Transcript New technologies are changing digital/interactive

Media Planning: Advertising
and IBP in Digital/Interactive
Media
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Cengage
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No Wires Means New Rules
New technologies are changing
digital/interactive advertising opportunities:
•WiFi became popular in 2004 because it provided wireless Internet
access connections reaching out about 300 feet.
•WiMax is similar to WiFi in that both create wireless “hot spots” but
iMax has a range of 25-30 miles!
•Mi-Fi is similar to WiMax but adds the capability of accessing the
Internet while the user is moving in a car or a train.
•Ultrabroadband is a technology that will allow people to move
extremely large files quickly over short distances.
•Technology now provides the option for podcasting, tablet, and
smartphone advertising—but will consumers accept the intrusion?
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Role of the Digital/Interactive Media in
the Advertising and IBP Process
• Internet will not replace traditional media
• Advertisers have discovered ways to use
digital/interactive as a key component of
integrated brand promotions
• Auction sites provide small businesses with new
opportunities
• Web 3.0 (social networking) offers a whole new
way of communicating
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The (R)evolution of the Internet
• Connected consumer experience: community,
empowerment, liberation
• Connected consumers desire to control their
information flow
• In 1994 advertisers began venturing on the
Internet, retreated in 2000 and returned in 2004
• At present:
– 1.8 billion users worldwide
– Ad revenues of $40 billion by 2012
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Using Internet Digital/Interactive Media: The
Basics
• Email
– Common communication option for marketers
– Consumer resistence is lessened by “opt-in” consent
– Spam is a plague, but can achieve 3-5 percent
response rate
• The WWW
– An electronic graphical interface with 24 hour access
– Developed originally for military use
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Consumers actively/voluntarily search for information
The Web is a vast library
Surfing is gliding from page to page
Search engines allow surfing by key words
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Portal
• A Portal is a starting point for Web access and search and
channeling surfers to particular sites
• Portals can be general—serving cross sectional interests of
surfers, like Yahoo!
• Portals can be vertical—serving specialized markets, like
Jobster
• Portals can be horizontal—providing links across many
industries, like Verticalnet
• Portals also can be ethnic or community based, like Latina
Online
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Websites and Blogs
• A website is a collection of Web pages, images,
videos and other digital content
• A “mash up” is the combination of one or more
websites in to a single site
• A personal website can be created by individuals
to highlight interests/lifestyle
• A blog is a personal journal that is frequently
updated, intended for public access, can be
personal or professional
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Advertising on Digital/Interactive Media
Internet Advertising Expenditures
• 1995 = $54.7 million
• 2004 = about $8 billion
• 2010 = estimated at $23 billion
• Still only 6-8 percent of all media spending
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Advantages of Digital/Interactive Media
Advertising
• Target Market Selectivity
• Track users interaction with brand
• Deliverability, Flexibility, Reach
• Deliverability: 24/7
• Flexibility: changed immediately
• Reach: computers, mobile devices
• Interactivity: click-through, purchase
• Easy integration with other IBP tools
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Cost of Internet Digital/Interactive
Advertising
• Reach and tracking capability have
caused cost to rise
• Banner at high traffic site = $100,000/day
• CPM compares favorably with other media
• But, segmented/motivated audiences are
advantage
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Types of Digital/Interactive
Internet Advertising
• Paid search
– Search engine
optimization (SEO)
• Display/Banner ads
• Sponsorship
• Pop up/Pop-under
– Splash screen
• Rich media/video
and audio
• Corporate/brand
home pages
• Widgets
• Virtual Worlds
-Second Life
• Video games
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Integrated Brand Promotion Tools
and Digital/Interactive Media:
Sales Promotion
• Coupons
–Ease of distribution
–Higher redemption rate
• Contests and Sweepstakes
–Coordinated with off-line programs
–Partnerships are facilitated
• Sampling, Trial Offers, Price-off deals
–Offers made through pop-ups, email, website
distribution
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Integrated Brand Promotion Tools
and Digital/Interactive Media:
Public Relations and Publicity
• Classic PR news dissemination
• Highly targeted press releases
• Global distribution is inexpensive and
instant
• Variety of Web organizations
facilitate PR programs
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Integrated Brand Promotion Tools
and Digital/Interactive Media:
Direct Marketing / E-Commerce
• Email
–Customized/target messages
–Better with opt-in lists
• Mobile marketing
–Smartphone, MP3, laptop tablet message transmission
–Video, TV reception and use by consumers
–Surprisingly favorable consumer response
• Virtual malls
–Gateway to Internet storefronts
• E-Commerce and Online Retailing
–B-to-B as well as consumer commerce
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–Direct selling as well as promotion
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Measuring the Effectiveness of
Digital/Interactive Advertising and IBP
Term
Definition
Hits
Number of elements requested from a page
Page views
Number of pages sent to the requesting site
Visits
Occasions user “x” interacted with site “v”
after “z” time has elapsed
Unique visitors
Number of different people visiting a site
Web Analytic
Allows for tracking of website usage
Software
New Methods
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Tracking Behavior of a sample of “Internet
families” and projecting behavior to larger
populations
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Internet Data and Click Fraud
Term
Definition
Impressions
Number of times a page is viewed
Pay-per-click
Payment rate for impressions
Click throughs
Clicking on ad and through to website
Click fraud
False generation of site clicks to generate
payment per click
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.