Download Online communications are vital for reaching youth targets.

Chapter 7
Online Interactive
Communications
7-1
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Online Realities
1. Online communications offer a high degree of
personalization; messages can be tailored to
individuals.
2. The Internet is extremely popular as an information
retrieval tool but advertising online is perceived as
an intrusion.
3. Online advertising is gradually being added to the
IMC mix.
7-2
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Online / Offline Communications
Links
Corporate Plan
Marketing Plan
E-Commerce
Plan
Advertising Plan
(Traditional Media)
Online
Communications
Plan
7-3
Offline
Purchase
©2005 Pearson Education Canada Inc.
Online Behaviour
1. Consumers visit sites and willingly divulge
personal information (database and CRM
potential).
2. Online communications is an effective means of
reaching diverse demographic target groups.
3. The average family spends 32 hours a week
online; 59% of these families have bought online.
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Traditional Media vs Online
Media
Traditional
Media
Online
Media
1.
Passive in nature
2.
Media targets an
audience
1.
Interactive in nature
2.
Consumers target
content
Online messages reach large numbers of people in
a cost-efficient manner.
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Online Communications
Opportunities
1. Excellent medium for “telling a story.”
2. Mass customization (personalizing messages) is
possible.
3. E-Commerce capabilities produce action.
7-6
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Online Advertising Objectives
Online advertising helps achieve numerous marketing
communications objectives:
• Create Awareness
• Build Brand Image
• Offer Incentives
E-Mail marketing
and E-Commerce
potential.
• Generate Leads
• Provide Customer service
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Online Advertising
The effectiveness of online advertising is measured by:
• Ad Views (Impressions)
• Ad Clicks
• Ad Click Rate
• Page Views
7-8
Sites that are visited
frequently and for
extended periods are
said to be “sticky.”
©2005 Pearson Education Canada Inc.
Online Advertising Options
Banner
Skyscraper
Rectangle
Size is important; larger ads get more
attention and clicks.
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Online Advertising Options
Animated
Banners
Pop-Ups
Pop-Unders
Rich
Media
A spinning or animated
banner.
Ads that suddenly appear
on the screen
Sophisticated, TV-style
ads.
Click rates for rich media are significantly higher
(3.5%) than static banners (0.5%).
7-10
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Impact of Banner Size
Size
Brand
Message
Awareness Association
Brand
Favourability
Purchase
Intent
Banner
1.8
2.4
0.3
0.2
Skyscraper
2.7
3.9
1.4
1.4
Rectangle
3.1
8.5
2.5
3.3
Based on this data, large rectangles offer
the greatest benefit to advertisers.
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Source: Advertising Age,
January 13, 2003, p. 46.
©2005 Pearson Education Canada Inc.
Online Sponsorships
A sponsorship is a commitment to advertise on a Web
site for an extended period. Advertisers are attracted to
sponsorships because of Web content.
News
Business News
Sports
Entertainment
7-12
The
come to the hook!
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E-Mail Advertising
• Opt-in Lists
Proper
Use
• Permission-based e-mail
• Sponsored e-mail
• Invasion of Privacy
Improper
Use
• 3rd party lists
• Spam
“Permission rented is permission lost!”
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Web Site Communications
Presently the best form of online communications.
• Offline ads encourage visits to sites.
• Ideal for “telling a story.”
• Can provide a “fun” experience for the visitor.
• Good for all products; encourages offline purchases
• Critically important in B2B markets today.
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Strengths and Weaknesses
Strengths
Weaknesses
1. Individual targeting
1. Penetration moderate
2. Personalized messages
2. Privacy concerns
3. Timing 24/7
3. Consumer perceptions
(non-commercial)
4. Interactive (entertaining)
Online communications are vital for reaching
youth targets.
7-15
©2005 Pearson Education Canada Inc.
Instant Text Messaging
Cell phones and PDAs are quickly becoming the medium
of choice among youth and young adults.
1. Ideal for “guerilla” marketing strategies.
2. Balance is crucial; youth markets are skeptical
about too much commercialism.
3. Will probably require an “opt-in” system much
like online communications.
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©2005 Pearson Education Canada Inc.