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The Internet: Trends, Resources, Techniques. Internet and Strategic Comm. Promise and Peril of the Internet Reminiscent of an old joke among marketers…

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Presentation on theme: "The Internet: Trends, Resources, Techniques. Internet and Strategic Comm. Promise and Peril of the Internet Reminiscent of an old joke among marketers…"— Presentation transcript:

1 The Internet: Trends, Resources, Techniques

2 Internet and Strategic Comm. Promise and Peril of the Internet Reminiscent of an old joke among marketers… “I am wasting half of my ad budget, I just don’t know what half.”

3 Misuses of the Net Going heavily on-line in ways that don’t provide strategic impressions against target Not tracking usage patterns of users Failing to develop a site that is featured in large scale advertising and PR efforts Not driven to the site - hybrid marketing Not renewing content on the site - keep it fresh for customers and journalists Underutilizing the Web as a Media Relations and Promotions tool

4 Reasons to Use the Internet Four broad domains: 1. Direct customer contact 2. Information acquisition 3. Concept-testing 4. Buzz Marketing

5 Direct Consumer Contact Typically consumer-initiated –Permits extended brand contact –Interactive experience –Use to build database –Must drive customers to the site with traditional media strategies and tactics

6 Information Acquisition Backgrounding –Permits quick information search –Be skeptical of data quality –Use respected sources –Recognize the value of multiple search engines

7 Concept Testing Virtual Focus Groups –Create an online panel of randomly sampled consumers as a touchstone Allows for immediate feedback Brand appropriate segment –Can bundle sight and sound in experiments and surveys From convenience of home

8 Buzz Marketing Leading Edge of Campaigns Foster interest in a product through opinion leaders - word of mouth More tell, less sell - Good for Gen X and Y Brand appropriate segmentation of efforts –Examples: Marketing of Lee Jeans Marketing of Magnolia Marketing of AI Marketing of Wilco

9 Yahoo! Stock valuation - $30 Billion –Worth more than all U.S. Magazines put together Mass reach with customized intimacy –60% of all net users worldwide –70% of employees in Fortune 500 Instant feedback on every message –Client knows how many people saw the ad –Who they are –How many reacted with a click or purchase

10 Segmenting the User Tracks the visits of over 170 million users, 55 million of whom have revealed their identities, addresses, and preferences Slices its audience into narrow segments, highly targeted groups as small as 17,000 for study

11 Tracking and Projecting Each month, drill into 16 trillion bytes of data on the browsing, buying, and social interests/behaviors of millions of people From this, Yahoo can divine from a few clicks that an anonymous user is a 35 year- old in Germany with a Visa Card in need of flowers and a card for his wife –They post a interstitial or banner in response

12 Premium for Contact Costs of ordinary banner ad have fallen 75% in year to under $5 CPM At Yahoo, ads can draw $150 CPM –Nine times CPM of top sporting events Targeted emails tailored to specialty groups are even pricier - CPM = $300

13 Ethical Concerns Gathering information from consumers using covert and often intrusive tracking techniques TiVo’s disk-based VCR let’s advertisers know which family members watched what shows Magazines give readers scanners for bar codes on ads, deriving data on who reads what

14 Combining Elements Cross Campaign Creativity –Teasers to Build Interest –Buzz to Persuade without Mass Media –Advertising to Launch Relationships –Internet as a Return Destination –In Store Contact as Ultimate Goal Buddy Lee Campaign

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16 The Street Posters

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19 The Teaser Spots Curry Super Greg Big Roy

20 The Viral Clips

21 Villain Home Pages

22 Television Spots

23 The Destination


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