Media Planning: Advertising

and IBP in Digital/Interactive

Media

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©2012
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 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
14 consumers accept the intrusion?
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 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
14 whole new way of communicating
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
 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
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 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
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 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

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 What type of portal is this?

Latina.com 2002
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 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
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 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

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 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
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 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

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 Types of Digital/Interactive
Internet Advertising

• Paid search • Rich media/video

– Search engine and audio
optimization (SEO)
• Corporate/brand
• Display/Banner ads
home pages
• Sponsorship
• Widgets
• Pop up/Pop-under
• Virtual Worlds
– Splash screen
-Second Life

• Video games

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 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
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 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

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 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
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 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

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 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

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 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

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 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
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 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

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 Managing the Brand in an E-
Community
• 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

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 Brands can be built in
E-Communities

Courtesy of Collabrio.com
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 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)
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