14 Media Planning: Advertising and IBP in Digital/Interactive Media ©2012 Cengage Learning. All Rights Reserved. No Wires Means New Rules New technologies are changing digital/interactive advertising opportunities: • WiFi became popular in 2004 because it provided wireless Internet access connections reaching out about 300 feet. • WiMax is similar to WiFi in that both create wireless “hot spots” but iMax has a range of 25-30 miles! • Mi-Fi is similar to WiMax but adds the capability of accessing the Internet while the user is moving in a car or a train. • Ultrabroadband is a technology that will allow people to move extremely large files quickly over short distances. • Technology now provides the option for podcasting, tablet, and smartphone advertising—but will consumers accept the intrusion? Role of the Digital/Interactive Media in the Advertising and IBP Process • Internet will not replace traditional media • Advertisers have discovered ways to use digital/interactive as a key component of integrated brand promotions • Auction sites provide small businesses with new opportunities • Web 3.0 (social networking) offers a whole new way of communicating The (R)evolution of the Internet • Connected consumer experience: community, empowerment, liberation • Connected consumers desire to control their information flow • In 1994 advertisers began venturing on the Internet, retreated in 2000 and returned in 2004 • At present: – 1.8 billion users worldwide – Ad revenues of $40 billion by 2012 Using Internet Digital/Interactive Media: The Basics • Email – Common communication option for marketers – Consumer resistence is lessened by “opt-in” consent – Spam is a plague, but can achieve 3-5 percent response rate • The WWW – An electronic graphical interface with 24 hour access – Developed originally for military use – – – – Consumers actively/voluntarily search for information The Web is a vast library Surfing is gliding from page to page Search engines allow surfing by key words Portal • A Portal is a starting point for Web access and search and channeling surfers to particular sites • Portals can be general—serving cross sectional interests of surfers, like Yahoo! • Portals can be vertical—serving specialized markets, like Jobster • Portals can be horizontal—providing links across many industries, like Verticalnet • Portals also can be ethnic or community based, like Latina Online Latina.com 2002 What type of portal is this? Websites and Blogs • A website is a collection of Web pages, images, videos and other digital content • A “mash up” is the combination of one or more websites in to a single site • A personal website can be created by individuals to highlight interests/lifestyle • A blog is a personal journal that is frequently updated, intended for public access, can be personal or professional Advertising on Digital/Interactive Media Internet Advertising Expenditures • 1995 = $54.7 million • 2004 = about $8 billion • 2010 = estimated at $23 billion • Still only 6-8 percent of all media spending Advantages of Digital/Interactive Media Advertising • Target Market Selectivity • Track users interaction with brand • Deliverability, Flexibility, Reach • Deliverability: 24/7 • Flexibility: changed immediately • Reach: computers, mobile devices • Interactivity: click-through, purchase • Easy integration with other IBP tools Cost of Internet Digital/Interactive Advertising • Reach and tracking capability have caused cost to rise • Banner at high traffic site = $100,000/day • CPM compares favorably with other media • But, segmented/motivated audiences are advantage Types of Digital/Interactive Internet Advertising • Paid search – Search engine optimization (SEO) • Display/Banner ads • Sponsorship • Pop up/Pop-under – Splash screen • Rich media/video and audio • Corporate/brand home pages • Widgets • Virtual Worlds -Second Life • Video games Integrated Brand Promotion Tools and Digital/Interactive Media: Sales Promotion • Coupons –Ease of distribution –Higher redemption rate • Contests and Sweepstakes –Coordinated with off-line programs –Partnerships are facilitated • Sampling, Trial Offers, Price-off deals –Offers made through pop-ups, email, website distribution Integrated Brand Promotion Tools and Digital/Interactive Media: Public Relations and Publicity • Classic PR news dissemination • Highly targeted press releases • Global distribution is inexpensive and instant • Variety of Web organizations facilitate PR programs Integrated Brand Promotion Tools and Digital/Interactive Media: Direct Marketing / E-Commerce • Email –Customized/target messages –Better with opt-in lists • Mobile marketing –Smartphone, MP3, laptop tablet message transmission –Video, TV reception and use by consumers –Surprisingly favorable consumer response • Virtual malls –Gateway to Internet storefronts • E-Commerce and Online Retailing –B-to-B as well as consumer commerce –Direct selling as well as promotion Integrated Brand Promotion Tools and Digital/Interactive Media: Personal Selling • Seems like a contradiction • Digital/interactive communications facilitate process • Sales force can use email and social network sites to communicate to customers • Firm can forward brand inquiries to sales force Using Social Media for Advertising/IBP • Social media use by consumers is huge and global • Demographics are broader, more diverse than expected • Big firms having some success • Does brand exposure at social network sites build brand awareness and affinity? –This is multi-billion dollar question Issues in Developing a Website • Costs can be high – $1 million to develop – $4.9 million to launch – $1 million/year to maintain • Basic hardware and software is simple • Small firms can use small-business service firms at reasonable cost • B-to-B brands use websites effectively too Measuring the Effectiveness of Digital/Interactive Advertising and IBP Term Definition Hits Number of elements requested from a page Page views Number of pages sent to the requesting site Visits Occasions user “x” interacted with site “v” after “z” time has elapsed Unique visitors Number of different people visiting a site Web Analytic Allows for tracking of website usage Software New Methods Tracking Behavior of a sample of “Internet families” and projecting behavior to larger populations Internet Data and Click Fraud Term Definition Impressions Number of times a page is viewed Pay-per-click Payment rate for impressions Click throughs Clicking on ad and through to website Click fraud False generation of site clicks to generate payment per click Managing the Brand in an Community E- • Social networks give consumers new ways of communicating with each other • Users form online “communities” • Dealing with brand communities is a challenge and a huge opportunity in a Web 3.0 world Courtesy of Collabrio.com Brands can be built in E-Communities Future of Digital/Interactive Advertising and IBP • Introduction of new technologies such as wireless communication and web launched video/audio are new opportunities • Mergers and partnerships (Microsoft and Yahoo!?) • Merging traditional and new media with wireless communication technology for “broadcast web” • Potential of location based mobile marketing for advertising and IBP campaigns (e.g. Foursquare)