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Media Planning: Advertising and IBP in Digital/Interactive Media 14 ©2012 Cengage Learning. All Rights Reserved.

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Presentation on theme: "Media Planning: Advertising and IBP in Digital/Interactive Media 14 ©2012 Cengage Learning. All Rights Reserved."— Presentation transcript:

1 Media Planning: Advertising and IBP in Digital/Interactive Media 14 ©2012 Cengage Learning. All Rights Reserved.

2 No Wires Means New Rules New 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 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 advertisingbut will consumers accept the intrusion?

3 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

4 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

5 Using Internet Digital/Interactive Media: The Basics –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

6 Portal A Portal is a starting point for Web access and search and channeling surfers to particular sites Portals can be generalserving cross sectional interests of surfers, like Yahoo! Portals can be verticalserving specialized markets, like Jobster Portals can be horizontalproviding links across many industries, like Verticalnet Portals also can be ethnic or community based, like Latina Online

7 What type of portal is this? 2002

8 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

9 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

10 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

11 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

12 Types of Digital/Interactive Internet 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

13 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, , website distribution

14 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

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

16 Integrated Brand Promotion Tools and Digital/Interactive Media: Personal Selling Seems like a contradiction Digital/interactive communications facilitate process Sales force can use and social network sites to communicate to customers Firm can forward brand inquiries to sales force

17 Using 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

18 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

19 Measuring the Effectiveness of Digital/Interactive Advertising and IBP TermDefinition HitsNumber of elements requested from a page Page viewsNumber of pages sent to the requesting site VisitsOccasions user x interacted with site v after z time has elapsed Unique visitorsNumber of different people visiting a site Web AnalyticAllows for tracking of website usage Software New MethodsTracking Behavior of a sample of Internet families and projecting behavior to larger populations

20 Internet Data and Click Fraud ImpressionsNumber of times a page is viewed Pay-per-clickPayment rate for impressions Click throughsClicking on ad and through to website Click fraudFalse generation of site clicks to generate payment per click

21 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

22 Brands can be built in E-Communities Courtesy of

23 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)

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