15

THE INTERNET AND INTERACTIVE MEDIA

GROWTH IN INTERNET ADVERTISING

1994 Advertisements on HotWired

2000-2002 25 percent drop

2005 Internet advertising at $10 billion

2006 Internet advertising exceeds $16.9 billion

WHY THE RAPID ADOPTION OF THE INTERNET?

The Web Site

Huggies Goes Beyond Providing Information

Hot Web Sites

Facebook
MySpace YouTube

Disney.com Veoh

Funny or Die

TMZ.com

Discovery.com

Internet Communications Objectives

Create Awareness Gain Consideration Generate Interest

Create Buzz

Objectives

Disseminate Information

Stimulate Trial

Create a Strong Brand

Create an Image

Snapple Creates Interest

Using Web Sites to Build Image

Branding is Complicated

Long-term investment

Requires different strategies

Branding
The costs are high Requires a broad audience

E-Commerce

Direct selling of goods and services through the Internet

May be primary or secondary objective

E-Commerce Trends

E-Commerce

Rapid growth rates likely to continue

Fast growth in downloadable purchases

Both consumer and business-to-business

Ebay is a Popular E-Commerce Site

The Internet and IMC

Advertising Sales Promotions The Internet site should be integrated with: Personal Selling Public Relations Direct Marketing

Advertising on the Internet (Part 1)

Forms of Internet Advertising

Banners

Interstitials

Sponsorships
Pop-ups/ Pop-unders

Push Technologies
Links

Typical Banner Ads

Advertising on the Internet (Part 2)

Forms of Internet Advertising

Paid Search Behavioral targeting Rich media

Online commercials Video on demand Webisodes

Contextual Ads Additional Forms

Podcasting RSS feeds Blogs

Rich Media

A broad range of interactive digital media that exhibit dynamic motion, taking advantage of enhanced sensory features such as video, audio, and animation.
Online Video Webisodes Other Forms on Commercials Demand

Additional Internet Advertising Forms

Podcasting, RS syndication, Blogs

Sales Promotions on Web Sites

Personal Selling on the Internet

May Replace Personal Selling

Reduces cost of personal calls Increases potential reach

May Enhance Personal Selling Efforts

Stimulates trial

Primary source of information Valuable source of leads Improves 1-on-1 relationships Prospects request sales calls

Cross-selling

Public Relations on the Internet

Philanthropists on the Web

Direct Mail (Email)

Direct Mail (Email)

Often used by catalogers

Highly targeted Relies on email lists

Tries to reach those w/specific needs

Internet Infomercials

Infomercials

Program content similar to television, cable or satellite

Web provides for greater audience interaction

E-Commerce and Home Shopping

Measures of Effectiveness

Internet-Specific Measures Cross-Media Optimization Studies (XMOS) Traditional Measures

Recall/retention

Surveys Sales

Tracking

Sources of Measurement Data

Arbitron

Data Source

MRI and SMRB Audit Bureau of Circulation Internet Advertising Bureau (IAB) eMarketer Nielsen Net Ratings Jupiter MediaMetrics, Inc.

Internet Marketing Pros and Cons

Advantages
Target Marketing Message Tailoring Interactive Capabilities Sales Potential Creativity Exposure/Speed

Information Access

Complement to IMC

Internet Marketing Pros and Cons

Disadvantages
Measurement problems Annoyance Clutter Privacy Poor reach Irritation

Potential for deception

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 well-designed IMC program a

Additional Interactive Media

Interactive TV Allows viewers to interact with the program and advertising

Wireless Communications through satellite broadcast systems or cellular phones