1. Interactive Brand Communication Class 10 Media Planning/Buying Issues

2. Ad Placement Issues  Delivery among Targets (Targeting Capabilities)  Advertising Pricing (& Cost-efficiency)  Reach (by entire buy, if possible)  Frequency (by entire buy, if possible)  Ad Position Effects  BPI Value of a Vehicle  Qualitative Values

3. Delivery Among Targets  Content Fit  based on analysis of consumer characteristics, interest, values & lifestyle, etc.  Size of Delivery (target impressions, when possible):  % delivery breakdown by consumer groups – demographic, geographic, usage, etc.  Site Reach & Target Reach  site reach: total unique users of the site  target reach: target unique users as % of total unique users

4. Delivery Among Targets  Site Frequency  frequency control capabilities  Targeting Capabilities  geodemographics, behavioral, any desired option, etc.

5. Ad Pricing  Sources for Web Advertising Sites & Rates  Who sells ad space on the Net?  How much does it cost?  Ad Pricing Methods & Cost-Efficiency  How is ad priced and its cost-efficiency determined?  Tactics of Buying & Selling Ad Space

6. Ad Pricing Sources for Web Ad Sites & Rates SRDS Interactive – general source –covers the largest number of sites PSA Banner Ads -- PSA only Ad Networks DoubleClick (www.doubleclick.net) 24/7 Media (www.247media.com) Link Exchange (www.bcentral.com)www.doubleclick.netwww.247media.comwww.bcentral.com Ad Auction (www.adauction.com)www.adauction.com

7. Ad Pricing Ad Pricing Methods & Cost-Efficiency CPM (Cost-Per-Thousand) Impressions: Cost for 1000 pages or ads displayed or requested (page views or ad views) Most popular method Current Rates at $5 - $100 Rate varies by site (branded sites charge more) and by targeting option (the more specific, the more expensive)

8. Cost Per Click (Click-Through) Paying only for the number of click-throughs made (those who clicked the given ad and linked to the destination page –mini-page in the current site or advertiser’s site) Demanded by direct response advertisers, though its use or popularity is decreasing Higher rates than CPM Ad Pricing Ad Pricing Methods & Cost-Efficiency

9. Cost Per Sales Paying only for the completed sales transaction (in terms of so much $ or % of the sale, which varies on the value of the item sold) Cost Per Sales Leads Paying for other desired actions leading to sales (store visits, leaving info for contact, test- drive, etc.) Ad Pricing Ad Pricing Methods & Cost-Efficiency

10. Flat Fee A set amount charged, regardless of # impressions or clicks Used often for content sponsorships Rate may range from $200 to $200,000 per month Ad Pricing Ad Pricing Methods & Cost-Efficiency

11. CPVT (Cost per View-Through) Number of those who are exposed to the ad and take action within 30 days of the exposure New approach, getting popular for branding marketers

12. Ad Pricing Ad Pricing Methods & Cost-Efficiency Auctions Price determined via auction May be much lower Hybrid Pricing Combining two or more methods Popular method

13. Tactics of Buying and Selling Ad Space  Study Competitive Pricing  Be Open to Negotiation  Flexibility is the Key

14. Reach Unduplicated audience = Unique users expressed in number or % of total online population Reported by week, month, quarter Tactics of building reach (in general): –Use many content categories; use multiple sites within a category (thru ad networks); use top sites in unique users (costly); and/or buy keywords at search engines

15. Frequency  Average # of times the target is exposed to ad  Issue: How much is optimal?  Limit ad frequency to avoid burnout? Or the more the better?  How much is too much? -- depends on the goal (direct response vs. branding), and many other factors.  3 exposures in a purchasing cycle?  Tactics of Building Frequency:  Use one or two content categories; use one or two in each category  Develop and rote multiple banners within the same site

16. Ad Timing  When is the best time to run ads?  Least developed, increasingly important area – how ad timing is related to the desired response  Advertising will be most effective when delivered right before one is about to make a purchase decision or when he searches for the relevant information  Traditional tactics may apply (e.g., double-spots, roadblocks, etc.)

17. Ad Positions within a Site  Keep the Message Close to Page Content  (Place at the Top and/or Bottom of Page??)  Place a Third Way Down Close to the Scroll Bar

18. BPI Value Assessment  Most useful for direct response marketers  NetScore by comScore Network Inc. – see Table  BPI overall vs. BPI by Product Category (ROI or cost-efficiency indicator)  100 = average likelihood of purchase; 100 = below average; the larger the BPI, the more ROI (cost efficient) the buy  Example: a site with overall BPI of 120 (site visitors are 20% more likely than an average Internet user to purchase anything); a site with BPI of 120 for Travel (site visitors are 20% more likely than an average Internet user to travel)

19. BPI Value Assessment  Other Valuable Information (see the table in Experiential Exercises)  Unique User weighed by BPI:  Indicates the relative volume of sales to be generated by site; the larger this number, the larger the sales

20. Qualitative Values  content match  ad clutter  audience loyalty/site stickiness  ad inventory availability  category exclusivity

21. Qualitative Values  any added value (special deals & discount)  image and reputation  Read Zeff & Aronson book for others (reporting quality & frequency, performance guarantees, etc.)