Transcript Document

Chapter Fifteen
Overview of
Integrated Marketing
Communications
 2007 Thomson South-Western
Chapter Fifteen Objectives
• Appreciate the magnitude, nature, and
potential for Internet advertising.
• Be familiar with the two key features of
Internet advertising, individualization and
interactivity.
• Understand how Internet advertising differs
from advertising in conventional massoriented advertising media, as well as how
the same fundamentals apply to both general
categories of ad media.
Chapter Fifteen Objectives
• Understand the various forms of
Internet advertising: display ads, rich
media, e-mail advertising, Weblogs,
search engine advertising, and
advertising via behavioral targeting.
• Appreciate the importance of measuring
Internet advertising effectiveness and
the various metrics used for this
purpose.
The 2 I’s of the Internet
Individualization:
Refers to the fact that the Internet user has control
over the flow of information
Interactivity:
Allows for users to select the information they
perceive relevant & for brand managers to build
relationships with customers via two-way
communication.
The Internet Compared
With Other Ad Media
• The Internet’s interactivity feature can
actually be a disadvantage rather than an
advantage.
• The Internet user is in a “leaning forward”
mentality, as opposed to a TV viewer who
can be said to be “leaning back.”
• The more active Internet user may be
more apt to actively avoid advertisements.
Display or Banner Ads
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Click-through-rates to banner ads are very small,
averaging less than .3%
Exposure not equivalent to attention
Online advertisers have turned to new technology
and bigger ad sizes to capture attention.
Cookies are being used to track online behavior
and to direct ads to consumers that are in line
with their interests.
Rich Media: Pop-Ups, Interstitials,
Superstitials, and Video Ads
•
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Pop-Ups: Ads that appear in a separate
window.
Interstitials: Ads that appear between two
content Web pages.
Superstitials: short, animated ads that play
over or on top of a Web page.
Online video ads: audio-video ads that are
similar to 30-second TV commercials but are
shortened to 10-15 seconds and
compressed.
Blogs as an Advertising Format
Advertisers can purchase blogads on a weekly
or monthly basis.
Podcasting is an audio version of blogging.
These are self-produced radio-style
programs. Consumers can choose the
programs that are of interest to them.
E-mail Advertising
• Expenditures on e-mail advertising in the
U.S. amounted to just less than $300
million in 2005, dramatically less than what
was predicted a few years ago.
• Marketers have “spoiled the commons”
with spam and junk messages.
• Approximately two-thirds of all commercial
e-mail messages are spam.
Opt-In E-mailing Versus Spam
• Opt-In E-mailing is the process of asking
for permission to send messages to
consumers.
• Marketers have a better shot at giving only
information that is of interest to the
receiver.
Phishing
• Illegal practice where criminals send email messages that appear to be from
legitimate businesses and extract personal
data from people on phony websites like
their credit card and ATM numbers.
E-mail magazines (E-zines)
• E-zones are free magazine-like
publications that deliver credible
advertising messages that are clearly
designated as such.
The Special Case of Wireless Email Advertising
• Wi-Fi allows users to connect to the
Internet using low-power radio signals
instead of cables.
• Hotspots are growing in number.
• Advertising has the potential to reach
consumers when they are within walking
distance of stores with pertinent offers.
Mobile Phones and Text Messaging
• As of 2005, there were 180 million mobile phone
subscribers in the U.S. and hundreds of millions
more around the world.
• Short Message Systems (SMS) allow users to
send and receive text messages.
• Dubbed the “third screen” meaning, TV,
computers, and now phones are portals for ads
information, and entertainment.
• Marketing uses for cellular phones is still in its
infancy.
Search Engine Advertising (SEA)
• SEA commandeered 40% of the $9.6 billion U.S,
marketers spend on online advertising.
• Search engines like Google, Yahoo!, Ask
Jeeves, and MSN Search account for threequarters of all Internet searches.
• Attempts to place advertising in front of people
precisely when they need it.
• Keywords help to increase the odds your
product or service will be seen.
SEA is Not Without Problems
• Click Fraud occurs when a competitor or
other party clinks on a sponsored link
repeatedly in order to harm the other
advertiser.
• Fraud also occurs when employees of
content-websites click on links to generate
revenue.
• Fraud estimates range from 5% to 20%
Advertising Via Behavioral
Targeting
• Behavioral targeting directs online
advertisements to those who have shown
themselves to be interested due to their
surfing behaviors.
• This form of targeting can be seen by
some as an invasion of their privacy.
Measuring Internet Ad
Effectiveness
How many
people
clicked through a
particular web ad?
What are the
demographic
characteristics
of these people?
How many visited a
particular Web site?
What actions were
taken following
click-throughs?
The Tools of Internet Audience
Measurement
1. Server Log file analysis
2. Surveys of sample users using
recall
measurement
3. Electronic measurement of a
sample of Internet users
Log File Analysis
Provides a census of all
user activity at a
particular Web site.
• Tracks machines
• Provides no
information about the
people who request
specific files.
• Can’t distinguish real
people from “robots”
and “spiders.”
Surveys
Surveys gather
web site habits
and demographic
information
• Problems: memories
are fallible
• People overstate their
use of popular Web
sites and undervalue
their use of less
popular sites.
• People give
responses that put
them in a positive
light.
Electronic Measurement
Media Matrix and Nielson Media Research
Attach software tracking meters to
computers of randomly selected Internet
users. All web activity is tracked and the
company can run detailed reports to
summarize results.
The Metrics of Internet Advertising
• Click-through rates
• Cost per thousand impressions (CPM)
– Measures when an ad comes on to the
eyeballs of the Internet user (OTSopportunity to see) but provides no real
information about the actual effect of the
advertisement.
The Metrics of Internet Advertising
• CPA (Cost per Action)
• The number of users who actually
– Click on a display or rich-media ad
– Visit a brand’s Web site
– Register their names on the brand’s web site
– Purchase the advertised brand