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THE INTERNET AND

INTERACTIVE MEDIA

15

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GROWTH IN INTERNET ADVERTISING

2006 Internet advertising exceeds$16.9 billion

2000-2002 25 percent drop

2005 Internet advertising at$10 billion

1994 Advertisements on HotWired

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WHY THE RAPID ADOPTION OF THE

INTERNET?

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The Web Site

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Huggies Goes Beyond Providing Information

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Hot Web Sites

Facebook

MySpace

YouTube

TMZ.com

Disney.com

Veoh

Funny or Die

Discovery.com

http://www.veoh.com/http://www.funnyordie.com/http://www.funnyordie.com/http://www.funnyordie.com/http://www.veoh.com/http://www.veoh.com/

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Internet Communications Objectives

Objectives

CreateAwareness

Create a StrongBrand

GenerateInterest

DisseminateInformation

Create anImageStimulate Trial

Create Buzz

GainConsideration

http://www.snapple.com/http://blogmaverick.com/http://www.akademiks.com/http://www.akademiks.com/http://blogmaverick.com/http://www.snapple.com/

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Snapple Creates Interest

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Using Web Sites to Build Image

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Branding is Complicated

Requiresdifferentstrategies

Requires a

broad audience

The costs

are high

Long-terminvestment

Branding

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E-Commerce

May beprimary

orsecondaryobjective

Directselling ofgoods andservicesthrough

theInternet

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E-Commerce Trends

E-Commerce

Both consumer andbusiness-to-business

Rapid growth rateslikely to continue

Fast growth indownloadable

purchases

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Ebay is a Popular E-Commerce Site

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The Internet and IMC

Advertising

Sales Promotions

Personal Selling

Public Relations

Direct Marketing

The Internet siteshould be

integrated with:

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Advertising on the Internet (Part 1)

Banners

Sponsorships

Pop-ups/

Pop-unders

Push Technologies

Links

Interstitials

Forms of Internet Advertising

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Typical Banner Ads

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Advertising on the Internet (Part 2)

Paid Search

Behavioral targetingRich media

Contextual Ads

Additional Forms

Forms of Internet Advertising

Podcasting

RSS feeds

Blogs

Online commercials

Video on demand

Webisodes

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Rich Media

Online

Commercials

VideoonDe

mand

Web

isodes

OtherForm

s

A broad range of interactive digital media

that exhibit dynamic motion, taking advantage

of enhanced sensory features such as video,

audio, and animation.

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Additional Internet Advertising Forms

Podcasting, RS syndication, Blogs

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Sales Promotions on Web Sites

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Personal Selling on the Internet

Cross-selling

Valuable source of leads

Increases potential reach

Reduces cost of personal callsMay ReplacePersonalSelling

May EnhancePersonal

Selling Efforts

Prospects request sales calls

Improves 1-on-1 relationships

Primary source of information

Stimulates trial

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Public Relations on the Internet

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Philanthropists on the Web

l ( l)

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Direct Mail (Email)

Direct Mail(Email)

Often used bycatalogers

Tries to reach thosew/specific needs

Highly targeted

Relies onemail lists

f i l

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Internet Infomercials

Program content similarto television, cable or

satellite

Infomercials

Web provides for greater

audience interaction

E C d H Sh i

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E-Commerce and Home Shopping

M f Eff ti

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Measures of Effectiveness

Internet-Specific Measures

Surveys

Cross-Media OptimizationStudies (XMOS)

Sales

Recall/retention Tracking

Traditional Measures

S f M t D t

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Sources of Measurement Data

Arbitron

MRI and SMRB

Audit Bureau of Circulation

Internet Advertising Bureau (IAB)

eMarketer

Nielsen Net Ratings

Jupiter MediaMetrics, Inc.

DataSource

I t t M k ti P d C

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Internet Marketing Pros and Cons

Target Marketing

Message Tailoring

Interactive Capabilities

Information Access

Sales Potential

Creativity

Exposure/Speed

Advantages

Complement to IMC

I t t M k ti P d C

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Internet Marketing Pros and Cons

Measurement problems

Annoyance

Clutter

Potential for deception

Privacy

Poor reach

Irritation

Disadvantages

l d

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Test Your Knowledge

Interactive TV, interactive CD-ROMs, kiosks, and

interactive phones:A) Are viewed by businesses as breeches ofconsumer rights to privacy

B) Can be used as contributors to an IMC

program

C) Cannot be linked with traditionaladvertising media

D) Replace the Internet in most IMC programs

E) Are not viewed as viable elements within awell-designed IMC program

Addi i l I i M di

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Additional Interactive Media

Interactive TV

Allows viewers tointeract with the

program andadvertising

Wireless

Communicationsthrough satellite

broadcast systemsor cellular phones