Chapter15

The Internet and Interactive Media

Utterz, MocoSpace, Twango, Mosh

The Internet and Interactive Media

Utterz, MocoSpace, Twango, Mosh

15

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Growth in Internet Advertising

2006 – Internet advertising exceeds $16.9 billion

2006 – Internet advertising exceeds $16.9 billion

2000-2002 – 25 percent drop2000-2002 – 25 percent drop

2005 – Internet advertising at$10 billion

2005 – Internet advertising at$10 billion

1994 – Advertisements on HotWired1994 – Advertisements on HotWired

Why the rapid adoption of the Internet?

The Web Site

Huggies Goes Beyond Providing Information

Hot Web Sites

Facebook

MySpace

YouTube

TMZ.com

Disney.com

Veoh

Funny or Die

Discovery.com

Internet Communications Objectives

ObjectivesObjectives

Create Awareness

Create Awareness

Create a Strong Brand

Create a Strong Brand

Generate Interest

Generate Interest

Disseminate Information

Disseminate Information

Create an Image

Create an ImageStimulate TrialStimulate Trial

Create BuzzCreate Buzz

Gain Consideration

Gain Consideration

Snapple Creates Interest

Using Web Sites to Build Image

Branding is Complicated

Requires different

strategies

Requires different

strategies

Requires a broad audience

Requires a broad audience

The costs are high

The costs are high

Long-term investmentLong-term investment

BrandingBranding

E-Commerce

May be primary

or secondary objective

May be primary

or secondary objective

Direct selling of

goods and services through

the Internet

Direct selling of

goods and services through

the Internet

E-Commerce Trends

E-CommerceE-Commerce

Both consumer and business-to-businessBoth consumer and

business-to-business

Rapid growth rates likely to continue

Rapid growth rates likely to continue

Fast growth in “downloadable”

purchases

Fast growth in “downloadable”

purchases

Ebay is a Popular E-Commerce Site

The Internet and IMC

AdvertisingAdvertising

Sales PromotionsSales Promotions

Personal SellingPersonal Selling

Public RelationsPublic Relations

Direct MarketingDirect Marketing

The Internet site should be

integrated with:

The Internet site should be

integrated with:

Advertising on the Internet (Part 1)

BannersBanners

SponsorshipsSponsorships

Pop-ups/Pop-undersPop-ups/

Pop-unders

Push Technologies

Push Technologies

LinksLinks

InterstitialsInterstitials

Forms of Internet AdvertisingForms of Internet Advertising

Typical Banner Ads

Advertising on the Internet (Part 2)

•Paid Search•Behavioral targeting•Rich media

•Paid Search•Behavioral targeting•Rich media

Contextual AdsAdditional Forms

Contextual AdsAdditional Forms

Forms of Internet AdvertisingForms of Internet Advertising

PodcastingRSS feeds

Blogs

PodcastingRSS feeds

Blogs

Online commercialsVideo on demand

Webisodes

Online commercialsVideo on demand

Webisodes

Rich Media

Online CommercialsOnline Commercials

Video on DemandVideo on Demand

WebisodesWebisodes

Other FormsOther Forms

A broad range of interactive digital media that exhibit dynamic motion, taking advantage

of enhanced sensory features such as video, audio, and animation.

A broad range of interactive digital media that exhibit dynamic motion, taking advantage

of enhanced sensory features such as video, audio, and animation.

Additional Internet Advertising Forms

Podcasting, RS syndication, BlogsPodcasting, RS syndication, Blogs

Sales Promotions on Web Sites

Personal Selling on the Internet

Cross-sellingCross-selling

Valuable source of leadsValuable source of leads

Increases potential reachIncreases potential reach

Reduces cost of personal callsReduces cost of personal callsMay Replace Personal Selling

May Replace Personal Selling

May Enhance Personal

Selling Efforts

May Enhance Personal

Selling Efforts

Prospects request sales callsProspects request sales calls

Improves 1-on-1 relationshipsImproves 1-on-1 relationships

Primary source of informationPrimary source of information

Stimulates trialStimulates trial

Public Relations on the Internet

Philanthropists on the Web

Direct Mail (Email)

Direct Mail(Email)

Direct Mail(Email)

Often used by catalogers

Often used by catalogers

Tries to reach those w/specific needs

Tries to reach those w/specific needs

Highly targetedHighly targeted

Relies onemail listsRelies onemail lists

Internet Infomercials

Program content similar to television, cable or

satellite

Program content similar to television, cable or

satelliteInfomercialsInfomercials

Web provides for greater audience interaction

Web provides for greater audience interaction

E-Commerce and Home Shopping

Measures of Effectiveness

Internet-Specific MeasuresInternet-Specific Measures

SurveysSurveys

Cross-Media Optimization Studies (XMOS)

Cross-Media Optimization Studies (XMOS)

SalesSales

Recall/retentionRecall/retention TrackingTracking

Traditional MeasuresTraditional Measures

Sources of Measurement Data

ArbitronArbitron

MRI and SMRBMRI and SMRB

Audit Bureau of CirculationAudit Bureau of Circulation

Internet Advertising Bureau (IAB)Internet Advertising Bureau (IAB)

eMarketereMarketer

Nielsen Net RatingsNielsen Net Ratings

Jupiter MediaMetrics, Inc.Jupiter MediaMetrics, Inc.

Data SourceData

Source

Internet Marketing Pros and Cons

Target MarketingTarget Marketing

Message TailoringMessage Tailoring

Interactive CapabilitiesInteractive Capabilities

Information AccessInformation Access

Sales PotentialSales Potential

CreativityCreativity

Exposure/SpeedExposure/Speed

Advantages

Complement to IMCComplement to IMC

Internet Marketing Pros and Cons

Measurement problemsMeasurement problems

AnnoyanceAnnoyance

ClutterClutter

Potential for deceptionPotential for deception

Privacy Privacy

Poor reachPoor reach

IrritationIrritation

Disadvantages

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) Replace the Internet in most IMC programs

E) Are not viewed as viable elements within a well-designed IMC program

Additional Interactive Media

Interactive TV—Allows viewers to interact with the

program and advertising

Wireless—Communications through satellite

broadcast systems or cellular phones