1 Lexington Ad Club March 10 1999 The Real Internet Action Is Local headline from The New York Times, Sept. 14, 1998.

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Presentation transcript:

1 Lexington Ad Club March The Real Internet Action Is Local headline from The New York Times, Sept. 14, 1998

2 Lexington Ad Club March The Greatest Communication Medium of All Time Web Access è79.4 million Americans are online today, accounting for 38% of all people 16 years or older. è18.8 million more are expected this year, a 23% increase in one year. èThat means nearly 100 million web-enabled consumers out there! èIntelliquest Survey, 1999

3 Lexington Ad Club March Web Access Lexington Metropolitan Area Adults With Web Access Source: Customer Study, Clark, Martire & Bartolomeo, 1994, 1996, 1998.

4 Lexington Ad Club March è 46% of users had college degree in 1996, 36% in 1999 è 60% of HH reported incomes of $50K+ in 1996, 55% in è 40% of newcomers never attended college, 23% have incomes below $30K è 52% of newcomers are women Web Usage-It’s not just for “techies” anymore Intelliquest/Pew Research Center for the People & the Press

5 Lexington Ad Club March Online Adult Demographics-Lexington Source: Customer Study, Clark, Martire & Bartolomeo, 1996, Age

6 Lexington Ad Club March Source: Customer Study, Clark, Martire & Bartolomeo, 1996, Education Online Adult Demographics-Lexington

7 Lexington Ad Club March Source: Customer Study, Clark, Martire & Bartolomeo, 1996, Income Online Adult Demographics-Lexington

8 Lexington Ad Club March Source: Customer Study, Clark, Martire & Bartolomeo, 1996, Income Online Adult Demographics Online Adult Demographics-Lexington

9 Lexington Ad Club March Purchasing Habits Online adults embrace technology in general Source: Lexington Market Study, MC-Squared Consulting, 1998.

10 Lexington Ad Club March Purchasing Habits Online adults represent an attractive market Source: Lexington Market Study, MC-Squared Consulting, 1998.

11 Lexington Ad Club March Some Perspective Online adults now make up a sizeable market Source: Lexington Market Study, MC-Squared Consulting, 1998.

12 Lexington Ad Club March Why Local Users Use the Internet Source: Lexington Market Study, MC-Squared Consulting, On line Information Sought Past 4 Weeks

13 Lexington Ad Club March Advertising Measurement Impressions the number of times a page is served with an ad on it Click-Through a viewer clicking on an ad to go to advertiser’s site Visit (Some use “hit”) the result of a click-through Unique Users net reach/non-duplicated

14 Lexington Ad Club March As with all media, the message and the medium drive the response. Internet users expect to save money or time, so ads must be creative and promise benefits to create clicks. works, as do discounts, contests & giveaways. Advertising Effectiveness

15 Lexington Ad Club March On-line advertising has value for building awareness and brand positioning as well. AOL.com study: TV recall, 1 viewing: 41% Banner ad, 1 viewing: 40%* Impacts TV shopping, direct mail purchases and store traffic. ** Advertising Effectiveness *Ipsos-ASI, AOL Study/**Cyber Dialogue

16 Lexington Ad Club March Advertising Origination Local spending will increase quickly Jay Friesel, EVP, 24/7 Media

17 Lexington Ad Club March Advertising Estimates Net ad expenditure per online Household Note: TV: $455 Newspaper: $513

18 Lexington Ad Club March è First 3 Q of ‘98: $1.3 Billion; $2B+ for year. è 116% Increase 3Q ‘98 over ‘97 è Total spending at over $3B for ‘99. On-line Advertising Estimates Small base, but a healthy rate of growth PricewaterhouseCoopers for IAB/Jupiter Communications

19 Lexington Ad Club March Success Stories Bluegrass Airport Louisville Convention & Visitors Bureau Kennedy Bookstore Red Lobster Cross Gate Galleries A Taste of Kentucky Meijer

20 Lexington Ad Club March What Can You Do? Get Involved, Dis-intermediation is an ugly word because it means your clients don’t need you anymore. Strategize with your accounts-how can they take advantage of this unique tool? Partner with Web Designers if you do not have the expertise you need. Invest in On-line advertising and learn how it can be a very valuable marketing tool.