1. The Internet and Interactive Media
Chapter Fifteen
The Internet and Interactive Media
The Internet and Interactive Media
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

2. Growth in Advertising Expenditures on the Internet
ARPANET
ARPANET
1993 – World Wide Web
1993 – World Wide Web
1994 – Advertisements on HotWired
1994 – Advertisements on HotWired
Relation to text
This slide relates to material on pp. 469 of the text.
Summary Overview
This slide provides an overview of the brief history of the Internet. It began in 1969 through the connection of two computers: one at UCLA and the other at Stanford University. Today an estimated 68 percent of households in North America are connected.
Use of this slide
This slide can be used to discuss the rapid growth of the Internet and the dynamic influence it has had on society.
2005 – Internet advertising exceeds $10 billion
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

3. The Rapid Adoption of the Internet
Relation to text
This slide relates to the material on page 469 and Figure 15-1 of the text.
Summary Overview
This slide shows U.S. online ad spending growth from 2001 to Reasons for this growth include consumers’ desire for information and information control, plus the ability to target customers effectively through the Net is attractive to marketers.
Use of this slide
This slide can be used to discuss other reasons why the Internet has experienced unprecedented growth, as well as reasons why there may be a slow down in growth in the coming years.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

4. Godaddy.com Offers Affordable Web Presence
Relation to text
This slide relates to the material on pp of the text.
Summary Overview
This slide shows a commercial for Godaddy.com, using their own IMC to lead consumers to their web-hosting site.
Use of this slide
This slide can be used to discuss the changing role of the Internet in IMC. When major corporations first began to conduct business on the Internet, they put up websites primarily for informational purposes. Now any size business, with the help of sites such as Godaddy.com, can easily and affordably establish a robust web presence.
*Click outside of the video screen to advance to the next slide
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

5. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The Website
Web Design Issues
Contact
Contact
Commerce
Commerce
Construction
Construction
Communication
Relation to text
This slide relates to material on pp and Exhibit 15-1 of the text.
Summary Overview
This slide summarizes factors that lead to an effective website:
Contact
Commerce
Construction
Communication
Content
Community
Customization
Use of slide
This slide can be used to discuss the what is required to develop and maintain a successful website. To attract visitors to the site and have them return to it requires a combination of creativity, effective marketing, and continual updating of the site.
Communication
Content
Content
Community
Customization
Community
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

6. Huggies Goes Well Beyond Providing Information
Relation to text
This slide relates to material on pp and Exhibit 15-2 of the text.
Summary Overview
This slide shows how Huggies goes well beyond providing information. The site has additional objectives, such as developing a long-term relationship with parents, establishing a brand image for the products, and supporting sales. The HUGGIES Baby Network provides expectant mothers with encouragement and ideas as to how to maintain a happy and healthy pregnancy. The site also provides information to be used once the baby has been born. Tips on how to create a nursery, games to play with the baby, and more information from experts are just part of this site. The site is designed to develop one-on-one relationships by offering very useful information, as well as product samples and more to anyone who sends in his or her name, address, and address.
Use of this slide
This slide can be used to demonstrate the effective use of the Internet in the IMC process. Huggies uses it web site to provide mothers with valuable information and build relationships and loyalty with their customers.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

7. Yahoo Touts Medical Benefits of Shopping Online
Relation to text
This slide relates to the material on pp of the text.
Summary Overview
This slide shows a commercial for an award-winning radio spot created for Yahoo.com. The spot uses humor to make consumers aware of the many advantages of shopping online.
Use of this slide
This slide can be used to discuss the growth of e-commerce on the Internet.
*Click outside of the video screen to advance to the next slide
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

8. Internet Communications Objectives
Create Awareness
Create Awareness
Stimulate Trial
Generate Interest
Generate Interest
Objectives
Relation to text
This slide relates to material on pp of the text.
Summary Overview
This slide shows some of the possible communications objectives sought when using the Internet. These include:
Creating awareness
Generating interest
Disseminating information
Creating an image
Creating a strong brand
Stimulating trial
Use of this slide
This slide can be used to explain the use of the Internet for achieving communication objectives. The next three slides provide examples of various companies who have effectively used their websites to achieve these objectives.
Create a Strong Brand
Create a Strong Brand
Disseminate Information
Disseminate Information
Create an Image
Create an Image
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

9. Snapple Uses the Internet to Create Interest
Relation to text
This slide relates to material on pp of the text.
Summary Overview
This slide shows how Snapple attempts to use the Web to generate interest in their site as well as in their product. Snapple, in its attempt to attract visitors and hold their interest, has created a fun site with many places to visit while learning about Snapple product. An information center, games, product information, sales items, and even an opportunity to personalize the site are all available.
Use of this slide
This slide can be used to explain the use of the Internet for achieving interest as a communications objective. The slide shows how Snapple uses its web site to help get consumers more interested in its products as well as to provide entertainment.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

10. A Website Used for Image Building
Relation to text
This slide relates to material on pp of the text.
Summary Overview
This slide shows the consumer website This website is an excellent example of a website used for image building.
Use of this slide
This slide can be used to discuss that one of the difficulties traditional marketers have experienced is that of creating a brand image on the Internet. While some of these companies have been successful, others have not fared as well and have come to realize that branding and image-creating strategies must be specifically adapted to this medium.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

11. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Test Your Knowledge
Which of the following is NOT a valid objective for a marketer who is employing the Internet as a communications vehicle?
A) to create an image
B) to generate interest
C) to disseminate information
D) to prevent price wars
E) to create awareness
Ans: C
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

12. Internet Sales Objectives- E-commerce
The direct selling of goods and services through the Internet
The direct selling of goods and services through the Internet
May be primary or secondary objective
Relation to text
This slide relates to material on pp. 475 of the text.
Summary Overview
This slide demonstrates another use of the Internet, which is to use the medium for the direct sale of goods and services. E-Commerce has become an important part of the worldwide web, both on the consumer and business to business side. The slide notes that e-commerce refers to the direct selling of products and services on the web which may be a primary or secondary objective for a web site.
Use of this slide
This slide can be used to introduce the concept of e-commerce. Most students will be familiar with the concept, but may need to be reminded that it is part of the IMC program, and that it is possible that it may be either a primary or secondary objective.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

13. E-Commerce on the Web E-Commerce
Rapid growth rates likely to continue
Both consumer and business-to-business
Fast growth in “downloadable” purchases
Rapid growth rates likely to continue
Relation to text
This slide relates to material on p. 475 of the text.
Summary Overview
This slide shows some of the characteristics of e-commerce on the Internet. E-commerce continues to grow at a very fast pace. This growth comes from “downloadable” purchases—for example books, reports, maps, tickets, and other item. The strong growth of E-commerce is expected to continue, in both the business-to-business and consumer markets.
Use of this slide
When used with the previous slide, this slide provides additional insight into the e-commerce aspects of the Internet. Many companies are maintaining their “brick and mortar” stores and operations but are now selling through the Internet as well.
Fast growth in “downloadable” purchases
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

14. ebay Is a Well Known E-Commerce Site
Relation to text
This slide relates to material on p. 475 and Exhibit 15-7 of the text.
Summary Overview
Perhaps one of the most well known and successful e-commerce sites on the Internet is that of ebay. Essentially an online auction, ebay allows users to both sell and purchase products and services. While many online e-commerce sites are extensions of the company’s brick and mortar store, ebay is an example of an e-commerce site only.
Use of this slide
This slide can be used to provide an example of an e-commerce site that students are probably already familiar with. Nevertheless, it serves as a reminder to the use of the web for selling and buying, and as an indication of the potential for success in this medium.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

15. Integrating the Internet into an IMC Program
Advertising
Advertising
Sales Promotions
Sales Promotions
The Internet site should be integrated with:
Relation to text
This slide relates to material on pp of the text.
Summary Overview
As part of the IMC program, the Internet will be used most effectively if integrated with other media. This slide demonstrates the other IMC tools with which the Internet should be coordinated including:
Advertising
Sales promotion
Personal selling
Public relations
Direct marketing
Use of this slide
This slide can be used to discuss how the various IMC tools should be combined with the Internet to create a more effective IMC program. Research studies have shown that by integrating the Internet with other IMC components, overall communication is more effective. In addition, the ability to have visitors come to ones website may require effective use of other IMC program elements. The next nine slides will discuss and provide examples of the integration with these components.
Personal Selling
Personal Selling
Public Relations
Direct Marketing
Public Relations
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

16. Integrating the Internet – Advertising Part 1
Banners
Banners
Sponsorships
Sponsorships
Internet Advertising Has a Variety of Forms:
Pop-ups/ Pop-unders
Pop-ups/ Pop-unders
Relation to text
This slide relates to material on pp of the text.
Summary Overview
The slide shows the various forms of advertising that can be done on the Internet. These include:
Banners—the most common form of ads that appear on web pages
Sponsorships—when companies pay to sponsor part of the site, or to sponsor and provide content
Pop-Ups/Pop-Unders—small windows that appear when one is accessing a site, or when one is leaving a site
Interstitials—ads that appear on the screen while one is waiting for a site to download
Push Technologies— technology which allows the website to “push” information to the potential customer rather than having to wait for them to find it
Links—a link to a different site that provides related or similar information or materials
Use of this slide
This slide can be used to discuss the various forms of advertising that are available to the Internet advertiser.
Links
Interstitials
Push Technologies
Interstitials
Push Technologies
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

17. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Typical Banner Ads
Relation to text
This slide relates to material on p. 476 and Exhibit 15-8 of the text, which discusses forms of advertising on the web.
Summary Overview
This slide shows examples of banner ads which encourage the viewer to click through for more information about the product. Banner ads are the most common form of advertising found on the Internet.
Use of this slide
This slide can be used to show one form of banner advertising. Unfortunately, banner ads have not been proven to be very effective with low scores on recall, and click-through rates reported. You may wish to engage students in a discussion of why they believe that banner ads are not very effective.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

18. Integrating the Internet – Advertising Part 2
Paid Search
Paid Search
Behavioral Targeting
Behavioral Targeting
Internet Advertising Has a Variety of Forms:
Contextual Ads
Contextual Ads
Relation to text
This slide relates to material on pp of the text.
Summary Overview
The slide shows the various forms of advertising that can be done on the Internet. These include:
Paid Search—the fastest growing form of advertising on the Internet
Behavioral Targeting—based on advertisers’ targeting consumers according to their web-surfing behaviors
Contextual Ads—ads based on the content of the website
Rich Media—all content that is created in flash
Additional Forms—as the Internet evolves, more and more ways to deliver advertising messages appear
Use of this slide
This slide can be used to discuss the various forms of advertising that are available to the Internet advertiser.
Additional Forms
Rich Media
Rich Media
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

19. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Rich Media
“A broad range of interactive digital media that exhibit dynamic motion, taking advantage of enhanced sensory features such as video, audio, and animation.”
Online Commercials
Video on Demand
Video on Demand
Online Commercials
Webisodes
Webisodes
Relation to text
This slide relates to material on p. 478 of the text.
Summary Overview
The increased penetration of broadband into households has increased the attention given to rich media. This slide defines rich media and lists several types.
Use of this slide
This slide can be used to discuss the various types of rich media.
Other Forms
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

20. Additional Internet Advertising Forms
Latest Media
Podcasting
Blogs
Really Simple Syndication (RSS)
Podcasting
Relation to text
This slide relates to material on p. 479 of the text.
Summary Overview
This slide shows three additional ways to deliver advertising messages on the Internet:
Podcasting – used to distribute radiolike files for downloading into iPods and other MP3 players
RSS – specification that used XML to organize and format Web-based content in a standard way.
Blogs – Web-based publication consisting primarily of periodic articles, normally presented in reverse chronological order.
Use of this slide
When used with the previous two slides, this slide provides additional insight into the various and evolving forms of Internet advertising.
Really Simple Syndication (RSS)
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

21. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Test Your Knowledge
CDW Computer Centers sells computer equipment to small- and mid-sized businesses. Its Web site provides in-depth information on its products, its customer service, its shipping policies, and its suppliers. Like most business-to-business sites, the primary objective of this Web site is to:
A) create a sustainable competitive advantage
B) create an image
C) disseminate information
D) replace advertising in trade journals
E) prevent price wars
Ans: C
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

22. National Association of Realtors Uses TV and the Internet
Relation to text
This slide relates to material on pp of the text.
Summary Overview
This commercial provides another example of the integration of advertising and the Internet. Unlike the previous slide, which showed an example of a banner advertisement on a site, this commercial shows how the NAR is using a different medium—TV—to drive potential customers to the website itself. The commercial demonstrates how integration works, as well as another way as to how advertising is used.
Use of this slide
This slide can be used to demonstrate how advertising and the Internet can be used together. Taken with the previous slide, it shows how advertisers use the web to provide information about their products, as well as how companies use advertising to drive viewers to their websites.
*Click outside of the video screen to advance to the next slide
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

23. Sales Promotions Are Common on Websites
Relation to text
This slide relates to material on pp of the text.
Summary Overview
This slide shows an example of how Yahoo incorporates sales promotion offers into its web site. The slide provides an example of the information discussed in the text regarding the use of sales promotions on the Internet.
Use of this slide
This slide can be used to provide an example of the use of sales promotion on an Internet site. Companies sometimes offer contests, sweepstakes, downloadable coupons and more to encourage visits to their sites, as well as to establish brand loyalty. The Yahoo site provides a good example of integration of sales promotion and the Internet.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

24. Personal Selling on the Internet
May Replace Personal Selling
Reduces high cost of personal calls
Vastly increases potential reach
Reduces high cost of personal calls
Vastly increases potential reach
Relation to text
This slide relates to material on page 481 of the text.
Summary Overview
This slide summarizes the various perspectives as to whether the Internet will replace personal selling as we now know it, or whether it will enhance personal selling efforts. The argument in favor of replacing notes that the Internet reduces the high cost of personal selling and vastly increases reach, and is, therefore, more effective and efficient than personal selling. The slide also lists numerous factors supporting the notion that the Internet will enhance selling efforts. These include:
Provision of information to prospects
A source of leads
Enhancement of databases
Stimulating trial
Improving one-on- one communications
Serving as a sales conference medium
Use of this slide
This slide can be used to provide a brief overview of the arguments as to whether the Internet will replace or enhance personal selling efforts. In a well-designed IMC program, the Internet and personal selling are designed to complement one another.
May Enhance Personal Selling Efforts
May be a source of leads
Provides quick, easy, information to prospects
Provides quick, easy, information to prospects
May help to enhance customer data bases
May help to enhance customer data bases
May improve one-on-one communications
May improve one-on-one communications
May be a source of leads
May stimulate trial of the goods or service
May stimulate trial of the goods or service
May serve as a sales conference medium
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

25. Public Relations on the Internet
Relation to text
This slide relates to material on p. 482 of the text.
Summary Overview
This slide provides an example of how Chrysler uses its website for public relations efforts. Many companies now use their websites to provide information about the company, product and service information, news and events, and an archive of press releases.
Use of this slide
This slide can be used to provide a good example of a company using their website for public relations purposes. Students should be encouraged to visit various corporate web sites to see how they are used for public relations purposes.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

26. Philanthropists on the Web
Relation to text
This slide relates to material on p. 482 of the text.
Summary Overview
This slide shows a webpage from Ben & Jerry’s, which uses its website to promote products and images as well as showcasing the causes it supports and champions such as global warming, peace, and social and environmental issues. Many philanthropic and nonprofit organizations have found the Internet to be a useful way to generate funds.
Use of this slide
This slide can be used to provide a good example of public relations on the Internet.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

27. Direct Marketing and the Internet: Direct Mail (Email)
Often used by catalogers
Often used by catalogers
Highly targeted
Highly targeted
Direct Mail
( )
Relation to text
This slide relates to material on pp of the text.
Summary Overview
This slide shows the characteristics of conducting direct marketing on the Internet through the use of , including the fact that it is often used by catalogers, is highly targeted, relies heavily on lists and attempts to reach those with specific needs. Direct mail usage on the Internet continues to increase, and has recently fallen under attack as a result of significant increases in the use of SPAM or online junk mail. Like its traditional direct mail counterpart, critics of SPAM have attempted to enact legislation to prohibit or limit its use.
Use of this slide
This slide can be used to provide a brief overview of the characteristics of using for direct marketing purposes. You might initiate a discussion of similarities and dissimilarities between traditional direct mail and the electronic version.
Attempts to reach those with specific needs
Relies on
lists
Relies on
lists
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

28. Infomercials on the World Wide Web
Program content similar to television, cable or satellite
Program content similar to television, cable or satellite
Web provides for greater audience interaction
Relation to text
This slide relates to material on page 483 of the text.
Summary Overview
This slide shows some of the characteristics of another direct marketing tool that is now being used on the Internet, which is the infomercial. As the slide notes, infomercials are now beginning to appear on the Internet with program content similar to that of television. At the same time, due to its interactive capabilities, the web allows for greater audience interaction.
Use of this slide
This slide can be used show students how the Internet can also make use of other traditional forms of direct marketing. While not as common as , the infomercial is gaining in popularity on the Internet.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

29. Measures of Effectiveness
Internet-Specific Measures
Cross-Media Optimization Studies (XMOS)
Traditional Measures
Recall/retention
Relation to text
This slide relates to material on pp of the text.
Summary Overview
This slide summarizes some of the measures of effectiveness for Internet. These include:
Internet-specific measures – include measures specific to the Internet and interactive industry
XMOS – studies simultaneously measure online and offline advertising in the same campaign
Traditional measures
Recall and retention – used to measure whether viewers remember seeing ads
Surveys – used to determine everything from site usage to attitudes
Sales – prime indicator of effectiveness
Tracking – companies offering tracking information such as brand awareness, ad recall, message association, and purchase intent
Use of this slide
This slide shows some of the ways marketers can attempt to measure the effectiveness of various aspects of their Internet strategy and consumers reactions to their web sites.
Tracking
Surveys
Recall/retention
Surveys
Sales
Sales
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

30. Sources of Measurement Data
Arbitron
Arbitron
Data Source
MRI and SMRB
MRI and SMRB
Nielsen Net Ratings
Audit Bureau of Circulation
Internet Advertising Bureau (IAB)
eMarketer
Jupiter MediaMetrics, Inc.
Audit Bureau of Circulation
Internet Advertising Bureau (IAB)
Relation to text
This slide relates to material on pp of the text.
Summary Overview
This slide summarizes just a few of the many sources available for acquiring information about the Internet. The list provided is but a very small sampling of the numerous sources. It might also be noted that many of these are well known providers of traditional marketing information.
Use of this slide
This slide can be used to show companies that provide information and measurement data for the Internet.
eMarketer
Nielsen Net Ratings
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

31. Internet Advantages and Disadvantages
Target Marketing
Target Marketing
Measurement problems
Measurement problems
Message Tailoring
Message Tailoring
Annoyance
Annoyance
Interactive Capabilities
Interactive Capabilities
Clutter
Clutter
Relation to text
This slide relates to material on pp of the text.
Summary Overview
This slide summarizes some of the advantages and disadvantages of the Internet. Advantages include:
Targeting capabilities
Message tailoring
Interactive capabilities
Information access
Sales potential
Creativity
Exposure
Speed
Complementing other IMC elements
Disadvantages include:
Measurement problems
Annoyance
Clutter
Potential for deception
Privacy issues
Poor reach
Irritation
Use of this slide
This slide can be used to demonstrate the advantages and disadvantages of the Internet. The Internet offers numerous advantages but still has many limitations. Many of the disadvantages are in the process of being eliminated or reduced. Like any other medium, the marketer must understand the benefits and limitations of the Internet to effectively use it as part of the IMC program.
Information Access
Information Access
Potential for deception
Potential for deception
Sales Potential
Sales Potential
Privacy
Privacy
Creativity
Creativity
Poor reach
Poor reach
Exposure/Speed
Exposure/Speed
Irritation
Complement to IMC
Complement to IMC
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

32. © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Test Your Knowledge
Interactive TV, interactive CD-ROMs, kiosks, and interactive phones:
A) are viewed by businesses as breeches of consumer rights to privacy
B) can be used as contributors to an IMC program
C) cannot be linked with traditional advertising media
D) will replace the Internet in most IMC programs
E) are not viewed as being viable elements within a well-designed IMC program
Ans: B
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

33. Additional Interactive Media
Interactive TV—Allows the Viewer to Interact With the Television Program and Advertising
Interactive TV—Allows the Viewer to Interact With the Television Program and Advertising
Wireless—Communications to Users Through Satellite Broadcast Systems or Cellular Phone Systems
Relation to text
This slide relates to material on page of the text.
Summary Overview
This slide notes that there are two additional interactive media available to the marketer for consideration for use in the IMC program. These include interactive TV and wireless. Interactive TV, or iTV, has been available for some time, but has not caught on as expected. Wireless, while new and relatively small in regard to media billings, is catching on quickly, and offers a variety of potential uses for the marketer.
Use of this slide
This slide can be used to remind students that two additional media are available in addition to the internet. Each of these offers potential to marketers for consideration with those offered by traditional media.
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin