com 314 interactive communication communication includes all of the procedures by which one mind may...

Com 314Interactive Communication

Communication includes all of the procedures by which one

mind may affect another.

Communication includes all of the procedures by which one

mind may affect another.

Communication is the mechanism through which human relations exists and

develop.

Communication is the mechanism through which human relations exists and

develop.

Communication is simply the sharing of an orientation toward a

set of informational signs.

Communication is simply the sharing of an orientation toward a

set of informational signs.

What is Communication?What is Communication?

-the imparting, conveying, or exchange of ideas, knowledge, etc.

-the transfer of thoughts and messages by sign and sounds

-the imparting, conveying, or exchange of ideas, knowledge, etc.

-the transfer of thoughts and messages by sign and sounds

Communication ProcessCommunication Process

Source Encoding Message Decoding Receiver

Noise

Feedback

Mass CommunicationMass Communication

Content MediumFirm

C

C

C

C

Traditional Model

Mass Communication

Traditional Model

Mass Communication

Mass Media Effects:

• Medium is Conduit

• Audience is homogeneous w/ respect to information

• No interaction among consumers and firm

Interactive CommunicationInteractive Communication

Interactive CommunicationInteractive Communication

Messages conveyed through a computer-mediated environment (CME) involving one or more of the following types of interactivity:

Messages conveyed through a computer-mediated environment (CME) involving one or more of the following types of interactivity:

Interactive CommunicationInteractive Communication

• interaction between senders and receivers

• interaction between humans and machines

• interaction between message and its users

• interaction between senders and receivers

• interaction between humans and machines

• interaction between message and its users

Interactive CommunicationInteractive Communication

Interactive media permit audience members to be active participants in the communication process, whereby, the message changes in response to participant actions

Interactive media permit audience members to be active participants in the communication process, whereby, the message changes in response to participant actions

Content

Content

Content

Content

MediumC

C

C

C

FF

F

F

Interactive Model

Mediated ModelMediated Model

Primary relationship is with Computer Mediated Environment with which you interact.

Content is mediated by participants and then experienced.

Primary relationship is with Computer Mediated Environment with which you interact.

Content is mediated by participants and then experienced.

Mediated ModelMediated Model

• Companies can provide content to medium and interact with each other

• Companies and individuals can interact

• Individuals can interact with the medium and with each other

• Individuals can easily provide content to the medium

• Companies can provide content to medium and interact with each other

• Companies and individuals can interact

• Individuals can interact with the medium and with each other

• Individuals can easily provide content to the medium

World Wide WebWorld Wide Web

• Virtual, many-to-many hypermedia environment incorporating interactivity between people and computers.

• Individual’s capability in the virtual environment introduces a competency issue.

• Individual is actively engage in the process of network navigation.

• Virtual, many-to-many hypermedia environment incorporating interactivity between people and computers.

• Individual’s capability in the virtual environment introduces a competency issue.

• Individual is actively engage in the process of network navigation.

Navigation BehaviorsNavigation Behaviors

• Experiential

• Goal-directed

• Experiential

• Goal-directed

“Flow”

• Process of optimal experience

Concept of FLOWConcept of FLOW

• Seamless sequence of responses facilitated by machine activity

• Intrinsically enjoyable

• Loss of self-consciousness

• Self-reinforcing

For Flow to be experienced:For Flow to be experienced:

• Consumer must perceive skills/challenges to be in balance

• Consumer must be paying attention

• Consumer must perceive skills/challenges to be in balance

• Consumer must be paying attention

Outcomes of Flow

• Increased learning

• Increased exploratory behavior

• Positive subjective experiences

• Objective of a good web site is to facilitate the flow experience.

Web Metrics

Terminology & Measurement

VisitA visit is a Web user with a unique address entering a Web site at some page for the first time that day (or for the first time in a lesser time period).

Unique visitorA unique visitor is someone with a unique address who is entering a Web site for the first time that day (or some other specified period). Thus, a visitor that returns within the same day is not counted twice.

Unique visitor

A unique visitors count tells you how many different people there are in your audience during the time period, but not how much they used the site during the period.

ViewA view is either an ad view or a page view. Usually an ad view is what's meant. There can be multiple ad views per page views.

Click rate The click rate is the percentage of ad views that resulted in clickthroughs.

Clickthrough

A clickthrough is what is counted by the sponsoring site as a result of an ad click.

Pay-per-view

Prevalent type of ad buying arrangement at larger Web sites.

Pay-per-click

The advertiser pays a certain amount for each clickthrough to the advertiser's Web site. The amount paid per clickthrough is arranged at the time of the insertion order and varies considerably.

ImpressionAn impression is "The count of a delivered basic advertising unit from an ad distribution point." Impressions are how most Web advertising is sold and the cost is quoted in terms of the cost per thousand impressions (CPM).

What are cookies?

• A "cookie" is a small piece of information sent by a web server to store on a web browser so it can later be read back from that browser. This is useful for having the browser remember some specific information.

What are cookies used for?

• Used to store information about the user

• EX. Browser stores your passwords and user ID’s

• EX. Preferences of start pages, Microsoft/Netscape

What are cookies used for?

• Online Ordering Systems.• An online ordering system could be developed using

cookies that would remember what a person wants to buy.

• If a person spends 30 minutes ordering CDs at your site and suddenly has to get off the net they could quit the browser, return and still have those items in their shopping basket.

What are cookies used for?

• Site Personalization.

• This is one of the most beneficial uses.

• EX. A person comes to the MSNBC site but doesn't want to see any sports news. They allow you to select this as an option.

• From then on (until the cookie expires) you wouldn't see sports news.

What are cookies used for?• Website Tracking.• Cookie can be used to track where you travel over a

particular site.

• Using cookies just makes the tracking data a little more consistent. Site tracking can show you "Dead End Paths”.

• It can also give you more accurate counts of how many people have been to pages on your site. You could differentiate 50 unique people seeing your site from one person hitting the reload button 50 times.

What are cookies used for?

• Targeted Marketing. • One of the main uses of cookies. • Used to build up a profile of where you go -- what you

click on. • This information is then used to target ads at you, which

they think are of interest.• Companies also use cookies to store which ads have been

displayed so the same ads do not get displayed twice.

(Doubleclick)

Internet Characteristics

Number of Years to Reach 30% Penetration of US Population

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Internet PCs TV Radio0

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Internet PCs TV Radio

Data traffic is expanding

• Web pages in 1998 829 million

• Web pages in 1999 1.45 billion

• Web pages in 2002 7.7 billion

How many online?

580.78 million*

May 2002

How Many Online?

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Africa Asia/Pacific Europe Middle East USA/Canada Latin America

Access to the Internet has leveled off at approximately 70 percent

of all Americans*

*Arbitron and Edison Media Research

Age of Internet Users

• 45-64 20% +1.2%

• 35-44 24.8% -1.0%

• 25-34 20.8% -1.0%

• 18-24 17.5% +.9%

Baby Boomers/Seniors

Fastest growing Internet population that now comprises 20% of online

users

Baby Boomers/Seniors

• Surf more frequently

• Stay there longer

• Check out more Internet pages than college-age users

• NOT technology laggards!

0100200300400500600700800

under $25K $25-40K $40-60K $75-100K $100K+

Average Minutes Per Usage Month by Household Income

US college students on the Net

• 86 percent of US college students use the Internet

• Students say the Internet is essential to both their academic and social lives

• 80 percent of college students in the US say the Net has had a positive impact on their college academic experience, while 60 percent think it has improved their relationships with classmates

US college students on the Net

• 73 percent of students use the Internet more than the library for research

• 72 percent of students check their email everyday, while 56 percent believe that email has enhanced their relationship with professors

• 46 percent also say that email enables them to express ideas to a professor that they wound not have expressed in class

US college students on the Net

• 72 percent correspond mostly with friends, 10 percent mostly with family, and seven percent mostly with professors

• College Internet users are twice as likely as other Internet users to have ever downloaded music files, with 60 percent of online students having done so, compared to 28 percent of the overall population

• Also twice as likely as other Internet users to use instant messaging (IM) applications on any given day, with 28 percent of college students using IM, compared to just 12 percent of general Internet users

Americans look for love online

• Almost 10% of American Internet users use online personals

• Web daters can be an attractive group for marketers because while they don’t earn as much as other online consumers, but they are twice as likely to have paid for online content, and are more willing to do so again in the future

• 60 percent of those who look for love online are male, and 28 percent of them are married

Americans believe Net is the coolest medium

• 34 percent of Americans chose the Internet as the most ‘cool and exciting’ medium, compared to 35 percent who felt that Television was the best medium

• 12-to-34 year-old age category, 46 percent of respondents chose the Internet as the best medium, compared to 29 percent who felt that television was the most ‘cool and exciting’ medium

Americans believe Net is the coolest medium

• Weekly ‘Streamies’ – those who have watched or listened to streaming media online in the past week – bought more than one and a half times the number of compact discs in the past year than the average American

• Streamies went to movie theaters on average 3.19 times in the past three months, compared to 1.85 times for non-

Streamies • Nearly two-thirds of Streamies have watched movie

trailers or previews online

Americans believe Net is the coolest medium

• Streamies were found to be more educated and affluent than average consumers and are bigger online spenders than ordinary consumers

• Streamies spent almost $900 online in the past year, compared to $600 for online users as a whole

More Americans accessing the Net at work

• 46 million American office workers logged onto the Web during August

• Female office workers were the primary drivers of traffic growth over the past year, with the women at-work Internet population growing 23 percent to 20.4 million

More Americans accessing the Net at work

• Men averaged nearly 31 hours online in August --- 1900 page views.

• 27 hours for female office workers --- 1700 page views.

US Kids choose Internet over other media

• 33 percent of children aged 8 to 17 choose the Net over television, radio, or the telephone

• Thirty eight percent of boys chose the Internet as their first choice, compared to 28 percent of girls

• Overall, boys preferred Internet and television, while girls preferred the telephone and radio

Teens prefer Internet to telephone

• Internet is now the primary communication tool for US teenagers

• Eighty-one percent of teenagers between the ages of 12 and 17 email friends and relatives

• 70 percent use instant messaging (IM) applications to keep in touch

• Ninety-one percent of older teens (aged 18 to 19) use email and 83 percent use IM.

Email

• 93 percent of those who currently go online are active email users, a figure that is expected to reach 98 percent by 2007

• Of the 115 million email messages that will be sent by the end of 2002, 35 percent will be unsolicited or ‘spam’ mail

US online consumer sales still rising

• Online consumer sales in the US reached $1.5 billion for the week ending August 25.

• This is a rise of 31 percent versus the same week last year

Internet Generated Revenue

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US ECommerce

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B to BC to B

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Content Ease of use Downloadtime

Updated Chat

Factors Driving Repeat Visitors to Websites(in percent)

US Online Banking

5

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15

20

25

30

1998 1999 2000 2001 2002

Online Gambling Revenue(US Millions of $)

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Worldwide Gambling Population

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60

1998 1999 2000 2001 2002

eCommerce Most frequently purchased items

• Travel 30%

• Music 42%

• Computer Hardware 48%

• Books 51%

• Software 58%

U.S. Top 50 Web and Digital Media Properties

(millions of unique visitors)

• All Digital Media 116,420• AOL Time Warner 92,950• MSN-Microsoft Sites 83,792 • Yahoo! 80,165• Terra Lycos 40,320 • About/Primedia 36,574 • Google 34,236 • Amazon 29,474 • eBay 29,456

Targeting Consumers Online

Consumer Online Behavior

E-business strategies for Marketers

Six segments

Targeting Consumers OnlineSimplifiers

• Need “End-to-End” Convenience

• Only 7 hours per month but 40% have been online over 5 years

• Account for half of online transactions

• Use internet to make life easier, log on w/specific purpose -- buying books, managing finance

Targeting Consumers OnlineSimplifiers

• Want to do it quickly and easily

• Amazon.com favorite site

• Site must provide ease of access and use, product info, reliable customer service, easy returns.

• Dislikes -- pop-up windows, unsolicited emails, too many chat rooms

Targeting Consumers OnlineSurfers

• 8% of active users population• 32% of online time• Access four times as many pages as average

user• Use Internet to explore, shop, find

information, be entertained• Move quickly among domains, continually

seeking new experiences

Targeting Consumers OnlineSurfers

• Offer cutting-edge design/features, constant updates, strong online brand, assortment of products/services

• Keep them coming back to find out “what’s new?”

Targeting Consumers OnlineConnectors

• Relative novices on Internet

• Seeking reasons to use it, what’s available and what has value

• Account for 36% of active users, 40% have been online less than 2 years.

• Use Internet “to connect” with people, chat rooms, send greeting cards

Targeting Consumers OnlineConnectors

• Companies w/strong offline presence have advantage reaching this beginner segment

• To win over Connectors site must be accessible for first time visitors, make purpose and value clear.

• Links to other sites/community help make Internet seem less daunting

Targeting Consumers OnlineBargainers

• Devoted to one aspect of Internet

• THE QUEST FOR DEALS!

• Only 8% of active online users, spend less time online than avg user

• Represent 52% of all eBay users.

• Site must appeal both rational & emotional levels

Targeting Consumers OnlineRoutiners

• Go primarily online for content

• Only half have made purchase online

• Visit fewer domains

• Spend almost twice as much time per page as average users

• 80% of time spent in their “top ten” sites, news and financial sites

Targeting Consumers OnlineSportsters

• Smallest group -- 4% of active online users

• Like Routiners but focus on sports/entertainment sites

• Spend very few hours online (7.1/month)

Spending on digital marketing in the US will grow to $21

billion by 2006

Online Ad Revenue(in Billions of US $)

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Web display advertising will account for 5.4 percent of the

total US ad spend by 2006

• Spending on Web advertising would be roughly equivalent to the spending on magazine advertising

• 60 percent of current spending on online advertising goes to AOL Time Warner, Yahoo, and Amazon

Business decision makers are more influenced by online advertising than by any other type

of advertising medium

• Around 60 percent of decision makers said that the Internet was the best way for advertisers to reach them

• Nearly half of decision makers also said that the Web influenced them to make a purchase or obtain a service for their businesses

Pop up Ads

• Less than 10 percent of all online advertisers use pop-up ads

• Advertisers purchased and launched more than 11.3 billion pop-up and pop-under ad impressions for the first seven months of 2002, equivalent to just two percent of the online advertising market

• X10 was the leading pop-up advertiser during the first seven months of 2002 with more than one billion pop-ups launched in 2002

• Orbitz was the second leading pop-up advertisers with 687 million impressions

Internet users turn away from ad-heavy sites

• Over a third of Internet users in the US will leave a website if they think it is too cluttered with advertisements

Auto Industry is the biggest user of rich media

• Around 37.4 percent of all auto online ad impressions in the second quarter in 2002 incorporated rich media

• The auto industry used rich media advertising 10 times more than the industry average of 3.9 percent

• The Ford Motor Company topped the list of car manufacturers using rich media, with 22 percent of their advertising utilizing rich media technologies

US wireless advertising

• Wireless advertising in the US will reach parity with that in Europe and Asia by 2006

• European advertisers will spend approximately $53 million on mobile campaigns in 2002

Online advertising is effective for branding

• Standard ad banners are still effective at increasing brand awareness and purchase intent

• Portal keyword placements were the most effective form of advertising online