chapter thirteen alternative offline advertising media and mass online advertising

Chapter Thirteen

Alternative Offline Alternative Offline Advertising Media and Advertising Media and

Mass Online Mass Online AdvertisingAdvertising

Chapter Thirteen ObjectivesChapter 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 ObjectivesChapter 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 ObjectivesChapter 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 MediaAlternative Advertising Media

Two Broad Groupings of Media Alternatives:

Alternative Offline Mass Media

Mass Online Ad Media

Alternative Offline Advertising Alternative Offline Advertising MediaMedia

• Product Placements in Movies

• Videos for VCRs

Alternative Offline Advertising Alternative Offline Advertising MediaMedia

• Virtual Signage at Sports Stadiums and Other Venues

• CD-Rom Advertising

• Yellow Page Advertising

Product Placement in MoviesProduct 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 MoviesProduct 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 MoviesProduct 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 SignageVirtual 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 AdvetisingCD-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 MediaAdditional 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 AdvertisingCar Advertising

Post-it AdvertisingPost-it Advertising

Yellow Page AdsYellow 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 AdsYellow 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 services60% of American Adults use yellow

pages at least once

Yellow Page AdsYellow 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 AdsYellow 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 AdvertisingMass 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 InternetThe 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 FormatsInternet Advertising Formats

• Websites

Users seek out web sites in a goal-oriented fashion

Movie web sites play prominent role in predicting box-office performance

“Form follows function”

Internet Advertising FormatsInternet 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 FormatsInternet Advertising Formats

• Pop-ups

Ads that appear in a separate window out of nowhere

Internet Advertising FormatsInternet Advertising Formats

• Interstitials/Superstitials

Interstitials: Ads that appear between two

content pages

Superstitials: Short animated ads that play over

web page

Internet Advertising FormatsInternet 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 Measuring Internet Ad EffectivenessEffectiveness

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 click-throughs or site visitations?

The Tools of Internet Audience The Tools of Internet Audience MeasurementMeasurement

Log file analysis

Surveys of sample users using recall measurement

Electronic measurement of a sample of internet users

Log File AnalysisLog File Analysis

Examining server log files

Tracks machines

Provides no information about the people who request particular files

SurveysSurveys

Using survey methods to obtain information about consumers’ Web-site usage activities along with demographic & psychographic characteristics

SurveysSurveys

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

ElectronicElectronic

Media Matrix & Nielsen Media Research

Software tracking meters

The Metrics of Internet AdvertisingThe Metrics of Internet Advertising

Click-through rates

Cost-per-thousand impressions (CPM)

Cost-per-thousand actions (CPA)

The Metrics of Internet AdvertisingThe 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 AdvertisingThe 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 AdvertisingThe 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 AdvertisingThe 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.