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Chapter 7 Online Interactive Communications 7-1 ©2005 Pearson Education Canada Inc. 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 ©2005 Pearson Education Canada Inc. 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. 7-4 ©2005 Pearson Education Canada Inc. 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. 7-5 ©2005 Pearson Education Canada Inc. 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 ©2005 Pearson Education Canada Inc. 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 7-7 ©2005 Pearson Education Canada Inc. 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. 7-9 ©2005 Pearson Education Canada Inc. 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 ©2005 Pearson Education Canada Inc. 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. 7-11 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! ©2005 Pearson Education Canada Inc. 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!” 7-13 ©2005 Pearson Education Canada Inc. 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. 7-14 ©2005 Pearson Education Canada Inc. 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. 7-16 ©2005 Pearson Education Canada Inc.