Internet Advertising

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.

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 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 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.

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.

The Special Case of Wireless E-mail 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 three-quarters 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.

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 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 (OTS-opportunity 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