Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Elements of the Internet World Wide Web World Wide Web A cost-effective way of delivering messages to customers. Offers creative latitude in presenting information to prospective customers.

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Internet User Profile The user profile is constantly changing as more and more people sign on.  Equal split between males and females  15 to 24 year olds are the heaviest users  Usage is higher among those with post-secondary education  Higher income households spend more time online

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Uses of the Internet Canadian users spent an average of 15.5 hours a week online in 2001, mainly to get information to assist in buying decisions. Primary uses are: 1. 2.Download software 3.Research travel, products and services, and companies 4.Chat groups 5.Purchase products and services Only 21% of users actually make a purchase online.

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Online Advertising The goal of advertising is to motivate a purchase. Online advertising is useful for: 1.Creating brand awareness 2.Stimulating interest and preference 3.Providing a means to make a purchase 4.Providing a means to contact an advertiser 5.Acquiring data about real and potential customers

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc The Online Advertising Industry Sellers Buyers Agencies and Design Companies Agencies and Design Companies Infrastructure Companies Infrastructure Companies Publishers and ad networks that sell space. Advertisers and agencies that buy space. Boutique shops have pioneered online advertising. Service companies that facilitate effective use of online advertising.

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Online Advertising Models Presently, banner advertising comprises the majority of advertising, but advertisers are looking at other options. Internet ads are measured for effectiveness based on:  Impressions  Clicks  Clickthrough Rate  Visits

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Online Advertising Alternatives 1.Banner Advertising 2.Sponsorships 3. Advertising (Permission-based)

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Banner Advertising Banner Skyscraper Rectangle Button

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Banner Advertising Alternatives The quality of online advertising is improving as video graphics are added. Banners and Buttons Skyscrapers and Rectangles Animated Banners Interactive Banners Interstitials Superstitials (Rich Media)

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Sponsorships An advertiser commits to an extended relationship with another Web site. Sponsorships allow for a successful campaign without having to drive traffic to a brand’s Web site. Consumers trust brands they visit repeatedly, therefore, a second brand (a sponsor) may be perceived positively by the association.

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Advertising There are two types of advertising: 1.Permission-based 2.Sponsored Similar to direct mail, advertisers use house lists and rented lists that include “opt-in” names and addresses.

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Audience Measurement To attract advertisers accurate measurement is essential. Web publishers compile accurate data about:  Page views  Numbers of unique visitors  Number of visits  Length of visits Companies can measure effectiveness of communications by analyzing data in their Web server logs.

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Information Collection The collection of accurate information is enhanced by the placement of a cookie in a user’s personal computer. 1.A cookie is an electronic identification tag sent from a Web server to a browser to track a person’s browsing patterns. 2.Users agree to accept cookies while giving up private information about how they use the Internet.

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Auditing Web Site Traffic Independent third parties also provide information about Web usage.  Nielsen//Net Ratings  Media Metrix

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Advantages of Online Communications Targeting Capability Tracking and Accountability Timing Interactivity and Action

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Disadvantages of Online Communications Selective Reach Privacy Concerns

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc CPM Buying Model CPM is the price charged for displaying an ad 1,000 times. Options include:  Run of Site  Run of Category  Key Word Targeting As degree of targeting increases, the CPM increases.

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Performance Buying Model Since clicking is the desired action, advertisers only pay when the banner ad is clicked on. They pay on a cost-per-click basis. Web publishers dislike this method since they are not responsible for the quality of the creative, a factor that stimulates clicking. Publishers display an ad in good faith.

Canadian Advertising in Action, 6th ed. Keith J. Tuckwell ©2003 Pearson Education Canada Inc Flat Fee Buying Model A Web site charges a set amount for the length of time the ad appears on the site (week, month, quarter). Sponsorships are commonly sold on this basis as is some banner advertising.