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The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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Page 1: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The Internet and Interactive MediaThe Internet and Interactive Media

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 2: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

2005 – Internet advertising exceeds $10 billion

2005 – Internet advertising exceeds $10 billion

1993 – World Wide Web1993 – World Wide Web

1994 – Advertisements on HotWired1994 – Advertisements on HotWired

1969 - ARPANET1969 - ARPANET

1994 – Advertisements on HotWired1994 – Advertisements on HotWired

1993 – World Wide Web1993 – World Wide Web

1969 - ARPANET1969 - ARPANET

Growth in Advertising Expenditures on the Internet

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 3: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The Rapid Adoption of the Internet

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 4: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Godaddy.com Offers Affordable Web Presence

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

*Click outside of the video screen to advance to the next slide

Page 5: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

CommunicationCommunicationCommunicationCommunication

ContactContact

CommerceCommerce

ConstructionConstruction

ContentContent

CommunityCommunity

CustomizationCustomization

CommunityCommunity

ContentContent

ConstructionConstruction

CommerceCommerce

ContactContact

The Website

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Web Design Issues

Web Design Issues

Page 6: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Huggies Goes Well Beyond Providing Information

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 7: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Yahoo Touts Medical Benefits of Shopping Online

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

*Click outside of the video screen to advance to the next slide

Page 8: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Create Awareness

Create Awareness

Create an ImageCreate an Image

Generate Interest

Generate Interest

Disseminate Information

Disseminate Information

Stimulate TrialStimulate Trial

Create a Strong Brand

Create a Strong Brand

Create a Strong Brand

Create a Strong Brand

Create an ImageCreate an Image

Disseminate Information

Disseminate Information

Generate Interest

Generate Interest

Create Awareness

Create Awareness

Internet Communications Objectives

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

ObjectivesObjectives

Page 9: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Snapple Uses the Internet to Create Interest

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 10: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

A Website Used for Image Building

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 11: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Test Your Knowledge

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Which of the following is NOT a valid objective for a marketer who is employing the Internet as a communications vehicle?

A) to create an image B) to generate interest C) to disseminate information D) to prevent price wars E) to create awareness

Page 12: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Internet Sales Objectives- E-commerce

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

May be primaryor secondary

objective

May be primaryor secondary

objective

The direct selling of goods and

services through the Internet

The direct selling of goods and

services through the Internet

The direct selling of goods and

services through the Internet

The direct selling of goods and

services through the Internet

Page 13: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Rapid growth rates likely to continue

Rapid growth rates likely to continue

Rapid growth rates likely to continue

Rapid growth rates likely to continue

Fast growth in “downloadable”

purchases

Fast growth in “downloadable”

purchases

Fast growth in “downloadable”

purchases

Fast growth in “downloadable”

purchases

E-Commerce on the Web

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

E-CommerceE-Commerce

Both consumer and business-to-businessBoth consumer and

business-to-business

Page 14: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

ebay Is a Well Known E-Commerce Site

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 15: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

AdvertisingAdvertising

Sales PromotionsSales Promotions

Personal SellingPersonal Selling

Public RelationsPublic RelationsPublic RelationsPublic Relations

Personal SellingPersonal Selling

Sales PromotionsSales Promotions

AdvertisingAdvertising

Integrating the Internet into an IMC Program

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Direct MarketingDirect Marketing

The Internet site should be

integrated with:

The Internet site should be

integrated with:

Page 16: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

BannersBanners

SponsorshipsSponsorships

Pop-ups/Pop-undersPop-ups/

Pop-unders

Push Technologies

Push Technologies

LinksLinks

InterstitialsInterstitials

BannersBanners

SponsorshipsSponsorships

Pop-ups/Pop-undersPop-ups/

Pop-unders

InterstitialsInterstitials

Push Technologies

Push Technologies

Integrating the Internet – Advertising Part 1

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Internet Advertising

Has a Variety of Forms:

Internet Advertising

Has a Variety of Forms:

Page 17: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Typical Banner Ads

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 18: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Paid SearchPaid Search

Behavioral Targeting

Behavioral Targeting

Contextual AdsContextual Ads

Additional FormsAdditional Forms

Rich MediaRich Media

Paid SearchPaid Search

Behavioral Targeting

Behavioral Targeting

Contextual AdsContextual Ads

Rich MediaRich Media

Integrating the Internet – Advertising Part 2

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Internet Advertising

Has a Variety of Forms:

Internet Advertising

Has a Variety of Forms:

Page 19: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Rich Media

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Online CommercialsOnline CommercialsOnline CommercialsOnline Commercials

Video on DemandVideo on DemandVideo on DemandVideo on Demand

WebisodesWebisodesWebisodesWebisodes

Other FormsOther Forms

“A broad range of interactive digital media that exhibit dynamic motion, taking advantage of

enhanced sensory features such as video, audio, and animation.”

“A broad range of interactive digital media that exhibit dynamic motion, taking advantage of

enhanced sensory features such as video, audio, and animation.”

Page 20: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

PodcastingPodcastingPodcastingPodcasting Really Simple Syndication (RSS)

Really Simple Syndication (RSS)

Really Simple Syndication (RSS)

Really Simple Syndication (RSS)

Additional Internet Advertising Forms

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Latest MediaLatest Media

BlogsBlogs

Page 21: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Test Your Knowledge

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

CDW Computer Centers sells computer equipment to small- and mid-sized businesses. Its Web site provides in-depth information on its products, its customer service, its shipping policies, and its suppliers. Like most business-to-business sites, the primary objective of this Web site is to:

A) create a sustainable competitive advantage

B) create an image C) disseminate information D) replace advertising in trade journals E) prevent price wars

Page 22: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

National Association of RealtorsUses TV and the Internet

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

*Click outside of the video screen to advance to the next slide

Page 23: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Sales Promotions Are Common on Websites

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 24: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Vastly increases potential reach

Vastly increases potential reach

Reduces high cost of personal calls

Reduces high cost of personal calls

Provides quick, easy, information

to prospects

Provides quick, easy, information

to prospects

May be a source of leads

May be a source of leads

May improve one-on-one

communications

May improve one-on-one

communications

May improve one-on-one

communications

May improve one-on-one

communications

May be a source of leads

May be a source of leads

Provides quick, easy, information

to prospects

Provides quick, easy, information

to prospects

Vastly increases potential reach

Vastly increases potential reach

Reduces high cost of personal calls

Reduces high cost of personal calls

Personal Selling on the Internet

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

May Replace Personal Selling

May Replace Personal Selling

May Enhance Personal Selling Efforts

May Enhance Personal Selling Efforts

May serve as a sales conference

medium

May serve as a sales conference

medium

May help to enhance customer

data bases

May help to enhance customer

data bases

May stimulate trial of the goods or

service

May stimulate trial of the goods or

service

May stimulate trial of the goods or

service

May stimulate trial of the goods or

service

May help to enhance customer

data bases

May help to enhance customer

data bases

Page 25: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Public Relations on the Internet

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 26: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Philanthropists on the Web

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Page 27: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Often used by catalogers

Often used by catalogers Highly targetedHighly targeted

Relies onemail listsRelies onemail listsRelies onemail listsRelies onemail lists

Highly targetedHighly targetedOften used by catalogers

Often used by catalogers

Direct Marketing and the Internet:Direct Mail (Email)

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Attempts to reach those with specific

needs

Attempts to reach those with specific

needs

Direct Mail(Email)

Direct Mail(Email)

Page 28: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Program content similar to television, cable or satelliteProgram content similar to television, cable or satelliteProgram content similar to television, cable or satelliteProgram content similar to television, cable or satellite

Infomercials on the World Wide Web

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

InfomercialsInfomercials

Web provides for greater audience interaction

Web provides for greater audience interaction

Page 29: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Measures of Effectiveness

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Internet-Specific MeasuresInternet-Specific Measures

SurveysSurveys

Cross-Media Optimization Studies (XMOS)

Cross-Media Optimization Studies (XMOS)

SalesSales

Recall/retentionRecall/retention TrackingTracking

Traditional MeasuresTraditional Measures

SurveysSurveys

SalesSales

Recall/retentionRecall/retention

Page 30: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

ArbitronArbitron

MRI and SMRBMRI and SMRB

Audit Bureau of CirculationAudit Bureau of Circulation

Internet Advertising Bureau (IAB)Internet Advertising Bureau (IAB)

eMarketereMarketer

Nielsen Net RatingsNielsen Net Ratings

Jupiter MediaMetrics, Inc.Jupiter MediaMetrics, Inc.

MRI and SMRBMRI and SMRB

Audit Bureau of CirculationAudit Bureau of Circulation

Internet Advertising Bureau (IAB)Internet Advertising Bureau (IAB)

eMarketereMarketer

Nielsen Net RatingsNielsen Net Ratings

ArbitronArbitron

Sources of Measurement Data

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Data SourceData

Source

Page 31: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Internet Advantages and Disadvantages

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Target MarketingTarget Marketing

Message TailoringMessage Tailoring

Interactive CapabilitiesInteractive Capabilities

Information AccessInformation Access

Sales PotentialSales Potential

CreativityCreativity

Exposure/SpeedExposure/Speed

AdvantagesAdvantages DisadvantagesDisadvantages

Complement to IMCComplement to IMC

Poor reachPoor reach

IrritationIrritation

AnnoyanceAnnoyance

Potential for deceptionPotential for deception

Measurement problemsMeasurement problems

ClutterClutter

PrivacyPrivacy

Target MarketingTarget Marketing

Message TailoringMessage Tailoring

Interactive CapabilitiesInteractive Capabilities

Information AccessInformation Access

Sales PotentialSales Potential

CreativityCreativity

Exposure/SpeedExposure/Speed

Complement to IMCComplement to IMC

Poor reachPoor reach

AnnoyanceAnnoyance

Potential for deceptionPotential for deception

Measurement problemsMeasurement problems

ClutterClutter

PrivacyPrivacy

Page 32: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Test Your Knowledge

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Interactive TV, interactive CD-ROMs, kiosks, and interactive phones:

A) are viewed by businesses as breeches of consumer rights to privacy

B) can be used as contributors to an IMC program

C) cannot be linked with traditional advertising media

D) will replace the Internet in most IMC programs

E) are not viewed as being viable elements within a well-designed IMC program

Page 33: The Internet and Interactive Media © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Interactive TV—Allows the Viewer to Interact With the Television

Program and Advertising

Interactive TV—Allows the Viewer to Interact With the Television

Program and Advertising

Interactive TV—Allows the Viewer to Interact With the Television

Program and Advertising

Interactive TV—Allows the Viewer to Interact With the Television

Program and Advertising

Additional Interactive Media

© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Wireless—Communications to Users Through Satellite Broadcast Systems or

Cellular Phone Systems

Wireless—Communications to Users Through Satellite Broadcast Systems or

Cellular Phone Systems