Download Online Advertising

CHAPTER 12
Interactive Media
12-1
Copyright © 2009 Pearson Education Canada
Learning Objectives

Describe the various elements of internet
communications

Identify the key organization members that
constitute the online advertising industry

Evaluate the various advertising models
available to marketing organizations
Continued…
12-2
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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
12-3
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Interactive Media
Wireless technology, internet, cell
phones, portable music players, and
PDAs represent a new advertising
environment challenging marketers.
Technology is rapidly advancing, but marketers
have been slow to respond. Why?
generation gap between aging marketing
decision-makers and the younger, tech savvy
target markets.
12-4
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Traditional Advertising Versus
Interactive Communications
Traditional advertising
Organizations target customers
Interactive communications
Customers target information that is of interest to
them
Control has shifted from the advertiser
to the customer.
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Interactive Advertising
The digital revolution is being led by
Canadians – we are the world leaders in
internet usage per capita and we now
consumer 20% of our media online.
In 2006, online advertising revenues reached
$1.01 billion, an 80% increase over 2005.
Heaviest users:
 higher income households
 those with post-secondary education
 18 to 44 years old
12-6
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The Internet and Internet
Usage
Internet
A network of computer networks linked together
to act as one
World Wide Web
The collection of websites on the internet
For websites, unlike any type of medium,
the consumer controls whether he or
she will see the information
Websites also provide a means of collecting
information about visitors (through contests and
surveys)
12-7
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Internet Culture and Behaviour
12-8
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The 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 Communications
Strategy
Establish objectives and then choose
interactive media options from:
Internet
Mobile communication device
Video games
Social media networks
12-10
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Interactive Communications
Strategy
Behavioural targeting

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Delivery of ads based on consumer's previous
surfing behaviour tracked by cookies.

A cookie is an electronic identification tag sent
from a Web server to a browser to track a
person’s browsing patterns.

Users agree to accept cookies while giving up
private information about how they use the
Internet.
Copyright © 2009 Pearson Education Canada
Audience Measurement
To attract advertisers accurate
measurement is essential. Web publishers
compile data in web server logs including:
 Page views
 Numbers of unique visitors
 Number and length of visits
Independent third parties, such as Nielsen/Net
Ratings and Media Metrix provide audited
information about Web usage. Visit the press room
at Nielsen/Net Ratings for more data.
12-12
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Online Advertising
Effectiveness
Internet ads are measured for effectiveness
based on:
 Impressions
 Clicks (clickthroughs)
 Clickthrough Rate
 Visitor
 Visits
Stickiness – website that has the average
visitor return to the site several times each
month and view several pages on that site.
12-13
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Online Advertising
The goal of advertising is to motivate a
purchase. Online advertising may:
1. Create brand awareness
2. Stimulate interest and preference
3. Distributing incentives and contest
information
4. Provide a means to make a purchase
5. Provide a means to contact an advertiser
6. Acquire data about real/potential customers
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Online Advertising
Alternatives
1. Display Advertising
2. Online Video
3. Search Advertising
4. Sponsorships
5. E-mail Advertising (Permission-based)
6. Webcasting (webisodes)
12-15
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Banner Advertising
Alternatives
Leaderboard
Rectangle
Skyscraper
Banner
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Banner Advertising
Alternatives
The quality of online advertising is
improving as video graphics are added.
Banners
Rectangle
Big box
Leaderboard
Skyscraper
Animated Banners and Interactive/Rich Media
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Expandable Banner
Videostrip
Push down banner
Floating ad
Window ad
Wallpaper ad
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Sponsorships
An advertiser commits to an extended
relationship with another website.
Sponsorships allow for a successful campaign
without having to drive traffic to a brand’s
website.
Consumers trust brands they visit
repeatedly, therefore, a second brand (a
sponsor) may be perceived positively by
the association.
12-18
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Email Advertising
There are two types of e-mail advertising:
1. Permission-based e-mail
2. Sponsored e-mail
Similar to direct mail, advertisers use house
lists and rented lists that include “opt-in”
names and addresses.
12-19
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Advantages & Disadvantages of
Online Advertising
Advantages
Targeting Capability
Acceptance of Online
Tracking & Accountability
Advertising
Timing
Consumer Frustration
Interactivity and Action
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Disadvantages
Privacy Concerns
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Internet Advertising Rates and
Buying Space
CPM is the price charged for displaying
an ad 1,000 times. Options include:
 Run of Site
 Run of Category
 Keyword Targeting
As degree of targeting increases, the CPM
increases.
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Pay-for-Performance Model
Since clicking is the desired action, advertisers
feel they should only pay when the banner ad is
clicked on, on a cost-per-click basis.
This system tends to devalue advertising and punish
the website financially if the ad does not attract an
audience. In the offline advertising world, the media
are not responsible for an action being taken. That is
left to the message! The job of the media is to offer
access to an audience, not to share in the
responsibility for the quality of the advertising itself.
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Flat-Fee Model
A Web site charges a set amount for the
length of time the ad appears on the site
(week, month, quarter).
Sponsorships are commonly sold on this
basis as is some banner advertising.
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Other Forms of Online
Marketing Communications
Podcasting
Blogging
Company and Brand Websites
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Company and Brand Websites
Traditional media can drive traffic to corporate
websites for opportunities to “tell the whole
story.”
Websites can provide product knowledge
and other information to move customers to
purchase decisions.
Media combinations that include television,
print, and websites generate higher
awareness and preference scores than just
television and print.
12-25
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Mobile Communications
Opportunities for advertisers to
communicate with consumers exist
through:
Text messaging
Video messaging
12-26
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Video Game Advertising
(Advergaming)
The integration of brands into video
games, both games played online and
games purchased directly by
consumers.
12-27
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Social Network Media
A social network connects people with
different types of interests at one website.
Different types of networks are:
Broad-reach sites (MySpace, YouTube, Facebook)
Demographically focused sites (issue-based
interests, www.care2.com)
Specific topic sites (Dogster – a dog lover’s site)
Consumer-generated content delivered on social
networks often carry more weight with consumers
than marketer-generated content.
12-28
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