Media Planning: Advertising and the Internet Chapter 16 Media Planning: Advertising and the Internet

Role of the Internet in the Advertising Process Early euphoria has peaked Internet will not replace all other media Advertisers will discover ways to use the Internet as a component of integrated brand promotions Chapter 16: Internet 2

The (R)evolution of the Internet Connected consumer experiences community, empowerment, liberation In 1994 advertisers began venturing on the Internet At present: 400 million users Ad revenues of $8.2 billion Chapter 16: Internet 3

Basic Components of the Internet Electronic mail (e-mail) In 2000 more than 1.5 trillion e-mails sent from U.S. Internet relay chat (IRC) Usenet World Wide Web (WWW) Chapter 16: Internet 4

Internet Media E-Mail Usenet World Wide Web Companies collect e-mail addresses Over 20,000 electronic mailing lists Usenet World Wide Web Chapter 16: Internet 5

Search Engines: Surfing the World Wide Web Four distinct styles of search engine: Hierarchical Search Engines All sites fit into categories Collection Search Engines Use “spiders,” automated programs that collect information Concept Search Engines Search using concept rather than word Robot Search Engines “Bots” comb the web searching for information Chapter 16: Internet 6

The “Portal” A starting point for Web access and search and channeling surfers to particular sites Portals can be vertical—serving specialized markets. Portals can be horizontal—providing links across many industries. Portals also can be ethnic or community based. Chapter 14: Media Planning 7

Advertising on the Internet Internet Advertising ($ millions) Advantages: Target market selectivity Tracking Deliverability and flexibility Interactivity Cost Integration Chapter 16: Internet 8

Who advertises on the Internet? Top 10 Internet Advertisers General Motors Bank One AOL/Time Warner Microsoft IBM Cendant Hewlett-Packard AT&T CMGI Top Advertisers on the Web ranked by impressions Chapter 16: Internet 9

Types of Advertising on the Internet Banner ads Bulky box Pop-up ads Pop-under (new and annoying) E-mail communication Viral marketing Streaming video and audio Corporate home pages Virtual malls Chapter 16: Internet 10

Issues in Establishing a Web Site Costs can be high $1 million to develop $4.9 million to launch $1 million to maintain Make the site “sticky” through “rational branding” Purchase keywords and a domain name Chapter 16: Internet 11

Establishing a Site on the World Wide Web Get surfers to come back. Sites that attract repeat visits and keep visitors for a long time are “sticky” Promote the site search engines, Yellow pages, electronic mailing lists Address security and privacy issues Measure web site effectiveness Chapter 16: Internet 12

Making the Site “Sticky” Incorporate engaging, interactive features Weather, late breaking news, stock reports Online games or videos Practice rational branding Give visitors unique informational resources that justify visiting the site Chapter 16: Internet 13

Security and Privacy Issues Web users can download text, images, and graphics from the Web No viable policing of this practice is possible yet Consumers are worried companies will use personal information DoubleClick Allows clients to track buying habits and traffic patterns of web visitors Chapter 16: Internet 14

Measuring Internet Advertising Effectiveness Term Definition Hits Number of elements requested from a page Pages Number of pages sent to the requesting site Visits Occasions user “x” interacted with site “y” after “z” time has elapsed Users Number of different people visiting a site Log Analysis Software Allows for tracking of web site usage Chapter 16: Internet 15

Measuring Internet Advertising Effectiveness Technical aspects of the Internet measurement problem The caching complication Internet measurement and payment Chapter 16: Internet 16

Managing the Brand in an E-Community Consumers have new ways of communicating with each other Some users form online communities Dealing with brand communities is a challenge Chapter 16: Internet 17

Future of Advertising and the Internet Introduction of new technologies such as wireless communication and video Mergers and partnerships Merging traditional and new media Developing a new advertising revenue model Chapter 16: Internet 18