14-1 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Chapter 14 Interactive marketing

14-2 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Learning objectives 1.To examine the development and evaluate the reasons for growth of the internet and interactive media. 2.To define the role and relationships of the internet and interactive media and apply them in an IMC program. 3.To compare the advantages and disadvantages of direct communication on the internet and interactive media. 4.To evaluate the effectiveness of communication through direct communication via the internet.

14-3 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell History and growth Interactive and social media marketing Measuring effectiveness Advantages and limitations Behavioural targeting Part of IMC internet Objectives Sales promotion Personal selling AdvertisingPR Direct marketing

14-4 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Be more kissable

14-5 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell A brief history of the internet 1969 ARPANET Launched in USA 1986 Commercial internet services permitted 1996 Google launched and soon becomes number one search engine in the West 2008 More than 65% of Australian households are connected to the internet 1991 First search engine, Archie, launched

14-6 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Growth of internet access (Australia) Source: Australian Bureau of Statistics, Household Use of Information Technology, Australia, 2008–09 (Catalogue ) Household Home Computer or internet Access

14-7 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Use of digital media Time spent with digital media Australia 57 7

14-8 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Social networking participation rates (New Zealand) Hours spent (per month) Time spent on social networking sites Source: ComScore, State of The internet with a Focus on New Zealand, July, 2011

14-9 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell The web as an IMC channel

14-10 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Modified hierarchy of effects model for the internet Attract Engage Retain Learn Relate

14-11 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Internet communications objectives Create awareness Create an image Generate interest Disseminate information Stimulate trial Create a strong brand Objectives

14-12 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Absolut drinks

14-13 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Business-to-business websites

14-14 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Huggies go well beyond providing information

14-15 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Sportsgirl offers multiple interaction opportunities

14-16 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Ebay offers personalisation and online community

14-17 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Integrating the internet into an IMC program Advertising Sales promotions Personal selling Public relations Direct marketing The internet site should be integrated with…

14-18 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell The marketer–customer interface

14-19 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Advertising on the internet Banners Sponsorships Pop-ups/unders Push technologies (webcasting) Push technologies (webcasting) Links Interstitials Internet advertising has a variety of forms: Paid search Contextual ads Rich media

14-20 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Standard internet advertising sizes Leaderboard (728X 90 pixels) Banner (468 X 90 pixels) Skyscraper (120 X 600 pixels) Rectangle (180 X 150 pixels) Button (125 X 125 pixels) Not to scale

14-21 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Types of rich media Webisodes A broad range of interactive digital media that exhibit dynamic motion, utilising advanced technologies such as videos streaming applets. Podcasting RSS Online commercials Blogs

14-22 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Marketing bloggers

14-23 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Sales promotion on the internet

14-24 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Personal selling on the internet Vastly increases potential reach Reduces high cost of personal calls Provides quick, easy information to prospects May be a source of leads May improve one-on- one communications May replace personal selling May enhance personal selling efforts May serve as a sales conference medium May help to enhance customer databases May stimulate trial of the goods or service

14-25 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Caterpillar provides information

14-26 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Public relations on the internet Press kits Popular PR applications Photographs Cross references to other sites or media News stories and press releases Support other activities (e.g. cause-related marketing) Support other activities (e.g. cause-related marketing)

14-27 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Public relations on the internet (cont.)

14-28 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Public relations on the internet (cont.)

14-29 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell History and growth Interactive and social media marketing Measuring effectiveness Advantages and limitations Behavioural targeting Part of IMC internet Objectives Sales promotion Personal selling AdvertisingPR Direct marketing

14-30 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Measures of effectiveness Internet-specific measures Surveys Cross-media optimisation studies (XMOS) Sales Recall/retention Tracking Traditional measures

14-31 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Measuring the internet

14-32 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Cross-media optimisation

14-33 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Measuring interactive media Traditional measures Recall and retention Surveys Sales Tracking

14-34 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Sources of audience measurement data Syndicated research (e.g. Roy Morgan) internet Advertising Bureau (IAB) Bureaux of statistics Internet service providers Nielsen Net Ratings Data sources

14-35 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell The internet and creative impact

14-36 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Internet advantages and disadvantages Target marketing Message tailoring Interactive capabilities Information access Sales potential Creativity Exposure/speed Advantages Disadvantages Complement to IMC Poor reach Irritation Annoyance Potential for deception Measurement problems Clutter Privacy

14-37 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Additional interactive media Interactive TV (ITV) Interactive TV (ITV) Wireless Kiosks Interactive CDs/DVDs Location-based technologies Interactive mobile phones Emerging interactive media

14-38 Copyright  2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell Summary and conclusions  As advertisers search for more engaging ways to interact with customers, new marketing applications for online and interactive technologies continue to emerge.  Interactive marketing communications are changing the interface between organisations and consumers.  Online communications must be integrated into the IMC program.  Advantages of the internet include its versatility, interactivity and its use in building customer relationships.  Interactive media present challenges for audience measurement.