Copyright © 2012 Pearson Canada Inc. CHAPTER 12 Interactive Media 12-1.

Copyright © 2012 Pearson Canada Inc.

CHAPTER 12

Interactive Media

12-1


Learning Objectives Describe the various elements of internet

communications Identify the key organizations that constitute

the online advertising industry Evaluate the various advertising models

available to marketing organizations

Continued…

12-2


Learning Objectives (cont.)

Identify key aspects of online audience measurement systems

Assess the potential of the internet as an advertising medium

Describe and apply various models of pricing and buying online advertising

Assess the role of social media in the marketing communications mix

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Interactive Media Technology is changing how marketers think

about the media. In the digital universe, control has shifted from

the advertiser to the customer. The Internet and mobile phones allow viewers to

choose when, where and how they watch. Internet / mobile phones are participatory media;

traditional media is interruptive.

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Interactive Communications

The world’s digital revolution is being led by Canadians, who now consume 28% of their media online. In 2009 online ad revenues reached $1.8

billion, up from $1.1 billion in 2006. Interactive communications is more about

engagement than it is about reach and frequency.

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Digital Reach, Consumption and Behaviour

The Internet has reached mass media status More than 80 percent of Canadians have Internet

access at home Internet users average about 17 hours a week online 43% of Canadians have ordered goods online.

Wireless communications are revolutionizing consumption patterns once again. Smartphones are now a mainstream method of

accessing information through to the Internet

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Online Advertising Industry

Sellers

Buyers

Ad Agency/ Web Design

Measurement companies

Service companies facilitate effective use of online advertising.

Traditional ad agencies have acquired digital-media agencies or integrated them into organization. Boutique shops pioneered online advertising.

Advertisers, agencies buy space.

Publishers, ad networks sell space.

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Interactive Media Planning

Establish objectives and then choose interactive media options from: Internet Mobile communication device Video games Social media networks

12-9


Interactive Communications Strategy

Internet consumers voluntarily visit websites with content that interests them, making it possible to target on an individualized basis: Demographic variables Behavioural variables Geographic variables

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Interactive Communications Objectives

Create brand awareness Build and enhance brand image Offer incentives Generate leads Conduct transactions

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Internet Advertising OptionsSearch an advertiser’s listing is placed alongside

search results in exchange for paying a fee each time someone clicks on the ad.

Display advertisers place banner ads on websites of

interest to the target audience

Rich media includes animation, sound, video, and

interactivity; often referred to as animated banners

Continued…12-13


Internet Advertising Options (cont.)

Video video ads offer more emotional impact than other

forms of online advertising and are familiar (like TV)

Sponsorships advertiser commits to an extended and integral

relationship with another website

Permission-based email permission-based email, in which a user chooses to

receive messages from a particular advertiser, is growing quickly.

Continued…12-14


Internet Advertising Options (cont.)

Webisodes unlike television commercials, webisodes

focus more on creativity in order to engage users.

Company and brand websites traditional media combined with effective

website content give an advertiser ample opportunity to tell the whole story.

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Advantages ofonline advertising

Tracking and Measurement Targeting capability Broad Reach possibilities Depth of Content Timing – “always on” Interactivity and action

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Disadvantages ofOnline Advertising

Low click-through rates Consumer expectations Privacy concerns

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Internet Advertising Rates and Media Buying

CPM CPM is the price charged for displaying an ad

1,000 times.

Pay-for-performance Based on cost-per-click, a model which is

shrinking.

Flat fee a set amount for the length of time the ad

appears on the site.

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Mobile Communications

Targeted advertising is possible through text messaging, video messaging, cell-phone applications, and online video games.

Continued…

12-19


Mobile Communications (cont.)

Text messaging Canadians text an average of 88 million messages

every day For marketers looking for mass market reach, text

messaging is a viable way to deliver the message.

Video Messaging Video messaging is the next generation of

smartphone communications. Marketers are excited about video messaging, due

to its intimacy and immediacy.

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Video Game Advertising “Advergaming”

In terms of advertising in video games, an organization can go in two directions: create its own branded game or place ads in commercially sold games.

An irony of video game advertising is that gamers expect to see ads in games and are receptive to their presence.

12-21


Social Media Network

A social network connects people with different types of interests at one website.

The growth and development of social networks is changing the way in which marketers view their brands, their customers, and the media.

The reach of social networking and blogging venues is growing at twice the rate of other large drivers of Internet use

12-22


Types of Social Networks

Broad Based Sites Includes Facebook and LinkedIn

Niche Social Networks For users who feel overwhelmed or lost in

the shuffle of the broad-based sites.

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Benefits of Social Media Marketing

46% of social media users recommended or discussed a product or brand on Facebook

44% have done the same on Twitter. 30% of respondents said they learned about a

new product, service or brand from a social networking site

25% have gone directly to an online retailer or ecommerce site after learning about a new product or brand.

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Consumers ControlSocial Media

Brand democratization when control of the brand message switches

from the marketer to the consumer.

Consumer-generated content content created by consumers for consumers.

Crowdsourcing when a company invites the public to

participate in the marketing of its brands.

12-25


Types of Social Network Advertising and Marketing

Communications

Direct advertising on a social site Brand page or fan page “Advertising from a friend” network

attempt to mobilize, manage word of mouth

Corporate blogs

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Measuring Advertising on Social Networks

Interaction Rate proportion of users who interact with an ad

Time Spent length of a specific visit or session

Conversation Reach number of unique visitors per month to all sites related to the

conversation in which the advertiser is participating

Conversation-Relevant Links The number of links to and from content that contains phrases

from sites identified as part of the client’s campaign

12-27

Copyright © 2012 Pearson Canada Inc. CHAPTER 12 Interactive Media 12-1.

Documents

pearson canada

interactive media options

internet advertising

interactive media planning

interactive media technology

digitalmedia agencies

internet access

internet mobile phones