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Chapter Thirteen
Alternative Offline
Advertising Media and
Mass Online
Advertising
Chapter Thirteen Objectives
•
Describe various alternative media
•
Realize that these media are typically
compliments rather than substitutes for
traditional mass media
•
Understand value of yellow page
advertising
Chapter Thirteen Objectives
• Appreciate magnitude, nature and
potential of internet advertising
• Understand how internet advertising
differs from conventional mass-media
advertising and how same fundamentals
apply to both
Chapter Thirteen Objectives
•
Recognize different forms of internet
advertising.
•
Appreciate importance of measuring
internet advertising effectiveness and
various metrics used
•
Understand the value of targeting
internet ad recipients and the web
analytic procedures used to this end
Alternative Advertising Media
Two Broad Groupings of Media Alternatives:
Alternative Offline Mass Media
Mass Online Ad Media
Alternative Offline Advertising
Media
• Product Placements in Movies
• Videos for VCRs
Alternative Offline Advertising
Media
• Virtual Signage at Sports Stadiums and
Other Venues
• CD-Rom Advertising
• Yellow Page Advertising
Product Placement in Movies
• Evidence of effectiveness of such
advertising is limited but growing
• Building Brand Awareness, as well as
enhancing recall
• Peripheral Route of persuasion
• Little to lose and more to gain by using
this form of advertising
Product Placement in Movies
• Capturing key visual and audio information
about a brand and distributing this info to
customers as videotapes
• Limited research to verify effectiveness of
video advertising
Product Placement in Movies
• Firms in the industry maintain that it is
more effective and less expensive than
print brochures
• More entertaining and so more capable of
capturing attention
Virtual Signage
• Some brand logos seen at sports venues
on t.v. are virtual (i.e. computer generated
image)
• Imagine Video Systems and Princeton
Video Image charge about $20,000 for a
half-inning of national baseball coverage
CD-ROM Advetising
• Increasing use of medium to present
consumers and B2B customers with
detailed product information
• Automobiles and Vacation spots
• B2B marketing
• Retailers are using CD-ROMs to advertise
products
Additional Alternative Media
• Creative Advertisers have virtually
unlimited sources to convey messages
• The Fruit Label Co. has used vegetables
and fruits to carry ads for movies
• Levi’s advertises 501 jeans on the back of
comic books
Car Advertising
Post-it Advertising
Yellow Page Ads
• Yellow Pages is an advertising medium that
consumers turn to when seeking a product
or service and are prepared to make a
purchase
• Annual revenues of $14 billion.
• Both local and national advertisers use the
service
• Young. Professional and educated
demographic
Yellow Page Ads
•
Reasons for using Yellow Pages:
Saving time spent shopping around for
information
Saving energy and money
Finding information quickly
Learning about products and services
60% of American Adults use yellow pages
at least once
Yellow Page Ads
Yellow pages differ from other ad media:
Unlike other media, yellow pages
costumers actively seek ads
Advertiser largely determines quality of ad
placement by the actions it takes
Yellow Page Ads
Yellow pages differ from other ad media:
Clear-cut limits on possible creative
executions
Method of purchase (i.e. purchased for full
year).
Mass Online Advertising
•
Internet not replacement but key element of
IMC programs
•
60% of U.S. households have internet
access
•
By 2005, online spending will represent 8%
of overall advertising and amount to $16.5
billion
The 2 I’s of the Internet
Individualization:
Refers to the fact that the Internet user has
control over the flow of information
Interactivity:
Allows for users to select the information
they perceive relevant & for brand managers
to build relationships with customers via
two-way communication.
Internet Advertising Formats
•
Websites
Users seek out web sites in a goaloriented fashion
Movie web sites play prominent role in
predicting box-office performance
“Form follows function”
Internet Advertising Formats
•
Banner Ads
Equivalent of 30-second T.V. ads
Who pays attention?
Nielsen/NetRatings: Average click rate
of 2001 was 0.49%
Exposure not equivalent to attention
Internet Advertising Formats
•
Pop-ups
Ads that appear in a separate window
out of nowhere
Internet Advertising Formats
•
Interstitials/Superstitials
Interstitials:
Ads that appear between two
content pages
Superstitials:
Short animated ads that play over
web page
Internet Advertising Formats
•
Site Sponsorships
Advertiser is a partial or exclusive
sponsor of a Web site and benefits from
the visitations to the site
Ex. IBM paid $1 Million to be sole
sponsor of National Football League’s
http://www.superbowl.com
Measuring Internet Ad
Effectiveness
How many people clicked through a
particular web ad?
What are the demographic
characteristics of these people?
How many visited a particular Web site?
What actions were taken following clickthroughs or site visitations?
The Tools of Internet Audience
Measurement
Log file analysis
Surveys of sample users using recall
measurement
Electronic measurement of a sample of
internet users
Log File Analysis
Examining server log files
Tracks machines
Provides no information about the people
who request particular files
Surveys
Using survey methods to obtain
information about consumers’ Web-site
usage activities along with demographic
& psychographic characteristics
Surveys
Problems:
Memories are fallible
People overstate their usage of popular Web
sites and understate usage of less-popular
sites
People often provide responses that put
themselves in positive light
Electronic
Media Matrix & Nielsen Media Research
Software tracking meters
The Metrics of Internet Advertising
Click-through rates
Cost-per-thousand impressions (CPM)
Cost-per-thousand actions (CPA)
The Metrics of Internet Advertising
Click-through rates
The % of people who are exposed to a
banner ad who actually click their mouse
on the ad.
Banner ads can have effect without a
click-through needed.
The Metrics of Internet Advertising
Click-through rates
The % of people who are exposed to a
banner ad who actually click their mouse
on the ad.
Banner ads can have effect without a
click-through needed.
The Metrics of Internet Advertising
CPM
How much it costs to place an ad on a
particular Web site.
“Opportunity to see”
The Metrics of Internet Advertising
CPA
Number of users who:
Actually click on a banner ad,
Visit a brand’s Web site,
Register their names on the brands Web site,
Actually purchase (electronically) the
advertised brand.