© 2010 South-Western, a part of Cengage Learning All rights reserved. PowerPoint Presentation by Charlie Cook The University of West Alabama Eighth Edition Internet Advertising CHAPTER 13 1. Appreciate the magnitude, nature, and potential for Internet advertising. 2. Be familiar with the two key features of Internet advertising: individualization and interactivity. 3. Understand how Internet advertising differs from advertising in conventional mass-oriented advertising media, as well as how the same fundamentals apply to both general categories of ad media. 4. Understand the various forms of Internet advertising: display ads, rich media, e-mail advertising, Web logs, search engine advertising, and advertising via behavioral targeting. Chapter Objectives After reading this chapter you should be able to: © 2010 South-Western, a part of Cengage Learning. All rights reserved. 13–2 5. Appreciate the importance of measuring Internet advertising effectiveness and the various metrics used for this purpose. Chapter Objectives (cont’d) After reading this chapter you should be able to: © 2010 South-Western, a part of Cengage Learning. All rights reserved. 13–3 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 13–4 The Internet As an Advertising Medium The Internet As an Advertising Medium • The Internet’s Evolving IMC Roles The Internet’s Evolving IMC Roles Building demand Building demand Conducting transactions Conducting transactions Filling orders Filling orders Providing customer service Providing customer service Serving as an advertising medium Serving as an advertising medium • Issues and Concerns Issues and Concerns Increasing flow of advertising revenue to the Internet Increasing flow of advertising revenue to the Internet Consumer control of information received Consumer control of information received Versatility and effectiveness of Internet Versatility and effectiveness of Internet communications in targeting and reaching customers communications in targeting and reaching customers © 2010 South-Western, a part of Cengage Learning. All rights reserved. 13–5 The Two i’s of the Internet: The Two i’s of the Internet: Individualization and Interactivity Individualization and Interactivity • Individualization Individualization Recognizes that the Internet user has control over the Recognizes that the Internet user has control over the flow of information flow of information • Interactivity: Interactivity: The capabilities that the Internet gives users to select The capabilities that the Internet gives users to select the information that they perceive as relevant the information that they perceive as relevant The capabilities that the Internet gives brand The capabilities that the Internet gives brand managers to build relationships with customers via managers to build relationships with customers via two-way communication two-way communication © 2010 South-Western, a part of Cengage Learning. All rights reserved. 13–6 The Internet Compared The Internet Compared with Other Ad Media with Other Ad Media • Interactivity as a Disadvantage Interactivity as a Disadvantage Internet users are highly involved and goal driven Internet users are highly involved and goal driven (“leaning forward”) when connecting to the Internet, (“leaning forward”) when connecting to the Internet, making them more apt to actively avoid unsolicited making them more apt to actively avoid unsolicited advertisements as clutter. advertisements as clutter. Traditional media users are more casually involved Traditional media users are more casually involved ( ( ”leaning back”), making them more receptive to ”leaning back”), making them more receptive to advertisements embedded in the media. advertisements embedded in the media. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 13–7 Internet Advertising Formats Table 13.1 • Web Sites • Display or Banner Ads • Rich Media Formats • Pop-Ups • Interstitials • Superstitials • Video Ads • Blogs, Podcasts, and Social Networks • Blogs • Podcasts • Social Networks • E-mail • Opt-in Versus Spam • E-zines • Wireless E-mail Advertising • Mobile Phone Advertising • Search Engine Advertising • Keyword-Matching Advertising • Content-Targeted Advertising • Advertising via Behavioral Targeting © 2010 South-Western, a part of Cengage Learning. All rights reserved. 13–8 Web Sites Web Sites • Uses for Web Sites Uses for Web Sites As an advertisement for the company As an advertisement for the company As a venue for generating and transacting exchanges As a venue for generating and transacting exchanges between organizations and their customers between organizations and their customers As a link to other integrated marcom communications As a link to other integrated marcom communications • Well-Designed Web Sites Well-Designed Web Sites Are easy to navigate Are easy to navigate Provide useful information Provide useful information Are visually attractive Are visually attractive Offer entertainment value Offer entertainment value Are perceived as trustworthy Are perceived as trustworthy © 2010 South-Western, a part of Cengage Learning. All rights reserved. 13–9 Display or Banner Ads Display or Banner Ads • Click-through Rates (CTRs) Click-through Rates (CTRs) Rates are less than 0.3% Rates are less than 0.3% —e —e xposure is not equivalent xposure is not equivalent to attention to attention B2B rates are higher than B2C rates B2B rates are higher than B2C rates CTRs are a function of brand familiarity: CTRs are a function of brand familiarity: Known-brand CTRs decrease with multiple exposures while Known-brand CTRs decrease with multiple exposures while unknown-brand CTRs increase with multiple exposures unknown-brand CTRs increase with multiple exposures • Banner Ad Benefits Banner Ad Benefits Top-of–mind (TOMA) awareness for established Top-of–mind (TOMA) awareness for established brands increases brand equity brands increases brand equity Increased probability of purchasing behavior by Increased probability of purchasing behavior by consumers consumers © 2010 South-Western, a part of Cengage Learning. All rights reserved. 13–10 Types and Sizes of Internet Marketing Units (IMUs) Table 13.2 [...]... Barbiegirls.com Are presently unproven marcom tool © 2010 South-Western, a part of Cengage Learning All rights reserved 13 13 E-mail Advertising • E-mail as a Effective Marcom Tool + Delivering advertising messages + Providing sales incentives to mass audiences or targeted groups – Sending junk mail (spamming) and phishing • Opt-In E-mailing Is the process of marketers asking for permission to... marketers to provide targeted information that is South-Western, a receiver © 2010 of interest to the part of Cengage Learning All rights reserved 13 14 E-mail Advertising (cont’d) • E-mail magazines (E-zines) Are free magazine-like publications that deliver specialized content and credible advertising messages to targeted audiences • Wireless E-mail Advertising (WiFi) Allows users to connect to... Profile of Web-site visitors Visitors’ previous Web-site search behavior Average time per visit Number of visits by unique visitors Average interval between user visits © 2010 South-Western, a part of Cengage Learning All rights reserved 13 24 Metrics for Measuring Internet Ad Performance • Click-through Rate (CTR) The percentage of people who are exposed to an Internet-delivered ad and... Thousand Impressions (CPM) Assesses how much (on a per-thousand-impressions basis) it costs to place an online ad Measures when an ad comes on to the eyeballs of the user (opportunity-to-see, OTS) but provides no real information about the actual effect of the advertisement © 2010 South-Western, a part of Cengage Learning All rights reserved 13 25 Metrics for Measuring Internet Ad Performance (cont’d)... Rich Media Advertising Formats Pop-Ups Interstitials © 2010 South-Western, a part of Cengage Learning All rights reserved Superstitials Video Ads and Webisodes 13 11 Blogs, Podcasts, and Social Networks • Blogs Are written by individuals to exchange their views on issues (e.g., products and brands ) with others in online forums Are citizen journalism—online word-of-mouth Are an interactive medium... businesses can use to connect with customers and appear more credible • Podcasts Are self-produced radio-style online programs to which consumers can subscribe Enable advertisers to © 2010 South-Western, a parttarget consumers who have of self-selected programs Cengage Learning All rights of interest to them reserved 13 12 Blogs, Podcasts, and Social Networks • Social Networks Allow users to interact... Google acts as an ad of © 2010 South-Western, a partagency placing ads and receiving a commission Cengage Learning All rights reserved 13 19 Purchasing Keywords and Selecting Content-Oriented Web Sites (cont’d) • Click Fraud Occurs when a competitor or other party clicks on a sponsored link repeatedly in order to harm the other advertiser Occurs when employees of content-oriented websites click on links... South-Western, a part of Cengage Learning All rights reserved 13 20 Advertising via Behavioral Targeting • Behavioral Targeting Involves directing online advertisements only to consumers showing an interest in a particular product or service by their site-selection behaviors Involves the use of “cookies” that record the activities of visitors to web sites— regarded by some users as © 2010 South-Western,... advertising space on cell screens Gaining consumer acceptance of opt-in advertising © 2010 South-Western, a part of Cengage Learning All rights reserved 13 16 Search Engine Advertising (SEA) • Search Engine Advertising (SEA) Is fastest growing form of Internet advertising—about 40% of online advertising spending Includes a variety of well-known services (e.g.; Google, MSN Search, and Yahoo!) that people... purchases © 2010 South-Western, a part of Cengage Learning All rights reserved 13 18 Purchasing Keywords and Selecting Content-Oriented Web Sites • Keyword Matching Advertising Advertisers bid for keywords by indicating how much they are willing to pay each time an Internet shopper clicks (cost per click, CPC) on a sponsored link to reach their website as a result of a search • Content-Targeted Advertising . 2010 South-Western, a part of Cengage Learning. All rights reserved. 13 15 E-mail Advertising (cont’d) E-mail Advertising (cont’d) • E-mail magazines (E-zines) E-mail magazines (E-zines) Are. marcom tool © 2010 South-Western, a part of Cengage Learning. All rights reserved. 13 14 E-mail Advertising E-mail Advertising • E-mail as a Effective Marcom Tool E-mail as a Effective Marcom. Networks • Blogs • Podcasts • Social Networks • E-mail • Opt-in Versus Spam • E-zines • Wireless E-mail Advertising • Mobile Phone Advertising • Search Engine Advertising • Keyword-Matching Advertising • Content-Targeted Advertising • Advertising