© 2006 Pearson Education Canada Inc. 12.1 Canadian Advertising in Action Chapter 12 Internet Communications.

© 2006 Pearson Education Canada Inc. 12.1

Canadian Advertising in Action

Chapter 12

Internet Communications


Learning Objectives

Describe elements of internet communications Identify members of online advertising

industry Evaluate online advertising models Identify online audience measurement

systems Assess the internet as an advertising medium Describe and apply models of pricing and

buying online advertising


Elements of the Internet

E-Mail

World Wide Web

A cost-effective method of communications to and from customers.

Offers opportunities for personal, one-to-one relationships with customers.


Internet User Profile

The user profile varies and is constantly updated. Current profile:

Equal split male/female

Heaviest users:

• higher income households

• those with post-secondary education

• 15 to 44 years old


Uses of the Internet


Internet & Interactivity

Richer interactive media Multi-faceted interactive marketing

strategies Sophisticated data collection, feedback,

and targeting

Online advertising is using:


Online Advertising

The goal of advertising is to motivate a purchase. Online advertising may:

1. Create brand awareness

2. Stimulate interest and preference

3. Provide a means to make a purchase

4. Provide a means to contact an advertiser

5. Acquire data about real/potential customers


The Online Advertising Industry

SellersSellers

BuyersBuyers

Agency/ DesignAgency/ Design

Infra-structure

Infra-structure

Publishers, advertising networks sell space.

Advertisers, agencies buy space.

Boutique shops pioneered online advertising.

Service companies facilitate effective use of online advertising.


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


Online Advertising Alternatives

1. Banner Advertising

2. Sponsorships

3. E-mail Advertising (Permission-based)

4. Corporate Websites

5. Text Messaging (SMS)


Banner Advertising

Banner

SkyscraperRectangle

Button


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 (Pop-ups & Pop-unders)

Superstitials (Rich Media)


Effectiveness of Banner Advertising

Which of these have you seen and what were your responses?

Banners and Buttons

Skyscrapers and Rectangles

Animated Banners

Interactive Banners

Interstitials (Pop-ups & Pop-unders)

Superstitials (Rich Media)


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.


E-Mail Advertising

There are two types of e-mail advertising:

1. Permission-based e-mail

2. Sponsored e-mail

Similar to direct mail, advertisers use house lists and rented lists that include “opt-in” names and addresses.


Corporate Websites

Traditional media can drive traffic to corporate websites for opportunities to “tell the whole story.”

Websites can provide product knowledge and other information to move customers to purchase decisions.

Media combinations that include television, print, and websites generate higher awareness and preference scores than just television and print.


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.


Audience Measurement

To attract advertisers accurate measurement is essential. Web publishers compile data in web server logs including:

Page views

Numbers of unique visitors

Number and length of visitsIndependent third parties, such as Nielsen/Net Ratings and Media Metrix provide audited information about Web usage. Visit the press room at Nielsen/Net Ratings for more data.


Online Communications Advantages & Disadvantages

Targeting Capability

Tracking and

Accountability

Timing

Interactivity and Action

Selective Reach

Consumer Frustration

Privacy Concerns

Advantages Disadvantages


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.


Pay-for-Performance 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.


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.


Principles of Interactive Communications

Based on the text and our discussions, can you identify eight strategic considerations for Internet Advertising?

See page 396 in the text.

© 2006 Pearson Education Canada Inc. 12.1 Canadian Advertising in Action Chapter 12 Internet Communications.

Documents

online advertising slide

pearson education canada

online advertising models

quality of online advertising

canadian advertising

advertising networks

advertising medium

majority of advertising