Transcript Document

Chapter 16
Media Planning:
Advertising and the
Internet
Role of the Internet in the
Advertising Process
• Early euphoria has peaked
• Internet will not replace all other
media
• Advertisers will discover ways to
use the Internet as a component
of integrated brand promotions
Chapter 16: Internet 2
The (R)evolution of the
Internet
• Connected consumer experiences
community, empowerment, liberation
• In 1994 advertisers began venturing
on the Internet
• At present:
– 400 million users
– Ad revenues of $8.2 billion
Chapter 16: Internet 3
Basic Components of the
Internet
• Electronic mail (e-mail)
– In 2000 more than 1.5 trillion emails sent from U.S.
• Internet relay chat (IRC)
• Usenet
• World Wide Web (WWW)
Chapter 16: Internet 4
Internet Media
• E-Mail
– Companies collect e-mail addresses
– Over 20,000 electronic mailing lists
• Usenet
• World Wide Web
Chapter 16: Internet 5
Search Engines: Surfing the
World Wide Web
• Four distinct styles of search engine:
– Hierarchical Search Engines
• All sites fit into categories
– Collection Search Engines
• Use “spiders,” automated programs that collect
information
– Concept Search Engines
• Search using concept rather than word
– Robot Search Engines
• “Bots” comb the web searching for information
Chapter 16: Internet 6
The “Portal”
1. A starting point for Web access and search and
channeling surfers to particular sites
2. Portals can be vertical—serving specialized
markets.
3. Portals can be horizontal—providing links
across many industries.
4. Portals also can be ethnic or community based.
Chapter 14: Media Planning 7
Advertising on the Internet
• Advantages:
– Target market
selectivity
– Tracking
– Deliverability and
flexibility
– Interactivity
– Cost
– Integration
Internet Advertising ($ millions)
9000
8000
7000
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5000
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3000
2000
1000
0
1995 1996 1997 1998 2000
Chapter 16: Internet 8
Who advertises on the
Internet?
• Top 10 Internet
Advertisers
–
–
–
–
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–
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General Motors
Bank One
AOL/Time Warner
Microsoft
IBM
Cendant
Hewlett-Packard
AT&T
CMGI
Top Advertisers on the Web
ranked by impressions
Top 10
Others
Chapter 16: Internet 9
Types of Advertising on the
Internet
• Banner ads
– Bulky box
• Pop-up ads
• Pop-under (new and annoying)
• E-mail communication
– Viral marketing
• Streaming video and audio
• Corporate home pages
• Virtual malls
Chapter 16: Internet 10
Issues in Establishing a Web
Site
• Costs can be high
– $1 million to develop
– $4.9 million to launch
– $1 million to maintain
• Make the site “sticky” through “rational
branding”
• Purchase keywords and a domain
name
Chapter 16: Internet 11
Establishing a Site on the
World Wide Web
• Get surfers to come back.
– Sites that attract repeat visits and keep
visitors for a long time are “sticky”
• Promote the site
– search engines, Yellow pages, electronic
mailing lists
• Address security and privacy issues
• Measure web site effectiveness
Chapter 16: Internet 12
Making the Site “Sticky”
• Incorporate engaging, interactive
features
– Weather, late breaking news, stock reports
– Online games or videos
• Practice rational branding
– Give visitors unique informational resources
that justify visiting the site
Chapter 16: Internet 13
Security and Privacy Issues
• Web users can download text, images,
and graphics from the Web
• No viable policing of this practice is
possible yet
• Consumers are worried companies will
use personal information
• DoubleClick
– Allows clients to track buying habits and
traffic patterns of web visitors
Chapter 16: Internet 14
Measuring Internet
Advertising Effectiveness
Term
Definition
Hits
Number of elements requested from a page
Pages
Number of pages sent to the requesting site
Visits
Occasions user “x” interacted with site “y”
after “z” time has elapsed
Users
Number of different people visiting a site
Log Analysis
Software
Allows for tracking of web site usage
Chapter 16: Internet 15
Measuring Internet
Advertising Effectiveness
• Technical aspects of the Internet
measurement problem
• The caching complication
• Internet measurement and
payment
Chapter 16: Internet 16
Managing the Brand
in an E-Community
• Consumers have new ways of
communicating with each other
• Some users form online communities
• Dealing with brand communities is a
challenge
Chapter 16: Internet 17
Future of Advertising and
the Internet
• Introduction of new technologies such
as wireless communication and video
• Mergers and partnerships
• Merging traditional and new media
• Developing a new advertising
revenue model
Chapter 16: Internet 18