Lenovo Wins Big with Paid Media Lenovo is a Chinese company selling computers and other electronic items. It is headquartered in Hong Kong but maintains operational headquarters in the United States. In 1995, it acquired IBM’s personal computer business and became the second-largest PC seller in 2011. Lenovo sells to both businesses and individual consumers. This multinational company advertises both in traditional media and online. In 2008, Lenovo began using Google display advertising for remarketing (a tactic that involves communicating with users who previously visited a Web site). The Google display network contains a variety of Web sites, from news to blogs, and advertisers can place video, text, image, or interactive ads on specific sites anywhere in the network. Remarketing allowed Lenovo to tag visitors on its own Web site and show them specific ads while on another site in the Google display network. Lenovo tagged site visitors displaying three different behaviors: general visitors, those who abandoned shopping carts, and those who purchased on the site. It could then present tailored ads elsewhere, based on this user behavior on Lenovo. For example, general visitors got ads featuring discounts on laptops, those who abandoned shopping carts saw ads with 5 to 10 percent dis- counts on the exact laptop or product they viewed, and online purchasers received ads offering laptop accessories, such as laptop bags. Did it work? Yes! In late 2010, those coming from Lenovo’s Google Display ads resulted in 20 percent of total site orders, and advertising expenses dropped due to this specific targeting. Lenovo continues to use this remarketing strategy and many metrics to tweak tags and ads for maximum effectiveness and efficiency (see Google Display Network Success Stories and lenovo.com for more). 1. Do you think the customers might be upset if they found out Lenovo was using remarketing and keeping track of their behavior online? Why or why not? 2. Identify at least five other types of paid media that might work for Lenovo, including Facebook. Explain why each might be a good idea for this company.
Lenovo Wins Big with Paid Media
Lenovo is a Chinese company selling computers and other electronic items. It is headquartered in Hong Kong but maintains operational headquarters in the United States. In 1995, it acquired IBM’s personal computer business and became the second-largest PC seller in 2011. Lenovo sells to both businesses and individual consumers.
This multinational company advertises both in traditional media and online. In 2008, Lenovo began using Google display advertising for remarketing (a tactic that involves communicating with users who previously visited a Web site). The Google display network contains a variety of Web sites, from news to blogs, and advertisers can place video, text, image, or interactive ads on specific sites anywhere in the network. Remarketing allowed Lenovo to tag visitors on its own Web site and show them specific ads while on another site in the Google display network.
Lenovo tagged site visitors displaying three different behaviors: general visitors, those who abandoned shopping carts, and those who purchased on the site. It could then present tailored ads elsewhere, based on this user behavior on Lenovo. For example, general visitors got ads featuring discounts on laptops, those who abandoned shopping carts saw ads with 5 to 10 percent dis- counts on the exact laptop or product they viewed, and online purchasers received ads offering laptop accessories, such as laptop bags.
Did it work? Yes! In late 2010, those coming from Lenovo’s Google Display ads resulted in 20 percent of total site orders, and advertising expenses dropped due to this specific targeting. Lenovo continues to use this remarketing strategy and many metrics to tweak tags and ads for maximum effectiveness and efficiency (see Google Display Network Success Stories and lenovo.com for more).
1. Do you think the customers might be upset if they found out Lenovo was using remarketing and keeping track of their behavior online? Why or why not?
2. Identify at least five other types of paid media that might work for Lenovo, including Facebook. Explain why each might be a good idea for this company.
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