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INTERNET MARKETING : INTEGRATING ONLINE AND OFFLINE STRATEGIES Chapter 6 Customer Acquisition: Branding and Advertising

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 3 BRANDING WEBCAST Lack Time to Cover Web 2.0 Approach to Branding Encourage Watching Webcast   for-summit-presentation /

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 4 CUSTOMER ACQUISITION ON THE NET Management Requirement for ROI Power of Integrated Communications Power of Internet as Branding Medium Customer Control of Media Environment Power of Internet to Influence Purchases

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 5 ANOTHER SEISMIC SHIFT - UGC marketing.blogspot.com/2008/07/growing- importance-of-cocreation.html Online Media Connection-Seeking ‘Power Moms’ Twice as Likely to Give Online Advice Marketing Charts, Oct. 17

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 6 UPHEAVAL IN CONSUMER MEDIA What Are Some of the Changes in Consumer Media? COVERED LAST WEEK

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 7 ATTITUDES TOWARD MEDIA

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 8 CONSUMER MEDIA USE-2 VIEWS

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 9 STRATEGY RECOMMENDATION The Large and Increasing Number of Media Formats Makes It Increasingly Important To Successfully Integrate Multiple Media in Marketing Programs.

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 10 INTEGRATED NEWSPAPER AUDIENCE- NEW DATA Scarborough found that newspaper website audience is growing and is compensating for some of the declines in print readership. The special analysis, which examined data collected August 2004-March 2007 for 88 newspapers in the top 50 local markets, found that newspaper website audience coverage has grown 14 percent– from 6.4 percent for the 12 months ending September 2005, to 7.3 percent for the 12 months ending March Overall, the increase in website audience is mitigating print audience losses by 28 percent. /

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 11 IMPACT OF INTEGRATED MEDIA Other key findings: TV advertising performs the strongest for generating brand awareness. When used in combination with TV, magazine and online each build on the initial awareness impact of TV. Over these 32 multimedia campaigns, magazines' incremental awareness added nearly as much to the total as TV. Both magazine and online advertising generate significant lifts when used in conjunction with TV. TV and magazine advertising produced greater incremental brand and ad awareness gains than online advertising. Incremental contributions from magazine advertising are strongest for brand favorability and purchase intent. They about double the average persuasion contribution of TV and online combined. Online is a booster on all key awareness and persuasion metrics

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 12 FROM THE OCTOBER 2007 STUDY Other key findings: TV advertising performs the strongest for generating brand awareness. When used in combination with TV, magazine and online each build on the initial awareness impact of TV. Over these 32 multimedia campaigns, magazines' incremental awareness added nearly as much to the total as TV. Both magazine and online advertising generate significant lifts when used in conjunction with TV. TV and magazine advertising produced greater incremental brand and ad awareness gains than online advertising. Incremental contributions from magazine advertising are strongest for brand favorability and purchase intent. They about double the average persuasion contribution of TV and online combined. Online is a booster on all key awareness and persuasion metrics

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 13 INTEGRATED MARKETING COMMUNICATIONS USING A VARIETY OF ON- &OFF-LINE MEDIA CAREFULLY SELECTED CLOSELY COORDINATED PROVIDE GREATEST BRAND IMPACT

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 14 BUILDING INTERNET BRANDS

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 15 Brand Awareness Brand Recognition Brand Recall Brand Image Favorability Strength Uniqueness BRAND AWARENESS > BRAND EQUITY

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 16 BRAND DEVELOPMENT Awareness Familiarity Positive Imagery Completed Transaction Figure 6-4

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 17 INTERACTIVE SITE APPEALS TO YOUNG ADULT MALES Figure 6-5

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 18 FILMS, COMICS REINFORCE BRAND Figure 6-6

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 19 INTERACTIVE BRANDING TOOLS Personalization Co-Creation of Content Purchase-Process Streamlining Customization Dynamic-Pricing Brand Community

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 20 A BETTER MODEL FOR WEB 2.0?

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 21 CUSTOMER ACQUISITION TECHNIQUES ON-LINE ADVERTISING

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 22 CUSTOMER ACQUISITION TECHNIQUES OUT OF HOME MEDIA

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 23 THE GOAL IS TO ACQUIRE NEW CUSTOMERS THAT CAN BE MADE INCREASINGLY PROFITABLE OVER TIME.

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 24 ONLINE ADVERTISING MAINSTREAM; FORECASTS LOWERED INCLUDES SEARCH show-only-4-growth-in-2008-and /

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 25 WHAT KIND OF ONLINE ADS DO YOU SEE? Do You Watch Them Completely? Click Through? The study illustrates that heavy clickers represent just 6% of the online population yet account for 50% of all display ad clicks. While many online media companies use click-through rate as an ad negotiation currency, the study shows that heavy clickers are not representative of the general public.. Tacoda press release Feb 12, 2008

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 26 ONLINE ADVERTISING FORMATS

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 27 IAB RESEARCH Different ad types have varying effects on brand metrics but bigger is usually better and may be more cost effective. Animation improves brand metrics and lifts purchase intent when compared to standard banners. Rich media also outperforms static banners. Video improves brand metrics and lifts purchase intent when compared to standard banners. Audio improves “hard to move” brand metrics when done in an appropriate environment.

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 28 CONSUMERS DO CLICK

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 29 WHAT IS AD SERVING?

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 30 IAB DEFINES AD SERVING The delivery of ads by a server to an end user's computer on which the ads are then displayed by a browser and/or cached. Ad serving is normally performed either by a Web publisher, or by a third-party ad server. Ads can be embedded in the page or served separately.

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 31 AD TARGETING Contextual Advertising Behavioral Advertising

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 32 CONTEXTUAL ADVERTISING Ads Are Served Based on Page Content Such as Keywords and the URL.

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 33 CONTEXTUAL GOOGLE, OF COURSE AMAZON CONTEXTUAL LINKS program.amazon.com/gp/associates/join/links.html/ref=amb_link_ _3/ ?pf_rd_m=ATVPDKIKX0DER&pf_rd_s=assoc-center- 1&pf_rd_r=&pf_rd_t=501&pf_rd_p=&pf_rd_i=assoc_join_menu

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 34 BEHAVIORAL ADVERTISING The Ability, Through Anonymous Data, To Deliver Ads to Consumers Based on Their Recent Behavior; The Web Pages They Viewed Keywords They Typed Into a Search Engine, Or Products and Services They Shopped for Online Or A Combination of All Three. Source: eMarketer

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 35 IAB DEFINES AD NETWORKS An aggregator or broker of advertising inventory for many sites. Ad networks are the sales representatives for the Web sites within the network.

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 36 BEHAVIORAL NETWORKS

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 37 BROWSER-BASED APPROACH

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 38 OUT-OF-HOME ADVERTISING

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 39 OUT-OF-HOME NETWORKS

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 40 DO USERS TRUST INTERNET CONTENT, INCLUDING ADS? What Can They Do if They Do Not?

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 41 NEW EDELMAN TRUST BAROMETER Act Based on Trust in Companies Downloads page

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 42 INTERNET USER ACTIONS 81% Have Stopped Opening Suspect Attachments 48% Have Stopped Visiting Particular Websites 18% Have Changed Web Browers Source: Pew Internet and American Life Project, 2005.

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 43 A WEB 2.0 TRUST FRAMEWORK

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 44 SUMMARY Continued Customer Acquisition Essential Retention Less Expensive Than Acquisition(Ch 8) Use Multiple Acquisition Techniques  Online And Offline Branding On The Internet  Create New Brands  Support/Strengthen Existing Brands  Online and Offline Techniques Differentially Effective Online Advertising  Formats—Rich/Streaming/Video Media  Targeted—Contextual, Behavioral Consumers Can Take Action Against Ads Branding Webcast