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CHAPTER 12
Interactive Media
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Copyright © 2012 Pearson Canada Inc.
Learning Objectives
 Describe the various elements of internet
communications
 Identify the key organizations that constitute
the online advertising industry
 Evaluate the various advertising models
available to marketing organizations
Continued…
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Copyright © 2012 Pearson Canada Inc.
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
 Assess the role of social media in the marketing
communications mix
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Copyright © 2012 Pearson Canada Inc.
Interactive Media
 Technology is changing how marketers think
about the media.
 In the digital universe, control has shifted from
the advertiser to the customer.
 The Internet and mobile phones allow viewers to
choose when, where and how they watch.
 Internet / mobile phones are participatory media;
traditional media is interruptive.
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Interactive Communications
The world’s digital revolution is being led
by Canadians, who now consume 28% of
their media online.
 In 2009 online ad revenues reached $1.8
billion, up from $1.1 billion in 2006.
 Interactive communications is more about
engagement than it is about reach and
frequency.
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Digital Reach, Consumption
and Behaviour
 The Internet has reached mass media status
 More than 80 percent of Canadians have Internet
access at home
 Internet users average about 17 hours a week online
 43% of Canadians have ordered goods online.
 Wireless communications are revolutionizing
consumption patterns once again.
 Smartphones are now a mainstream method of
accessing information through to the Internet
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Online Advertising Industry
Sellers
Publishers, ad networks sell space.
Buyers
Advertisers, agencies buy space.
Ad Agency/
Web Design
Measurement
companies
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Traditional ad agencies have acquired
digital-media agencies or integrated
them into organization. Boutique shops
pioneered online advertising.
Service companies facilitate
effective use of online advertising.
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Interactive Media Planning
Establish objectives and then choose
interactive media options from:
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Internet
Mobile communication device
Video games
Social media networks
Copyright © 2012 Pearson Canada Inc.
Interactive Communications
Strategy
Internet consumers voluntarily visit
websites with content that interests them,
making it possible to target on an
individualized basis:
 Demographic variables
 Behavioural variables
 Geographic variables
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Copyright © 2012 Pearson Canada Inc.
Interactive Communications
Objectives
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Create brand awareness
Build and enhance brand image
Offer incentives
Generate leads
Conduct transactions
Copyright © 2012 Pearson Canada Inc.
Internet Advertising Options
Search
 an advertiser’s listing is placed alongside
search results in exchange for paying a fee
each time someone clicks on the ad.
Display
 advertisers place banner ads on websites of
interest to the target audience
Rich media
 includes animation, sound, video, and
interactivity; often referred to as animated
banners
Continued…
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Copyright © 2012 Pearson Canada Inc.
Internet Advertising Options
(cont.)
Video
 video ads offer more emotional impact than other
forms of online advertising and are familiar (like TV)
Sponsorships
 advertiser commits to an extended and integral
relationship with another website
Permission-based email
 permission-based email, in which a user chooses to
receive messages from a particular advertiser, is
growing quickly.
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Copyright © 2012 Pearson Canada Inc.
Continued…
Internet Advertising Options
(cont.)
Webisodes
 unlike television commercials, webisodes
focus more on creativity in order to engage
users.
Company and brand websites
 traditional media combined with effective
website content give an advertiser ample
opportunity to tell the whole story.
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Copyright © 2012 Pearson Canada Inc.
Advantages of
online advertising
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Tracking and Measurement
Targeting capability
Broad Reach possibilities
Depth of Content
Timing – “always on”
Interactivity and action
Copyright © 2012 Pearson Canada Inc.
Disadvantages of
Online Advertising
 Low click-through rates
 Consumer expectations
 Privacy concerns
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Copyright © 2012 Pearson Canada Inc.
Internet Advertising Rates
and Media Buying
CPM
 CPM is the price charged for displaying an ad
1,000 times.
Pay-for-performance
 Based on cost-per-click, a model which is
shrinking.
Flat fee
 a set amount for the length of time the ad
appears on the site.
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Copyright © 2012 Pearson Canada Inc.
Mobile Communications
Targeted advertising is possible through text
messaging, video messaging, cell-phone
applications, and online video games.
Continued…
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Copyright © 2012 Pearson Canada Inc.
Mobile Communications
(cont.)
Text messaging
 Canadians text an average of 88 million messages
every day
 For marketers looking for mass market reach, text
messaging is a viable way to deliver the message.
Video Messaging
 Video messaging is the next generation of
smartphone communications.
 Marketers are excited about video messaging, due
to its intimacy and immediacy.
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Copyright © 2012 Pearson Canada Inc.
Video Game Advertising
“Advergaming”
 In terms of advertising in video games, an
organization can go in two directions: create its
own branded game or place ads in commercially
sold games.
 An irony of video game advertising is that gamers
expect to see ads in games and are receptive to
their presence.
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Copyright © 2012 Pearson Canada Inc.
Social Media Network
A social network connects people with
different types of interests at one website.
 The growth and development of social networks
is changing the way in which marketers view their
brands, their customers, and the media.
 The reach of social networking and blogging
venues is growing at twice the rate of other large
drivers of Internet use
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Types of Social Networks
Broad Based Sites
 Includes Facebook and LinkedIn
Niche Social Networks
 For users who feel overwhelmed or lost in
the shuffle of the broad-based sites.
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Copyright © 2012 Pearson Canada Inc.
Benefits of Social Media
Marketing
 46% of social media users recommended or
discussed a product or brand on Facebook
 44% have done the same on Twitter.
 30% of respondents said they learned about a
new product, service or brand from a social
networking site
 25% have gone directly to an online retailer or
ecommerce site after learning about a new
product or brand.
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Consumers Control
Social Media
 Brand democratization
 when control of the brand message switches
from the marketer to the consumer.
 Consumer-generated content
 content created by consumers for consumers.
 Crowdsourcing
 when a company invites the public to
participate in the marketing of its brands.
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Types of Social Network
Advertising and Marketing
Communications
 Direct advertising on a social site
 Brand page or fan page
 “Advertising from a friend” network
 attempt to mobilize, manage word of mouth
 Corporate blogs
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Measuring Advertising on
Social Networks
Interaction Rate
 proportion of users who interact with an ad
Time Spent
 length of a specific visit or session
Conversation Reach
 number of unique visitors per month to all sites related to the
conversation in which the advertiser is participating
Conversation-Relevant Links
 The number of links to and from content that contains phrases
from sites identified as part of the client’s campaign
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