Session 5: Eadvertising Session 5: Eadvertising

Key Terms Ad views Ad views Button Button Page Page Click Click CPM CPM Conversion rate Conversion rate Hit Hit Visit Visit Unit Visit Unit Visit Stickiness Stickiness

Advertising Banner Swap and Exchange Banner Swap and Exchange Pop up ad(ad spwaning) Pop up ad(ad spwaning) Pop under ad Pop under ad Interestitials Interestitials Advertising Advertising Search Engine Advertisements Search Engine Advertisements Advertisement in chat rooms Advertisement in chat rooms Permission advertising Permission advertising

Why Internet Ad Television : 36% Television : 36% Newspapers: 33% Newspapers: 33% Magazines: 13% Magazines: 13% Radio: 10% Radio: 10% Internet Advertising: 8% Internet Advertising: 8%

Why Internet Ad Users spend more time on internet Users spend more time on internet Heavy usage of internet enabled cell phones Heavy usage of internet enabled cell phones Cost Cost Richness of format Richness of format Personalization Personalization Timeliness Timeliness Location-basis Location-basis Digital branding Digital branding

Why Internet Ad Works 24 hours a day Works 24 hours a day Offers 2 way communication Offers 2 way communication Unlimited access Unlimited access Interactive advertising Interactive advertising Supports current marketing efforts Supports current marketing efforts

Current Users As per a Lintas media report, Internet advertising in India is Rs 215 crores ( a 43% Y-o-Y growth) * Possibility of the market growing to Rs 2500 crores by 2011 * Current mobile advertising in India is Rs 40 crores, expected to grow to Rs 500 crores by 2011 As per a Lintas media report, Internet advertising in India is Rs 215 crores ( a 43% Y-o-Y growth) * Possibility of the market growing to Rs 2500 crores by 2011 * Current mobile advertising in India is Rs 40 crores, expected to grow to Rs 500 crores by 2011

Technology Update (It took this many years to reach 50 million users) Radio - 38 years Radio - 38 years Television - 13 years Television - 13 years Internet - 4 years Internet - 4 years

Promoting Your Homepage

Why Do You Need Promotion? Just because you build it, doesn’t mean they will come. Just because you build it, doesn’t mean they will come. You are competing against not only your market area, but the entire world. You are competing against not only your market area, but the entire world. Your current & future customers need to be able to find you. Your current & future customers need to be able to find you.

HOW? List homepage address on all current advertising. List homepage address on all current advertising. On all publicity On all publicity newslettersnewsletters letterheadletterhead business cardsbusiness cards billing statementsbilling statements fax cover sheetsfax cover sheets Register with search engines. Register with search engines. Link to other sites and your association sites. Link to other sites and your association sites. Advertise on the web. Advertise on the web.

Link to? Your trade associations Your trade associations Suppliers Suppliers Customers Customers Complementary products Complementary products

Advertising on the Web To build awareness To build awareness Develop prospects Develop prospects Meet customer needs Meet customer needs Generate orders Generate orders Build customer relations Build customer relations Test market Test market

Good Internet Advertising Includes: Clear message and identification on 1st page. Clear message and identification on 1st page. Facilitates easy access to further information. Facilitates easy access to further information. The advertisement downloads quickly. The advertisement downloads quickly. Provides the right information. Provides the right information. Product description, payment options, and contact information.Product description, payment options, and contact information.

Common Search Engines ALTA VISTA AOL SEARCH ASK JEEVES DOGPILE EBAY EXCITE GIGABLAST GOOGLE IWON JOEANT LYCOS MAMMA MSN NETSCAPE OPEN DIRECTORY WEBCRAWLER WIKIPEDIA YAHOO ALTA VISTA AOL SEARCH ASK JEEVES DOGPILE EBAY EXCITE GIGABLAST GOOGLE IWON JOEANT LYCOS MAMMA MSN NETSCAPE OPEN DIRECTORY WEBCRAWLER WIKIPEDIA YAHOO ALTA VISTA AOL SEARCH ASK JEEVES DOGPILE EBAY EXCITE GIGABLAST GOOGLE IWON JOEANT LYCOS MAMMA MSN NETSCAPE OPEN DIRECTORY WEBCRAWLER WIKIPEDIA YAHOO ALTA VISTA AOL SEARCH ASK JEEVES DOGPILE EBAY EXCITE GIGABLAST GOOGLE IWON JOEANT LYCOS MAMMA MSN NETSCAPE OPEN DIRECTORY WEBCRAWLER WIKIPEDIA YAHOO

Advertising Expenditure by Type (2009) Why is Internet Advertising still so small?

Myth #1: Internet Advertising Market is still small because the number of users on Internet is <5% of population

Internet needs to monetize better No. of Users (MM) Ad Revenue (INR Crores)

Myth #2: Advertisers allocate resources based on quantitative logic

A leading auto manufacturer in India, stated that over 80% of their consumers & prospective consumers are online. Yet, less than 3% of their budget is invested online! What’s worse, that online budget is primarily to purchase INR 150 per Test Drive form filled up (for a 15Lac car) ! Advertisers haven’t seen basic rationale for advertising online

Myth #3: We can test the waters with Internet Advertising with small budgets

Can we test the effectiveness of Radio medium with 5 lacs? Can we put up 2 billboards in a city and test whether outdoor works or not? Every medium needs a minimum threshold level before an advertiser can evaluate

Myth #4: Effectiveness of Creative Strategy is the responsibility of the advertiser

Publishers & Agencies must invest much higher quality resources to build powerful campaigns online. Advertisers must remunerate agencies in a fair manner to encourage such investments

Myth #5: Advertisers judge the effectiveness of advertising based primarily on data. Internet has an advantage because it is a measurable medium

TV Advertising Works!

Print Advertising Works!

Outdoor Advertising Works!

Does Internet Advertising Work? Can we prove it without any numbers? Can we recall any memorable online campaigns? Is there any consumer brand that is widely recognized as “built by the Internet medium”?

Sum Up Internet Medium is large enough today Internet Medium is large enough today We must demonstrate the ability to build brands online and not just deliver clicks and leads, if the big bucks have to come online We must demonstrate the ability to build brands online and not just deliver clicks and leads, if the big bucks have to come online

Interactive Media Communication systems that permit two-way communication Communication systems that permit two-way communication Believed to be the most persuasive type of communication available to marketers Believed to be the most persuasive type of communication available to marketers Not limited to the Internet – also includes telephone and Not limited to the Internet – also includes telephone and

Internet Advertising Primary Purposes Provide a brand reminder message Provide a brand reminder message Deliver informational or persuasive message Deliver informational or persuasive message Drive traffic Drive traffic Types of Internet Ads Banner ads Banner ads Skyscrapers Skyscrapers Pop-ups/Pop- behinds Pop-ups/Pop- behinds Minisites Minisites Superstitials Superstitials Rich media Rich media Streaming video Streaming video

The Internet The Internet Audience The Internet is the leading tool for information searching by all ages The Internet is the leading tool for information searching by all ages Teens spend more time online than any other age group Teens spend more time online than any other age group Measuring Audiences Hits Hits The number of times a particular site is visited Click-through Click-through The number of people who click on a banner ad

Internet Advertising Advantages Relatively inexpensive Relatively inexpensive Can also deliver business Can also deliver business Advertisers can customize and personalize messages Advertisers can customize and personalize messages Can provide sales leads or actual sales Can provide sales leads or actual salesDisadvantages Inability of experts to consistently produce effective ads and to measure their effectiveness Inability of experts to consistently produce effective ads and to measure their effectiveness Clutter may even be worse than in other media Clutter may even be worse than in other media

The Web in International Advertising Not everyone around the globe has the access or ability to use the Internet Not everyone around the globe has the access or ability to use the Internet Advertising and sales promotion laws differ from country to country Advertising and sales promotion laws differ from country to country Language barriers Language barriers Exchange rates Exchange rates Technological differences among worldwide Internet audiences Technological differences among worldwide Internet audiences

Advertising Spam Spam Unsolicited messages sent to e- mail in-boxesUnsolicited messages sent to e- mail in-boxes Opt-in Opt-in Bulk ers have to get permission to sendBulk ers have to get permission to send Opt-out Opt-out ers have to have an option to say no to further e- mails Viral Marketing Viral Marketing Uses to circulate a message among family and friends

Alternative and New Media Advertainment When companies integrate brands into the content of shows When companies integrate brands into the content of shows Also called branded entertainment Also called branded entertainment Situational ads Situational ads Harder for the viewer to dismiss as adsHarder for the viewer to dismiss as ads Product is a character in the programProduct is a character in the program New Internet Practices Brand experiences on the Web Brand experiences on the Web Companies making their Web sites more engaging and entertaining Webisodes Webisodes Recurring episodes in a developing story Blends advertising and entertainment to attract audiences

Alternative and New Media Video Games Opportunities to create online games as well as place products within video games Opportunities to create online games as well as place products within video games Planners and buyers are asking for standardized independent data that prove effectiveness Planners and buyers are asking for standardized independent data that prove effectiveness Wireless Communication Links the common phone to a computer Links the common phone to a computer The most important change in communication systems in the new millennium The most important change in communication systems in the new millennium

Alternative and New Media Nonelectronic New Media Ads appearing in unexpected new places Ads appearing in unexpected new places Guerrilla Marketing Unconventional marketing communication activities Unconventional marketing communication activities Intended to get a buzz on a limited budget Intended to get a buzz on a limited budget

NEWEST NEW MEDIA SMS JOB TO

Please Call Mobile Anything Except NEW MEDIA 移动 الجوال मोबाइल mobilní 移动 الجوال मोबाइल mobilní Κινητό סלולרי モバイル Κινητό סלולרי モバイル 모바일 мобільний 모바일 мобільний

NEW MEDIA is a 4 letter word Internet was LABLED new media 10 years ago & see where that got it! Internet was LABLED new media 10 years ago & see where that got it! Active Users : 47 million Active Users : 47 million Average Cost Per Thousand : Rs 150 Average Cost Per Thousand : Rs 150 Total Internet Advertising : 600 cr Total Internet Advertising : 600 cr Times of India Newspaper Times of India Newspaper Total Readership: 6.7 million Total Readership: 6.7 million Average Cost Per Thousand : Rs 289 Average Cost Per Thousand : Rs 289 Total Advertising: Rs XYZ (definitely more than online industry) Total Advertising: Rs XYZ (definitely more than online industry)

Can we call it just MEDIA? 移动 الجوال मोबाइल mobilní 移动 الجوال मोबाइल mobilní Κινητό סלולרי モバイル Κινητό סלולרי モバイル 모바일 мобільний 모바일 мобільний

Mobile is a complex ecosystem The operators sits on the most valuable and granular User Data The operators sits on the most valuable and granular User Data Focus on VAS ie. Ring back tunes, caller tunes, game downloadsFocus on VAS ie. Ring back tunes, caller tunes, game downloads Advertising potential not strong enough to excite operatorsAdvertising potential not strong enough to excite operators The device manufacturer The device manufacturer Increasingly open to bundle Applications / Games onto the handsetIncreasingly open to bundle Applications / Games onto the handset Tough to gauge LTV of such an initiativeTough to gauge LTV of such an initiative

Did we forget the Customer? The Customer has found the ultimate Swiss Knife The Customer has found the ultimate Swiss Knife Watch + Alarm clockWatch + Alarm clock Portable Media PlayerPortable Media Player Internet BrowserInternet Browser Ticket substituteTicket substitute Gaming deviceGaming device Search deviceSearch device Camera + Photo albumCamera + Photo album Pen drivePen drive GPS + MapGPS + Map Cricket / Stock UpdatesCricket / Stock Updates

Leveraging the Swiss Knife for Marketing 移动 الجوال मोबाइल mobilní 移动 الجوال मोबाइल mobilní Κινητό סלולרי モバイル Κινητό סלולרי モバイル 모바일 мобільний 모바일 мобільний

Four Broad Approaches SMS Mobile Internet ApplicationsVoice

SMS Huge volume of SMS Alert Footer inventory is available Huge volume of SMS Alert Footer inventory is available Supply outstrips demand Supply outstrips demand

Typical Proposals T ake part in a short quiz for a chance to win a scholarship for your child. Reply YES Q1. What is the current cost of college education Reply EDU Q2. How many years before your child goes to college Reply TIME Q3. What is the average cost of an MBA today Reply MBA Q4. What is the best city for higher education in India Reply CITY Thank you for participating. To allow a manager to speak to you Reply OK

Common Sense SMS Marketing User customized SMS Chasers based on details in the SMS alert User customized SMS Chasers based on details in the SMS alert Account Bal in A/c xxxxx137 is Rs 100,000 on 8 th Oct 2008 SMS Alert Best interest rates on FD 10.5 % for 400 days. For more details visit nearest branch SMS Chaser

Press Ads with special offer Integrated Short code configured with Keyword INTEL A Lead captured & routed to dealer of relevant city for follow up & closure Offline Media Mix Evaluation By Using Mobile Responses As An Indicator

Mobile Internet

Over 2 billion monthly Banner impressions available Over 2 billion monthly Banner impressions available Think as Online with greater focus on customer relevance Think as Online with greater focus on customer relevance Keep focus on smaller formats & crisp messaging Keep focus on smaller formats & crisp messaging Crystal gazing – mobiles will have browsers rendering normal web HTML pages Crystal gazing – mobiles will have browsers rendering normal web HTML pages

Examples- Dell & ICICI Lombard HomepageDownload Page

Google Mobile Search Specify where to direct user traffic: Mobile Site (CLICK) Call Center Number (CALL) Both [Ad] Home Finance – Approved Projects – XYZbank.com – Call: Generate Calls to Client Call Center Via Advertising On Google Mobile

Reaching HNI / Business Users Surrogate Targeting Surrogate Targeting Handset model targeting on WAP Banners Handset model targeting on WAP Banners Business UsersBusiness Users Blackberry / E Series NokiaBlackberry / E Series Nokia Cost Per Click pricing Cost Per Click pricing

Applications – Mature in 2011 Marketer applications Marketer applications Store LocatorsStore Locators CataloguesCatalogues Mobile GamesMobile Games It will take 3G rollout for this space to mature out It will take 3G rollout for this space to mature out

Mobile Advergaming Mobile game created for Colgate MaxFresh Mobile game created for Colgate MaxFresh Promoted through website and WAP campaign. Promoted through website and WAP campaign. Promoted both online and through SMS push Promoted both online and through SMS push

VOICE

How LOUD will Voice get? Voice is currently the most underutilized for Mobile Marketing Voice is currently the most underutilized for Mobile Marketing IVR – yet to be monetized IVR – yet to be monetized Click2Call- suits our call center culture Click2Call- suits our call center culture Tech glitches will iron themselves outTech glitches will iron themselves out Players like Just-dial Players like Just-dial (IVR+ Listings+ SMS)(IVR+ Listings+ SMS) Model not evolved significantly even Globally Model not evolved significantly even Globally

Some Quasi Mobile Options Already Mature SMS as a response mechanism as mature as Toll Free usage SMS as a response mechanism as mature as Toll Free usage CRM system alerts for customers eg. Premium Due / Flight Status CRM system alerts for customers eg. Premium Due / Flight Status SMS Short Code, Coupons & Loyalty points on Packaged Goods (about halfway there) SMS Short Code, Coupons & Loyalty points on Packaged Goods (about halfway there)

Parting Thoughts The question is not “if” but “when” Mobile will become the most important vehicle in your media mix in marketing we talk about offering a "value proposition" on mobile we need to start thinking about the "value obligation." You are on my phone. Tell me why.

Thank You