Chapter Thirteen Alternative Offline Advertising Media and Mass Online Advertising

Chapter Thirteen Objectives Describe various alternative media Realize that these media are typically compliments rather than substitutes for traditional mass media Understand value of yellow page advertising

Chapter Thirteen Objectives Appreciate magnitude, nature and potential of internet advertising Understand how internet advertising differs from conventional mass-media advertising and how same fundamentals apply to both

Chapter Thirteen Objectives Recognize different forms of internet advertising. Appreciate importance of measuring internet advertising effectiveness and various metrics used Understand the value of targeting internet ad recipients and the web analytic procedures used to this end

Alternative Advertising Media Two Broad Groupings of Media Alternatives: Alternative Offline Mass Media Mass Online Ad Media

Alternative Offline Advertising Media Product Placements in Movies Videos for VCRs

Alternative Offline Advertising Media Virtual Signage at Sports Stadiums and Other Venues CD-Rom Advertising Yellow Page Advertising

Product Placement in Movies Evidence of effectiveness of such advertising is limited but growing Building Brand Awareness, as well as enhancing recall Peripheral Route of persuasion Little to lose and more to gain by using this form of advertising

Product Placement in Movies Capturing key visual and audio information about a brand and distributing this info to customers as videotapes Limited research to verify effectiveness of video advertising

Product Placement in Movies Firms in the industry maintain that it is more effective and less expensive than print brochures More entertaining and so more capable of capturing attention

Virtual Signage Some brand logos seen at sports venues on t.v. are virtual (i.e. computer generated image) Imagine Video Systems and Princeton Video Image charge about $20,000 for a half-inning of national baseball coverage

CD-ROM Advetising Increasing use of medium to present consumers and B2B customers with detailed product information Automobiles and Vacation spots B2B marketing Retailers are using CD-ROMs to advertise products

Additional Alternative Media Creative Advertisers have virtually unlimited sources to convey messages The Fruit Label Co. has used vegetables and fruits to carry ads for movies Levi’s advertises 501 jeans on the back of comic books

Car Advertising

Post-it Advertising

Yellow Page Ads Yellow Pages is an advertising medium that consumers turn to when seeking a product or service and are prepared to make a purchase Annual revenues of $14 billion. Both local and national advertisers use the service Young. Professional and educated demographic

Yellow Page Ads Reasons for using Yellow Pages: Saving time spent shopping around for information Saving energy and money Finding information quickly Learning about products and services 60% of American Adults use yellow pages at least once

Yellow Page Ads Yellow pages differ from other ad media: Unlike other media, yellow pages costumers actively seek ads Advertiser largely determines quality of ad placement by the actions it takes

Yellow Page Ads Yellow pages differ from other ad media: Clear-cut limits on possible creative executions Method of purchase (i.e. purchased for full year).

Mass Online Advertising Internet not replacement but key element of IMC programs 60% of U.S. households have internet access By 2005, online spending will represent 8% of overall advertising and amount to $16.5 billion

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.

Internet Advertising Formats Websites Users seek out web sites in a goal- oriented fashion Movie web sites play prominent role in predicting box-office performance “Form follows function”

Internet Advertising Formats Banner Ads Equivalent of 30-second T.V. ads Who pays attention? Nielsen/NetRatings: Average click rate of 2001 was 0.49% Exposure not equivalent to attention

Internet Advertising Formats Pop-ups Ads that appear in a separate window out of nowhere

Internet Advertising Formats Interstitials/Superstitials Interstitials: Ads that appear between two content pages Superstitials: Short animated ads that play over web page

Internet Advertising Formats Site Sponsorships Advertiser is a partial or exclusive sponsor of a Web site and benefits from the visitations to the site Ex. IBM paid $1 Million to be sole sponsor of National Football League’s

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 or site visitations?

The Tools of Internet Audience Measurement Log file analysis Surveys of sample users using recall measurement Electronic measurement of a sample of internet users

Log File Analysis Examining server log files Tracks machines Provides no information about the people who request particular files

Surveys Using survey methods to obtain information about consumers’ Web-site usage activities along with demographic & psychographic characteristics

Surveys Problems: Memories are fallible People overstate their usage of popular Web sites and understate usage of less-popular sites People often provide responses that put themselves in positive light

Electronic Media Matrix & Nielsen Media Research Software tracking meters

The Metrics of Internet Advertising Click-through rates Cost-per-thousand impressions (CPM) Cost-per-thousand actions (CPA)

The Metrics of Internet Advertising Click-through rates The % of people who are exposed to a banner ad who actually click their mouse on the ad. Banner ads can have effect without a click-through needed.

The Metrics of Internet Advertising Click-through rates The % of people who are exposed to a banner ad who actually click their mouse on the ad. Banner ads can have effect without a click-through needed.

The Metrics of Internet Advertising CPM How much it costs to place an ad on a particular Web site. “Opportunity to see”

The Metrics of Internet Advertising CPA Number of users who: Actually click on a banner ad, Visit a brand’s Web site, Register their names on the brands Web site, Actually purchase (electronically) the advertised brand.