Download Marketing communications

Implementation of marketing
strategy: Marketing communications
MARK 430
Marketing process
 Target your market
 Position your product
 Communicate to your target audience
 Communication
 Advertising
 Personal selling
2 main goals of marketing
communication
 Brand advertising – aim is to build awareness
of a product by putting the brand name and
product benefits in front of users
 Develop positive attitudes prior to purchase
 Direct-response advertising – seeks to
motivate action – BUY!
Online communications media types
Medium
Advantages
Disadvantages
Website /
personalized
website
Communicate rich, detailed information that users
can navigate at will; can track users and customize
site accordingly
Narrow reach
Banner ads
Link directly to buying opportunity; easy to
measure effectiveness; wide reach; potential for
effective targeting
Low attention and click-through
rates; short life; limited ‘pass-along’
audience; very high clutter; fleeting
exposure
Interstitials
Catch user’s attention; link to buying opportunity
Can annoy users; limited ‘passalong’; audience
Rich media
Attention getting; link to buying opportunity
Can annoy users without
broadband access
Dynamic ad
placement
Serves up customized ads to users in real time
Difficult to execute well; can annoy
users and/or other advertisers
Search engines
Good credibility; high believability; guarantee of
position available; significant audience at major
sites
High competition; information
overload; limited ‘pass-along’
Classified and
listings
Relatively inexpensive; potential for wide
exposure; qualified audience
Clutter
Opt-in email
High demographic selectivity; high credibility;
significant flexibility; proven high click-through
rates; absolutely inexpensive; some pass-along
Requires substantial user base
before effective; high clutter
Mass email
High reach; inexpensive; flexible
Low attention and significant
resentment (spam image)
Marketing communications we will
look at over the next few weeks
 This week: online advertising (banners,
interstitials and rich media)
 Week after study break: search engine
marketing
 Following week: email and viral marketing
What difference does the Internet make
to advertising?
 Traditional form of one-way, one-to-many mass
advertising no longer necessary or appropriate
 Web provides a highly targeted, receptive audience
 Web advertising can be interactive, and therefore by
definition, more engaging
 Web provides a mechanism for instant action
 Immediate gratification of the consumer not available with
print, TV or radio advertising
 Consumers complain more about web advertising
than about other forms of advertising
Internet advertising
 Advertising is non-personal communication of
information through various media
 Usually persuasive in nature about products
 Usually paid for by an identified sponsor
 Paid space on a website or in an email is considered
internet advertising
 The process of selling advertising on the Internet is
very similar to offline media – web companies create
content then sell advertising space to advertisers
 But also include the situation where a content
provider will pay to include that content on another
firm’s site (sponsored content = advertising)
The importance of Internet advertising
 Began in 1994 with banners on Hotwired.com
 Saw strong growth until 2000-2001 (on a par with the
drop in advertising spending in all media)
 Now on the upswing again, as dissatisfaction with
traditional media grows (see link to reading)
 The importance of the Internet as an advertising
medium varies across industries. Most advertising
comes from following categories
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consumer related advertising (30%)
computing (18%)
financial services (12%)
media (12%)
business services (9%)
How successful is web advertising?
 Banner ad click-through rates are very low
 around 1% of users actually click on a banner ad
 of that 1%, around 5% actually follow through with a transaction
 The web is very good at person-to-person interactive
services, and at promoting product loyalty
 Growth has been in interactive ads using “rich media”
 Said to be twice as effective as traditional banners
 Big payoff is in the capability to track ad effectiveness
and ability to respond to change very quickly
Web site advertising formats
 Began as static banners in the mid 1990s, added
animation, then moved to the use of “rich media”
 Interactive formats, including:
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Banners
Buttons
Skyscrapers
Pop-ups, pop-unders, interstitials
Floater ads and Shoshkele (United Virtualities)
Rich media gallery (Macromedia)
 For examples of all kinds of web advertising, go to
 www.eyeblaster.com Eyeblaster
Paying for, and measuring usage
Online media have varied payment schemes – unlike traditional media
which is usually priced on a pay for placement basis (based on ratings)
Ad Clicks

Aggregate number of user clicks on a banner ad
Ad Views
(Impressions)

Number of times a banner ad is downloaded to a user’s browser and
presumably looked at
Click-Through

Percentage of ad views that are clicked upon; also “Ad Click Rate”
CPC
(Cost-per-Click)

Formula used to calculate what an advertiser will pay to an Internet publisher
based on number of click-throughs a banner generates

Cost per thousand impressions of a banner ad; a publisher that charges
$10,000 per banner and guarantees 500,000 impressions has a CPM of $20
($10,000 divided by 500)
CPM
Going beyond click-through rates:
Clickstream data gives you the whole picture of a consumers
movements before, during and after viewing an advert
Complexities of online advertising
 Designing interactive rich media is challenging
 Non-linear – consumer can take many paths
 Getting the right balance between intrusive and engaging
 Tracking effectiveness
 Online ads delivered to individuals rather than to mass
markets – makes placement and tracking much more
complex
 Technical complexity of rich media adverts mean closer ties
between the advertiser and the media seller
 Ad placement
 Disagregated medium means ads must be placed with
several Internet publishers to reach audiences
Helping marketers deal with these
complexities
 Workflow software to help in the buying, selling, and
managing of managing of online ads – eg. Solbright
 Macromedia and DoubleClick’s joint product to help
manage both the creation and measurement of ad
effectiveness
 DART Motif
Advertising to wireless devices
 Huge growth potential
 PDAs, cellphones, laptops etc now widely used
 Big question is – would mobile users rather pay for
content, or will they tolerate advertisements in
exchange for free content
 Answer is not clear because of several factors
 low bandwidth
 small screen size
 different techniques needed to track ad
effectiveness
 by-the-minute payment for air-time by user
Viewing advertising in exchange for
viewing content
 A growing trend as content providers try to
make sense of business realities
 www.ivillage.com - view ad before gaining
access to site
 www.salon.com - view ad in exchange for
getting access to complete magazine
article
The future of web advertising
 Web technology allows for many interesting
multimedia advertising formats
 These catch attention when they first appear,
but quickly become intrusive and annoying
 Big backlash against pop-ups
 Marketing fundamentals will prevail:
Success is about reaching the right
audience with the right message at the
right time