attention of the media who communicate the
messages to the public? At a PRSA Professional Day conference in
October 2000, different speakers discussed what it takes to gain the
attention of the media and how to rise above the clutter. The tactics
ranged from shock PR and “a coat of varnish” to pure newsworthy
facts and steering away from the “spin” mentality. However, in all
cases, the professionals who believe in PR accountability are the
professionals who communicate the very essence of the brand to
audiences.

BEST-CASE SCENARIOS TO GENERATE INTEREST

Take a look at three brief PR campaigns, each one different (from
conservative to risqué, and to “out-of-the-box” thinking). The cam-
paigns possess unique strategies (utilizing the Internet) and result in
greater brand awareness.

308 CYBERBRANDING chapter 22

General Mills

Background:
General Mills wanted to roll out with a new promotion to en-
hance its position as a pioneer in the “world of premiums.”3
How could the company stay current with the needs of con-
sumers in the new millennium?

Objectives:
■ To develop a campaign that gains the interest of the
media in order to inform consumers about General
Mills’ latest cyberpromotion
■ To step into the digital realm with a one-of-a-kind
promotion and special added value for audiences with
“high-tech interests”4
■ To boost the campaign by fostering a relationship with a
software company to give away free software and Internet
access to consumers
■ To gain the interest of the media with a clever media kit
that symbolized a company that moves with technology

Strategies:
General Mills formed an association with Microsoft to give
away MSN software and free Internet access to consumers.
General Mills also designed a unique press package to resemble
a laptop computer (which was actually made of cardboard)
that, when opened, displayed the “Cyber Savings” campaign
(with both the General Mills and MSN logos) on the screen.
Underneath each “keyboard” were the press materials, which
included news releases and samples of software, as well as
video news releases (VNRs).

Results:
With distinct media tools and a promotional idea that moved
the company into the twenty-first century, the campaign re-
sulted in approximately 13 million page views for Cyber Sav-
ings based upon the numerous print, radio, and television
placements.5

CYBERBRANDING Best PR Practices 309

 Pharmaton Natural Health Products’ Venastat

Background:
The Venastat Great American Cross-Out is an event that asks
women to participate in a one-day healthy legs awareness
program. Pharmaton, the developer of the dietary supplement
Venastat, runs the program annually to promote the product
by educating women about healthy legs and proper vein
circulation.

Objective:
■ To raise the level of national awareness among women
that Venastat is a natural way to promote healthy legs
■ To develop a campaign that makes women think about
healthy legs and how the habit of frequently crossing legs
can lead to improper circulation and varicose veins
■ To employ both traditional and cyber PR strategies to
promote the annual program

Strategies:
Pharmaton developed a survey that questioned women about
leg crossing, which was a somewhat quirky way to gain inter-
est about the popular habit.6 Survey results were then released
to the media for publication. Pharmaton also contacted pro-
ducers of national talk shows. The hosts of programs were
happy to discuss the “Venastat American Cross-Out” and
started a buzz by talking about leg health awareness, the scope
of the national program, and the dangers of habitual leg
crossing. Finally, along with working with high-profile
women’s Web sites to keep the buzz going, Pharmaton made
sure to register Venastat in key word searches for consumers to
find easy access to Venastat Web pages. By typing in leg cross-
ing, leg health, and varicose veins, consumers could access
links to Venastat for research and information. The specifics
on leg health week reached the media via VNRs, Cross-Out
news releases, press kit distribution, and distribution of re-
leases over the wire.

310 CYBERBRANDING chapter 22

 Results:
The goals of a well-rounded campaign proved successful and
beyond expectations. The PR campaign behind the “Great
American Cross-Out” generated over 100 million media im-
pressions. There were several big-ticket publicity items, includ-
ing coverage on Today, CBS This Morning, and more than
200 local TV stations. The buzz was also present in print as
seen in Redbook, Better Homes & Gardens, USA Today, and
the New York Daily News, to name a few.

DeskDemon.com

Background:
DeskDemon.com is a service for office managers, free of charge,
that provides all of the resources and tools necessary for profes-
sionals on any given workday. The cyberbrand needed a clever
campaign that would attract the interest of the media and
working professionals in an effort to promote brand awareness.
The company knew that with a name like DeskDemon.com the
campaign approach would have to be somewhat lighthearted
and could definitely get away with being a bit risqué.

Objectives:
■ To interest the media with some out-of-the-box thinking
that is representative of the company’s name
■ To interest professionals in a cyberbrand that assists
them with their daily functions

Strategy:
DeskDemon.com hired two male models, scantily clad in red
shorts (and nothing else), to visit several publishing houses in
London. Because the objective of the campaign was to raise a
few eyebrows and entertain female audiences, the bare-chested
boys were a powerful tactic. Referred to as the DeskDemon
Break Boys, these models personally delivered energy drinks
and press releases to female audiences (in the online and off-
line arena). DeskDemon.com even went as far as branding the
Boys across their bare chests.

CYBERBRANDING Best PR Practices 311

 Results:
■ Lots of smiles and raised eyebrows—one editor could not
resist and stroked the chest of a DeskDemon Break Boy.
■ Press coverage included broadcast media nationwide and
a number of editorial pieces from the publishing houses
that were graced with the presence of the DeskDemon
Boys. New Woman and Ms. London were among the
publications to pick up on the story.
■ Ann Roberts of Bard & Brown Communication felt that
the event captured the audience’s attention and was
relatively low-cost to the cyberbrand. As a result, further
activities with the DeskDemon Break Boys will be
pursued in the future from the company’s Web site,
including a contest to win a visit from the Boys or even
send them to a friend. (That’s viral marketing in every
sense of the word!)7

HELPFUL PR HINTS FOR SUCCESSFUL CAMPAIGNS

In each case, the use of public relations in the cyber and offline ef-
fort led to positive results on behalf of the brand. Through credible
third-party endorsement (by the hand, the pen, or the keystroke of
the media), cyberbrands are using PR to drive people to Web sites to
research information, change opinions, and purchase products and
services. Public relations is used more now as an integral part of the
marketing promo-
Through credible third-party endorsement (by the
tional mix as other
hand, the pen, or the keystroke of the media), cyber-
marketing strategies
brands are using PR to drive people to Web sites to re-
lose their ability to
search information, change opinions, and purchase
rise above the clut-
products and services.
ter. However, even
the most out-of-the-box thinking requires PR tactics that always
communicate the essence of the brand. Making noise for the sake of
making noise is not good enough in the digital economy. Making
noise for the sake of making noise does not benefit a cyberbrand. In
this day and age, both the media and the public are well aware of the
difference between noise and newsworthiness.
Here are some helpful PR hints that get the cyberbrand and the
agency off in the right direction; an agency that strays from these

312 CYBERBRANDING chapter 22

hints is not the right agency to run a campaign for maximum
results:8
■ PR should be used to create a positive image and
goodwill and to humanize a cyberbrand.
■ PR is not straight persuasion or manipulation (you can
first spot this type of communication with the “all talk
agency”), although it may skillfully integrate elements of
persuasion into a journalistic writing style.
■ PR is the practice of using the media and leaving the
interpretation of the message up to the media and the
public.
■ PR is seen as newsworthy as opposed to a commercial
advertising message.
■ PR uses mass media, as well as other venues that are
considered more personal to a cyberbrand—for instance,
speaking forums, or community involvement.
■ PR is not advertising, direct marketing, or any form of
personal selling and should never be considered as such
or approached in the same fashion.
Agencies that demonstrate the PR ideals and educate a company
on the differences between PR and other marketing strategies are the
agencies that stand out from the crowd. Agencies that “talk the talk”
and “walk the walk” have concrete examples of campaigns and a
lengthy list of satisfied clients and should be the companies of
choice. These are the agencies to join forces with in the cyberbrand-
ing arena. These
Agencies that demonstrate the PR ideals and educate a
companies know
company on the differences between PR and other market-
the PR arena,
ing strategies are the agencies that stand out from the
they definitely
crowd.
know the media
building strategies, and they do their homework about the clients
they represent and the markets in which they compete in the digital
economy. These companies have learned from experience how to
use technology properly and the importance of accountability when
it comes to producing campaign results.

CYBERBRANDING Best PR Practices 313

 Full-Case Study
ATLANTIS GROUP, INC: PREPARING FOR PUBLIC RELATIONS
“Our sole existence is to case study on how the company
transform the mind’s cre- achieved its goals in a short time-
ation into an innovative frame.
world of sound design and
vision.”
Background:
John Chominsky, CEO Atlantis
Group, Inc. Atlantis Group is an all-inclusive
audio recording and post-production
John Chominsky is CEO of Atlantis
studio in Santa Monica, California. At-
Group, Inc., a sound design studio
lantis Group is equipped to provide a
that opened in the heart of Santa
multitude of services for clients rang-
Monica, California, not only with
ing from musicians to independent
fierce competition less than a block
motion picture studios to advertising
away, but also during the AFTRA
agencies. Services include:
(American Federation of Television
and Radio Artists) strike. “These fac- ■ Recording, editing and mixing
tors did not stop us from pursuing our audio.
dream,” stated Chominsky. Despite
■ Conducting ISDN patches.
the obstacles, Chominsky, a self-
starter with over 15 years of experi- ■ Designing sound.

ence in the recording industry, set his ■ Recording voiceover talent.

sights on Los Angeles, where he im- ■ Providing 5.1 surround sound.
mediately fast-forwarded himself to a ■ Providing a lounge area with
sound design engineer at one of Hol-
amenities.
lywood’s leading production and
recording studios. For Chominsky, the
Objectives:
first step was to hire a public rela-
tions firm to increase awareness of ■ To inform potential clients of

Atlantis Group in the LA area, and Atlantis Group’s products and

also on a national level as he and his services, and convince clients
studio had the capability of digital that Atlantis Group is the key to
sound patch recording (this enables their business.
sound recordings from any point in ■ Create/increase awareness
the country). among clients and media outlets
Chominsky realized that Atlantis in the recording/post-production
Group faced several challenges. and advertising/communications
These are presented in the following market(s).

314 CYBERBRANDING chapter 22

Target Audiences: who are bombarded with news
releases and pitch letters on a
■ VP or Director of Marketing for
daily basis.
agencies outsourcing client
production needs. Atlantis Group, Inc. needed to
move quickly. However, deciding to
■ Sound engineers, voiceover talent
move forward with public relations
and other production companies.
meant having the required programs
■ Media representatives, both print
in place to entertain media inquiries.
and broadcast.
Questions to ask before moving out of
the gate included:
Challenges:
1. What type of PR program is in
■ Position Atlantis Group as “the”
place? Are the objectives and
answer to fulfill all audio
goals clear?
recording needs.
2. Will the company partially utilize
■ Demonstrate that Atlantis Group
an in-house team or will PR be
has national capabilities through outsourced entirely to an agency?
its digital sound patch. 3. Who in the company is trained for
■ Creative material must stand out media relations?
among dense competition in the 4. Does Atlantis Group have its pub-
Santa Monica area—Atlantis lic relations materials updated to
Group must break through the reflect the CEO’s vision?
clutter. 5. Is Atlantis Group’s Web site ready
■ To prepare the company’s Web for media/investor relations?
site for public relations by
developing an area on the site for Strategies:
media representatives to access Atlantis Group answered these ques-
company information. tions by implementing the following
■ To present the media to a procedures prior to rolling out with its
company that is on the cutting PR efforts:
edge of sound design technology, ■ Hiring a PR agency to set up
one that produces better end-
the strategies and plans to
results for its clients.
communicate with the media.
■ To discover new methods to
reach and interest media contacts (continued…)

CYBERBRANDING Best PR Practices 315

 Full-Case Study
(…continued)

■ Designating John Chominsky as ■ Building media relationships with

the key contact person to deal key media contacts, including edi-
specifically with media inquiries tors and reporters of newspapers,
and for interviews, as well as business, communications, adver-
providing Chominsky with the tising/marketing and sound engi-
coaching necessary to facilitate neer trade journals. Broadcast
media relations. interview programs will be ex-
■ Setting up news wire services plored in a second-phase effort to
(BusinessWire) to distribute move Atlantis Group on to a
releases relating to any major higher PR plateau. Media-building
announcements, i.e., the Alien strategies include keeping editors
Voices project with Leonard up-to-date with sound design
Nimoy and John Delancie (of the industry occurrences and trends
original Star Trek episodes and and making Chominsky available
the Next Generation). to provide expert quotes on a
technologically advancing
■ Developing a print PR program
industry.
that would utilize traditional
news release mailings or even fax ■ Hiring a clipping service to track

mailings (depending on the all of the offline and online

media outlet), announcing placements on a national level.
company growth, new hires and ■ Preparing the Web site to become
Atlantis Group events. media-friendly, with an area
■ Developing an Atlantis Group specifically designated to Atlantis
media kit with inserts to compile Group corporate facts, the
the necessary company facts, executive team, news releases
executive profiles and publicity and contact information for media
tearsheets. inquiries.
■ Developing a digital version of
the media kit to reach media Atlantis Group Successes:
contacts who are tech-savvy and “Prior to any public relations, Atlantis
appreciate materials in an easy Group has done well for itself,” stated
and timely fashion. Chominsky. “The company has at-

316 CYBERBRANDING chapter 22

tracted the attention of large adver- regions generated several news
tising agencies, including BBDO, Dai- items. We look forward to rolling out
ley & Associates and J. Walter with a constant effort to inform the
Thompson.” According to Chominsky, media about our studio. Of course, the
Atlantis Group prides itself on re- true success of the program is in the
maining on the cutting edge of sound proper planning and implementation
design as reflected in the state-of- of the PR strategies, and the contin-
the-art systems found on-site. “As far ual steps to build relationships with
as the PR goes, the first news release the media.”
distributed in the LA and New York

CYBERBRANDING Best PR Practices 317

 CHAPTER

23 Cyberbranding—Beyond Trial
and Tribulation

Conclusion

318
T he best brands have stood the test of time. They are the brands,
in our history, that have been nurtured, supported, and com-
municated effectively and have adapted over time to societal and
technological changes. One hundred years from now, Coke, Pepsi,
Heinz, Campbell’s, Nike, and many other well-known brands will
still capture a remembered feeling or positive experience (whatever
the brand means to the user). These brands are more than
monikers. They have a place and a stronghold in the consumer’s
mind and heart. They have climbed mountains and faced head-on
challenges. And, if Yahoo!, Amazon, MSN, AOL, and eBay continue
to brand with the constant speed and strategy that has been exhib-
ited so far, 100 years from now they too will maintain their powerful
brand presences. Cyber-
Cyberbrands are forging ahead in the new
brands are forging ahead
economy.
in the new economy. The
power of a well-known brand combined with a medium that enables
it to reach audiences instantaneously, enhance user experience with
engaging interaction (prior to any purchase of a product or service),
and increase overall awareness allows the brand to reach new
heights.

319
 However, past cyberbrand performance warrants that we ask
several qualifying questions: What happens to the brand promise in
cyberspace? Where do the new cyberbrands find their biggest chal-
lenges? Is it in the rush to the Internet, in the cash-burning mental-
ity, or in the fervor to succeed at the speed of light, without the
careful planning or infrastructure necessary to carry out any busi-
ness venture? We have learned from the recent flurry of cyberbrand
quick success and tumbling failure rates that launching a brand does
not mean rushing its presence, forgetting to honor its promise or
neglecting its 24 hours a day, 7 days a week interaction with online
audiences. This past stretch of dot-com death tolls (approximately
130 Internet companies from January through November 2000) is
trivial in the Internet “scheme” of things to be considered. In other
words, it’s just the market’s way of weeding out the weaklings in
order to make room for the real performers. As a matter of fact, the
prediction is in: cy-
Cyberbrands will continue to launch, but with more
berbrands will con-
business strategy and branding behind the venture—
tinue to launch, but
learning from the past will facilitate new successes.
with more business
strategy and branding behind the venture—learning from the past
will facilitate new successes.
Moving beyond trial and tribulation means learning from past
trial and tribulation. Another prediction: Because there is much
more territory to conquer, a frontier so vast, this is only the begin-
ning of years of cyberbrands to come. The highs and lows and ups
and downs of the Internet are simply history in the making. As for
the cyberbranders, the professionals handling the branding deci-
sions, they are being educated by a digital society that teaches new
rules with each passing day and with each passing cyberbrand suc-
cess and/or failure story.
The past 10 years have been an eye-opening experience, to say
the least. The use of the Internet has spread globally as an immense
network that continues to take new direction. Changes occur daily,
from the technology that is readily available to the brand and the
way competitors are at each other throats (or better yet, joining
forces for better brand experiences), to the way in which consumers
are shopping one minute and then online sales are plummeting
drastically. Opinions change as well, as audiences and the brands
that serve them perceive the horror stories of companies that rise
and fall—enough to make anyone pause and reflect on the in-

320 CYBERBRANDING chapter 23

evitable Internet leap. It’s the Internet that evokes that love/hate re-
lationship with all who come in contact. Consumers praise the In-
ternet when they can access information quickly and yet
simultaneously blast its ability to infringe upon privacy. Business
owners are thrilled at the concept and capability of e-commerce, but
raise their hands in disgust when ROI appears to be as far away as
the next solar system. Wall Street invests in the potential of a power-
ful medium, yet pundits are quick to report and comment on the
dot-com death toll. And among all of the back-and-forth swaying of
emotion, the Internet continues to grow as more people universally
are logging on to gain a personal or business edge. At the same time,
new cyberbrands continue to launch in a seemingly endless cycle.
True brand builders in the digital economy are figuring out the
core concepts. They are understanding that the Internet as a commu-
nication channel
must be used . . . the Internet as a communication channel must be used
properly to pro- properly to provide the brand with the maximum exposure
vide the brand and enhanced user experience it seeks.
with the maximum exposure and enhanced user experience it seeks.
The Internet has become a stage for the user’s experience, not like the
communication channels of the past with mass messages for mass au-
diences. With this new avenue for persuasive tactics, the brand is able
to call an audience to action in ways that did not happen as quickly
pre-Internet—to spend more time learning about a product or ser-
vice, to make a specific purchase, to inquire for more information, to
participate in a brand-sponsored event or contest, and to embrace
everything the brand has to offer on a new interactive level. Branding
professionals have also learned through all of the trials and tribula-
tions that the newer cyberstrategies fare well with a blend of tradi-
tional marketing practices that are fundamental to a brand’s life. After
the “first to market” crowd surfaced, herds of competitors came run-
ning on the open plains. Many of these cyberbrands did not realize
that in order to stand out they would have to be deemed the “best” in
terms of user experience by their audiences. Reaching this status
would gain repeat traffic and customer loyalty.
Yet, even if they could provide a steady flow of traffic to a Web
site, that didn’t always spell out ROI. Many companies in the year
2000 faced a harsh reality. The shakeout of the cyberbrand losers
from the winners was fast and furious, and even shocking in some
cases (Priceline.com for gas and groceries, Furniture.com, and

CYBERBRANDING Cyberbranding—Beyond Trial and Tribulation 321

 Pets.com, to name a few). However, with every downfall, there is
newfound knowledge to educate the successors. There is a great deal
to learn from the
. . . with every downfall, there is newfound knowledge companies that have
to educate the successors. downsized drasti-
cally and/or have recently closed their doors. A few of the key issues
plaguing many (the less than sound cyberdecisions), with respect to
branding on the Internet, are the following:

■ Many cyberbrand visions fall short from the onset, and the
success of the brand relies upon living up to what is
promised in terms of the technology offered, as well as the
time frame set forth.
■ Cyberbrand visions that are not backed by organizations and
do not have strong upper management support every step of
the way do not meet cyberbrand goals.
■ Cyberbrands that have no more than just a static presence
will not be the brands that keep an audience interested and
stand the test of time. In fact, a brand’s existence online fo-
cuses mainly on heightened experience, everything and more
that’s expected from the brand in a much quicker time frame.
■ From the short history of cyberbrands presented, the audi-
ence is an instrumental part in deciding a brand’s fate. Even if
an audience grants permission for the cyberpresence, if that
audience is not satis-
. . . the audience is an instrumental part in deciding a
fied with experienc-
brand’s fate.
ing the brand online,
the brand (as an e-brand or click-and-mortar) is marred.
■ Unrealistic goals for the cyberbrand lead to cash-burning
strategies and, ultimately, do not address the here-and-now
issues of technology and how to meet and exceed audience
expectations.
■A promise in cyberspace, like any other promise, must be
fulfilled. If a cyberbrand says it will deliver products, ser-
vices, entertainment, etc., then it had better do so. Too many
A promise in cyberspace, like any other promise, must cyberbrands make
be fulfilled. the promise and
then fall short in the delivery department, disappointing au-
diences that will never return to that Web site again.
322 CYBERBRANDING chapter 23
 ■ Neglecting to put a continued emphasis on research,
planning, strategizing, and troubleshooting from the onset
will surely get the cyberbrand off to a less than desirable start
(from both a branding and a business perspective).
■ Technology and tradition need to come together—brick-
and-mortar brands must step up to the technology of the
times, and e-brands with Internet savvy need better
infrastructure or roots that stem beyond the Internet (a
good, solid traditional leg to stand on).

As stated, the strength of the brand together with technology

has the potential to produce the “optimum brand.” Brand builders
in the digital economy must strive for two types of optimum brands.
The first optimum brand is the one that recognizes its traditional
roots and can change with technology to develop a strong cyber
counterpart—one that enhances overall brand value. The second
type of optimum brand relates to the new dot-com start-up that
quickly incorporates several traditional, offline branding strategies
(and builds infrastructure) along with cyberstrategies to have an ex-
istence that extends beyond the Internet.
Moving forward on the Internet means focusing on targeted is-
sues that concern cyberbrands. Many of the success stories that will
be discussed in years to come will be from the cyberbrands that real-
ize the following:
■ Online audiences will not be forced to do anything on the
Internet—they are in control of the territory they roam.
Trying to spam customers will not get their attention or
cause them to act favorably—only to react unfavorably
toward the brand.
■ Viral marketing has proved to be a valuable strategy. Word
of mouth is one of the oldest traditional strategies:
consumers trust the word of a friend, relative, or colleague
over any other type of endorsement.
■ Attractive design, relevant content, and ease of navigation all
play a The cyberbrand has one opportunity to provide the user
part in with an engaging experience.
the
cyberbranding equation. The cyberbrand has one
opportunity to provide the user with an engaging

CYBERBRANDING Cyberbranding—Beyond Trial and Tribulation 323

 experience. These elements enhance the experience and
make users want to return to a site again and again.
■ Audiences are not impressed with a site that spurs them off in
too many directions or takes them too long to find what they
need. Online audiences are easily frustrated by too many
clicks in the online process. In addition, long download time
(from heavy graphics or even poor Internet connections) will
send the user scurrying to a competitor’s site.
■ Personalization matters, as branders learn that the Internet is
not a mass “anything.” As a matter of fact, the Internet is
customer-oriented and branders need to fixate their
strategies on how to build better relationships with customers
through the use of Internet technology. Technology allows
the cyberbrand to know more than customers names when
they return to a site—the cyberbrand has the ability to know
their preferences and is able to make recommendations. In
essence, personalization builds the relationship and thanks
the audience for its loyalty.
■ The Web also spells out instant communication and
rewards. Thus, audiences expect instantaneous service and
results—anything less is substandard and is not acceptable in
“Internet” time.
■ Privacy issues are a growing concern, and cyberbrands that
collect marketing data must also respect an audience’s con-
cerns about the use of that data. Confidence, trust, and earned
respect on the part of the audience are tremendous considera-
tions—a relationship the brand works diligently to create.

Yes, the past dictates the future, but that is not to say that, from
this brief historical period in the twenty-first century, every cyber-
brand will crash and burn. Each new invention has its casualties for
whom the bell tolls and its success stories to shout from the
rooftops. This is only the beginning of the Internet. A crystal ball
prediction reveals that the Internet has the ability to be present in
every space occupied by an audience—in their homes and work en-
vironments, when they are traveling by car, plane, or train, or sim-
ply when they are at play. It’s exciting to know that companies such
as Microsoft are currently developing technologies for computing
and Internet capabilities from anywhere in and around a person’s
324 CYBERBRANDING chapter 23
home. The ability to connect to the Internet from a telephone, en-
tertainment appliance, or kitchen appliance, for that matter, will be
just as common as reaching the Internet from a PC. However, as the
frontier gets wider, the size of the frontier is proportional to the ex-
tent of the growing challenges, which need to be addressed continu-
ally to secure the long and healthy life of the brand online.
Someday, an Internet museum of the future will proudly display
the best online products and services that the world has to offer.
Who do you think will be displayed, and what will be attributed to
their success? The Cyber Hall of Famers will be the brands that (1)
harness the power of the Internet, (2) address and tackle the brand-
ing issues that exist in cyberspace, and (3) combine the proper man-
agement of technology with a keen sense of how to take a brand
message to new interactive levels to fulfill a brand promise. The In-
ternet, hands down and without question, has the capability to im-
pact an audience
Users are thrilled at the ability to see, feel, and experience
that not only en-
their favorite brands at any given time, at the speed of
joys its conve-
light.
nience, but also
looks to it on a daily basis to quickly fulfill needs. Users are thrilled
at the ability to see, feel, and experience their favorite brands at any
given time, at the speed of light. As a result, there is an even greater
need to address branding issues on the World Wide Web. The care-
ful consideration of the cyberbrand and the presentation of strate-
gies to tackle branding issues in this book are meant to provide a
realistic framework and understanding of what makes a brand thrive
and/or what leads to its demise on the Internet. By now, we know
that all of the hopeful cyberbrands face similar risks and challenges.
This will not change. There will always be that rushed feeling with
respect to speed to market, tackling the changing competitive land-
scapes, overcoming technological issues, and meeting the new de-
mands of online
audiences. But . . . the overwhelming pressure will always be that of the
the overwhelm- need to maintain a strong cyberpresence.
ing pressure will
always be the need to maintain a strong cyberpresence, because
that’s where the masses are investing a great deal of their time.
Good luck in all of your branding efforts in the digital economy.
To discuss any areas illustrated in this book or any strategies that
you have encountered that facilitate better branding on the Internet,

CYBERBRANDING Cyberbranding—Beyond Trial and Tribulation 325

 please e-mail [email protected]. Your feedback is
always welcome and appreciated. Of all the ideas to remember, the
most important is that the life of the cyberbrand rests upon its care-
ful treatment and constant development on the Internet. Thank-
fully, there are many years ahead to practice and perfect the
principles of cyberbranding, especially as the Internet continues to
increase in size and scope and brands continue to capture our “digi-
tal” lives.

326 CYBERBRANDING chapter 23

Appendix A

TEST YOUR BRAND KNOWLEDGE (ANSWER KEY)

1. Good to the last 11. Put a tiger in your

drop—Maxwell House tank —Exxon
2. We bring good things to 12. The skin you love to
life—GE touch—Woodbury’s facial
soap
3. That heavenly coffee that only 13. Even your best friend
a millionaire can buy—Chock won’t tell you—Listerine
Full of Nuts
4. Smooth sippin’ Tennessee 14. 57 varieties—Heinz
whiskey—Jack Daniels
5. When it rains, it pours— 15. This Bud’s for you—
Morton Salt Budweiser
6. Say it with flowers—The 16. Breakfast of Champions—
American Flower Association Wheaties
7. The quicker picker-upper— 17. Don’t leave home without
Bounty it—American Express
8. Mmmm mmmm good— 18. The beer that made
Campbell’s soup Milwaukee famous—
Schlitz
9. 99 44/100% pure—Ivory soap 19. Snap crackle pop—
Kellogg’s Rice Krispies
10. The pause that refreshes— 20. The foot doctor—Dr.
Coca-Cola Scholl’s

327
Appendix B

1. Name the term(s) that describes the number of times a

Web page is requested by the server. This is referred to as
page views.
2. What is considered the limit for banner ad file size? In
most cases, 16K is the maximum.
3. The measurement 468x60 pixels are what size banner? A
full-size banner ad.
4. What does CTR stand for? CTR stands for Click Through
Rate, which is a basic measure of banner ad effectiveness.
5. What is the measurement that refers to cost per thousand?
This measurement is CPM.
6. The number of responses to a banner ad by the user is the
number of times the user does what on the banner? Clicks
on the banner.
7. With respect to advertising rates, what is the difference be-
tween CPC and CPM models? The CPC model refers to
Cost Per Click, which allows the advertiser to pay based
upon performance. CPM is a measurement of impressions,
where the advertiser agrees to pay a set dollar amount per
1,000 impressions on a Web site.

328
 8. What is a banner ad conversion rate? This is the percentage
of shoppers on a Web site that actually makes a purchase.
9. How do you calculate the cost per visitor on a Web site?
Cost Per Visitor = CPM/1000*CTR
10. What is considered an average price for banner ad rates?
According to AdKnowledge’s 1999 Advertising Report, the av-
erage CPM is slightly above $33.

CYBERBRANDING Appendix B 329

Notes

Part I: What the Marketer Needs to Know

Chapter 1: The Power of Branding
1. “To Yahoo! With Love,” Silicon Alley Reporter, Issue 32, p. 28.
2. “What Is Yahoo! Really?” Fortune, June 22, 1998.
3. Ibid.
4. “Yahoo! Pepsi Forge Online-Offline Marketing Pact,” Internet
News, March 22, 2000.
5. www.amazon.com, About Amazon.com, April 2000.
6. Ibid.
7. Amazon.com
8. www.levis.com, History, April 2000.
9. Bill Bryson, Made in America, Morrow, New York, 1994.
10. Holding Associates, February 2000.
11. www.buildingbrands.com, March 2000.
12. Bryson, Made in America.
13. “Who Am I? Assessing Brand Equity,” Brand Report, Vol. VIII,
fall 1998.
14. Bryson, Made in America.
330
15. Terri Lonier, CEO, Working Solo, Inc., from Smart Strategies for
Growing Your Business, Wiley, New York, 1999.
16. Cooper Hewitt National Design Museum brochure.
17. “E-Branding Is More Important Than E-Commerce. Here’s
Why,” ZDNet.com, December 2, 1998.
18. Holding Associates, February 2000.
19. www.urbanlegends.com.
20. “Branding in Asia-Pacific,” Brand Report, Vol. IX, winter 1999.
21. Ibid.
22. Advertising Age, 1995.
23. “International Naming,” Brand Report, Vol. VI, summer 1996.
24. “Law of Borders,” www.ries.com, Chapter 18, 1998.
25. www.geocities.com, March 2000.
26. www.buildingbrands.com, March 2000.
27. “Successful Branding—From Main Street to Wall Street,” Brand
Report, Vol. VIII, fall 1998.
28. Ibid.

Chapter 2: Making the Transition to the Internet

1. “E-Branding Is More Important Than E-Commerce. Here’s
Why,” ZDNet.com, December 2, 1998.
2. E-retailing World, March 2000.
3. Brand Consultancy, Turning Your Brand into a Cyberbrand
Seminar, 1999.
4. Brand Consultancy, Turning Your Brand into a Cyberbrand
Seminar, 1999.
5. Forrester Research, 1999.
6. “Now for the Really World Wide Web,” Silicon Alley Report,
Issue 31.
7. ACNielsen Net Ratings, March 2000.
8. ACNielsen Net Ratings, April 2000.
9. Ibid.
10. “Half.com Launches National Branding Campaign,” Internet
News, March 1, 2000.
11. CEO Conference Magazine, February 2000.
CYBERBRANDING Notes 331
 Chapter 3: The Impact of the Internet on the Brand
1. www.benjaminmoore.com, March 2000.
2. www.geocities.com, March 2000.
3. ICONOCAST, January 2000, www.iconocast.com.
4. Interview with Alan Bergstrom, president, Brand Consultancy,
March 2000.

Chapter 4: The Emergence of the Cyberbrand

1. Screaming Media survey, May 2000.
2. Ibid.
3. Turning Your Brand into a Cyberbrand, The Brand Consul-
tancy, 1999.
4. www.geocities.com, March 2000.
5. Ibid.
6. “Boo.com Online Fashion Retailer Goes Out of Business,” New
York Times on the Web, May 19, 2000.
7. Electronic Advertising & Marketplace Report, March 2000, Simba
Information.
8. “Secrets of the New Brand Builders,” Fortune, June 22, 1998.
9. Ibid.

Chapter 5: Using Technology Properly to Cyberbrand

1. www.discoveryhealth.com, Ask the Doc, Q&A, May 2000.
2. ClickZ.com, May 2000.
3. CNET.com, Builder.com—Authoring: 10 Questions about
Meta Data, May 2000.

Chapter 6: Web Site Design to Enhance the Cyberbrand

1. ClickZ.com, May 2000.
2. Ibid.
3. www.apple.com, 1-Click program, May 2000.
4. “To Yahoo! with Love,” Silicon Alley Reporter, Issue 32, p. 28.
5. Ibid.
6. Silicon Alley Reporter, Verdict section, discussion of iVillage.com
by Jennifer Eno, Issue 31.
332 CYBERBRANDING Notes
7. Silicon Alley Reporter, Verdict section, discussion of Women.com
by Ted Werth, Issue 31.

Part II: Impacting Audiences with the Cybervision

Chapter 7: Start with the Organization and the Cyberbrand Vision
1. “Show Me the Money,” Silicon Alley Reporter, Issue 32.
2. “APBnews.com Runs Out of Money,” New York Times on the
Web, June 6, 2000.
3. “Show Me the Money.”
4. “Greed, IPOs for Everyone,” Silicon Alley Reporter, Issue 31.
5. “Punky IPOs,” Silicon Alley Reporter, Issue 31, Backspace.
6. “Spinning Out of Control,” Silicon Alley Reporter, Issue 31.
7. Carol Holding, Brand Vision, Holding Associates, February
2000.
8. Reprinted by permission of Harvard Business School Press.
From Leading Change, by John P. Kotter, Boston, MA 1996,
p. 68. Copyright ©1996 by John P. Kotter.
9. Ibid.
10. Ibid.
11. “Through the Looking Glass,” Chief Executive magazine, Febru-
ary 2000, p. 36. Reprinted by permission of the Chief Executive
Group. Copyright 2001.
12. Allison Kopichi, “Old-Line Firms with High Tech Vision,”
Bloomberg Personal Finance, March 2000.
13. Bloomberg.com, Marketwise, February 10, 2000.
14. Brooke Hilliard, CEO’s Web Review, July 1999.
15. Internet Week, December 20, 1999.
16. Internet Week, January 17, 1999.
17. Telephone Interview with Alice Uniman, president, Phoenix
Brand Strategies.

Chapter 8: Empowered Online Audiences

1. Greg Sherwin and Emily Avila, “Attack of the 50 Ft. Empowered
Consumer,” ClickZ.com, June 2, 2000
2. www.alloy.com, Stylewise, June 16, 2000.
CYBERBRANDING Notes 333
 3. www.Nike.com, June 2000.
4. www.landsend.com, Anxiety Zone, June 2000.
5. “Treating Customers Like . . . Customers,” ClickZ.com, June 9,
2000.
6. www.ClickReward.com, June 18, 2000.
7. “AltaVista Shopping.com Launches Web-Wide Rewards Pro-
gram,” press release, www.altavista.com, May 18, 2000.
8. Ibid.
9. “Secret Shopper: One Size Fits None,” The Standard, June 5,
2000.

Chapter 9: Cyberstrategies to Optimize Audience Response

1. “What to Look for in a Search Engine Optimization Specialist,”
Clickz.com, April 13, 2000.
2. Ibid.
3. Karen J. Bannan, “It’s Catching,” Adweek, June 5, 2000, IQ20.
4. www.hotmail.com.
5. www.Etour.com, Send to Friend.
6. “Spreading the Word,” Adweek, June 5, 2000.
7. Ibid.
8. “Opt-In Marketing’s Popularity,” www.eMarketer.com, June
19, 2000.
9. Claudia Kuehl, “Spam’s Good Twin,” Internet World, May 1,
2000.
10. www.netdomination.com, June 2000.
11. Ibid.
12. www.homegain.com, Newsletter, June 21, 2000.
13. “The Elements of a Good Pitch,” Internet World. Reprinted with
permission of Internet World. May 1, 2000. Copyright 2000. All
Rights Reserved.
14. “Gauging Attitudes about the Internet,” New York Times on the
Web, June 12, 2000.
15. “Targeting the Privacy Issue,” Clickz.com, April 27, 2000.
16. “Another Industry Group Tackles Online Privacy Problem,”
New York Times on the Web, June 2000.
334 CYBERBRANDING Notes
Chapter 10: Persuasion in Cyberspace
1. “Hollywood’s New Status Symbol: A Web Site,” New York Times
on the Web, January 27, 1999.
2. “Dot-Com to the Stars,” New York Times on the Web, June 6,
2000.
3. Ibid.
4. Jennifer Aniston’s interview with Hilary Atkin, Voxxy.com.
5. “Talk to Me Like I’m a Person,” Clickz.com, May 8, 2000.
6. www.pncbank.com.
7. “Women Rule Online Shopping,” daily_stat@emarketer, July 3,
2000.
8. WCBS Radio, 880 AM, Marketwatch, June 2000.

Part III: Market Research for Effective Cyberbranding

Chapter 11: Traditional Research Aids in Cyberspace
1. www.jupitercommunications.com, July 2000.
2. Jeffrey Graham, “Building a Research Mosaic,” Clickz.com,
August 1999.
3. “Marketing to Girls on the Net,” www.usatoday.com, July 6,
2000. Copyright 2000 USA Today. Reprinted with permission.
4. Ibid.
5. “Focus Groups Go Online” to Measure the Appeal of Web
Sites,” New York Times on the Web, July 6, 2000.
6. TheStandard.com, July 5, 2000.
7. Ibid.
8. “Focus Groups Go Online,” New York Times on the Web.

Chapter 12: Online Research – Leave It up to the Technology

Experts
1. “Are You Being Served?” Business 2.0, Numbers, August 8,
2000.
2. “Ask Nettie: Focus Online,” TheStandard.com, July 3, 2000.
3. www.vividence.com, July 2000.
4. Ibid.
5. “Ask Nettie,” TheStandard.com.
CYBERBRANDING Notes 335
 6. Mavis Scanlon, Internet World, “Company to Watch” section,
May 1, 2000. Reprinted with permission.
7. www.intersurvey.com, July 2000.
8. Ibid.
9. “InterSurvey Difference,” www.intersurvey.com, July 2000.
10. www.greenfieldonline.com, July 2000.
11. www.cltresearch.com, July 2000. CLT e-terpretations.
12. Ibid.
13. www.websurveyor.com, July 2000.

Chapter 13: The System of Web Tracking Analysis

1. Mubarak Dahir, “How Much Is Too Much?” TheStandard.com,
May 8, 2000.
2. Ibid.
3. Mubarak Dahir, “Just for Clicks,” The Standard.com, May 8,
2000.
4. Ibid.
5. Richard Hoy, “Traffic Analysis Solutions for Small Business:
Part 1,” www.Clickz.com, June 9, 2000.
6. “Ask Nettie: Traffic Report,” TheStandard.com, June 5, 2000.
7. Ibid.
8. www.eppraisals.com, June 2000.
9. www.quadstone.com, July 2000.
10. Ibid.
11. www.webtrends.com, July 2000.
12. Ibid.
13. www.younology.com, July 2000.
14. “E-Consumers Now Can Track the Trackers,” eMarketer,
March 15, 2000.
15. Ibid.

Chapter 14: Ethics on the Internet

1. Michael Benedikt, “Of Orson Welles’ Remarkable 1938 Radio
Program ‘The War of the Worlds’,” http://members.aol.com/
benedit2, August 2000.
336 CYBERBRANDING Notes
2. Ibid.
3. “The Soupy Sales Show,” Yesterland.com, August 2000.
4. Internet Activities Board (IAB), January 1989.
5. Federal Trade Commission Privacy Initiatives, August 2000.
6. “Guarding Their Privates, See?” eMarketer, November 29, 2000.
7. [email protected], July 2000.
8. Neuburger and Monkarsh, “Well-Known Laws Hit the Net,”
Silicon Alley Reporter, Issue 35.
9. Pamela Mendels, “Criticism for Company Offering Free Com-
puters to Schools,” New York Times on the Web, February 2,
2000
10. Neuburger and Monkarsh, “Well-Known Laws Hit the Net.
11. Matt Richtel, “Toysmart.com in Settlement with F.T.C,” New
York Times on the Web, July 22, 2000.
12. Ibid.
13. Neuburger and Monkarsh, “Well-Known Laws Hit the Net.”
14. Saul Hansell and Judith Dobrzynski, “eBay Cancels Sale in Auc-
tion of Abstract Painting,” New York Times on the Web, May 11,
2000.
15. Ibid.
16. Lisa Guernsey, “A New Caveat for eBay Users: Seller Beware,”
New York Times on the Web, August 2000.
17. Ibid.
18. www.cbsnews.com, July 2000.
19. “E-Code of Health,” Silicon Alley Reporter, Issue 35, Bedside.
20. “Internet Privacy Safeguards Approved,” BBC News, July 27,
2000.

Part IV: Cybermarketing to Enhance the Brand

Chapter 15: Changing Market Landscapes
1. “Amazon, Toys R Us Plan Online Toy Stores,” TheStandard.
com, August 10, 2000.
2. “Five Get It, Five Don’t,” Business 2.0, June 13, 2000.
3. Ibid.
CYBERBRANDING Notes 337
 4. Ronna Abramson, “How about a ’73 Gremlin in Harvest Gold?”
TheStandard.com, August 14, 2000.
5. Jeremy Rifkin, “The Age of Access,” TheStandard.com, March
13, 2000.
6. Sam Howe Verhovek, “Dot-Com Leaders Await a Shakeout of
Losers,” New York Times on the Web, April 23, 2000.
7. www.kbkids.com, September 2000.
8. www.etoys.com, September 2000.
9. Steve Rigney, “Network Antivirus: Defend Your Network,”
ZDNet PC magazine, April 14, 2000.
10. David Lake, “Wanted: Loyal E-Shoppers,” TheStandard.com,
August 7, 2000.
11. “Flunking Customer Service 101,” eMarketer, August 16, 2000.
12. Ibid.

Chapter 16: Banner Ad Sustenance in Cyberspace

1. Nielsen NetRatings, March 2000.
2. eMarketer, July 2000.
3. Ibid.
4. eMarketer, July 2000.
5. Jason Black, “Old Ads, New Metric,” Internet World, August 1,
2000. Reprinted with permission.
6. “Case Study: iVillage & Hollywood.com,” emarketingtoher.
com, August 9, 2000.
7. Ibid.
8. Jim Meskauskas, “Online Media: Is the Price Right?” Clickz.
com, May 9, 2000.

Chapter 17: Affiliate Marketing for the Future

1. Joel Gehman, “What Is Affiliate Marketing,” Clickz.com, July
28, 2000.
2. Mana Tominaga, “Birds of a Feather,” www.webtechniques.
com, June 2000, detailing the basic considerations for affiliate
merchants.

338 CYBERBRANDING Notes

3. Ibid, detailing the basic considerations for affiliates.
4. Ibid.
5. ICONOCAST, March 2000, http://www.iconocast.com.
6. Shawn Collins, “Keeping Your Affiliates Loyal,” Clickz.com,
August 4, 2000.
7. Shawn Collins, “Communication 101 for Affiliate Managers,”
Clickz.com, July 21, 2000.
8. www.top10affiliates.com, February 2000.
9. www.cruelworld.com, Affiliate Program, September 2000.
10. www.vstore.com, Affiliate Comparison, September 2000.
11. www.lobsternet.com, Affiliate Program Benefits, September
2000.

Chapter 18: Driving Traffic on the Cyberhighway

1. Worldcom advertisement appearing in Business Week, Septem-
ber 11, 2000.
2. PFS Marketwyse, September 2000.
3. ICONOCAST, June 2000, http://www.iconocast.com.
4. Ibid.
5. Erdos & Morgan study, ICONOCAST, June 2000.
6. eMarketer, September 2000.
7. Susan Kuchinskas, “More for Less,” Business 2.0, August 22,
2000.
8. Ibid.
9. “Case Study: AssociationCentral.com,” emarketingtoher.com,
September 11, 2000.
10. Stuart Elliott, “Campaign Stresses Customized Beauty Products
Sold Online,” New York Times on the Web, July 10, 2000.

Part V: Cyber Public Relations: The Credible Online En-

dorsement
Chapter 19: Is There Room for Tradition in Cyberspace?
1. Encyclopaedia Britannica, Micropedia, 15th Edition, Vol. 8.
“Public Relations,” p. 285.

CYBERBRANDING Notes 339

 2. E-mail correspondence between an undisclosed marketing com-
pany and a producer of ZDNet.com.
3. “Eyeball Wranglers: Are PR Firms Being Asked to Do Too
Much?” Jill Hunter, Silicon Alley Reporter, Issue 36.

Chapter 20: PR Cybertools for Cyberspeed

1. www.cyberalert.com, CyberAlert, Inc., 2000.
2. www.cyberalert.com, copyright 1999-2000, CyberAlert, Inc.
3. Marcia Stepanek, “You Called Our Widget a What?” Business
Week, The Best of Business Week Online, September 25, 2000.
4. Ibid.
5. www.prnewswire.com, October 2000.

Chapter 21: Relationship-Building Tactics with the Media

1. www.whackaflack.com, e-tractions, October 2000.
2. Ibid.
3. Matthew Drapeau, “This Ain’t Your Mama’s News Source,”
WebPR, October 2000.
4. Drapeau, “This Ain’t Your Mama’s News Source.”
5. Jim Romensko’s MediaNews Extra!, August 2000.
6. Jim Romensko’s MediaNews Extra!, PR Beef Section.
7. Tom Gable, “Nine Easy Ways to Kill a Start-Up through PR,”
The Standard, June 2000.
8. Ibid.
9. Ibid.
10. www.grayrun.com, PR Toolbox, February 2000.

Chapter 22: Best PR Practices

1. “How to Hire and Get the Most from Outside PR Counsel,”
O’Dwyer’s PR Daily, October 2000.
2. Ibid.
3. Public Relations Tactics, Bronze Anvil Winners, October 2000.
4. Ibid.
5. Ibid.

340 CYBERBRANDING Notes

6. www.pharmaton.com, “Stand up for Leg Health Survey Re-
sults,” May 2000.
7. “How the UK’s DeskDemon.com Used Scantily Clad Males to
Generate Press Internets,” MarketingSherpa.co.uk, September
2000.
8. Vicki Hudson, “How Advertising Differs from Public Rela-
tions,” Small Business Administration, January 1999.

CYBERBRANDING Notes 341

INDEX

A merchant considerations, 246–48

Accenture, 233 winning program, setitng up, 246–48
Account Link program, PNC Bank, Alloy.com, 69, 126–27
156–57 AltaVista Shopping.com,
AccrueSoftware, 199 130–31
Added value, 16–17 Amazon.com, 4–6, 19–21, 31, 59, 63,
Adspeak, 156 71, 95, 236, 253
Advertising, 8 and affiliate marketing, 245
Affiliate marketing, 244–53 marketing strategies, 19–20
affiliate considerations, 247–48 minipostcard/gift certificate, 20
affiliate management packages, rate of change on site, 19
248–49 American Express, 117
affiliate manager/team, designation America Online (AOL), 63–64, 72,
of, 246–47 155–56
affiliate member program levels, Analysis paralysis, 195–96
distinguishing, 249 Animation, in banner ads, 238
affiliate-merchant relationship, Aniston, Jennifer, 153–54
251 AntiVirus.com, 229
affiliate program, launching, 250 AOL.com, 5
affiliates: APBnews.com, 110
attracting, 248–50 Apple.com, 88
communication with, 249 one-click shopping process, 90
working to maximize results with, Applets, 204
250–51 Arts & Entertainment Network (A&E),
and clickthrough tracking system, 29, 32
246 Ascovalve.com, 72, 73
commission program, 252 Asimba.com, 140

343
 ASP, 204 placement, questions to ask about,
AssociationCentral.com, 238–40
260–61 purpose of, 235–36
AT&T, 144 rates, questions about, 239–40
Atlantis Group, Inc.: and refresh mode, 240
background, 314 reporting software on site, 240
case study, 314–17 scheduled rotation, 239–40
challenges, 315 survival techniques, 233–35
objectives, 314 text in, 238
strategies, 315–16 user return rate, 239
successes, 316–17 Barbie.com (Mattel), 40
target audiences, 315 Barnes & Noble, 20, 30, 236, 253
ATT.com, 145–47 customer service, 75–76
Audience expectations, 33 Beale:
Audience response, 136–47 Bernard B., 119
optimizing, 143–44 Vincent W. Sr., 119
opt-in e-mail programs, 141–43 Behavior, and branding, 10–11
privacy issues, 143–44 Bell, Buddy, 175–76
search engine, moving beyond, 137 Ben & Jerry’s, 4, 66
sensitivity to online audiences, Benjamin Moore Web site, 38–39
143–44 Bergstrom, Alan, 46, 48
viral marketing, 138–40 Billboard.com, 100–105
Automotive industry, and the Internet, Biography.com, 29
52–53 Blake, Cassels & Graydon, LLP, 216
Avila, Emily, 123 Bluefly.com, 261–62
Body language, 171–72
B Bonne Bell, 175–76
Bacon’s Media, 285–86 Boo.com, 60, 110
Banisar, David, 216 Bosack, Leonard, 112
Banner, Karen J., 138–39 Boundaries, branding without, 11–12
Banner ads, 155, 233–43 Boxerjam, 173
ad location, 240 Brady, Regina, 143
advertisers on site, 239 Brand-building strategies,
animation, 238 re-examination of, 60
audience breakdown, 239 Brand champions, 14
average impression, 238 Brand Consultancy, 46, 48
basics of, 236–37 Brand culture, 14
and brand awareness, 236 Brand difference, 14
campaign results, 240–43 Brand essence, 14
clickthrough rate (CTR), 239 Brand experience, 14
cost per click (CPC), 242 Brand exposure, 14
cost per measurement (CPM), Brand heart, 14
239 Branding:
cost per sale (CPS), 241 Amazon.com, 4–6
design of, 237–38 brand as promisemark, 49
fonts used in, 238 and consumers, 8
future of, 242–43 historical brand promise, 6–8
lessons in, 234–35 influence on behavior, 10–11
logo, 238 internal/external dimensions of, 46,
measuring effectiveness of, 241–42 48–49
page views, 239 and the Internet, 36–53

344 CYBERBRANDING Index

 moving beyond name/logo, 41–46 Coalition, 115–16
power of, 2–17 Coca-Cola, 7–8, 15, 56, 65, 82, 236
and technology, 15–17 as global brand, 11–12
timeless lands, 9–10 Cohen, Sheila, 28, 30
and Wall Street, 15 Cold Fusion, 204
without boundaries, 11–12 Collins, Shawn, 251
Yahoo!, 4 Commission Junction, 252
Brand power, 59 Communication vehicles, 258
Brand style, 14 Compaq, 182, 183
Brand timelessness, 9–10 Comparison shopping, 83
Brand transition, 32–33 Competitors, 33
Brand value, 14–15 CompuServe, 155–56
British Motor Corporation, 8 Consumers, and the Internet, 24–25
Brushfire, 16–17 Consumer trust, and cyberbranding,
Budget.com, 96–99 55–57
Business Week online, 287 Content, Web sites, 88, 94–95
Continental Airlines, One Pass
C program, 129
Campbell’s soup Web site, 17 Convenience, and online brands, 62
CancerQ.com, 72, 75 Cookies, 210–11
Candystand.com, 81 Cost per click (CPC), 242
Carpetone.com, 150 Cost per measurement (CPM), 239
CaseMatch.com, 31 Cost per sale (CPS), 241
CBS Radio’s MarketWatch, 158 Crawford, Cindy, 153
CDNow, 63, 155, 253 Cruel World, 252
Changing market landscapes, 222–31 Cultural issues, and global brands,
customer share, 226–30 12–13
General Motors, 79, 225–26 Customer service, 74–76, 82
heavy hitters, lessons from, 224–26 Customer share, 226–30
Hotwire.com, 224 Customization, 127–30
Priceline.com, 80, 150–51, 153, CVS.com, 196–97
224 CyberAlert, 288
service, 230–31 Cyberbrand:
Toysrus.com, 224–25 components of, 37
Children’s Online Privacy Protection convergence of traditional brand
Act (COPPA), 211 and, 65
Chominsky, John, 314–17 differentiating factors of, 57–58
Cisco Systems, vision of, 112–13 emergence of, 54–69
CJ Network, 252 Web site design for, 86–105
Clarke, Thomas, 116 Cyberbrander’s checklist, 51
Clausing, Jeri, 143 Cyberbranding:
ClickReward.com, 130 considerations, 21
Clickstream data, 195, 199 and consumer trust, 55–57
Clickthrough rate (CTR), 239 misconceptions, 73–82
Clickz.com, 198 customer service, 74–76
Clipping services, 288 ease of finding the site, 77–79
CLT Interacrive, 186–87 equal opportunity, 79
Reflector program, 186–87 killer Web sites, 81–82
WebScore Brands, 187 worldwide audience, 73–74
ClubMom, Inc., 251 misconceptions about, 73–82
CNET.com, 5, 126, 233 organizational challenges, 21–23

CYBERBRANDING Index 345

 Cyberbranding: (cont.) E
permission rule, 21 Earthlink.net, 126
and technology, 70–85 eBay.com, 5, 59, 71, 213
theories of, 47–51 E-commerce, 25
trial and error decade, 71–73 Editorial calendars, 286–88
Cyberbrand vision, 108–21 efloralz.com, 131
coalition, 115–16 Ellison, Larry, 280
comparison of offline vision and, eMarketer.com, 125–27
113–15 Emotional bond, 11
developing through offline vs. online Empowered audiences, 122–35, 137
comparison, 113–15 building relationships:
effective vision, characteristics of, offering additional information,
113–14 offering, 125–26
entrepreneurial idea vs., using customization, 127–30
109–10 using incentive programs, 129–32
postlaunch, 116–17 using personalization, 126–27
rushed vision, avoiding, makings of, 123–25
110–13 Eno, Jennifer, 94
Cyberlessons, 82–83 Eppraisals.com, 199
Cyberstrategies, 259 Ernst & Young, 233
incorporating offline branding eService Functionality Study (Gartner
strategies with, 66 Group), 230
CYNET, Inc., 118–21 ESPN.com, 61
audience, 118–19 Ethics, 206–21
challenges with cybervision, 119 cookies, 210–11
cybervision, planning/execution of, cyberbrand’s road to, 215
119 defamation, 212
history of, 118 defined, 213
mission, 118 e-code of health, 213–14
vision, 118 fraud, 210, 212–13
industries developing, 213–15
D and the Internet, 208–9
Davis, Jacob, 7 past broadcast ethics, 207
Defamation, 212 privacy, 210–13
Dell Computer, 144 Etour.com, 139–40
DeLoughry, Thomas J., 301–3 eToys.com, 31, 226–27
DeskDemon.com public relations E-Trade, 66
campaign, 311–12 eWatch, 288
Diebenkorn, Richard, 213 Excite@home, 183
Differentiating factors, 57–58
Digex.com, 150 F
DiMaggio, Joe, 150 Fast downloads, importance of, 88,
DiSciullo, Maritza, 145–47 92–93, 95
Discovery Online, 32 Federal Express, 11
Discovery Toys, 227 Federal Trade Commission (FTC)
Disney, 15, 58–59, 65 Privacy Initiatives, 208–9
Disney, Walt, 58 Federated Department Stores, 117
Drugstore.com, 5, 88–89, 132–35, Filo, David, 64
182, 226 501 jeans, 10
DSL, 92 Flash files, 204–5
Dunlop, 13 FloNetwork, 141, 143

346 CYBERBRANDING Index

Flooz.com, 150 Homegrown research vs. online
Focus groups, 171, 176–77 research, 181–82
FogDog, 253 Hotbot, 125
Ford Motor Company, 8, 144 Hotmail.com, 126, 138
Forrester Research, 171 Hotwire.com, 224
Four “p’s” theory, 47 HTML, 203, 205
Fraud, 210, 212–13 HudsonValleyHelpWanted.com,
Fruitman, David, 216 35

G I
Galloway, Michael A., 119 IBM, 79, 144
Gap, 11 and cyberbranding, 162–65
Gartner Group, 171, 230 IDcide, Inc., 201–2
Gateway Computers, 233 goal of, 201–2
Gear.com, 5 Privacy Companion, 201
Gehman, Joel, 246 Imported, use of term, 13
General Mills public relations Inatome, Rick, 211
campaign, 309 Incentive programs, 129–32
General Motors, 79, 225–26 Industries, and the Internet, 28–31
GeoCities, 25 Industry Standard, 126
Giftcertificates.com, 150 Information, 47
Global brands, 11–13 up-to-date information, provision
and cultural issues, 12–13 of, 91–92, 95
ingredients for, 14–15 Information overkill, 95
Global Online Telephone, Instant Call, Instant Call, Global Online Telephone,
158 158
Godfrey, Lawrence, 212 Instinct, 47
Goldberg, Whoopi, 150 Interactivity, 33, 47
GoTo.com, 72, 125 Internal/external dimensions of brand,
Graham, Jeffrey, 174 46, 48–49
Grayrun Group, 299 International naming, 13
Greenfield Online, 185–86 Internet, 15–16
Gregory, James, 15 and advertising budgets, 26–27
Gucci, 13 applets, 204
Guess jeans, 236 ASP, 204
Gutenberg, Johann, 273 branding, 23–24
Cold Fusion, 204
H and company commitment, 23–24
Half.com, 27 differentiating factors, 57–58
Hearon, David R. Jr., 119–20 e-commerce, 25
Heinz brand, 7–8 and ethics, 208–9
Heinz, H. J., 8 Flash files, 204–5
Heller, Sabine, 277 HTML, 203, 205
Henderson, Florence, 150 and industries, 28–31
Hewlett-Packard Web site, 91 JavaScript, 203
Hindman, Leslie, 199 language behind, 202–5
Historical brand promise, 6–8 making transition to, 18–35
Hits, 78 most commonly purchased
Holland, Anne, 67–69 items/requests for information,
Hollywood.com, 241 25
Home Depot Web site, 117 most frequently visited Web sites, 25

CYBERBRANDING Index 347

 Internet, (cont.) Leading Change (Kotter), 113–15
and “out of the box” thinking, 32 Legal industry, and the Internet, 31
persuasion on, 148–66 Lending Tree Brand Network, 249
PHP, 204 Lerner, John, 100
as piece of branding strategy, 27–28 Lerner, Sandra, 112
and public relations, 278–81 Letstalk.com, 260
rollovers, 203 Levinson, Conrad, 260
as trusted unformation source, 55 Levi Strauss, 11
use of, as privilege, 215 Levy, Christopher, 118
vast nature/scope of, 32 Li, Hairong, 178–79
VBScript, 203 Lighthouse International, 21
Internet Activities Board (IAB), 208 Livebid.com, 5
Internet Movie Database, 5 Lobster Net, 253
InterSurvey.com, 183–84 Loren, Sophia, 150
Inthegardenstate.com, 78 Lueker, Tom, 189–91
ISDN, 92 Lycos, 125
iVillage.com, 88, 94, 241 search engine, 72
Ivory, 7–8 Lyons Swallow Sidecar Company, 8
iWin.com, 241
iWon.com, 88, 91–92 M
McCall, Lyn, 263
J McDonald’s, 10
Jack O’Dwyer’s Newsletter, 289 McGarry, Judith, 132–35, 226
Jaguar, 8 Macy’s, 30–31
JavaScript, 203 MamaMedia.com, 211–12
J. C. Penney, 10, 155 MarketingSherpa.com, 67
Jobs.com, 266–68 Marketing Speak, 156
banner ads: Mass marketing, 31–32
benefits of, 266–67 Mass-market media, 78
power of, 266 Media (Bacon), 285–86
tying marketing strategies into, Media guides, 285–86
267–68 prices for, 286
challenges, 268 MediaMap.com, 289
successes, 268 MediaNews (Jim Romenesko), 295–96
Jupiter Communications, 171, 230, 235 Mellado, Catherine, 202
Mercury Theatre, 207
K Metatags, 77–78, 83
KBkids.com, 226–28 Microsoft, 11, 65
Keyword search, 72, 77–78 and JavaBeans, 65
killer Web sites., 81–82 Miracle on 34th Street, 125
Kiosks, 5 Miranda, William C., 83–85
Kmart, 117 Montrachet, 13
Knowledge-based public relations, 289 MSN.com, 5, 24, 25, 79, 91
Kopichi, Allison, 116 Hotmail, 126
Kotter, John P., 113–16 search engine, 72
Kozyhome.com, 181–83 Multimedia tasking, 258
Musur, Krista, 96–99
L
Landsend.com, 128–29, 131 N
Law of Borders, 13 Nabiscoworld.com, 173
Lawyers Homepage Network, 28, 30–31 Narrowcasting, 78

348 CYBERBRANDING Index

National Public Radio (NPR), 61 tracking results, 143
Navigation, 88, 89, 95 unsubscribe links, 142
NBC, 65 Out-of-the-box cyberbrands, 261–63
NBC Internet, 24 Overkill, information, 95
NeaTSuite (Trend Micro), 229
NEC, 25 P
NetAcumen, 199 Paap, George, 177
Net Grocer, 30 Palm Computing, 63–64
Network Advertising Initiative (NAI), Pampers (P&G) Web site, 39
214 Peapod, 30
Newsletters, PR, 289 Pemberton, John Styth, 7
New York Times on the Web, 91 Penetration, 47
Nickjr.com, 88, 94 Pepsi-Cola, 66, 236
Nielsen NetRatings, 171, 233 as global brand, 12
Nike iD, 128 Permission, 33, 47
NJ.com, 24, 78 opt-in e-mail programs, 142
Nokia.com, 157 Personalization, 47, 126–27
Nordstrom, 183 opt-in e-mail programs, 142–43
Northjersey.com, 72, 80 Personal messages, 62–63
Norton AntiVirus 5.0 (Symantec), Personality of a b4rand, 11
229 Personify, 199
Novo, 174 Persuasion, 148–66
convergence of high technology and
O celebrity culture, 152–53
O’Neal, Shaquille, 150 defined, 151
O’Neill, Dave, 266–68 in infancy stage, 150–52
One Pass program, Continental invasion compared to, 155–56
Airlines, 129 levels of acceptance of, 156–58
Online advertising, 172–73 tactics, 149
Online audiences, 33 and technology, 154–55
sensitivity to, 143–44 Phoenix Brand Strategies, 47, 49
OnlineBoardwalk.com, PHP, 204
173–74 Planetall.com, 5
Online brands: Platform for Privacy Preferences (P3P),
consumer purchasing, growth of, 144
24 PNC Bank, 156–57
and consumers, 62–63 Priceline.com, 30, 150–51, 153,
Online directories, 285–86 224
Online and offline marketing, use of, Privacy:
77–78, 83 issues, 210–13
Online research, 180–91 law, 214
and academia, 178–79 Q&A, 216–19
homegrown research vs., 181–82 Privacy Leadership Initiative, 144
when to use, 181–83 PR newsletters, 289
Opinion Research Corporation PR News Wire, 290
International, 20 Professional tracking software,
Opt-in e-mail programs, 141–43 issues/opportunities with,
communication of cyberbrand 199–200
message, 142 Profitability, 47
permission, 142 Promise, 16–17, 59
personalization, 142–43 PR Relationship-Building Test, 293–94

CYBERBRANDING Index 349

 Public relations, 251, 270–81 Relationship-building basics, 292–303
accountability, 307–8 learning, 297–300
Atlantis Group, Inc. case study, PR Relationship-Building Test,
314–17 293–94
best practices, 304–17 whackaflack.com, 294–95
campaigns, 308–12 Research, 12, 299
DeskDemon.com, 311–12 benefits to brand and consumer,
General Mills, 309 185–86
Venastat Great American benefits of, 170
Cross-Out, 310–11 and the branding campaign, 196–97
cyber PR, benefit of, 272 combining traditional and online,
cybertools, 282–91 183–84
editorial calendars, 286–88 homegrown vs. online, 181–82
fluff, signs of, 305 methods, 173
hints for success, 312–13 middle ground, finding, 188–89
inappropriate pitches, 275–77 online, 180–91
interactive information, 274–75 and academia, 178–79
and Internet technology, pioneers of, 185–87
278–81 traditional, and the cyberbrand,
knowledge-based, 289 171–74
media guides, 285–86 Research aids, 168–79
newletters, 289 focus groups, 171, 176–77
online directories, 287–88 as keys to customer relationship
outdated resources: managemet, 177
retiring, 283–84 market research, value of, 169–71
updating, 284–85 questionnaires, 174–76
of the past, 271 Retail industry, and the Internet,
compared to PR of today, 274 30–31
practicing the basics, 277–78 Rippen, Helga E., 214
proven techniques, 273–74 Rizzo, David, 31
and technology, 298 Roberts, Ann, 312
Public Relations Society of America Rolex, 10
(PRSA), 291 Rollovers, 203
Romenesko, Jim, 295–96
Q Roth, Adam, 140
Quadstone, 199–200 Rushed vision, avoiding, 110–13
Quaker Oats, 7–8
Questionnaires, 174–76 S
Quick downloads, importance of, 88, Saab Cars USA, 52–53
92–93, 95 Safesense.com, 262–63
Sales, Soupy, 207
R Salon.com, 110
radioshack.com, 89–90 Search engine, moving beyond, 137
Random digital dialing (RDD), 179, Search engine keyword search, 72,
183–84 77–78
Redford, Robert, 157 Seitel, Fraser, 278–81
Red Herring, 126 Sensitivity to online audiences,
Reel.com, 249 143–44
Reflect.com, 261 Service, 230–31
RegionalHelpWanted.com, 35 Shatner, William, 30, 150–51, 153
Regional sites, 79–80 Sherwin, Greg, 123

350 CYBERBRANDING Index

Simple cyberlessons, 82–83 Truth.com, 262
SimplyQuick.com, 209 “Turning Your Brand into a Cyber
Sloane, Sharon, 263–65 Brand” workshop, 24
Sodeoka, Yoshi, 93 Tuteur, Rick, 159–61
Sony.com, 89 Two-way communication, 33, 57
Sony Online, 25
Stein, Len, 298 U
Sterling Group, 14 Uniman, Alice, 47, 49
Straus, Eric, 28, 34–35 United Parcel Service (UPS), 117, 262
Straus Media Group, 28, 34–35 University of Florida’s Web site,
Strauss, Levi, 7 79–80
Supermarket industry, and the Internet, Uproar.com, 81, 173
30
SurfWearHawaii.com, 159–61 V
VBScript, 203
T VEILS (Virtual Experience Interactive
Talent drought, 115 Learning Software), 264
Target audience, making Web site Venastat Great American Cross-Out,
appropriate for, 82 310–11
Targeted communication, 80 Verizon, 151, 157
Target stores, 66 Viral marketing, 138–40
Technology: Vividence.com, 182–83
and cyberbranding, 70–85 Voxxy.com, 153–54
and future, 6 VRRoom, 176
and persuasion, 154–55 Vstore.com, 252–53
and public relations, 298
Test Your Brand Knowledge (quiz), 9 W
Theglobe.com, 112 Wall Street, and branding, 15
Three “i” theory, 47 Watson, Todd, 162–65
Tiffany, 10 Webcaster.com, 111–12
Timeless brands, 9–10 [email protected], 289
Time Warner Online, 24 Web site design, 86–105
Tommy.com (Tommy Hilfiger Web basics of, 95
site), 72, 81–82, 236 company image/audience appeal,
Touch points, 62 93–94
Toysmart.com, 212 content, 94–95
Toysrus.com, 21, 59, 224–25 ease-of-use principle, 88–91
Tracking measurements, factors to consider about, 88
understanding, 197–99 fast download, importance of, 88,
tracking software, capabilities of, 201 92–93, 95
Traditional brand: role of, 87–88
benefits of having, 59–61 up-to-date information, provision
convergence of cyberbrand and, 65 of, 91–92, 95
Traffic, 254–69 WebSurveyor, 189–90
out-of-the-box cyberbrands, 261–63 challenge, 189
reaching the consumer, 255 goal of, 190–91
traditional cyberattention, 260–61 interview, 189–91
using offline marketing strategies to solution, 189–90
increase, 257–58 Web tracking analysis, 192–205
Trappolotto.com, 155 analysis paralysis, 195–96
Treeloot.com, 154 clickstream data, 195

CYBERBRANDING Index 351

 Web tracking analysis, (cont.) www.groundbreak.com, 249
professional tracking software, www.myaffiliateprogram.com,
issues/opportunities with, 249
199–200 www.pfsmarketwyse.com/
surveillance phases, 193 greatsites.html, 84
System, The, 193–95 www.poynter.org/medianews,
trackers, turning tables on, 295–96
200–202 www.theaffiliateprogram.
tracking measurements, com, 249
understanding, 197–99 www.ufl.edu, 79–80
tracking software, capabilities of, 201
WebTrends, 199–200 Y
Welles, Orson, 207 Yahoo!, 4, 24, 25, 56, 59, 63–64, 66, 71,
Well-executed design, visual basics of, 88
83–85 download speed, 92–93
Werth, Ted, 94 search engine, 72
whackaflack.com, 294–95 Yahoo! Internet Life magazine, 4, 69
WILL Interactive, Inc., 263–65 Yang, Jerry, 64
Wireless Internet communication, 6 Younology.com, 201
Women.com, 88, 94 Youpowered’s SmartSense Consumer
Woods, Tiger, 153 Trust, 201
World Wide Web (WWW), 6, 16
as communicatin channel, 208 Z
using reach of, 64 Zapme, 211
www.affiliatetracking ZDNet.com, 11, 130
software.com, 249 ZDTV.com, 275–77
www.cybertrakker.com, 249 Zolnierzak, Dennis, 16–17
www.edcals.com, 287 Zook, David, 196–97

352 CYBERBRANDING Index