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

2. 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

3. 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

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

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

6. 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

7. 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

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

9. 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

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

11. 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

12. 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

13. 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

14. 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

15. 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

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

17. 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

18. 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