Chapter Fifteen Employing the Internet for Advertising.

Chapter Fifteen

Employing the Internet Employing the Internet forfor

AdvertisingAdvertising

Mass Online AdvertisingMass 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 InternetThe 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

• E-mail

•Opt-in Versus Spam

• E-zines

•Wireless E-mail 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-UpsPop-Ups

InterstitialsInterstitials

SuperstitialsSuperstitials

Video AdsVideo 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

Email

Primary reason many people use the Internet

» Ad expenditures on email were $300 million in 2005

» Not as effective as once perceived

» Marketers have “spoiled the commons”

» Opt-in emailing

» SPAM/Phishing

• Ethical issues

Opt-In E-mailing

Search Engine Advertising (SEA)

» Ads show up based on searchesKeywords

» 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» E-mail magazines (E-zines)»WiFi and Cellular advertising

New DevelopmentsNew Developments

• E-mail Magazines (E-zines)

• Wi-Fi/Hotspots

• Internet capable mobile devices

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 AdvertisingThe Metrics of Internet Advertising

Click-through rate (CTR)

The Metrics of Internet AdvertisingThe Metrics of Internet Advertising

CPM

The Metrics of Internet AdvertisingThe Metrics of Internet Advertising

CPA

Internet Advertising – Final ThoughtsInternet Advertising – Final Thoughts

Reach

Cost

Workshop: Media ObjectivesWorkshop: Media Objectives

Continuity

Weight

Frequency

5

Continuous, Pulsing, and Flighting Continuous, Pulsing, and Flighting SchedulesSchedules

0

200

400

600

J F M A M J J A S O N D

Continuous Pulsing Flighting

Advertising Schedules

Ad

$ (

in t

ho

usa

nd

s)

(months)

20

Workshop Questions – Workshop Questions – Media Objectives for Free RiceMedia 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 – Workshop Questions – Media Strategy for Free RiceMedia 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?