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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 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 4 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 5 INTERNET SHARE AD $ CONTINUES UP evision/carat-modest-ad-growth-to- return-in /

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 6 ALSO IN US

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 7 SEARCH LEADS WAY; DISPLAY FLAT

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 8 SPONSORSHIPS, CLASSIFIEDS DOWN

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 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 11 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 12 BUILDING INTERNET BRANDS

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 13 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 14 BRAND DEVELOPMENT Awareness Familiarity Positive Imagery Completed Transaction Figure 6-4

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 15 WHAT IS A BRAND? NOT a Logo Brand is the Carrier of What Your Product Stands for  Promises, Expectations, Experiences  Capabilities, Strengths, Attributes  Position in the Competitive Environment Adapted from: Pixels with a Purpose, Sametz Blackstone Associates

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 16 IS BASED ON CORP./PROD. MISSION/VISION

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 17 BRAND IS IN EYE OF BEHOLDER! YOUR TARGET MARKET

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 18 BRAND SPENDING/EFFECTIVENESS SEPTEMBER 25, 2009

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 19 INTERACTIVE SITE APPEALS TO YOUNG ADULT MALES Figure 6-5

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 20 FILMS, COMICS REINFORCE BRAND Figure 6-6

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 21 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 22 A BETTER MODEL FOR WEB 2.0?

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 23 CUSTOMER ACQUISITION TECHNIQUES ON-LINE ADVERTISING

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 24 CUSTOMER ACQUISITION TECHNIQUES OUT OF HOME MEDIA

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 25 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 26 ONLINE ADVERTISING MAINSTREAM; FORECASTS LOWERED INCLUDES SEARCH modest-ad-growth-to-return-in /carat-global- breakdown-forecast-yoy-growth-current-prices- october-2009jpg/

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 27 WHAT KIND OF ONLINE ADS DO YOU SEE? Do You Watch Them Completely? Click Through?

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 28 80/20 RULE AGAIN!

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 29 ONLINE ADVERTISING FORMATS

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 30 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 31 CONSUMERS DO CLICK

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 32 SIZE AND PLACEMENT Research released by Dynamic Logic reveals that ads integrated into the content of the page are the most effective in driving online ad awareness and purchase intent. Based on 2,390 online display campaigns that took place over the past three years, the study found that half banners and rectangles were more effective than ads that frame the page such as leaderboards and skyscrapers.

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 33 WHAT IS AD SERVING?

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 34 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 35 PUBMATIC OPTIMIZATION MODEL

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 36 DISPLAY AD CPM HARD TO FIND

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 37 AD TARGETING Contextual Advertising Behavioral Advertising

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 38 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 39 CLICKED ‘iPOD’ THEN BACK TO HOME

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 40 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 41 SEARCHING ‘INTEGRATED MARKETING MEDIA’

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 42 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 43 BEHAVIORAL NETWORKS

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 44 OUT-OF-HOME ADVERTISING

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 45 OUT OF HOME VIDEO

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 46 OUT-OF-HOME NETWORKS

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 47 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 48 NEW EDELMAN TRUST BAROMETER t_Barometer_Executive_Summary_FINAL.pdf

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 49 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 50 A WEB 2.0 TRUST FRAMEWORK

Internet Marketing: Integrating Online and Offline StrategiesCopyright 2008 Atomic Dog/Thomson Publishing 51 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