1. Advertising Online An Interactive Overview

2. Web Surfers: Who Are They? Internet users are a key demographic group that tends to be a better educated and have a higher average of disposable household income…and their motivated customers! During the 2001 holiday season they spent $5.6 billion online! More info on who website surfers are: Females now make up 50.4% of those online. The average income of internet users is between $50K-$60K. Internet growth among African Americans and Hispanics increased 30% over 2001. Out of the 25-44 age group 53% own a personal computer. 83% of computer owners are online. 65% of those employed and 36% of those that were unemployed used the Internet in the last year. Families with incomes over $75,000, over 75% of them have computers at home. 75% of 14-17 year olds and 65% of 10-13 year olds are online. 50% of Tennesseans and 57% of Virginians have Internet access.

3. The Affluent: More Time Online *Washington Post / Nielsen Survey of 1,000 Users. Among the affluent, 40% spend two or more hours using the Internet (and that figure excludes e-mail, which would probably raise the percentage). In contrast, in the two-plus-hour category, 33% watch TV, 15% listen to radio, 5% read newspapers, and only 2% read magazines.

4. Internet Usage: Not Just for the Rich Anymore Internet use is growing faster among people in lower family income brackets. Internet use among people who live in households where family income is less than $15,000 grew at an annual rate of 25 percent between December 1998 and September 2001. Over the same period Internet use grew at an annual rate of 11 percent among people living in households where family income was $75,000 or more.

5. Why Advertise Online? Develop Awareness Among a Key Demographic Online advertising allows clients to develop awareness among a key demographic group that tends to be higher-income and better- educated with more disposable income. Connect with Customers By extending advertising onto the Internet, a company can reach its customers and enhance its relationship with them in an interactive environment. Consumers are Doing More and More on the Internet More people use comparative shopping and often go on to buy online. E-mail has become more central to how they communicate with friends and family, search has become the obvious way to look for information. Many internet users are already downloading music, pictures, and video; chatting live with friends and family; and also banking and paying bills online. It’s Online all the Time, Anytime 24 hours a day, 7 days a week, 365 days per year. Common Sense If an advertiser has customers on the web, they should also be advertising there to reach them as well.

6. Changing Minds: Internet Persuades Consumers 40% of US Internet users changed their opinions of brands, goods, and services due to information they gathered online. Based on an estimate of 152.8 million US Internet users in 2002, that 40% figure translates to over 61 million people swayed by online marketing. In addition, the survey also suggests that households with incomes of $75,000 or more are even more likely to switch brands after seeking online information.

7. Reaching a Younger Audience Generation Y: 12 to 24 Year Olds 57% of the 47 million in the United States that make up the demographic known as “Generation Y” have Internet access. This generation currently accounts for more than $149 billion dollars on an annualized basis, with some 15% of those dollars being spent online. Businesses that currently cater to this population segment, or more importantly, will cater to this demographic, will surely be rewarded when they spend their advertising dollars where this group spends their time. A recent study also found that persons 13 to 24 years old spend approximately 16.7 hours per week online; this does not count time spent with email. This is more time spent than with any other medium, television the expected second-place runner, takes up just over 13.5 hours of Generation Y's week.

8. Generation Y and Healthcare Generation Y: 12 to 24 Year Olds Surprise! Almost 50% of youth use the Internet to find health information. This may not seem so surprising when you consider how much the Internet has changed the way all kinds of information is now engaged and transferred. But this is a segment of the population for whom, traditionally, health has not been a concern. Health is important to all of us, but the fact that it would figure prominently with a bunch of teenagers and college students as something for which they rely more heavily on the Internet than any other media (including books). This suggests that a health website or a sponsorships of a health channel might just be an interesting place to purchase advertising that reaches this demographic and connects them with a physician or medical facility. Nielsen//NetRatings, August 2003

9. Reaching Tomorrow’s Clients Today Generation Y: 12 to 24 Year Olds Any company interested in being a significant force in the future with the consumers of tomorrow HAS to start figuring out how to talk to them today. Marketing to youth isn't just about selling them what they buy today; it is about getting them thinking about the things that all people are going to buy tomorrow. And it needs to be done in whatever cutting edge medium is available to them. A cross media research survey conducted by the Advertising Research Foundation identified powerful synergies between online and offline advertising: -Online extends reach and provides better coverage by helping marketers reach an additional 25% of target audience who are heavy online users that can't be reached via TV. -Online advertising improves overall campaign ROI by 10%. -Optimal results are achieved when online advertising receives 10-15% of total advertising budge (McDonald’s, Colgate & Kleenex case studies.)

10. Kodak: A Case Study When Kodak first marketed the personal use camera in 1900, the positioning of the product was against kids, and it sold for a dollar. The ads ran in popular rather than trade magazines, an unheard of tactic for something so "technical." Kodak shipped 150,000 its first year. Eventually, nearly every adult in America had a personal use camera, and multiple companies grew up around producing them. It could be argued that the reason the company of Eastman Kodak even exists today is because of this strategy. Some marketers and advertisers cling to the fact that they can reach enough of who they need to sustain their business in only one or two media environments, but the reality of media usage by the younger audience suggests that it is essential for advertisers to start changing their approach if they wish to be a significant brand in the future.

11. Internet Usage Continues to Expand Increasingly, we are a nation online. Individuals continue to expand their use of computers and the Internet.