1. Part 4 Practice: Where are Media Headed? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 13-1

2.  How does the Internet work and what are the roles it plays in marketing communication?  What are the most common types of online marketing communication?  In what ways are Internet practices, issues, and trends evolving? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-2

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4.  Media planners are trying to understand how the rapidly changing media landscape will affect advertising and marketing communication.  Web 2.0 refers to the trend toward social networking and entertainment sites.  The convergence and blurring of media forms is challenging media planners. For an example of convergence, go to: www.BudgetTravel.msnbc.com www.BudgetTravel.msnbc.com Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-4

5.  Internet: a linked system of international computer networks.  World Wide Web: the information interface that allows people to access the Internet through an easy-to-use graphical format.  The Internet is still evolving and is driven by innovation.  It is useful for communicating brand information, but any problem can travel around the world instantly. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-5

6.  Why has the Internet become so important to consumers and marketers in such a short time?  Here are a few reasons: ◦ Information ◦ Choice ◦ Accessibility ◦ Speed Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-6

7. Other important Internet terms and tools  URLs and domain names  Portals: such as AOL or MSN.Yahoo!  Search Engines: such as Google  Netcasting, such as Blip.tv  Broadband: high-speed Internet connection As a class: define and discuss each of these terms. Provide examples of each. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-7

8.  Internet use has expanded over the years to sites that appeal to almost any age or interest group.  The most sought-after group is the hard-to-reach youth audience, particularly young males.  The Internet is the ultimate niche medium because it appeals to people’s specific interests. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-8

9.  The Internet has created new ways to do business.  Many companies sell products online, particularly to the B2B market.  Consider: ◦ Amazon.com ◦ eBay ◦ iTunes  These companies exist only as online businesses. They are Internet brands. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-9

10. Purposes of online marketing communication: 1. It provides a brand reminder message to people visiting a website. 2. As with an ad in traditional media, it delivers an informational or persuasive message. 3. It drives traffic to the website by enticing people to click on a banner or button. 4. It provides search capabilities to consumers. 5. It enables interactivity with a company or other consumers. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-10

11.  E-business or e-commerce ◦ Businesses use it to sell products, manage their operations.  The information role ◦ Includes online publishing, encyclopedias ◦ www.ezinearticles.com uses only reader-generated content. www.ezinearticles.com  The entertainment role ◦ Includes games, fashion, music, videos, YouTube, SecondLife (avatars) Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-11 You can still play Pac-Man!

12.  The social role ◦ Social networking allows users to express themselves, interact with friends, and publish their own content. ◦ Examples include Facebook and MySpace.  The word-of-mouth role ◦ Creates a dialogue with customers. ◦ Stimulates conversation between customers and potential customers Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-12

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14. Websites  Also called a home page, a website is the online face a company presents to the public.  Websites blur the distinction between advertising, direct marketing and public relations. As a class: To see how Web marketing communication agencies promote themselves and establish their own brand identity, check out Risdall Advertising at: www.risdall.netwww.risdall.net Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-14

15. Websites  Stickiness: the degree to which a website encourages visitors to “stick around.”  Navigation: The ease with which users can locate and move through your website. Check out these two highly “sticky” websites:  www.CampbellsKitchen.com www.CampbellsKitchen.com  http://tdi.vw.com http://tdi.vw.com Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-15

16. E-mail communication  E-mail is a very inexpensive form of advertising.  Viral marketing uses e-mail, Facebook, and Twitter to circulate a message among family and friends.  Remember “The Diet Coke/Mentos Experiment?” The viral advertising generated boosted Mentos mint sales by 15 percent! Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-16

17. Banner and display ads  Banner Ads ◦ “Click-through” rates are often less than 1 percent. ◦ Entertainment helps. Check out www.valleyofthegeeks.comwww.valleyofthegeeks.com  Skyscrapers ◦ Extra-long, skinny ads down the side of a Web site. ◦ Response rates can be 10 times traditional banner ads.  Pop-ups and pop-behinds ◦ Often seen as intrusive and annoying, these are less common. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall1-17

18.  The Internet combines the best aspects of traditional media: ◦ Motion and audio ◦ Interactivity ◦ Depth of information  And often at a much lower cost than traditional media.  Most forms of online advertising weathered the recent recession better than traditional advertising forms. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-18

19. Banner and display ads  Micro-sites or mini-sites ◦ Users don’t have to leave current site. ◦ Response rates average around 5 percent.  Superstitials ◦ Thought of as the “Internet’s commercial.” ◦ Designed to work like a 20-second TV ad.  Widgets ◦ Allow people to create and insert professional-looking content into their personal websites. ◦ Includes brand-sponsored news notes, calculators, and more. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-19

20. Online video ads  Multiple formats have forced advertisers struggle to find the best platforms.  The lack of standardization have raised agencies’ production costs as they try to adapt to new formats. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-20

21. Search advertising  Search engine advertising is driven by keywords that consumers use to search for information.  Search marketing enables marketers to position brand messages adjoining the list of sites compiled in responses to a keyword search by search engines.  Because consumers initiate the search, the adjoining ads are not perceived to be as intrusive as other forms of advertising. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-21

22. Search optimization  This practice maximizes the link between topics and brand-related Web sites.  Companies try to affect their search engine rankings to drive more traffic to their websites.  They want their ads to appear as close to the top of the list as possible. Classified ads  Local advertisers also use local media websites and Craigslist to sell products and services. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-22

23. Internet ad sales  In 2009, the market for online display ads was estimated at $21 billion per year.  Google has been the most successful at attracting advertising.  Selling online advertising space is complicated. Rates and services vary widely.  Middlemen companies act as brokers, packaging online ad space across different sites. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-23

24. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-24 This is a button on the on the DoubleClick website that lets advertisers create animated widget ads.

25.  Social media marketing refers to the use of: ◦ Blogs ◦ Linked social networks ◦ Online communities ……to build relationships with customers.  Social media is used to: ◦ Promote brands ◦ Engage customers ◦ Create brand relationships Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-25

26. As a class:  For some words of wisdom on social media, review: “A Matter of Principle: Consumers, Advertisers, and Social Media”  What is the principle of “homophily” that drives online communities and digital associations? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-26

27. Blogs, Micro-blogs and chat rooms  A blog is a diary-like Web page created by individuals to talk about things that interest them.  Blogs are produced by some 100 million people worldwide.  Corporations use blogs to engage stakeholders. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-27

28. Blogs, micro-blogs and chat rooms However, bogs take a lot of time. Many bloggers run out of steam or move to social media.  They are sometimes criticized as “stealth advertising.”  Twitter has pioneered the mini-blog with 140- character posts, called “tweets.”  Groups of people with common interests can meet and share their experiences through chat rooms. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-28

29. Social networks  These link friends, fans, or others who share interest in some topic.  MySpace pioneered the concept, but has lost market share to Facebook in recent years.  Social media users tend to be younger and female.  Companies and brands now have Facebook and MySpace pages with their own brand profiles.  Social media marketing can increase a brand’s Web presence and help manage its Internet image. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-29

30. Video and image sharing  Using this type of social media, users can post videos and photographs.  YouTube is the Goliath of this genre. It now plays more than 100 million clips per day.  Skype is a video chat service that works like a video phone.  Popular TV programs and commercials are often uploaded to YouTube pages as viral videos. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-30

31. Social games and virtual communities  Designed for people who want to live imaginary lives online by playing social games.  It started with Second Life in 2003. The action turned to Farmville in 2009. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-31

32. Social media strategies  Marketers are working to find the best ways to use social media and take advantage of its strengths.  Search ads combined with social media campaigns generate the highest-level results.  Marketers who use social media recognize the value in conversations and customer relationship- building communication. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-32

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34.  Internet marketers work to drive traffic to their sites by using offline advertising.  Offline advertising appears in conventional media.  Recall the Chapter 12 opening story on Aflac. Here, the company used print media to entice readers to check out its website.  Print is useful because it presents the URL in a format that the reader can note. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-34

35. Some examples of note:  Podcasts, audio shows from the Web, are changing how we listen to the radio.  TVs and computers enable you to access the Internet from your TV or watch video downloads from your cell phone on your big-screen TV.  Xbox game players can access Twitter and Facebook from the game’s console.  Hulu can feed streaming video from movies and TV programs to smart phones and gaming consoles. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-35

36. Tagging, hashtags, and tag clouds  In many social marketing formats, posts are categorized by tags.  Tagging is a way to track keywords by inserting a hash symbol (#) before a word in a Tweet.  Your note, as well as others with the same hashtag, will show up on www.hashtags.comwww.hashtags.com  Tag clouds are visual representations of the use of keywords in searchs and tags in social networking. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-36

37. Using the Internet across borders  With its global reach, the Internet offers real strength to global marketers.  However, challenges and barriers related to: ◦ Access ◦ Legal issues ◦ Language ◦ Currency ◦ Technology  Marketers must also remember the technological differences among worldwide Internet users. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-37

38.  Measurement ◦ Feedback is rapid, but with no standards for measurement. ◦ Hits, viewers, unique viewers, and page views don’t offer insight about motivation or attention.  Internet targeting and privacy ◦ Cookies track your movements online and report back to site owners who store or sell your information. ◦ Companies that keep track of their customers’ online behavior can personalize their advertising messages. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-38

39. Advantages  It is relatively inexpensive.  It reaches people who aren’t watching TV or reading newspapers.  It is easy to track and effective at reaching highly targeted audiences.  Advertisers can customize and personalize messages.  For B2B, Internet advertising can provide sales leads or sales.  Small companies can easily and economically “look big” and compete with larger companies. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-39

40. Limitations  Strategic and creative experts aren’t able to consistently produce effective ads and to measure their effectiveness.  Clutter may even be worse than in other media. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-40

41. In Chapter 14, we will:  Pull together the digital media opportunities we have just learned about.  Begin a discussion of how media planning and buying are managed. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-41

42. “Mission Accomplished” Key lessons:  The Virtual Army Experience effectively reached and built relationships with potential recruits by using media creatively and interactively.  Today’s audience is drawn to a brand they can interact and connect with on a more personal level.  As a class: what others can you think of? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall13-42