1. Prentice Hall, © 200910-1 Internet and Nontraditional Media Part 3: Practice: Where are Media Heading? Chapter 10

2. Prentice Hall, © 200910-2 Questions We’ll Answer How does the Internet work and what are the roles it plays in marketing communication? How does Internet advertising work? How does email advertising work? In what ways are the different forms of interactive and alternative new media changing how advertising works? CHAPTER KEY POINTS

3. Prentice Hall, © 200910-3 Interactive Media INTERACTIVE MEDIA: WEB 2.0 AND YOU Media planners are trying to understand how the rapidly changing media landscape will affect advertising. Web 2.0 refers to the trend toward social networking and entertainment sites. The convergence and blurring of media forms is challenging media planners. Big media companies are acquiring Internet businesses to extend their online offerings and allow cross-media promotions.

4. Prentice Hall, © 200910-4 Internet Basics INTERACTIVE MEDIA: WEB 2.0 AND YOU By 2004, 60% of homes had computers, compared to 50% in 2000. Computers have revolutionized communication. 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

5. Prentice Hall, © 200910-5 Internet Tools and Formats INTERACTIVE MEDIA: WEB 2.0 AND YOU Company Web site/home page URLs (Uniform Resource Locator) and domain names Portals (e.g. Yahoo! or Google) Search Engines Chat Rooms Blogs Vlogs (e.g., Rocketboom.com) Netcasting (e.g., Blip.tv)

6. Prentice Hall, © 200910-6 The Internet Audience INTERACTIVE MEDIA: WEB 2.0 AND YOU Traditional media companies are concerned the Internet will cut into their audience base. Internet encompasses sites that appeal to almost any age or interest group. The most sought-after group is the otherwise hard-to-reach youth audience; particularly young males.

7. Prentice Hall, © 200910-7 Internet Advertising THE WEB AS AN ADVERTISING MEDIUM Internet ad spending is growing in double-digit percentages, versus traditional media in the 2–5% range. Predictions are that online advertising will grow to $25 billion in 2010 from $15.9 billion in 2007. 90% of Internet advertising is on a small group of large, established news media like nytimes.com, WSJ.com, and ESPN.com. DoubleClick, an Internet advertising service, places more than 60 billion online ads per month.

8. Prentice Hall, © 200910-8 Purposes of Internet Advertising THE WEB AS AN ADVERTISING MEDIUM Brand reminder to people visiting a Web site. Like an ad in traditional media, delivering information or a persuasive message. Driving traffic to the Web site by enticing people to click on a banner or button.

9. Prentice Hall, © 200910-9 Internet Advertising Formats THE WEB AS AN ADVERTISING MEDIUM Banner Ads –“Click through” rates are 1–7% –www.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 –Intrusive, annoying, less common Minisites –Don’t have to leave current site; response rates about 5% Superstitials –20-second video commercial Widgets –Brand-sponsored news notes, calculators, and other gadgets

10. Prentice Hall, © 200910-10 Email Advertising THE WEB AS AN ADVERTISING MEDIUM It’s inexpensive and easy Permission marketing—asking potential consumers permission to send email –Opt-in and opt-out strategies make mass email more acceptable because customers give permission to marketers to contact them. Viral marketing—uses email to circulate a message among family and friends Spam—bulk email; unsolicited messages sent to email boxes Can be profitable

11. Prentice Hall, © 200910-11 Internet Advertising Functions THE WEB AS AN ADVERTISING MEDIUM E-business/e-commerce –Businesses sell products, manage their businesses Information Role –Online publishing, encyclopedias Entertainment Role –Games, fashion, music, videos, YouTube, SecondLife (avatars) Social Role –MySpace Facebook Dialogue Role –Create two-way communication with customers –Create buzz or word of mouth between customers and potential customers

12. Prentice Hall, © 200910-12 New Internet Practices THE WEB AS AN ADVERTISING MEDIUM Offline advertising for Web Sites –Driving traffic to Web sites using conventional media Search Marketing –Ads adjoining results from keyword searches –Search optimization–maximizing the link between topics and brand-related Web sites Brand Experiences on the Web –Companies are making sites more entertaining and engaging (e.g., www.subservientchicken.com) Webisodes –Like TV with recurring episodes in a developing story The Global Web of Advertising –An international marketing and advertising medium –Problems include access, differing laws, language barriers, exchange rates, and technological differences

13. Prentice Hall, © 200910-13 Internet Advertising Issues THE WEB AS AN ADVERTISING MEDIUM 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. –Consumer response is measured by click-throughs. –Internet measurement may become more like TV with daypart data, and reach and frequency tools. 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 are better able to personalize their advertising messages –Privacy policies outline how/if data is(are) collected and used.

14. Prentice Hall, © 200910-14 Changes and Trends THE WEB AS AN ADVERTISING MEDIUM Increased bandwidth makes it easier to download rich media images Rich media is interactive ads that use sound, still images, and full-motion video Streaming video is moving images transmitted online and received through modems to computers

15. Prentice Hall, © 200910-15 Internet Advertising Advantages THE WEB AS AN ADVERTISING MEDIUM Relatively inexpensive. Reaches people who aren’t watching TV or reading newspapers. Internet advertising 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 actual sales. Small companies can easily and economically “look big” and compete with larger companies.

16. Prentice Hall, © 200910-16 Internet Advertising Disadvantages THE WEB AS AN ADVERTISING MEDIUM 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.

17. Prentice Hall, © 200910-17 Nontraditional Media Definitions NONTRADITIONAL MEDIA New media –New electronic forms of media Alternative media –Nontraditional or unexpected communication tools and events The media person’s search for new ways to deliver messages is just as creative as the creative person’s search for new advertising ideas. Because teens are often the first to use new media forms, finding new media is especially important for advertisers trying to reach the youth market.

18. Prentice Hall, © 200910-18 Guerilla Marketing NONTRADITIONAL MEDIA Unconventional, low-budget brand activities Get people where they live and work and play, create a personal connection Intended to create buzz on a limited budget Usually has limited reach but potential high “targetability” 2007 Cartoon Network’s Aqua Teen Hunger Force promo created a bomb scare in Boston

19. Prentice Hall, © 200910-19 Advertainment NONTRADITIONAL MEDIA When companies integrate brands into the theme of TV shows –FedEx in Castaway –GEICO cavemen show Also called branded entertainment Situational or contextual ads –Embedded in specific programs –Harder for the viewer to dismiss as ads –Product is a character in the program

20. Prentice Hall, © 200910-20 Video Games NONTRADITIONAL MEDIA A developing, major new medium for advertisers to target 12- to 34-year-old males (some girls). Opportunities to create online games as well as place products within video games. Planners and buyers are asking for standardized independent data that prove effectiveness.

21. Prentice Hall, © 200910-21 Wi-Fi and Mobile Marketing NONTRADITIONAL MEDIA Cell phones feature new products like graphic faceplates and specialty ring tones, and can play videos supported by advertising. Mobile marketing uses wireless media to deliver content and encourage direct response. Text messaging and instant messaging. Hybrid technologies like podcasting.

22. Prentice Hall, © 200910-22 Nonelectronic New Media NONTRADITIONAL MEDIA Ads are appearing on backs of toilet stalls, eggs cartons, apples, subway turnstiles, pizza boxes, airline seatbacks, motion sickness bags, the bottoms of flip-flops, NASCAR race cars. NASA considering printing emblems and logos on space shuttle and space station. YourNameIntoSpace.org will put your logo on satellites.

23. Prentice Hall, © 200910-23 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall