Digital Interactive MediaMedia & Marketing

What is Interactive Digital Media? Text Art Sound Animation Video

The use of any of these or a combination of these in a digital format is Interactive Digital Media.

Returning power to the consumer Before radio and TV

Direct appeals to consumer TV advertising

Passive consumer Cable TV, DVR’s, Internet

Consumers choose where and when to view content and advertising

Merging of content and advertising When is it content and when is it an ad?

Consumer can be actively engaged Barnes and Nobel’s site Product based games

The Internet Dominant form of digital interactive

media 1996 - $300 million in Internet advertising 2000 - $8.2 billion in Internet advertising By 2011 (according to eMarketer) - $36.5

billion in Internet advertising

Traditional media vs. the Internet Centralized network

Content is distributed from a centralized hub TV station, newspaper, etc.

Decentralized network Content is distributed via various hubs

and links

Other important differences Space on the Internet is vast and

inexpensive Time (TV and radio) and space (print)

are limited and expensive Consumers are receivers, creators, and

arbiters of content on the Internet

Key components of the Internet Portals – sites that attempt to provide a

broad array of content and services Designed to keep users on the portal

page Create opportunities for advertising and

fee-based content Yahoo is industry leader

Social networking sites – electronically linked social interaction

More key components Cookies – tracking devices Search engine – allow users to search

for websites based on keyword Google dominates with 49.2% of the

market Revenue generated through AdWords and

AdSense Sponsored links at the top of a search

results page are purchased

AdWords Sponsored links on the side of a search

results page Performance based, pay-per-click model

Advertisers only pay Google when the user clicks on the link

Pricing is determined by an auction where companies can bid for keywords used in the search Higher bids lead to higher placement Effective ads receive higher placement

AdSense Web sites set aside a portion of their pages

for Google text ads Google software selects and inserts ads

without input from the host site Attempt to insert ads that are relevant to the

host site content Revenue is generated on a pay-per-click

model and is shared with the host site

Internet use is a global phenomenon

Who accesses the Internet?Demographics of American Internet Users, 2006 (%)

% Who Use the Internet Community Type Race/Ethnicity Educational Attainment

Total Adults 73 Urban 75White, non-Hispanic 73

Less than high school 40

Men 71 Suburban 75Black, non-Hispanic 61 High School 64

Women 74 Rural 63

English-speaking Hispanic 76

Some College 88

Age Annual Income ($)Type of Connection at

Home College + 91

18-29 88 < 30,000 53 Dial-up 34

30-49 8430,000-49,999 80 High-speed 62

50-64 7150,000-74,999 86

65+ 32 75,000+ 91

How do companies advertise?

Web Sites Most companies have developed some

form of online presence Can view web site as an ad Extended brochure Online catalog Information and entertainment

Other forms of Internet advertising

Banners – small billboard across the top or bottom of a web page

Skyscraper – a vertical ad that appears on one side of a page Users can click on these to go to the

advertisers web site Pricing is becoming standardized through the

IAB (interactive advertising bureau)

Other forms of Internet Advertising

Buttons – smaller versions of the banner that look like icons

Text links – hypertext embedded within stories or articles

Rich media advertising – include graphical animations, audio and video elements

Interstitial – ads that play between pages on a Web site

Other forms of Internet Advertising

Rich mail – multimedia email Sponsorships – corporations sponsor entire

sections or single events on a web page Classified ad Web sites – e.g. Craig’s List E-mail advertising – 77% sent to consumers

who requested it Spam – electronic junk mail

Viral marketing Internet version of word of mouth

advertising(?) via email Encourage satisfied customers to

recommend product/service to friends Provide incentives to consumers for

referrals Can refer friends to advertiser games

and experiences BKs subservient chicken, for example

Benefits of Internet Advertising Interactive Large and growing audience Immediate response Highly selective targeting Proximity to purchase

Virtual storefronts Affluent market Reaches users at home and at work

Disadvantages of Internet advertising Medium in not standardized High targeting costs Slow downloads due to limited

bandwidth Security and privacy concerns Global infrastructure limitations hamper

effectiveness

Measuring ad viewership Ad impression – counts the number of

times an ad is called to appear on a web page Consumer may never see the ad

Click rate – counts when a visitor clicks on an ad

Purchasing time and space On average, 6.5% of advertising budget

is spent on interactive media Purchase ads directly Ad networks serve as brokers for

advertisers and Web sites

Other Interactive Media Kiosk – computer for specific users, for a

specific purpose Owned and controlled and operated by its

provider Located in malls, retail stores and other public

places Close to the purchasing location

In store catalogs, coupons, DVD rentals, rick sales, local information, etc.

ATMs

Other Interactive Media Interactive TV – allows viewers to

interact with television content as they view it A TV with a return path – information

flows to the viewer or back to broadcaster Programming links to web sites,

commerce, surveys, distance learning

Cell Phone Advertisers Cell phone providers have been

reluctant to include advertising Ads can be placed on the deck

The page users see when they access the Internet from their phone

Providers are considering offering lower rate plans that include advertising