The Internet and Interactive Media 2007 Mc GrawHill

The Internet and Interactive Media © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Growth in Advertising Expenditures on the Internet 1969 - ARPANET 1993 – World Wide Web 1994 – Advertisements on Hot. Wired 2005 – Internet advertising exceeds $10 billion © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

The Rapid Adoption of the Internet © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Godaddy. com Offers Affordable Web Presence *Click outside of the video screen to advance to the next slide © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

The Website Web Design Issues Contact Commerce Construction Communication Content Community Customization © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Huggies Goes Well Beyond Providing Information © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Yahoo Touts Medical Benefits of Shopping Online *Click outside of the video screen to advance to the next slide © 2003 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Internet Communications Objectives Create Awareness Generate Interest Stimulate Trial Objectives Disseminate Information Create a Strong Brand Create an Image © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Snapple Uses the Internet to Create Interest © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

A Website Used for Image Building © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Test Your Knowledge Which of the following is NOT a valid objective for a marketer who is employing the Internet as a communications vehicle? A) to create an image B) to generate interest C) to disseminate information D) to prevent price wars E) to create awareness © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Internet Sales Objectives- E-commerce The direct selling of goods and services through the Internet May be primary or secondary objective © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

E-Commerce on the Web E-Commerce Rapid growth rates likely to continue Fast growth in “downloadable” purchases Both consumer and business-to-business © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

ebay Is a Well Known E-Commerce Site © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Integrating the Internet into an IMC Program Advertising Sales Promotions The Internet site should be integrated with: Personal Selling Public Relations Direct Marketing © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Integrating the Internet – Advertising Part 1 Banners Sponsorships Internet Advertising Has a Variety of Forms: Pop-ups/ Pop-unders Interstitials Push Technologies Links © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Typical Banner Ads © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Integrating the Internet – Advertising Part 2 Paid Search Behavioral Targeting Internet Advertising Has a Variety of Forms: Contextual Ads Rich Media Additional Forms © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Rich Media “A broad range of interactive digital media that exhibit dynamic motion, taking advantage of enhanced sensory features such as video, audio, and animation. ” Online Commercials Video on Demand Webisodes Other Forms © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Additional Internet Advertising Forms Latest Media Really Simple Syndication (RSS) Podcasting Blogs © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Test Your Knowledge CDW Computer Centers sells computer equipment to small- and mid-sized businesses. Its Web site provides in-depth information on its products, its customer service, its shipping policies, and its suppliers. Like most business-to-business sites, the primary objective of this Web site is to: A) create a sustainable competitive advantage B) create an image C) disseminate information D) replace advertising in trade journals E) prevent price wars © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

National Association of Realtors Uses TV and the Internet *Click outside of the video screen to advance to the next slide © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Sales Promotions Are Common on Websites © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Personal Selling on the Internet May Replace Personal Selling Reduces high cost of personal calls Vastly increases potential reach May Enhance Personal Selling Efforts Provides quick, easy, information to prospects May help to enhance customer data bases May improve oneon-one communications May be a source of leads May stimulate trial of the goods or service May serve as a sales conference medium © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Public Relations on the Internet © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Philanthropists on the Web © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Direct Marketing and the Internet: Direct Mail (Email) Often used by catalogers Highly targeted Direct Mail (Email) Attempts to reach those with specific needs © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Relies on email lists

Infomercials on the World Wide Web Infomercials Program content similar to television, cable or satellite Web provides for greater audience interaction © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Measures of Effectiveness Internet-Specific Measures Cross-Media Optimization Studies (XMOS) Traditional Measures Recall/retention Surveys Sales © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin Tracking

Sources of Measurement Data Arbitron Data Source MRI and SMRB Audit Bureau of Circulation Internet Advertising Bureau (IAB) e. Marketer Nielsen Net Ratings Jupiter Media. Metrics, Inc. © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Internet Advantages and Disadvantages Advantages Disadvantages Target Marketing Measurement problems Message Tailoring Annoyance Interactive Capabilities Clutter Information Access Potential for deception Sales Potential Privacy Creativity Poor reach Exposure/Speed Irritation Complement to IMC © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Test Your Knowledge Interactive TV, interactive CD-ROMs, kiosks, and interactive phones: A) are viewed by businesses as breeches of consumer rights to privacy B) can be used as contributors to an IMC program C) cannot be linked with traditional advertising media D) will replace the Internet in most IMC programs E) are not viewed as being viable elements within a well-designed IMC program © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin

Additional Interactive Media Interactive TV—Allows the Viewer to Interact With the Television Program and Advertising Wireless—Communications to Users Through Satellite Broadcast Systems or Cellular Phone Systems © 2007 Mc. Graw-Hill Companies, Inc. , Mc. Graw-Hill/Irwin