Transcript Chapter 14 Media Planning_Advertising and IBP in

14
Media Planning:
Advertising and IBP in
Digital/Interactive Media
©2012 Cengage Learning. All Rights Reserved.
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?
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
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
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
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
Latina.com 2002
What type of portal is this?
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
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
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
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
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
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
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
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
–Direct selling as well as promotion
Integrated Brand Promotion Tools and
Digital/Interactive Media: Personal
Selling
• Seems like a contradiction
• Digital/interactive communications
facilitate process
• Sales force can use email and social
network sites to communicate to
customers
• Firm can forward brand inquiries to
sales force
Using Social Media for Advertising/IBP
• Social media use by consumers is
huge and global
• Demographics are broader, more
diverse than expected
• Big firms having some success
• Does brand exposure at social
network sites build brand awareness
and affinity?
–This is multi-billion dollar question
Issues in Developing a Website
• Costs can be high
– $1 million to develop
– $4.9 million to launch
– $1 million/year to maintain
• Basic hardware and software is simple
• Small firms can use small-business
service firms at reasonable cost
• B-to-B brands use websites effectively too
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
Tracking Behavior of a sample of “Internet
families” and projecting behavior to larger
populations
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
Managing the Brand in an
Community
E-
• Social networks give consumers new
ways of communicating with each
other
• Users form online “communities”
• Dealing with brand communities is a
challenge and a huge opportunity in
a Web 3.0 world
Courtesy of Collabrio.com
Brands can be built in
E-Communities
Future of Digital/Interactive
Advertising and IBP
• Introduction of new technologies such as wireless
communication and web launched video/audio
are new opportunities
• Mergers and partnerships (Microsoft and
Yahoo!?)
• Merging traditional and new media with wireless
communication technology for “broadcast web”
• Potential of location based mobile marketing for
advertising and IBP campaigns (e.g. Foursquare)