chapter thirteen Digital Interactive Media and Direct Mail McGraw-Hill/Irwin Essentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

13-2 Objectives_1  Discuss the various opportunities and challenges presented by digital interactive media  Explain the evolution of interactive media  Debate the pros and cons of the Internet as an advertising medium  Define the various kinds of Internet advertising  Discuss the Net’s audience and the challenges involved in measuring it

13-3 Objectives_2  Explain how Internet advertising is sold and how much it costs  Enumerate the various types of direct- mail advertising  Detail the various costs associated with direct-mail advertising  Assess which kinds of mailing lists are best

13-4 Interactive Media  Internet  CD-ROM catalogs and magazines  Stand-alone kiosks  Cellular telephone systems  Interactive television

13-5 Worldwide Internet Penetration RegionPopulation (millions)Penetration % Africa Asia3, Europe Middle East North America Latin America Total6,

13-6 Types of Internet Advertising  Web Sites  Banners and Buttons  Rich media  Interstitials  Sponsorship  Paid search  Classified ads  (and rich mail)  Viral marketing

13-7 Pros of Internet Advertising  Truly interactive medium  Enormous audience  Immediate response  Highly selective targeting  Proximity to purchase  Affluent market  In-depth information  Rapidly growth  Reaches business- to-business users  Advertorials  Virtual storefront

13-8 Cons of Internet Advertising  Lack of standardization  Targeting costs  Slow downloads  Clutter  Security concerns  Privacy concerns  Global marketing limitations

13-9 Pricing and Internet Advertising  Cost-per-thousand impressions  Targeted cost-per-thousand impressions  Keyword purchase (paid search)  Pay per click-through  Affiliate marketing program

13-10 Direct Mail Advertising  Dimensional direct mail   Sales letters  Postcards  Business reply mail  Folders  Brochures  Broadsides  Self-mailers  Statement stuffers  House organs  Catalogs

13-11 Types of Direct Mail

13-12 Buying Direct Mail Advertising List Acquisition Creative Production Distribution

13-13 Types of Lists House lists Mail- response lists Compiled lists

13-14 List Facts  Lists can be bought or rented  List brokers handle rental details for a commission  Lists can be based on “selects” like demographic characteristics  List prices vary according to accuracy and currency and difficulty in reaching market

13-15 Pros of Direct Mail Advertising  Selectivity  Intensive coverage  Extensive reach  Flexibility  Control  Personal impact  Exclusivity  Response  Testability

13-16 Cons of Direct Mail Advertising  High cost per exposure  Delivery problems  Lack of content support  Selectivity problems  Negative attitudes  Environmental concerns  Antispam laws

13-17 Key Terms_1  Ad impression  Ad networks  Adware  Affiliate marketing program  Antivirus  Bandwidth  Banner  broadband  Broadside  Brochure  Business reply mail  Button  Cable modem  Catalog  CD-ROM  Classified ad Web site

13-18 Key Terms_2  Click rate  Click-throughs  Compiled lists  Cookies  Digital interactive media  Digital subscriber line (DSL)  Dimensional direct mail  Direct mail advertising   advertising  Firewall  Folder  Freeware  House list  House organ  Interactive TV

13-19 Key Terms_3  Internet  Internet profiling  Internet service provider  Interstitial  Keyword  Kiosk  Landing page  Letter shop  List broker  Mail-response lists  Narrowband  Natural search engine optimization  Opt-out  Pay per click advertising  Portal

13-20 Key Terms_4  Postcard  Return path  Rich mail  Rich-media advertising  Sales letter  Search engine  Self-mailer  SPAM  Spider  Sponsorship  Spyware  Statement stuffer  Viral marketing  Web browser  Web crawler  Web page  Web site