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Copyright © 2012 Pearson Canada Inc. CHAPTER 12 Interactive Media 12-1
Copyright © 2012 Pearson Canada Inc. Learning Objectives Describe the various elements of internet communications Identify the key organizations that constitute the online advertising industry Evaluate the various advertising models available to marketing organizations Continued… 12-2
Copyright © 2012 Pearson Canada Inc. Learning Objectives (cont.) Identify key aspects of online audience measurement systems Assess the potential of the internet as an advertising medium Describe and apply various models of pricing and buying online advertising Assess the role of social media in the marketing communications mix 12-3
Copyright © 2012 Pearson Canada Inc. Interactive Media Technology is changing how marketers think about the media. In the digital universe, control has shifted from the advertiser to the customer. The Internet and mobile phones allow viewers to choose when, where and how they watch. Internet / mobile phones are participatory media; traditional media is interruptive. 12-4
Copyright © 2012 Pearson Canada Inc. Interactive Communications The world’s digital revolution is being led by Canadians, who now consume 28% of their media online. In 2009 online ad revenues reached $1.8 billion, up from $1.1 billion in 2006. Interactive communications is more about engagement than it is about reach and frequency. 12-5
Copyright © 2012 Pearson Canada Inc. Digital Reach, Consumption and Behaviour The Internet has reached mass media status More than 80 percent of Canadians have Internet access at home Internet users average about 17 hours a week online 43% of Canadians have ordered goods online. Wireless communications are revolutionizing consumption patterns once again. Smartphones are now a mainstream method of accessing information through to the Internet 12-6
Copyright © 2012 Pearson Canada Inc. Online Advertising Industry Sellers Buyers Ad Agency/ Web Design Measurement companies Service companies facilitate effective use of online advertising. Traditional ad agencies have acquired digital-media agencies or integrated them into organization. Boutique shops pioneered online advertising. Advertisers, agencies buy space. Publishers, ad networks sell space. 12-8
Copyright © 2012 Pearson Canada Inc. Interactive Media Planning Establish objectives and then choose interactive media options from: Internet Mobile communication device Video games Social media networks 12-9
Copyright © 2012 Pearson Canada Inc. Interactive Communications Strategy Internet consumers voluntarily visit websites with content that interests them, making it possible to target on an individualized basis: Demographic variables Behavioural variables Geographic variables 12-10
Copyright © 2012 Pearson Canada Inc. Interactive Communications Objectives Create brand awareness Build and enhance brand image Offer incentives Generate leads Conduct transactions 12-11
Copyright © 2012 Pearson Canada Inc. Internet Advertising Options Search an advertiser’s listing is placed alongside search results in exchange for paying a fee each time someone clicks on the ad. Display advertisers place banner ads on websites of interest to the target audience Rich media includes animation, sound, video, and interactivity; often referred to as animated banners Continued… 12-13
Copyright © 2012 Pearson Canada Inc. Internet Advertising Options (cont.) Video video ads offer more emotional impact than other forms of online advertising and are familiar (like TV) Sponsorships advertiser commits to an extended and integral relationship with another website Permission-based email permission-based email, in which a user chooses to receive messages from a particular advertiser, is growing quickly. Continued… 12-14
Copyright © 2012 Pearson Canada Inc. Internet Advertising Options (cont.) Webisodes unlike television commercials, webisodes focus more on creativity in order to engage users. Company and brand websites traditional media combined with effective website content give an advertiser ample opportunity to tell the whole story. 12-15
Copyright © 2012 Pearson Canada Inc. Advantages of online advertising Tracking and Measurement Targeting capability Broad Reach possibilities Depth of Content Timing – “always on” Interactivity and action 12-16
Copyright © 2012 Pearson Canada Inc. Disadvantages of Online Advertising Low click-through rates Consumer expectations Privacy concerns 12-17
Copyright © 2012 Pearson Canada Inc. Internet Advertising Rates and Media Buying CPM CPM is the price charged for displaying an ad 1,000 times. Pay-for-performance Based on cost-per-click, a model which is shrinking. Flat fee a set amount for the length of time the ad appears on the site. 12-18
Copyright © 2012 Pearson Canada Inc. Mobile Communications Targeted advertising is possible through text messaging, video messaging, cell-phone applications, and online video games. Continued… 12-19
Copyright © 2012 Pearson Canada Inc. Mobile Communications (cont.) Text messaging Canadians text an average of 88 million messages every day For marketers looking for mass market reach, text messaging is a viable way to deliver the message. Video Messaging Video messaging is the next generation of smartphone communications. Marketers are excited about video messaging, due to its intimacy and immediacy. 12-20
Copyright © 2012 Pearson Canada Inc. Video Game Advertising “Advergaming” In terms of advertising in video games, an organization can go in two directions: create its own branded game or place ads in commercially sold games. An irony of video game advertising is that gamers expect to see ads in games and are receptive to their presence. 12-21
Copyright © 2012 Pearson Canada Inc. Social Media Network A social network connects people with different types of interests at one website. The growth and development of social networks is changing the way in which marketers view their brands, their customers, and the media. The reach of social networking and blogging venues is growing at twice the rate of other large drivers of Internet use 12-22
Copyright © 2012 Pearson Canada Inc. Types of Social Networks Broad Based Sites Includes Facebook and LinkedIn Niche Social Networks For users who feel overwhelmed or lost in the shuffle of the broad-based sites. 12-23
Copyright © 2012 Pearson Canada Inc. Benefits of Social Media Marketing 46% of social media users recommended or discussed a product or brand on Facebook 44% have done the same on Twitter. 30% of respondents said they learned about a new product, service or brand from a social networking site 25% have gone directly to an online retailer or ecommerce site after learning about a new product or brand. 12-24
Copyright © 2012 Pearson Canada Inc. Consumers Control Social Media Brand democratization when control of the brand message switches from the marketer to the consumer. Consumer-generated content content created by consumers for consumers. Crowdsourcing when a company invites the public to participate in the marketing of its brands. 12-25
Copyright © 2012 Pearson Canada Inc. Types of Social Network Advertising and Marketing Communications Direct advertising on a social site Brand page or fan page “Advertising from a friend” network attempt to mobilize, manage word of mouth Corporate blogs 12-26
Copyright © 2012 Pearson Canada Inc. Measuring Advertising on Social Networks Interaction Rate proportion of users who interact with an ad Time Spent length of a specific visit or session Conversation Reach number of unique visitors per month to all sites related to the conversation in which the advertiser is participating Conversation-Relevant Links The number of links to and from content that contains phrases from sites identified as part of the client’s campaign 12-27
Back to Table of Contents
© Copyright 2006, Thomson South-Western, a division of the Thomson Corporation.
E-Active Marketing Chapter 9. Chapter Overview Internet has changed U.S. culture Global customers, competition E-active marketing e-Commerce + Interactive.
1 Chapter 7 Online Interactive Communications. 2 Online Realities 1.Online communications offer a high degree of personalization; messages can be tailored.
Marketing in the Internet Age
12-1 Copyright © 2009 Pearson Education Canada CHAPTER 12 Interactive Media.
An Introduction to Integrated Marketing Communications
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The Google Display Network. Why Display Matters.
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© 2006 Pearson Education Canada Inc Canadian Advertising in Action Chapter 12 Internet Communications.
Marketing with Radio & Digital in 2014 Cumulus Media Salt Lake City reaches nearly two million website visitors every month with innovative, exclusive.
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Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall Chapter Nine Digital Marketing.
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