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

• At least 60% of U.S. households have Internet access at home• Nearly 70 million

The 2 I’s of the InternetThe 2 I’s of the Internet

Individualization:

Interactivity:

Internet Advertising FormatsInternet Advertising Formats

• Websites

• Banner Ads

• Rich Media Formats

• Web Logs

• Email

• Search Engine Advertising

• Advertising via Behavioral Targeting

Internet Advertising FormatsInternet Advertising Formats

Websites

» Company Homepages

» Goal of internet advertising is to drive traffic to websites

» Users seek information

» Design?

Internet Advertising FormatsInternet Advertising Formats

Banner Ads

» Most popular advertising format on Internet

» Low click through rate (CTR)

» Useful for new products or brands

» Typical goal is to increase awareness

Internet Advertising FormatsInternet Advertising Formats

Rich Media Formats

» Pop-Ups!!

» Interstitials

» Superstitials

» Video Ads

**more eye-catching and memorable than banner ads **higher CTRs.

Pop-UpsPop-Ups

InterstitialsInterstitials

SuperstitialsSuperstitials

Video AdsVideo Ads

• On company website»

• Preceding other videos»

• Branded Content

Video AdsVideo Ads

• http://www.youtube.com/watch?v=PKYUtUw-8ig

Internet Advertising FormatsInternet Advertising Formats

Web Logs - Blogs

» Open forum for “everyman” to communicate

» Benefit small businesses- Why?

» Brand marketers often develop own blogs1.

2.

3.

» Podcasting

Internet Advertising FormatsInternet Advertising Formats

Email Primary reason many people use the Internet

» Ad expenditures on email were $300 million in 2005

» Not as effective as once perceived

» Opt-in emailing

» SPAM• Ethical issues

Internet Advertising FormatsInternet Advertising Formats

Search Engine Advertising (SEA)» Ads show up based on searches

Keywords

» Fastest growing form of Internet advertising

Advertising via Behavioral Targeting» Focusing Internet advertising towards those

interested

• Gmail, Facebook

New DevelopmentsNew Developments

1.

2.

3.

Metrics for Measuring Internet Ad Metrics for Measuring Internet Ad PerformancePerformance

1. The exposure value or popularity

2. The ability of a site to attract and hold users’ attention and the quality of customer relationships

3. The usefulness of Web sites

4. The ability to target users

The Metrics of Internet AdvertisingThe Metrics of Internet Advertising

Click-through rate (CTR):

The Metrics of Internet AdvertisingThe Metrics of Internet Advertising

CPM

Cost per thousand (impressions)

How much it costs to place an ad on a particular Web site

No info on effectiveness

The Metrics of Internet AdvertisingThe Metrics of Internet Advertising

CPA

Cost per action.

Number of users who:

Actually click on a banner ad,

Visit a brand’s Web site,

Register their names on the brands Web site,

Actually purchase (electronically) the advertised brand.

Internet Advertising – Final ThoughtsInternet Advertising – Final Thoughts

• Have only begun to discover what internet advertising is capable of

• Constant evolution

• Ethical tightrope