Learning Objectives. Interactive Media. Learning Objectives (cont.) Interactive Media. Traditional Advertising Versus Interactive Communications

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CHAPTER 12

Interactive Media

Learning Objectives

 Describe the various elements of internet communications

 Identify the key organization members that constitute the online advertising industry

 Evaluate the various advertising models available to marketing organizations

Continued…

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

Interactive Media

Wireless technology, internet, cell

phones, portable music players, and

PDAs represent a new advertising

environment challenging marketers.

Technology is rapidly advancing, but marketers have been slow to respond. Why?

generation gap between aging marketing decision-makers and the younger, tech savvy target markets.

Traditional Advertising Versus

Interactive Communications

Traditional advertising Organizationstarget customers

Interactive communications

Customerstarget information that is of interest to them

Control has shifted from the advertiser

to the customer.

Interactive Advertising

The digital revolution is being led by

Canadians – we are the world leaders in

internet usage per capita and we now

consumer 20% of our media online.

In 2006, online advertising revenues reached

$1.01 billion, an 80%increase over 2005.

Heaviest users:

higher income households

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The Internet and Internet

Usage

Internet

A network of computer networks linked together to act as one

World Wide Web

The collection of websites on the internet

For websites, unlike any type of medium,

the consumer controls whether he or

she will see the information

Websites also provide a means of collecting information about visitors (through contests and surveys)

Internet Culture and Behaviour

The 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.

Interactive Communications

Strategy

Establish objectives and then choose

interactive media options from:

Internet

Mobile communication device

Video games

Social media networks

Interactive Communications

Strategy

Behavioural targeting

 Delivery of ads based on consumer's previous surfing behaviour tracked by cookies.

 A cookie is an electronic identification tag sent from a Web server to a browser to track a person’s browsing patterns.

 Users agree to accept cookies while giving up private information about how they use the Internet.

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 visits

Independent 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.

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Internet ads are measured for effectiveness

based on:

Impressions Clicks (clickthroughs) Clickthrough Rate Visitor Visits

Stickiness – website that has the average visitor return to the site several times each month and view several pages on that site.

Online Advertising

Effectiveness

The goal of advertising is to motivate a

purchase. Online advertising may:

1. Create brand awareness

2. Stimulate interest and preference

3. Distributing incentives and contest information

4. Provide a means to make a purchase

5. Provide a means to contact an advertiser

6. Acquire data about real/potential customers

Online Advertising

1. Display Advertising

2. Online Video

3. Search Advertising

4. Sponsorships

5. E-mail Advertising (Permission-based)

6. Webcasting (webisodes)

Online Advertising

Alternatives

Banner Advertising

Alternatives

Banner Skyscraper Rectangle Leaderboard

The quality of online advertising is

improving as video graphics are added.

Banners Rectangle

Big box

Leaderboard

Skyscraper

Animated Banners and Interactive/Rich Media Expandable Banner

Videostrip

Push down banner

Floating ad

Window ad

Wallpaper ad

Banner Advertising

Alternatives

An advertiser commits to an extended relationshipwith another website.

Sponsorships allow for a successful campaign

without having to drive trafficto a brand’s website.

Consumers trust brands they visit repeatedly, therefore, a second brand (a sponsor) may be perceived positively by the association.

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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.

Email Advertising

Targeting Capability

Tracking & Accountability

Timing

Interactivity and Action

Acceptance of Online Advertising

Consumer Frustration

Privacy Concerns

Advantages

Disadvantages

Advantages & Disadvantages of

Online Advertising

CPM is the price charged for displaying

an ad 1,000 times. Options include:

Run of Site

Run of Category

Keyword Targeting

As degree of targeting increases, the CPM increases.

Internet Advertising Rates and

Buying Space

Since clicking is the desired action, advertisers feel they should only pay when the banner ad is clicked on, on a cost-per-clickbasis.

This system tends to devalue advertisingand punish the website financially if the ad does not attract an audience. In the offline advertising world, the media are not responsible for an action being taken. That is left to the message! The job of the media is to offer access to an audience, not to share in the responsibility for the quality of the advertising itself.

Pay-for-Performance Model

A Web site charges a set amountfor 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.

Flat-Fee Model

Other Forms of Online

Marketing Communications

Podcasting

Blogging

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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.

Learning Objectives. Interactive Media. Learning Objectives (cont.) Interactive Media. Traditional Advertising Versus Interactive Communications

CHAPTER 12

Interactive Media