The advent of online shopping has resulted in the development of a large number of rewards programs that offer rewards for shopping through specific shopping portals. These rewards can be points-based (allowing redemption for various prizes), cashback, airline frequent flyer-miles-based, hotel points, or even donations to charity.

Rewards portals exist in most major markets, most notably in the US, Canada, UK, and Australia. The original loyalty program was started in 1896 by Sperry & Hutchinson called Green Stamps which has been digitized into the new S&H greenpoints.com. In the early 1900s, Carlson Marketing owned a company called Gold Stamps and that has similarly been rebranded as GoldPoints.com. One of the most successful programs that currently exist is called AirMiles out of Canada and, like the old Green/Gold Stamps programs it includes everyday spending in supermarkets.

It is important to remember that, with the exception of cashback rewards, each rewards program values its points differently: before consumers purchase through one of the point- or mile-based programs, they should compare the points they will earn with the specific reward they choose. In addition, because of the highly competitive nature of online commerce, many of the shopping portals offer coupons or discount offers not available if purchases are made directly through the merchant site: besides receiving points towards a reward, consumers can also save money up front.

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Spyware does not directly spread in the manner of a computer virus or worm: generally, an infected system does not attempt to transmit the infection to other computers. Instead, spyware gets on a system through deception of the user or through exploitation of software vulnerabilities.

The most direct route by which spyware can infect a computer involves the user installing it. However, users tend not to install software if they know that it will disrupt their working environment and compromise their privacy. So many spyware programs deceive the users, either by piggybacking on a piece of desirable software, or by tricking the users to do something that installs the software without them realizing. Recently, spyware has come to include “rogue anti-spyware” programs, which masquerade as security software while actually doing damage.

Classically, a Trojan horse, by definition, smuggles in something dangerous in the guise of something desirable. Some spyware programs get spread in just this manner. The distributor of spyware presents the program as a useful utility — for instance as a “Web accelerator” or as a helpful software agent. Users download and install the software without immediately suspecting that it could cause harm. For example, Bonzi Buddy, a spyware program targeted at children, claims that:

He will explore the Internet with you as your very own friend and sidekick! He can talk, walk, joke, browse, search, e-mail, and download like no other friend you’ve ever had! He even has the ability to compare prices on the products you love and help you save money! Best of all, he’s FREE! ^[4]

The BearShare file-trading program, “supported” by WhenU spyware. In order to install BearShare, users must agree to install “the SAVE! bundle” from WhenU. The installer provides only a tiny window in which to read the lengthy license agreement. Although the installer claims otherwise, the software transmits users’ browsing activity to WhenU servers.

^[5]

Spyware can also come bundled with shareware or other downloadable software, as well as music CDs. The user downloads a program (for instance, a music program or a file-trading utility) and installs it, and the installer additionally installs the spyware. Although the desirable software itself may do no harm, the bundled spyware does. In some cases, spyware authors have paid shareware authors to bundle spyware with their software, as with the Gator spyware now marketed by Claria. In other cases, spyware authors have repackaged desirable free software with installers that add spyware.

A third way of distributing spyware involves tricking users by manipulating security features designed to prevent unwanted installations. The Internet Explorer Web browser, by design, prevents websites from initiating an unwanted download. Instead, a user action (such as clicking on a link) must normally trigger a download. However, links can prove deceptive: for instance, a pop-up ad may appear like a standard Windows dialog box. The box contains a message such as “Would you like to optimize your Internet access?” with links which look like buttons reading Yes and No. No matter which “button” the user presses, a download starts, placing the spyware on the user’s system. Later versions of Internet Explorer offer fewer avenues for this attack.

Some spyware authors infect a system by attacking security holes in the Web browser or in other software. When the user navigates to a Web page controlled by the spyware author, the page contains code which attacks the browser and forces the download and install of spyware. The spyware author would also have some extensive knowledge of commercially-available anti-virus and firewall software. This has become known as a “drive-by download”, which leaves the user a hapless bystander to the attack. Common browser exploits target security vulnerabilities in Internet Explorer and in the Microsoft Java runtime.

The installation of spyware frequently involves Microsoft’s Internet Explorer. As the most popular Web browser, and with an unfortunate history of security issues, it has become the largest target. Its deep integration with the Windows environment and its scriptability make it an obvious point of attack into Microsoft Windows operating systems. Internet Explorer also serves as a point of attachment for spyware in the form of browser helper objects, which modify the browser’s behavior to add toolbars or to redirect traffic.

In a few cases, a worm or virus has delivered a payload of spyware. For instance, some attackers used the W32.Spybot.Worm worm to install spyware that popped up pornographic ads on the infected system’s screen. ^[6] By directing traffic to ads set up to channel funds to the spyware authors, they can profit even by such clearly illegal behavior.

References

1. ↑ Bonzi.com. http://www.bonzi.com/bonzibuddy/bonzimail.asp.
2. ↑ Edelman, Ben (2005). “WhenU Violates Own Privacy Policy“
3. ↑ “Security Response: W32.Spybot.Worm“. Symantec.com.

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Newsgroup spam predates e-mail spam, and targets Usenet newsgroups. Old Usenet convention defines spamming as excessive multiple posting, that is, the repeated posting of a message (or substantially similar messages). Since posting to newsgroups is nearly as easy as sending e-mails, newsgroups are a popular target of spammers. The Breidbart Index was developed to provide an objective measure of the “spamminess” of a multi-posted or cross-posted message on Usenet.

Spamming an internet forum in general, is when a user posts something which is off-topic or doesn’t have anything to do with the current subject. Also, a post that doesn’t contribute to the thread whatsoever is also considered spam in some cases. A third form of Forum Spamming is where a person repeatedly posts about a certain subject in a manner that is unwanted by (and possibly annoying to) the general population of the forum. Lastly there is also the case where a person posts messages solely for the purpose of increasing his or her ranking on the forum. In a broader sense, advertising on forums where it is not wanted is known as spamming and is generally seen as an annoyance.

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Search engine operators became interested in the SEO community in the late 1990s. A number of high profile SEO community leaders established contractual relationships with search engines for advertising and consulting purposes. These early contacts led to an amelioration of some hostile feelings between the search optimization and search engineering communities.

In early 2000, search engines and SEO firms attempted to establish an unofficial “truce.” There are several tiers of SEO firms, and the more reputable companies employ content-based optimizations which meet with the search engines’ (reluctant) approval. These techniques include improvements to site navigation and copywriting, designed to make websites more intelligible to search engine algorithms.

Some search engines have also reached out to the SEO industry, and are frequent sponsors and guests at SEO conferences and seminars. In fact, with the advent of paid inclusion, some search engines now have a vested interest in the health of the optimization community.

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“Half the money I spend on advertising is wasted; the trouble is, I don’t know which half.” – John Wanamaker, father of modern advertising.

Billboard, New York City, (2005)

The impact of advertising has been a matter of considerable debate and many different claims have been made in different contexts. During debates about the banning of cigarette adervertising, a common claim from cigarette manufacturers was that cigarette advertising does not encourage people to smoke who would not otherwise.^[1] The (eventually successful) opponents of advertising, on the other hand, claim that advertising does in fact increase consumption.^[2]

According to many media sources, the past experience and state of mind of the person subjected to advertising may determine the impact that advertising has. Children under the age of four may be unable to distinguish advertising from other television programs, whilst the ability to determine the truthfullness of the message may not be developed until the age of eight.^[3]

References

1. ↑ Memorandum by British American Tobacco from The Tobacco Industry and the Health Risks of Smoking (TB 28) paragraph 272, “Cigarette advertising does not cause people to smoke”, presented before the House of Commons Select Committee on Health 13 January 2000, verifed 2005-12-31
2. ↑ Frequently asked Questions: Tobacco Advertising, “persuades non-smokers (especially the young) to start smoking” from ASH
3. ↑ Lawrence, Felicity (2004). “The Ready Meal”, Kate Barker Not on the Label, 265, Penguin. ISBN 0-141-01566-7.

• Bhatia, Tej K. 2000. Advertising in Rural India: Language, Marketing Communication, and Consumerism. Institute for the Study of Languages and Cultures of Asia and Africa. Tokyo University of Foreign Studies. Tokyo Press: Japan. ISBN 4-87297-782-3

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Video: Advertising – What psychological tricks do they use?

Many companies use e-mail marketing to communicate with existing customers, but many other companies send unsolicited commercial e-mail, also known as spam.

Illicit e-mail marketing antedates legitimate e-mail marketing, since on the early Internet it was not permitted to use the medium for commercial purposes. As a result, marketers attempting to establish themselves as legitimate businesses in e-mail marketing have had an uphill battle, hampered also by criminal spam operations billing themselves as legitimate.

It is frequently difficult for observers to distinguish between legitimate and spam e-mail marketing. First off, spammers attempt to represent themselves as legitimate operators, obfuscating the issue. Second, direct-marketing political groups such as the U.S. Direct Marketing Association (DMA) have pressured legislatures to legalize activities which many Internet operators consider to be spamming, such as the sending of “opt-out” unsolicited commercial e-mail. Third, the sheer volume of spam e-mail has led some users to mistake legitimate commercial e-mail (for instance, a mailing list to which the user subscribed) for spam — especially when the two have a similar appearance, as when messages include HTML and flashy graphics.

Due to the volume of spam e-mail on the Internet, spam filters are essential to most users. Some marketers report that legitimate commercial e-mails frequently get caught by filters, and hidden; however, it is somewhat less common for e-mail users to complain that spam filters block legitimate mail.

Companies considering an e-mail marketing program must make sure that their program does not violate spam laws such as the United States’ CAN-SPAM Act, the European Privacy & Electronic Communications Regulations 2003 or their Internet provider’s acceptable use policy. Even if a company follows the law, if Internet mail administrators find that it is sending spam it is likely to be listed in blacklists such as SPEWS.

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An affiliate is a commercial entity with a relationship with a peer or a larger entity.

Broadcast networks

In a radio network or TV network, an affiliate is a radio station or TV station that agrees to carry the broadcasts of, but is not owned by, the network. Usually, the stations are still responsible for the content (such as profanity) to some extent. An affiliate is not the same as an owned and operated station, which is owned by the network such a station carries programming for.

Electronic commerce

Affiliate marketing typically refers to this Electronic commerce version of the traditional agent/referral fee sales channel concept. An e-commerce affiliate is a website which links back to an e-commerce site such as Amazon.com. When a reader of the website clicks on a link, they are connected to the e-tailer and if they purchase something the affiliate receives a small payment, usually a percentage of the money the customer spends. Affiliates can also be referred as publishers. The Hotel and Travel Industry uses affiliate marketing to a large extent.

Corporate structure

A corporation may be referred to as an affiliate of another when it is related to it but not strictly controlled by it, as with a subsidiary relationship, or when it is desired to avoid the appearance of control. This is sometimes seen with multinational companies that need to avoid restrictive laws (or negative public opinion) on foreign ownership.

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Smith and Chaffey (2001) describe five key online marketing activities (the ’5Ss’) which can be applied by an organisation to implement various online marketing tactics. For example, for an e-newsletter, the 5Ss are:

• Sell – Grow sales (the e-newsletter often acts as both a customer acquisition tool and a retention tool – the lastminute.com e-newsletter has this dual role)
• Serve – Add value (give customers extra benefits online such as an online exclusive offer or more in-depth information about your products or the industry sector)
• Speak – Get closer to customers by creating a dialogue, asking questions through online research surveys and learning about customers’ preferences through tracking – which content are people most interested in.
• Save – Save costs (of print and post if you have a traditional offline e-newsletter can you reduce print runs or extend it to those customers you can’t afford to communicate with)
• Sizzle – Extend the brand online. A newsletter keeps the brand ‘front-of-mind’ and helps reinforce brand values. Added value can also be delivered by the e-newsletter by informing and entertaining customers.

Capturing attention of potential customers can be as simple as advertising using some of the new advertising tools the online world provides, such as advertising on search engines, but it can also be about configuring more remarkable methods that tend to spread across many sites and capturing the imagination of many people in the process. There are at least three major configurations of links and tools that have been used to capture attention online: funnel building, buzz marketing and cool tools.

Building a sales funnel requires working with search engine optimization, email newsletter distribution, discussion board entries, advertisements, affiliate activities and more. In fact, any way that additional links can be provided so that a potential customer can begin a conversation with a business, is educated about that business’ products/services, or is provided with concepts and propositions that will eventually lead to a sale. A funnel is usually laid down over time and is the result of continuous activity of marketers in online activities.

Buzz marketing tends to be a much quicker process and tends to involve less activity on behalf of marketers and requires attention of people online to spread by word-of-mouth, word-from-keyboards, to be fascinated or intrigued. Purple cow was sold largely through buzz marketing that spread by blogs relatively quickly.

Another tactic of gaining attention online is through the development and release of a cool tool. A cool tool is something that captures the imagination of the online browsing public and it is thought to be so cool that it should be shared with online friends. This could be a video clip, standalone software that is cute such as a cartoon character that lives on a users screen, or some other device that is used often for a specific purpose, such as 3Ms Post-it Notes.

Right in the middle of a new marketing practice is eBay with its datafeed marketing. Essentially a store owner sets up his/her data in eBay and then by way of feeds make this data available to advertising avenues, such as Froogle, Yahoo Product Search and about another twenty of thirty other sites that take datafeeds. All the advertising feed services point the prospective purchaser to the eBay auction. This is perhaps a little like building a sales funnel as described above, however, it uses a specific technology that enables ease of use.

Marketing on the internet requires that one be found using keyword searches or some form of online advertising. In any case the trick to being successful in Online Marketing is being found within the top 30 search results. There are 3 ways that one can be found. 1.) natural search engine ranking (70% of searchers will skip over sponsored results and start with the naturally ranked sites) 2.) Paid inclusion and 3.) Pay per click. Due to the extreme difficulty of achieving a natural high ranking on a major search engine most companies opt for #’s 2 and 3 for their online marketing. Unfortunately the 3rd option is very costly and only the most well heeled companies can afford to market online via pay per click.

What is true of Online Marketing today is that one must pay to play. Since the dot com bust several years ago search engines have discerned that in order to survive and thrive they must generate significant revenue. At first the hope was that banner advertising would be sufficient to fill the search engine coffers but it soon became evident that searchers did not respond to banners. It then became evident that there were 2 primary ways to create income for search engines and online directories. Thus paid inclusion and pay per click were born!

Recently potential greed-related challenges have emerged. There are companies that create false hits and traffic. Most recently Google has been sued for click fraud. [1] Whether or not the charges prove to be true, actions like this make people think twice about using pay per click as part of their online marketing package.

Semantic logic will allow searchers to use not just keywords to search, but rather they will search using common language. This is a big departure from the crude Boolean logic which has served the Internet searching community for the last decade.

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Loyaltyware is a sub-category of adware. It works around the notion of user “loyalty” by providing incentives in the form of cash, points, airline miles, or other type of goods while shopping. Examples include WebRebates, Top Moxie, and Ebates Moe Money Maker.

Links

• Spyware Guide: LoyaltyWare

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