1. 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.

2. 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

3. 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

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

5. 13-5 Worldwide Internet Penetration RegionPopulation (millions)Penetration % Africa893.21.4 Asia3,607.57.1 Europe730.930.7 Middle East259.06.5 North America325.268.6 Latin America541.89.4 Total6,390.112.5

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

7. 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

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

9. 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

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

11. 13-11 Types of Direct Mail

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

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

14. 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

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

16. 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

17. 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

18. 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  Email  Email advertising  Firewall  Folder  Freeware  House list  House organ  Interactive TV

19. 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

20. 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