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Digital Interactive Media Media & Marketing What is Interactive Digital Media? Text Art Sound Animation Video The use of any of these or a combination of these in a digital format is Interactive Digital Media. Returning power to the consumer Before Direct appeals to consumer TV advertising Passive consumer Cable radio and TV TV, DVR’s, Internet Consumers choose where and when to view content and advertising Merging of content and advertising When is it content and when is it an ad? Consumer can be actively engaged Barnes and Nobel’s site Product based games The Internet Dominant media form of digital interactive 1996 - $300 million in Internet advertising 2000 - $8.2 billion in Internet advertising By 2011 (according to eMarketer) - $36.5 billion in Internet advertising Traditional media vs. the Internet Centralized network Content is distributed from a centralized hub TV station, newspaper, etc. Decentralized network Content is distributed via various hubs and links Other important differences Space on the Internet is vast and inexpensive Time (TV and radio) and space (print) are limited and expensive Consumers are receivers, creators, and arbiters of content on the Internet Key components of the Internet Portals – sites that attempt to provide a broad array of content and services Designed to keep users on the portal page Create opportunities for advertising and fee-based content Yahoo is industry leader Social networking sites – electronically linked social interaction More key components Cookies – tracking devices Search engine – allow users to search for websites based on keyword Google dominates with 49.2% of the market Revenue generated through AdWords and AdSense Sponsored links at the top of a search results page are purchased Sponsored links on the side of a search results page AdWords Performance based, pay-per-click model Advertisers the link only pay Google when the user clicks on Pricing is determined by an auction where companies can bid for keywords used in the search Higher bids lead to higher placement Effective ads receive higher placement Web sites set aside a portion of their pages for Google text ads Google software selects and inserts ads without input from the host site AdSense Attempt to insert ads that are relevant to the host site content Revenue is generated on a pay-per-click model and is shared with the host site Internet use is a global Geographic Internet Usage (% of population) phenomenon 2006 2008 73.6 68.6 59.5 52.6 48.1 36.1 21.3 15.1 9.9 2.6 5.3 24.1 14.4 9.6 21.9 15.7 of American Internet Users, 2006 (%) Who Demographics accesses the Internet? % Who Use the Internet Total Adults Men Women Age Community Type Race/Ethnicity Educational Attainment 73 Urban White, non75 Hispanic Less than 73 high school 40 71 Suburban Black, non75 Hispanic 61 High School 64 74 Rural Englishspeaking 63 Hispanic Some 76 College 88 Type of Connection at Home College + Annual Income ($) 18-29 88 < 30,000 53 Dial-up 34 30-49 30,00084 49,999 80 High-speed 62 50-64 50,00071 74,999 86 65+ 32 75,000+ 91 91 Email 2% Interstitial 2% How do companies advertise? Slotting Fees Rich Media 3% Sponsorship 9% Classified 28% 7% Banners & Buttons 18% Search Engine 30% Percent of Internet Ad Revenues by Type of Advertising, 2005 Referrals 1% Web Sites Most companies have developed some form of online presence Can view web site as an ad Extended brochure Online catalog Information and entertainment Banners – small billboard across the top or bottom of a web page Other forms of Internet advertising Skyscraper – a vertical ad that appears on one side of a page Users can click on these to go to the advertisers web site Pricing is becoming standardized through the IAB (interactive advertising bureau) Other forms Internet Buttons – smallerof versions of the banner that look like icons Advertising Text links – hypertext embedded within stories or articles Rich media advertising – include graphical animations, audio and video elements Interstitial – ads that play between pages on a Web site Other forms of Internet Rich mail – multimedia email Sponsorships – corporations sponsor entire Advertising sections or single events on a web page Classified ad Web sites – e.g. Craig’s List E-mail advertising – 77% sent to consumers who requested it Spam – electronic junk mail Viral marketing Internet version of word of mouth advertising(?) via email Encourage satisfied customers to recommend product/service to friends Provide incentives to consumers for referrals Can refer friends to advertiser games and experiences BKs subservient chicken, for example Benefits of Internet Advertising Interactive Large and growing audience Immediate response Highly selective targeting Proximity to purchase Virtual storefronts Affluent market Reaches users at home and at work Disadvantages of Internet advertising Medium in not standardized High targeting costs Slow downloads due to limited bandwidth Security and privacy concerns Global infrastructure limitations hamper effectiveness Measuring ad viewership Ad impression – counts the number of times an ad is called to appear on a web page Consumer may never see the ad Click rate – counts when a visitor clicks on an ad Purchasing time and space On average, 6.5% of advertising budget is spent on interactive media Purchase ads directly Ad networks serve as brokers for advertisers and Web sites Other Interactive Media Kiosk – computer for specific users, for a specific purpose Owned and controlled and operated by its provider Located in malls, retail stores and other public places Close to the purchasing location In store catalogs, coupons, DVD rentals, rick sales, local information, etc. ATMs Other Interactive Media Interactive TV – allows viewers to interact with television content as they view it A TV with a return path – information flows to the viewer or back to broadcaster Programming links to web sites, commerce, surveys, distance learning Cell Phone Advertisers Cell phone providers have been reluctant to include advertising Ads can be placed on the deck The page users see when they access the Internet from their phone Providers are considering offering lower rate plans that include advertising
