The Internet and Interactive Media Utterz, MocoSpace, Twango, Moshand Interactive The Internet and Interactive Media Utterz, MocoSpace, Twango, Moshand Interactive 15 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Growth in Internet Advertising 2006 – Internet advertising exceeds $16.9 billion – 25 percent drop 2005 – Internet advertising at $10 billion 1994 – Advertisements on HotWired

Why the rapid adoption of the Internet?

The Web Site

Huggies Goes Beyond Providing Information

Hot Web Sites Facebook MySpace YouTube TMZ.com Disney.com Veoh Funny or DieDie Discovery.com

Internet Communications Objectives Objectives Create Create Awareness Create Create Awareness Create a Strong Brand Generate Generate Interest Generate Generate Interest Disseminate Disseminate Information Disseminate Disseminate Information CreateCreate an Image CreateCreate an Image Stimulate Trial Create Buzz Gain Consideration

Snapple Creates Interest

Using Web Sites to Build Image

Branding is Complicated Requires different strategies Requires a broad audience The costs are high Long-term investment Branding

E-Commerce May be primary or secondary objective Direct selling of goods and services through the Internet

E-Commerce TrendsTrends E-CommerceCommerce E-CommerceCommerce Both consumer and business-to-business Rapid growth rates likely to continue Fast growth in downloadable purchases

Ebay is a Popular E-Commerce Site

The Internet and IMC Advertising Sales Promotions Personal Selling Public Relations Direct Marketing The Internet site should be integrated with:

Advertising on the Internet (Part 1) Banners Sponsorships Pop-ups/ Pop-unders Push Technologies Links Interstitials Forms of Internet Advertising

Typical Banner Ads

Advertising on the Internet (Part 2) Paid Search Behavioral targeting Rich media Paid Search Behavioral targeting Rich media Contextual Ads Additional Forms Contextual Ads Additional Forms Forms of Internet Advertising Podcasting RSS feeds Blogs Podcasting RSS feeds Blogs Online commercials Video on demand Webisodes Online commercials Video on demand Webisodes

Rich Media Online Commercials Video on Demand Webisodes Other Forms A broad range of interactive digital media that exhibit dynamic motion, taking advantage of enhanced sensory features such as video, audio, and animation.

Additional Internet Advertising Forms Podcasting, RS syndication, Blogs

Sales Promotions on Web Sites

Personal Selling on the Internet Cross-selling Valuable source of leads Increases potential reach Reduces cost of personal calls May Replace Personal Selling May Enhance Personal Selling Efforts Prospects request sales calls Improves 1-on-1 relationships Primary source of information Stimulates trial

Public Relations on the Internet

Philanthropists on the Web

Direct Mail ( ) Direct Mail ( ) Direct Mail ( ) Often used by catalogers Tries to reach those w/specific needs Highly targeted Relies on lists Relies on lists

Internet Infomercials Program content similar to television, cable or satellite Infomercials Web provides for greater audience interaction

E-Commerce and Home Shopping

Measures of Effectiveness Internet-Specific MeasuresMeasures Internet-Specific MeasuresMeasures Surveys Cross-Media Optimization Studies (XMOS) Sales Recall/retention Tracking Traditional Measures

Sources of Measurement DataData Arbitron MRI and SMRB Audit Bureau of Circulation Internet Advertising Bureau (IAB) eMarketer Nielsen Net Ratings Jupiter MediaMetrics, Inc. Data Source

Internet Marketing Pros and Cons Target Marketing Message Tailoring Interactive Capabilities Information Access Sales Potential Creativity Exposure/Speed Advantages Complement to IMC

Internet Marketing Pros and Cons Measurement problems Annoyance Clutter Potential for deception Privacy Poor reach Irritation Disadvantages

Test Your Knowledge Interactive TV, interactive CD-ROMs, kiosks, and interactive phones: A) Are viewed by businesses as breeches of consumer rights to privacy B) Can be used as contributors to an IMC program C) Cannot be linked with traditional advertising media D) Replace the Internet in most IMC programs E) Are not viewed as viable elements within a well-designed IMC program

Additional Interactive Media Interactive TV Allows viewers to interact with the program and advertisingviewers Wireless Communications through satellite broadcast systems or cellular phones