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Employing the Internet for Advertising

Chapter Fifteen. Employing the Internet for Advertising. Mass Online Advertising. Internet not replacement but key element of IMC programs Zero-sum game between media At least 60% of U.S. households have Internet access at home. The 2 I’s of the Internet. Individualization: Interactivity:.

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Employing the Internet for Advertising

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  1. Chapter Fifteen Employing the Internet forAdvertising

  2. Mass Online Advertising • Internet not replacement but key element of IMC programs • Zero-sum game between media • At least 60% of U.S. households have Internet access at home

  3. The 2 I’s of the Internet Individualization: Interactivity:

  4. Interactivity as a Disadvantage • Internet users are often highly involved and goal driven (“leaning forward”), making them: • Traditional media users are more casually involved (”leaning back”), making them:

  5. Internet Advertising Formats • Web Sites • Display or Banner Ads • Rich Media Formats • Pop-Ups • Interstitials • Superstitials • Video Ads • Web Logs • Blogs • Podcasts • Social Networks • E-mail • Opt-in Versus Spam • E-zines • Wireless E-mail Advertising • Mobile Phones & Txt Messaging • Search Engine Advertising • Keyword-Matching Advertising • Content-Targeted Advertising • Advertising via Behavioral Targeting

  6. Web Sites • Uses for Web Sites • Well-Designed Web Sites:

  7. Banner Ads • Most popular advertising format on Internet • Small and static • Low click through rate (CTR) • Useful for new products or brands • Typical goal is to increase awareness

  8. Display or Banner Ads • Click-through Rates (CTRs) • CTRs are a function of brand familiarity:

  9. Rich Media Formats Pop-Ups!! Interstitials Superstitials Video Ads

  10. Pop-Ups

  11. Interstitials

  12. Superstitials

  13. Video Ads • On company website • Shortened versions of TV ads • Webisodes Example? • Preceding other videos

  14. Web Logs - Blogs Open forum for “everyman” to communicate Benefit small businesses Why? Brand marketers often develop own blogs

  15. Podcasts • Self-produced radio-style online programs to which consumers can subscribe • Enable advertisers to target consumers who have self-selected programs that are of interest to them

  16. Social Networks • Allow users to interact with “friends,” share opinions and information, and create online communities • Developed by businesses, enable consumers to learn from one another and to share their experiences. Examples? • Value as a marcom tool not yet clear

  17. Email Primary reason many people use the Internet • Ad expenditures on email were $300 million in 2005 • Not as effective as once perceived • Marketers have “spoiled the commons” • Opt-in emailing • SPAM/Phishing • Ethical issues

  18. Opt-In E-mailing

  19. Search Engine Advertising (SEA) • Ads show up based on searches Keywords • Fastest growing form of Internet advertising • Includes a variety of well-known services (e.g.; Google, MSN Search, and Yahoo!) • Advertisers bid for keywords by: • Problems?

  20. Other Concepts • Content targeting • Behavioral targeting • Click fraud • E-mail magazines (E-zines) • WiFi and Cellular advertising

  21. New Developments • E-mail Magazines (E-zines) • Wi-Fi/Hotspots • Internet capable mobile devices

  22. Measuring Internet Ad Effectiveness Questions to Ask How many visited a particular Web site? How many people clicked through a particular Web ad? What actions were taken following click throughs or site visits? What are the demographic characteristics of these people? Is this form of online advertising yielding a suitable return on investment?

  23. The Metrics of Internet Advertising Click-through rate (CTR)

  24. The Metrics of Internet Advertising CPM

  25. The Metrics of Internet Advertising CPA

  26. Internet Advertising – Final Thoughts

  27. Workshop: Media Objectives Reach Frequency Weight Continuity Cost 5

  28. Advertising Schedules 600 J F M A M J J A S O N D 400 Ad $ (in thousands) 200 0 (months) Flighting Continuous Pulsing Continuous, Pulsing, and Flighting Schedules 20

  29. Workshop Questions – Media Objectives for Free Rice • Do you consider reach or frequency more vital to your IMC campaign’s success? Why? • Which continuity method (continuous, pulsing, flighting) may be most effective for your Free Rice campaign and why?

  30. Workshop Questions – Media Strategy for Free Rice • List three different Internet methods of contact for reaching middle school and high school students as a target audience. • List three different Internet methods of contact for reaching teachers as a target audience. • Same or different as methods for students?

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