The Internet and Interactive Media Chapter Fifteen The Internet and Interactive Media The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Growth in Advertising Expenditures on the Internet 1969 - ARPANET 1969 - ARPANET 1993 – World Wide Web 1993 – World Wide Web 1994 – Advertisements on HotWired 1994 – Advertisements on HotWired Relation to text This slide relates to material on pp. 469 of the text. Summary Overview This slide provides an overview of the brief history of the Internet. It began in 1969 through the connection of two computers: one at UCLA and the other at Stanford University. Today an estimated 68 percent of households in North America are connected. Use of this slide This slide can be used to discuss the rapid growth of the Internet and the dynamic influence it has had on society. 2005 – Internet advertising exceeds $10 billion © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The Rapid Adoption of the Internet Relation to text This slide relates to the material on page 469 and Figure 15-1 of the text. Summary Overview This slide shows U.S. online ad spending growth from 2001 to 2009. Reasons for this growth include consumers’ desire for information and information control, plus the ability to target customers effectively through the Net is attractive to marketers. Use of this slide This slide can be used to discuss other reasons why the Internet has experienced unprecedented growth, as well as reasons why there may be a slow down in growth in the coming years. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Godaddy.com Offers Affordable Web Presence Relation to text This slide relates to the material on pp. 469-471 of the text. Summary Overview This slide shows a commercial for Godaddy.com, using their own IMC to lead consumers to their web-hosting site. Use of this slide This slide can be used to discuss the changing role of the Internet in IMC. When major corporations first began to conduct business on the Internet, they put up websites primarily for informational purposes. Now any size business, with the help of sites such as Godaddy.com, can easily and affordably establish a robust web presence. *Click outside of the video screen to advance to the next slide © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The Website Web Design Issues Contact Contact Commerce Commerce Construction Construction Communication Relation to text This slide relates to material on pp. 470-471 and Exhibit 15-1 of the text. Summary Overview This slide summarizes factors that lead to an effective website: Contact Commerce Construction Communication Content Community Customization Use of slide This slide can be used to discuss the what is required to develop and maintain a successful website. To attract visitors to the site and have them return to it requires a combination of creativity, effective marketing, and continual updating of the site. Communication Content Content Community Customization Community © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Huggies Goes Well Beyond Providing Information Relation to text This slide relates to material on pp. 470-471 and Exhibit 15-2 of the text. Summary Overview This slide shows how Huggies goes well beyond providing information. The site has additional objectives, such as developing a long-term relationship with parents, establishing a brand image for the products, and supporting sales. The HUGGIES Baby Network provides expectant mothers with encouragement and ideas as to how to maintain a happy and healthy pregnancy. The site also provides information to be used once the baby has been born. Tips on how to create a nursery, games to play with the baby, and more information from experts are just part of this site. The site is designed to develop one-on-one relationships by offering very useful information, as well as product samples and more to anyone who sends in his or her name, address, and e-mail address. Use of this slide This slide can be used to demonstrate the effective use of the Internet in the IMC process. Huggies uses it web site to provide mothers with valuable information and build relationships and loyalty with their customers. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Internet Communications Objectives Create Awareness Create Awareness Stimulate Trial Generate Interest Generate Interest Objectives Relation to text This slide relates to material on pp. 473-475 of the text. Summary Overview This slide shows some of the possible communications objectives sought when using the Internet. These include: Creating awareness Generating interest Disseminating information Creating an image Creating a strong brand Stimulating trial Use of this slide This slide can be used to explain the use of the Internet for achieving communication objectives. The next three slides provide examples of various companies who have effectively used their websites to achieve these objectives. Create a Strong Brand Create a Strong Brand Disseminate Information Disseminate Information Create an Image Create an Image © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Snapple Uses the Internet to Create Interest Relation to text This slide relates to material on pp. 473-475 of the text. Summary Overview This slide shows how Snapple attempts to use the Web to generate interest in their site as well as in their product. Snapple, in its attempt to attract visitors and hold their interest, has created a fun site with many places to visit while learning about Snapple product. An information center, games, product information, sales items, and even an opportunity to personalize the site are all available. Use of this slide This slide can be used to explain the use of the Internet for achieving interest as a communications objective. The slide shows how Snapple uses its web site to help get consumers more interested in its products as well as to provide entertainment. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

A Website Used for Image Building Relation to text This slide relates to material on pp. 474-475 of the text. Summary Overview This slide shows the consumer website www.akademiks.com. This website is an excellent example of a website used for image building. Use of this slide This slide can be used to discuss that one of the difficulties traditional marketers have experienced is that of creating a brand image on the Internet. While some of these companies have been successful, others have not fared as well and have come to realize that branding and image-creating strategies must be specifically adapted to this medium. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Internet Sales Objectives- E-commerce The direct selling of goods and services through the Internet The direct selling of goods and services through the Internet May be primary or secondary objective Relation to text This slide relates to material on pp. 475 of the text. Summary Overview This slide demonstrates another use of the Internet, which is to use the medium for the direct sale of goods and services. E-Commerce has become an important part of the worldwide web, both on the consumer and business to business side. The slide notes that e-commerce refers to the direct selling of products and services on the web which may be a primary or secondary objective for a web site. Use of this slide This slide can be used to introduce the concept of e-commerce. Most students will be familiar with the concept, but may need to be reminded that it is part of the IMC program, and that it is possible that it may be either a primary or secondary objective. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

E-Commerce on the Web E-Commerce Rapid growth rates likely to continue Both consumer and business-to-business Fast growth in “downloadable” purchases Rapid growth rates likely to continue Relation to text This slide relates to material on p. 475 of the text. Summary Overview This slide shows some of the characteristics of e-commerce on the Internet. E-commerce continues to grow at a very fast pace. This growth comes from “downloadable” purchases—for example books, reports, maps, tickets, and other item. The strong growth of E-commerce is expected to continue, in both the business-to-business and consumer markets. Use of this slide When used with the previous slide, this slide provides additional insight into the e-commerce aspects of the Internet. Many companies are maintaining their “brick and mortar” stores and operations but are now selling through the Internet as well. Fast growth in “downloadable” purchases © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

ebay Is a Well Known E-Commerce Site Relation to text This slide relates to material on p. 475 and Exhibit 15-7 of the text. Summary Overview Perhaps one of the most well known and successful e-commerce sites on the Internet is that of ebay. Essentially an online auction, ebay allows users to both sell and purchase products and services. While many online e-commerce sites are extensions of the company’s brick and mortar store, ebay is an example of an e-commerce site only. Use of this slide This slide can be used to provide an example of an e-commerce site that students are probably already familiar with. Nevertheless, it serves as a reminder to the use of the web for selling and buying, and as an indication of the potential for success in this medium. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Integrating the Internet into an IMC Program Advertising Advertising Sales Promotions Sales Promotions The Internet site should be integrated with: Relation to text This slide relates to material on pp. 476-483 of the text. Summary Overview As part of the IMC program, the Internet will be used most effectively if integrated with other media. This slide demonstrates the other IMC tools with which the Internet should be coordinated including: Advertising Sales promotion Personal selling Public relations Direct marketing Use of this slide This slide can be used to discuss how the various IMC tools should be combined with the Internet to create a more effective IMC program. Research studies have shown that by integrating the Internet with other IMC components, overall communication is more effective. In addition, the ability to have visitors come to ones website may require effective use of other IMC program elements. The next nine slides will discuss and provide examples of the integration with these components. Personal Selling Personal Selling Public Relations Direct Marketing Public Relations © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Integrating the Internet – Advertising Part 1 Banners Banners Sponsorships Sponsorships Internet Advertising Has a Variety of Forms: Pop-ups/ Pop-unders Pop-ups/ Pop-unders Relation to text This slide relates to material on pp. 476-478 of the text. Summary Overview The slide shows the various forms of advertising that can be done on the Internet. These include: Banners—the most common form of ads that appear on web pages Sponsorships—when companies pay to sponsor part of the site, or to sponsor and provide content Pop-Ups/Pop-Unders—small windows that appear when one is accessing a site, or when one is leaving a site Interstitials—ads that appear on the screen while one is waiting for a site to download Push Technologies— technology which allows the website to “push” information to the potential customer rather than having to wait for them to find it Links—a link to a different site that provides related or similar information or materials Use of this slide This slide can be used to discuss the various forms of advertising that are available to the Internet advertiser. Links Interstitials Push Technologies Interstitials Push Technologies © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Typical Banner Ads Relation to text This slide relates to material on p. 476 and Exhibit 15-8 of the text, which discusses forms of advertising on the web. Summary Overview This slide shows examples of banner ads which encourage the viewer to click through for more information about the product. Banner ads are the most common form of advertising found on the Internet. Use of this slide This slide can be used to show one form of banner advertising. Unfortunately, banner ads have not been proven to be very effective with low scores on recall, and click-through rates reported. You may wish to engage students in a discussion of why they believe that banner ads are not very effective. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Integrating the Internet – Advertising Part 2 Paid Search Paid Search Behavioral Targeting Behavioral Targeting Internet Advertising Has a Variety of Forms: Contextual Ads Contextual Ads Relation to text This slide relates to material on pp. 476-478 of the text. Summary Overview The slide shows the various forms of advertising that can be done on the Internet. These include: Paid Search—the fastest growing form of advertising on the Internet Behavioral Targeting—based on advertisers’ targeting consumers according to their web-surfing behaviors Contextual Ads—ads based on the content of the website Rich Media—all content that is created in flash Additional Forms—as the Internet evolves, more and more ways to deliver advertising messages appear Use of this slide This slide can be used to discuss the various forms of advertising that are available to the Internet advertiser. Additional Forms Rich Media Rich Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Rich Media “A broad range of interactive digital media that exhibit dynamic motion, taking advantage of enhanced sensory features such as video, audio, and animation.” Online Commercials Video on Demand Video on Demand Online Commercials Webisodes Webisodes Relation to text This slide relates to material on p. 478 of the text. Summary Overview The increased penetration of broadband into households has increased the attention given to rich media. This slide defines rich media and lists several types. Use of this slide This slide can be used to discuss the various types of rich media. Other Forms © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Additional Internet Advertising Forms Latest Media Podcasting Blogs Really Simple Syndication (RSS) Podcasting Relation to text This slide relates to material on p. 479 of the text. Summary Overview This slide shows three additional ways to deliver advertising messages on the Internet: Podcasting – used to distribute radiolike files for downloading into iPods and other MP3 players RSS – specification that used XML to organize and format Web-based content in a standard way. Blogs – Web-based publication consisting primarily of periodic articles, normally presented in reverse chronological order. Use of this slide When used with the previous two slides, this slide provides additional insight into the various and evolving forms of Internet advertising. Really Simple Syndication (RSS) © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

National Association of Realtors Uses TV and the Internet Relation to text This slide relates to material on pp. 476-478 of the text. Summary Overview This commercial provides another example of the integration of advertising and the Internet. Unlike the previous slide, which showed an example of a banner advertisement on a site, this commercial shows how the NAR is using a different medium—TV—to drive potential customers to the website itself. The commercial demonstrates how integration works, as well as another way as to how advertising is used. Use of this slide This slide can be used to demonstrate how advertising and the Internet can be used together. Taken with the previous slide, it shows how advertisers use the web to provide information about their products, as well as how companies use advertising to drive viewers to their websites. *Click outside of the video screen to advance to the next slide © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Sales Promotions Are Common on Websites Relation to text This slide relates to material on pp. 479-481 of the text. Summary Overview This slide shows an example of how Yahoo incorporates sales promotion offers into its web site. The slide provides an example of the information discussed in the text regarding the use of sales promotions on the Internet. Use of this slide This slide can be used to provide an example of the use of sales promotion on an Internet site. Companies sometimes offer contests, sweepstakes, downloadable coupons and more to encourage visits to their sites, as well as to establish brand loyalty. The Yahoo site provides a good example of integration of sales promotion and the Internet. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Personal Selling on the Internet May Replace Personal Selling Reduces high cost of personal calls Vastly increases potential reach Reduces high cost of personal calls Vastly increases potential reach Relation to text This slide relates to material on page 481 of the text. Summary Overview This slide summarizes the various perspectives as to whether the Internet will replace personal selling as we now know it, or whether it will enhance personal selling efforts. The argument in favor of replacing notes that the Internet reduces the high cost of personal selling and vastly increases reach, and is, therefore, more effective and efficient than personal selling. The slide also lists numerous factors supporting the notion that the Internet will enhance selling efforts. These include: Provision of information to prospects A source of leads Enhancement of databases Stimulating trial Improving one-on- one communications Serving as a sales conference medium Use of this slide This slide can be used to provide a brief overview of the arguments as to whether the Internet will replace or enhance personal selling efforts. In a well-designed IMC program, the Internet and personal selling are designed to complement one another. May Enhance Personal Selling Efforts May be a source of leads Provides quick, easy, information to prospects Provides quick, easy, information to prospects May help to enhance customer data bases May help to enhance customer data bases May improve one-on-one communications May improve one-on-one communications May be a source of leads May stimulate trial of the goods or service May stimulate trial of the goods or service May serve as a sales conference medium © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Public Relations on the Internet Relation to text This slide relates to material on p. 482 of the text. Summary Overview This slide provides an example of how Chrysler uses its website for public relations efforts. Many companies now use their websites to provide information about the company, product and service information, news and events, and an archive of press releases. Use of this slide This slide can be used to provide a good example of a company using their website for public relations purposes. Students should be encouraged to visit various corporate web sites to see how they are used for public relations purposes. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Philanthropists on the Web Relation to text This slide relates to material on p. 482 of the text. Summary Overview This slide shows a webpage from Ben & Jerry’s, which uses its website to promote products and images as well as showcasing the causes it supports and champions such as global warming, peace, and social and environmental issues. Many philanthropic and nonprofit organizations have found the Internet to be a useful way to generate funds. Use of this slide This slide can be used to provide a good example of public relations on the Internet. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Direct Marketing and the Internet: Direct Mail (Email) Often used by catalogers Often used by catalogers Highly targeted Highly targeted Direct Mail (Email) Relation to text This slide relates to material on pp. 482-483 of the text. Summary Overview This slide shows the characteristics of conducting direct marketing on the Internet through the use of e-mail, including the fact that it is often used by catalogers, is highly targeted, relies heavily on lists and attempts to reach those with specific needs. Direct mail usage on the Internet continues to increase, and has recently fallen under attack as a result of significant increases in the use of SPAM or online junk mail. Like its traditional direct mail counterpart, critics of SPAM have attempted to enact legislation to prohibit or limit its use. Use of this slide This slide can be used to provide a brief overview of the characteristics of using email for direct marketing purposes. You might initiate a discussion of similarities and dissimilarities between traditional direct mail and the electronic version. Attempts to reach those with specific needs Relies on email lists Relies on email lists © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Infomercials on the World Wide Web Program content similar to television, cable or satellite Program content similar to television, cable or satellite Web provides for greater audience interaction Relation to text This slide relates to material on page 483 of the text. Summary Overview This slide shows some of the characteristics of another direct marketing tool that is now being used on the Internet, which is the infomercial. As the slide notes, infomercials are now beginning to appear on the Internet with program content similar to that of television. At the same time, due to its interactive capabilities, the web allows for greater audience interaction. Use of this slide This slide can be used show students how the Internet can also make use of other traditional forms of direct marketing. While not as common as email, the infomercial is gaining in popularity on the Internet. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Measures of Effectiveness Internet-Specific Measures Cross-Media Optimization Studies (XMOS) Traditional Measures Recall/retention Relation to text This slide relates to material on pp. 484-485 of the text. Summary Overview This slide summarizes some of the measures of effectiveness for Internet. These include: Internet-specific measures – include measures specific to the Internet and interactive industry XMOS – studies simultaneously measure online and offline advertising in the same campaign Traditional measures Recall and retention – used to measure whether viewers remember seeing ads Surveys – used to determine everything from site usage to attitudes Sales – prime indicator of effectiveness Tracking – companies offering tracking information such as brand awareness, ad recall, message association, and purchase intent Use of this slide This slide shows some of the ways marketers can attempt to measure the effectiveness of various aspects of their Internet strategy and consumers reactions to their web sites. Tracking Surveys Recall/retention Surveys Sales Sales © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Sources of Measurement Data Arbitron Arbitron Data Source MRI and SMRB MRI and SMRB Nielsen Net Ratings Audit Bureau of Circulation Internet Advertising Bureau (IAB) eMarketer Jupiter MediaMetrics, Inc. Audit Bureau of Circulation Internet Advertising Bureau (IAB) Relation to text This slide relates to material on pp. 485-486 of the text. Summary Overview This slide summarizes just a few of the many sources available for acquiring information about the Internet. The list provided is but a very small sampling of the numerous sources. It might also be noted that many of these are well known providers of traditional marketing information. Use of this slide This slide can be used to show companies that provide information and measurement data for the Internet. eMarketer Nielsen Net Ratings © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Additional Interactive Media Interactive TV—Allows the Viewer to Interact With the Television Program and Advertising Interactive TV—Allows the Viewer to Interact With the Television Program and Advertising Wireless—Communications to Users Through Satellite Broadcast Systems or Cellular Phone Systems Relation to text This slide relates to material on page 487-490 of the text. Summary Overview This slide notes that there are two additional interactive media available to the marketer for consideration for use in the IMC program. These include interactive TV and wireless. Interactive TV, or iTV, has been available for some time, but has not caught on as expected. Wireless, while new and relatively small in regard to media billings, is catching on quickly, and offers a variety of potential uses for the marketer. Use of this slide This slide can be used to remind students that two additional media are available in addition to the internet. Each of these offers potential to marketers for consideration with those offered by traditional media. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin