Media Planning: Advertising and IBP in Digital/Interactive Media

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No Wires Means New RulesNew technologies are changing digital/interactive advertising opportunities:•WiFi became popular in 2004 because it provided wireless Internet access connections reaching out about 300 feet.•WiMax is similar to WiFi in that both create wireless “hot spots” but iMax has a range of 25-30 miles! •Mi-Fi is similar to WiMax but adds the capability of accessing the Internet while the user is moving in a car or a train.•Ultrabroadband is a technology that will allow people to move extremely large files quickly over short distances.•Technology now provides the option for podcasting, tablet, and smartphone advertising—but will consumers accept the intrusion?

Role of the Digital/Interactive Media in the Advertising and IBP Process• Internet will not replace

traditional media• Advertisers have discovered

ways to use digital/interactive as a key component of integrated brand promotions

• Auction sites provide small businesses with new opportunities

• Web 3.0 (social networking) offers a whole new way of communicating

The (R)evolution of the Internet

• Connected consumer experience: community, empowerment, liberation

• Connected consumers desire to control their information flow

• In 1994 advertisers began venturing on the Internet, retreated in 2000 and returned in 2004

• At present: – 1.8 billion users worldwide– Ad revenues of $40 billion by 2012 

Using Internet Digital/Interactive Media: The Basics

• Email– Common communication option for marketers– Consumer resistence is lessened by “opt-in”

consent– Spam is a plague, but can achieve 3-5 percent

response rate

• The WWW– An electronic graphical interface with 24 hour

access– Developed originally for military use– Consumers actively/voluntarily search for

information – The Web is a vast library– Surfing is gliding from page to page– Search engines allow surfing by key words

Portal

• A Portal is a starting point for Web access and

search and channeling surfers to particular sites

• Portals can be general—serving cross sectional

interests of surfers, like Yahoo!

• Portals can be vertical—serving specialized markets,

like Jobster

• Portals can be horizontal—providing links across

many industries, like Verticalnet

• Portals also can be ethnic or community based, like

Latina Online

What type of portal is this?What type of portal is this?

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Websites and Blogs

• A website is a collection of Web pages, images, videos and other digital content

• A “mash up” is the combination of one or more websites in to a single site

• A personal website can be created by individuals to highlight interests/lifestyle

• A blog is a personal journal that is frequently updated, intended for public access, can be personal or professional

Advertising on Digital/Interactive Media

Internet Advertising Expenditures

• 1995 = $54.7 million

• 2004 = about $8 billion

• 2010 = estimated at $23 billion

• Still only 6-8 percent of all media spending

Advantages of Digital/Interactive Media Advertising

• Target Market Selectivity• Track users interaction with

brand• Deliverability, Flexibility, Reach

• Deliverability: 24/7• Flexibility: changed immediately• Reach: computers, mobile devices

• Interactivity: click-through, purchase

• Easy integration with other IBP tools

Cost of Internet Digital/Interactive Advertising Cost of Internet Digital/Interactive Advertising

• Reach and tracking capability have caused cost to rise

• Banner at high traffic site = $100,000/day

• CPM compares favorably with other media

• But, segmented/motivated audiences are advantage

Types of Digital/InteractiveInternet Advertising

• Paid search– Search engine

optimization (SEO)

• Display/Banner ads

• Sponsorship

• Pop up/Pop-under– Splash screen

• Rich media/video and audio

• Corporate/brand home pages

• Widgets

• Virtual Worlds

-Second Life

• Video games

Integrated Brand Promotion Tools and Digital/Interactive Media: Sales Promotion

Integrated Brand Promotion Tools and Digital/Interactive Media: Sales Promotion

• Coupons–Ease of distribution–Higher redemption rate

• Contests and Sweepstakes–Coordinated with off-line programs–Partnerships are facilitated

• Sampling, Trial Offers, Price-off deals–Offers made through pop-ups, email, website distribution

Integrated Brand Promotion Tools and Digital/Interactive Media: Public Relations and Publicity

Integrated Brand Promotion Tools and Digital/Interactive Media: Public Relations and Publicity

• Classic PR news dissemination• Highly targeted press releases• Global distribution is

inexpensive and instant• Variety of Web organizations

facilitate PR programs

Integrated Brand Promotion Tools and Digital/Interactive Media: Direct Marketing / E-Commerce

Integrated Brand Promotion Tools and Digital/Interactive Media: Direct Marketing / E-Commerce

• Email–Customized/target messages–Better with opt-in lists

• Mobile marketing–Smartphone, MP3, laptop tablet message transmission–Video, TV reception and use by consumers–Surprisingly favorable consumer response

• Virtual malls–Gateway to Internet storefronts

• E-Commerce and Online Retailing–B-to-B as well as consumer commerce–Direct selling as well as promotion

Integrated Brand Promotion Tools and Digital/Interactive Media: Personal Selling

Integrated Brand Promotion Tools and Digital/Interactive Media: Personal Selling

• Seems like a contradiction• Digital/interactive

communications facilitate process

• Sales force can use email and social network sites to communicate to customers

• Firm can forward brand inquiries to sales force

Using Social Media for Advertising/IBPUsing Social Media for Advertising/IBP• Social media use by consumers

is huge and global• Demographics are broader,

more diverse than expected• Big firms having some success• Does brand exposure at social

network sites build brand awareness and affinity?–This is multi-billion dollar question

Issues in Developing a Website

• Costs can be high– $1 million to develop– $4.9 million to launch– $1 million/year to maintain

• Basic hardware and software is simple

• Small firms can use small-business service firms at reasonable cost

• B-to-B brands use websites effectively too

Measuring the Effectiveness of Digital/Interactive Advertising and IBP Term Definition

Hits Number of elements requested from a page

Page views Number of pages sent to the requesting site

Visits Occasions user “x” interacted with site “v” after “z” time has elapsed

Unique visitors Number of different people visiting a site

Web Analytic Allows for tracking of website usage

Software

New Methods Tracking Behavior of a sample of “Internet families” and projecting behavior to larger populations

Internet Data and Click Fraud

Impressions Number of times a page is viewed

Pay-per-click Payment rate for impressions

Click throughs Clicking on ad and through to website

Click fraud False generation of site clicks to generate

payment per click

Term Definition

Managing the Brand in an E-Community• Social networks give consumers

new ways of communicating with each other

• Users form online “communities”

• Dealing with brand communities is a challenge and a huge opportunity in a Web 3.0 world

Brands can be built in E-Communities

Brands can be built in E-Communities

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Future of Digital/Interactive Advertising and IBP

• Introduction of new technologies such as

wireless communication and web launched

video/audio are new opportunities

• Mergers and partnerships (Microsoft and

Yahoo!?)

• Merging traditional and new media with

wireless communication technology for

“broadcast web”

• Potential of location based mobile

marketing for advertising and IBP

campaigns (e.g. Foursquare)