Transcript History, Internet Structure & Players

Internet Advertising &
Promotional Communication
Internet Advertising Industry &
Online Ad Campaign Process
Featuring in Class 2…...
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The Internet Advertising & Brand
Communication Industry
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Structure & Major Players
Internet Ad & BC Campaign
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The Six-Step Process
Internet Ad & Brand Comm Industry
Structure and Major Players
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The S_____ of Internet Media Space
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Publishers of websites or other Internet properties, advertising
networks, sales reps, & auction
The User
- consumer (individuals, organizations)
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The B______
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individuals or organizations (for profit, non-profit) & government
(local, national)
The I____________
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Any firm that provides tools for Internet advertising and brand
communication
Internet Ad & Brand Comm Industry: Structure & Major Players
The Seller:
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Web P________
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Portals (e.g., aol.com, msn.com, yahoo.com)
Search engines (e.g., google, yahoo, infoseek, altavista)
Media Sites/News (e.g., CNN, MSNBC)
Sports/Entertainment (e.g., Disney, Sports Zone)
Other Topics/Content (20+ categories, see comScore, class
8) -- including blogs
Social Networks
Discussion Lists/Groups (e.g., marketwelch.com)
Shopping Malls (e.g. imall)
Online Retail/Storefront (e.g., amazon.com)
Auction (e.g., eBay)
Other Service Sites (ASPs, Research/Data services, etc.)
Table 2-1: Top Web Publishers/Properties (find recent data
& comapare) What percent of total ad revenue the top ten account
for?
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3
4
5
6
7
8
9
10
Top Online Revenue
by Site (2002)
Yahoo!
$197,282,923
AOL.com
$174,263,850
Excite
$90,453,160
Lycos
$61,892,893
AltaVista
$50,577,473
Netscape
$48,007,442
Webcrawler
$38,903,498
ESPN.com
$23,677,857
Go.com
$23,625,735
Weather.com
$20,084,731
Source: CMRi
Internet Ad & Brand Comm Industry: Structure & Major Players
The Seller:
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A___ N_______ (find more.. Here)
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Top Ad Networks:
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DoubleClick, 24/7 media, Banner Exchange: bCentral/Link
Exchange
Benefits to advertisers (time, cost, effort savings &
marketing expertise and service) vs. to publishers (increased
sales opportunities)
Largest networks (e.g., DoubleClick) provide agency service
too
Some networks (e.g., Banner Exchange: bCentral/Link
Exchange) provide free ad opportunities via exchange
programs as well
Internet Ad & Brand Comm Industry: Structure & Major Players
The Seller:
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Sales R_____
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Firms hired to hand sales of Internet space properties for
publishers:
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WebMedia
Ad A_______
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used for clearance of soon-to-be expired ad space
inventories
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Cost benefits…limited availability of favorable, effective
sites or positions
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Google (even)
Internet Ad Industry: Structure and Major Players
The Buyer
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A____________
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Dotcoms vs. click & mortar vs. brick & mortar
companies
Ranges from top ranking offline advertisers to even
‘mom & pop’ shops
Government (local and national)
Table 2-2: Who advertises on the Web (Find top ranks for 2006)
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3
4
Top Online Spenders (2002)
by Company
General Motors
$25,415,811
eBay
$24,356,260
Amazon.com Inc.
$16,200,820
Classmates Online
$15,108,190
Top Online Spending
by Industry
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3
4
5 J.P. Morgan Chase
$14,914,052
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6 Barnes & Noble
$14,368,801
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7 Verisign Inc.
8 AOL Time Warner
$13,711,014
$13,333,416
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8
9 Providian Corp.
10 Bank One Corp.
Source: CMRi
$12,769,892 9
$11,187,960 10
Retail
Media & Advertising
Financial
Computers & Software
Local Services &
Amusements
Public Transportation,
Hotels & Resorts
Automotive, Auto
Accessories & Equip.
Telecommunications
Government &
Organizations
Insurance & Real Estate
$299,404,537
$261,440,537
$177,879,435
$149,753,786
$143,964,572
$68,016,488
$66,261,445
$42,318,614
$39,589,868
$38,961,553
Internet Ad & Brand Comm Industry: Structure & Major Players
The Buyer:
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Interactive Ad & Brand Comm A______ (3 types)
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Boutique Shops (Creative only)
Tradition Ad Agencies (Interactive Division)
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e.g., Digital@JWT
Full-service Interactive Agencies
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e.g., FCBi, Ogilvy Interactive, Agency.com, Modem Media,
Digitas, etc.
Internet Ad & Brand Comm Industry: Structure & Major Players
The Infrastructure
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Firms that provide tools to h____ the seller and the
buyer deliver results to the user through their
Internet advertising and brand communication
efforts
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Web t_____ measurement firms, advertising
m__________ software/hardware, technological
support or application service firms, r________ firms,
other marketing communication services etc.
Internet Ad & Brand Comm Industry: Structure & Major Players
The Infrastructure: See Resource Directory for firms
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Web Traffic Measurement Firms
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Site-Centric (NetCount, I/Pro, etc)
User-Centric (Jupitor Media Matrix & Nielsen NetRatings
–to be merged soon)
Ad Management, Targeting Software or Service
Providers
Research/Testing Firms
Data Firms (data warehouse, data mining, email list
brokers, etc.)
Other Marketing Communication Services (PR,
Sales Promotion, Direct Marketing)
Resource Directory - Appendix
: go through each/ read the description
Find the local-based resources and do your ex. 2 on them
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Ad management tech/firms (Central Ad PRO,
NetGravity AdServer, AdKnowledge. . .)
Ad Networks (24/7 Media, AdSmart, DoubleClick,)
Alternative Ad Models (Comet Cursor, Netzero, . . )
Associations/Conferences/Events, Auction, Banner
Exchange Programs,
Auditing Services (I/AUDIT, p. 369)/ Research
Firms (p. 380-, ActivMedia, Laredo Group, Milward
Brown Interactive, E Stats, Forrester Research)
Contests/Sales Promo (Prizes.com)/Loyalty
Programs/Promotion Services
Resource Directory - Appendix
: go through each/ read the description
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Direct E-mail/Marketing Lists/Brokers/Services
(Acxiom Direct Media, Matchlogic)/ software
Audience Measurement Tech (Net.Analysis,
WebTrends)
Targeting/Personalization Tech (Firefly,
SelectCast, ..)
Audience Measurement (Rating) Firms
(MediaMetrix, NetRatings)
Media Reps (WebMedia)
Informational Sites (p. 404-408, Ad Resource,
Advertising Media Internet Center, CyberAtlas, . . )
Note: some of the firms above may be out of business; such quick turnover of businesses is
quite typical in the Internet industry
Online Ad Campaign
The Six Step Process:
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S________ A_______
Establishing G______
Setting & Allocating B______
C_______ Decisions
M______ Decisions -- Vehicle Comparison & Selection
M________ Campaign Effectiveness
Situation (SWOT) Analysis
Step One:
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Online Campaign Process
Analysis of your S_______ and W_______ vis-à-vis
the competition
Identification of O_________ to capitalize on or
problems that can be solved, given your strengths
Understanding of competitive or other T_______,
given the weaknesses
Situation (SWOT) Analysis
Step One:
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Online Campaign Process
Assessment of your (vs. c___________) situation in
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sales/market s____
product-related factors
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Target c________ characteristics
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demand/sales s________, p_______ cycle, tangible/intangible
product nature & image
demographics, l_______, g_________, internet usage, behavior
Ad & brand comm activities
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sales promotion, PR, advertising-expenditures, IMC strategy,
messages & media used, web site analysis, etc.
leading to an understanding of current/past successes to
maintain/challenges to overcome/problems to solve
Establishing Online Campaign Goals
Step Two:
Online Campaign Process
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General
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Generating site t_________
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Direct Response
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C____-t_______, Interest/Interaction
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Building a d________ of prospects
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S______, Sales Leads
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Profits, ROI
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B______ Building
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Advertising/Vehicle Exposure
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Brand A________/F________
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Brand Liking/P_________
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Building/Maintaining L_________ Customers
Setting& Allocating Budget
Step Three:
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Online Campaign Process
May apply traditional budget approaches
All-you-can-afford, competitive parity (in percent of sales or ad budget),
response function, objective & task, etc.
Objective & Task approach recommended
Costs for the tasks to be performed to accomplish the goals determine the
budget (e.g., awareness among 200,000 targets – reach of 250,000 & freq of
4 -- 1million impressions in Jan -- $50 x 1000 = $5,000)
Budget Categories
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Ad Production
Media Budget
Ad Tracking/Testing/Management
Web Development/Maintenance
Other (if necessary)
Contingency (Importance of Contingency Fund for flexibility)
Creative Decisions
Step Four:
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Online Campaign Process
Ad models & key messages to use
Web site development & maintenance
Other MC elements, the IMC theme, to be used
What & How & When to Test (costing out) to track ad performance or
website usability testing
Media Decisions:Vehicle Selection
Step Five:
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Set some specified criteria
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quantitative and qualitative factors
Evaluate categories & vehicles based on the set criteria
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Online Campaign Process
categories: types of websites (news, auction), other comm modes such as email, listserve, etc
vehicles: specific sites in each Website type (MSNBC.com, eBay), specific
email lists or services to use
Allocating the impressions and budget (across media categories or
vehicles)
Determine position, timing, frequency, targeting of the ads to be placed
Costing out & Negotiating the Buy
Online Campaign Process
Measuring Campaign Effectiveness
Step Six:
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Consider the set goals
Determine when and how often testing is done – depending on the test
budget
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During the campaign – each month or quarter
At the end of the campaign
Set criteria of measurement for each goal
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Traffic building
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# of visits, # of unique visiters/users, # of page views
Branding
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Interest and interaction – time spent interacting, click-through ratio
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Awareness, familiarity, brand liking – use customized testing for direct measures
Direct Response
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Sales -- # of completed sales tractions
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Sales leads -- # inquiries, info downloads, store visits
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Building database -- amount of completed registration or subscription