Chapter Fifteen Employing the Internet for Advertising

Mass Online Advertising Internet not replacement but key element of IMC programs Zero-sum game between media At least 60% of U.S. households have Internet access at home

The 2 I’s of the Internet Individualization: Interactivity:

Interactivity as a Disadvantage »Internet users are often highly involved and goal driven (“leaning forward”), making them: »Traditional media users are more casually involved (”leaning back”), making them:

Internet Advertising Formats Web Sites Display or Banner Ads Rich Media Formats Pop-Ups Interstitials Superstitials Video Ads Web Logs Blogs Podcasts Social Networks Opt-in Versus Spam E-zines Wireless Advertising Mobile Phones & Txt Messaging Search Engine Advertising Keyword-Matching Advertising Content-Targeted Advertising Advertising via Behavioral Targeting

Web Sites Uses for Web Sites Well-Designed Web Sites:

Banner Ads »Most popular advertising format on Internet »Small and static »Low click through rate (CTR) »Useful for new products or brands »Typical goal is to increase awareness

Display or Banner Ads Click-through Rates (CTRs) »CTRs are a function of brand familiarity:

Rich Media Formats Pop-Ups!! Interstitials Superstitials Video Ads

Pop-Ups

Interstitials

Superstitials

Video Ads On company website »Shortened versions of TV ads »Webisodes Example? Preceding other videos

Web Logs - Blogs »Open forum for “everyman” to communicate »Benefit small businesses Why? »Brand marketers often develop own blogs

Podcasts »Self-produced radio-style online programs to which consumers can subscribe »Enable advertisers to target consumers who have self-selected programs that are of interest to them

Social Networks »Allow users to interact with “friends,” share opinions and information, and create online communities »Developed by businesses, enable consumers to learn from one another and to share their experiences. Examples? »Value as a marcom tool not yet clear

Primary reason many people use the Internet »Ad expenditures on were $300 million in 2005 »Not as effective as once perceived »Marketers have “spoiled the commons” »Opt-in ing »SPAM/Phishing Ethical issues

Opt-In ing

Search Engine Advertising (SEA) »Ads show up based on searches Keywords »Fastest growing form of Internet advertising »Includes a variety of well-known services (e.g.; Google, MSN Search, and Yahoo!) »Advertisers bid for keywords by: »Problems?

Other Concepts »Content targeting »Behavioral targeting »Click fraud » magazines (E-zines) »WiFi and Cellular advertising

New Developments Magazines (E-zines) Wi-Fi/Hotspots Internet capable mobile devices

Wireless Advertising (WiFi) laptops, PDAs, smart phones »Allows users to connect to the Internet through WiFi hotspots »Offers significant marcom potential in its ability to message consumers with pertinent offers from stores close to their location. »Consumers can be contacted close to the point of purchase.

Cellular Phones Marcom Issues »Invasion of privacy—negative consumer responses to unsolicited messages »Limited advertising space on cell screens »Gaining consumer acceptance of opt-in advertising

Measuring Internet Ad Effectiveness How many people clicked through a particular Web ad? What actions were taken following click throughs or site visits? What are the demographic characteristics of these people? Is this form of online advertising yielding a suitable return on investment? Questions to Ask How many visited a particular Web site?

The Metrics of Internet Advertising Click-through rate (CTR)

The Metrics of Internet Advertising CPM

The Metrics of Internet Advertising CPA

Internet Advertising – Final Thoughts

Reach Cost Workshop: Media Objectives Continuity Weight Frequency 5

Continuous, Pulsing, and Flighting Schedules JFMAMJJASOND ContinuousPulsing Flighting Advertising Schedules Ad $ (in thousands) (months) 20

Workshop Questions – Media Objectives for Free Rice Do you consider reach or frequency more vital to your IMC campaign’s success? Why? Which continuity method (continuous, pulsing, flighting) may be most effective for your Free Rice campaign and why?

Workshop Questions – Media Strategy for Free Rice List three different Internet methods of contact for reaching middle school and high school students as a target audience. List three different Internet methods of contact for reaching teachers as a target audience. »Same or different as methods for students?