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Implementation of marketing strategy: Marketing communications MARK 430
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Marketing process Target your market Position your product Communicate to your target audience Communication Advertising Personal selling
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2 main goals of marketing communication Brand advertising – aim is to build awareness of a product by putting the brand name and product benefits in front of users Develop positive attitudes prior to purchase Direct-response advertising – seeks to motivate action – BUY!
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Online communications media types MediumAdvantagesDisadvantages Website / personalized website Communicate rich, detailed information that users can navigate at will; can track users and customize site accordingly Narrow reach Banner adsLink directly to buying opportunity; easy to measure effectiveness; wide reach; potential for effective targeting Low attention and click-through rates; short life; limited ‘pass-along’ audience; very high clutter; fleeting exposure InterstitialsCatch user’s attention; link to buying opportunityCan annoy users; limited ‘pass- along’; audience Rich mediaAttention getting; link to buying opportunityCan annoy users without broadband access Dynamic ad placement Serves up customized ads to users in real timeDifficult to execute well; can annoy users and/or other advertisers Search enginesGood credibility; high believability; guarantee of position available; significant audience at major sites High competition; information overload; limited ‘pass-along’ Classified and listings Relatively inexpensive; potential for wide exposure; qualified audience Clutter Opt-in emailHigh demographic selectivity; high credibility; significant flexibility; proven high click-through rates; absolutely inexpensive; some pass-along Requires substantial user base before effective; high clutter Mass emailHigh reach; inexpensive; flexibleLow attention and significant resentment (spam image)
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Marketing communications we will look at over the next few weeks This week: online advertising (banners, interstitials and rich media) Week after study break: search engine marketing Following week: email and viral marketing
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What difference does the Internet make to advertising? Traditional form of one-way, one-to-many mass advertising no longer necessary or appropriate Web provides a highly targeted, receptive audience Web advertising can be interactive, and therefore by definition, more engaging Web provides a mechanism for instant action Immediate gratification of the consumer not available with print, TV or radio advertising Consumers complain more about web advertising than about other forms of advertising
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Internet advertising Advertising is non-personal communication of information through various media Usually persuasive in nature about products Usually paid for by an identified sponsor Paid space on a website or in an email is considered internet advertising The process of selling advertising on the Internet is very similar to offline media – web companies create content then sell advertising space to advertisers But also include the situation where a content provider will pay to include that content on another firm’s site (sponsored content = advertising)
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The importance of Internet advertising Began in 1994 with banners on Hotwired.com Saw strong growth until 2000-2001 (on a par with the drop in advertising spending in all media) Now on the upswing again, as dissatisfaction with traditional media grows (see link to reading) The importance of the Internet as an advertising medium varies across industries. Most advertising comes from following categories consumer related advertising (30%) computing (18%) financial services (12%) media (12%) business services (9%)
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How successful is web advertising? Banner ad click-through rates are very low around 1% of users actually click on a banner ad of that 1%, around 5% actually follow through with a transaction The web is very good at person-to-person interactive services, and at promoting product loyalty Growth has been in interactive ads using “rich media” Said to be twice as effective as traditional banners Big payoff is in the capability to track ad effectiveness and ability to respond to change very quickly
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Web site advertising formats Began as static banners in the mid 1990s, added animation, then moved to the use of “rich media” Interactive formats, including: Banners Buttons Skyscrapers Pop-ups, pop-unders, interstitials Floater ads and Shoshkele (United Virtualities) Floater ads and Shoshkele Rich media gallery (Macromedia)Rich media gallery For examples of all kinds of web advertising, go to www.eyeblaster.com Eyeblaster www.eyeblaster.com
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Aggregate number of user clicks on a banner ad Ad Clicks Number of times a banner ad is downloaded to a user’s browser and presumably looked at Ad Views (Impressions) Percentage of ad views that are clicked upon; also “Ad Click Rate” Click-Through Formula used to calculate what an advertiser will pay to an Internet publisher based on number of click-throughs a banner generates CPC (Cost-per-Click) Cost per thousand impressions of a banner ad; a publisher that charges $10,000 per banner and guarantees 500,000 impressions has a CPM of $20 ($10,000 divided by 500) CPM Paying for, and measuring usage Online media have varied payment schemes – unlike traditional media which is usually priced on a pay for placement basis (based on ratings) Going beyond click-through rates: Clickstream data gives you the whole picture of a consumers movements before, during and after viewing an advert
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Complexities of online advertising Designing interactive rich media is challenging Non-linear – consumer can take many paths Getting the right balance between intrusive and engaging Tracking effectiveness Online ads delivered to individuals rather than to mass markets – makes placement and tracking much more complex Technical complexity of rich media adverts mean closer ties between the advertiser and the media seller Ad placement Disagregated medium means ads must be placed with several Internet publishers to reach audiences
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Helping marketers deal with these complexities Workflow software to help in the buying, selling, and managing of managing of online ads – eg. SolbrightSolbright Macromedia and DoubleClick’s joint product to help manage both the creation and measurement of ad effectiveness DART Motif DART Motif
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Advertising to wireless devices Huge growth potential PDAs, cellphones, laptops etc now widely used Big question is – would mobile users rather pay for content, or will they tolerate advertisements in exchange for free content Answer is not clear because of several factors low bandwidth small screen size different techniques needed to track ad effectiveness by-the-minute payment for air-time by user
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Viewing advertising in exchange for viewing content A growing trend as content providers try to make sense of business realities www.ivillage.com - view ad before gaining access to site www.ivillage.com www.salon.com - view ad in exchange for getting access to complete magazine article www.salon.com
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The future of web advertising Web technology allows for many interesting multimedia advertising formats These catch attention when they first appear, but quickly become intrusive and annoying Big backlash against pop-ups Marketing fundamentals will prevail: Success is about reaching the right audience with the right message at the right time
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