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Presentation transcript:

© 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Chapter 17 Using Digital Interactive Media and Direct Mail Explores the important factors advertisers weigh when considering digital interactive media and direct mail

Objectives Discuss the opportunities and challenges of digital interactive media Explain the evolution of interactive media Debate the pros and cons of the Internet as an advertising medium Define the various kinds of Internet advertising Explain how Internet advertising is sold and how much it costs Enumerate the various types of direct-mail advertising Categorize the costs associated with direct- mail advertising Assess which kinds of mailing lists are best

Digital Interactive Media

Internet as a Medium Evolution of the Internet Commercial online services Internet Service Provider Web Browser World Wide Web Home pages Web pages Internet Search Engines Website addresses

The Internet Audience Who uses the Net? How people access the Net Narrowband Cable Modem Broadband DSL DirecPCWebTV

Exchanges perception, satisfaction Types of Internet Advertising Websites Banners and Buttons Web page Banner Button Rich media ad Interstitial Rich mail

Exchanges perception, satisfaction Types of Internet Advertising Websites Banners and Buttons Meta ad Sponsorships and added-value packages Search engine marketing

Exchanges perception, satisfaction Types of Internet Advertising Search engine marketing Spam Classified ads Customer retention and relationship management (CRM) advertising Viral marketing

Exchanges perception, satisfaction Types of Internet Advertising Search engine marketing Classified ads advertising Problems with the Internet as an advertising medium Using the Internet in IMC

Pros and Cons of Internet Advertising Pros Interactive Medium Enormous audience Immediate response Selective targeting Proximity to purchase In-depth information Rapidly growing industry Affluent market Reaches BTB users Advertorials Virtual storefront

Pros and Cons of Internet Advertising Cons Security and privacy Global marketing limits Untested medium Targeting costs Slow downloads

Exchanges perception, satisfaction Measuring the Internet Audience Seeking standardization Ad requestClick rate Promise of enhanced tracking Cookies

Exchanges perception, satisfaction Buying Time and Space on the Internet Pricing methods Keyword purchase Click-throughs Affiliate marketing programs

Exchanges perception, satisfaction Buying Time and Space on the Internet Pricing methods Cost of targeting Stretching out the dollars Ad networks

Exchanges perception, satisfaction Global Impact of the Internet Online ad spending: $71 billion

Exchanges perception, satisfaction Other Interactive Media CD-ROM Catalogs and magazines Kiosks Interactive TV

Direct Mail Advertising: The Addressable Medium Growth of direct mail Types of direct mail Sales letters Postcards Business reply mail Folders and brochures Broadsides Self-mailers Statement stuffers House organs Catalogs

Direct Mail Advertising: The Addressable Medium Growth of direct mail Types of direct mail Using direct mail in the media mix

Pros and Cons of Direct-Mail Advertising Pros Selectivity Coverage and reach Flexibility Control Personal Impact Exclusivity Response Testability

Pros and Cons of Direct-Mail Advertising Cons Selectivity problems Negative attitudes Environmental concerns High cost per exposure Delivery problems Lack of content support

Buying Direct Mail Advertising Acquiring direct-mail lists House lists Mail-response lists Compiled lists Production and handling Letter shop Distribution